diff --git a/ChangeLog b/ChangeLog
index 17fb409f90..e030dfa0f7 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+Thu Sep 23 09:01:28 2010  Nobuyoshi Nakada  <nobu@ruby-lang.org>
+
+	* vm_insnhelper.c (vm_cref_push): no outer cref is needed for proc
+	  from method.  Bug #3786, Bug #3860, [ruby-core:32501]
+
 Wed Sep 22 17:12:01 2010  Kazuhiro NISHIYAMA  <zn@mbf.nifty.com>
 
 	* test/openssl/utils.rb (OpenSSL#silent): always restore $VERBOSE.
diff --git a/test/ruby/test_eval.rb b/test/ruby/test_eval.rb
index a6900e075e..299165fb34 100644
--- a/test/ruby/test_eval.rb
+++ b/test/ruby/test_eval.rb
@@ -415,4 +415,19 @@ class TestEval < Test::Unit::TestCase
     assert_raise(ArgumentError) {eval("__ENCODING__".encode("utf-32be"))}
     assert_raise(ArgumentError) {eval("__ENCODING__".encode("utf-32le"))}
   end
+
+  def test_instance_eval_method_proc
+    bug3860 = Class.new do
+      def initialize(a);
+        @a=a
+      end
+      def get(*args)
+        @a
+      end
+    end
+    foo = bug3860.new 1
+    foo_pr = foo.method(:get).to_proc
+    result = foo.instance_eval(&foo_pr)
+    assert_equal(1, result, 'Bug #3786, Bug #3860, [ruby-core:32501]')
+  end
 end
diff --git a/vm_insnhelper.c b/vm_insnhelper.c
index 985a2fb5a8..ba3b0cbb37 100644
--- a/vm_insnhelper.c
+++ b/vm_insnhelper.c
@@ -1053,21 +1053,23 @@ vm_getspecial(rb_thread_t *th, VALUE *lfp, VALUE key, rb_num_t type)
 }
 
 static NODE *
-vm_get_cref(const rb_iseq_t *iseq, const VALUE *lfp, const VALUE *dfp)
+vm_get_cref0(const rb_iseq_t *iseq, const VALUE *lfp, const VALUE *dfp)
 {
-    NODE *cref = 0;
-
     while (1) {
 	if (lfp == dfp) {
-	    cref = iseq->cref_stack;
-	    break;
+	    return iseq->cref_stack;
 	}
 	else if (dfp[-1] != Qnil) {
-	    cref = (NODE *)dfp[-1];
-	    break;
+	    return (NODE *)dfp[-1];
 	}
 	dfp = GET_PREV_DFP(dfp);
     }
+}
+
+static NODE *
+vm_get_cref(const rb_iseq_t *iseq, const VALUE *lfp, const VALUE *dfp)
+{
+    NODE *cref = vm_get_cref0(iseq, lfp, dfp);
 
     if (cref == 0) {
 	rb_bug("vm_get_cref: unreachable");
@@ -1084,10 +1086,10 @@ vm_cref_push(rb_thread_t *th, VALUE klass, int noex, rb_block_t *blockptr)
     cref->nd_visi = noex;
 
     if (blockptr) {
-	cref->nd_next = vm_get_cref(blockptr->iseq, blockptr->lfp, blockptr->dfp);
+	cref->nd_next = vm_get_cref0(blockptr->iseq, blockptr->lfp, blockptr->dfp);
     }
     else if (cfp) {
-	cref->nd_next = vm_get_cref(cfp->iseq, cfp->lfp, cfp->dfp);
+	cref->nd_next = vm_get_cref0(cfp->iseq, cfp->lfp, cfp->dfp);
     }
 
     return cref;