diff --git a/ChangeLog b/ChangeLog
index c97413acf6..a02fcded34 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+Fri Aug 19 11:39:06 2016  Nobuyoshi Nakada  <nobu@ruby-lang.org>
+
+	* parse.y (primary): allow parenthesised statement as a method
+	  argument.  [Feature #12686]
+
 Fri Aug 19 09:12:45 2016  Nobuyoshi Nakada  <nobu@ruby-lang.org>
 
 	* vm.c (vm_set_main_stack): TOPLEVEL_BINDING must be built.
diff --git a/parse.y b/parse.y
index 17f0f9c50a..7a1494142b 100644
--- a/parse.y
+++ b/parse.y
@@ -2659,7 +2659,7 @@ primary		: literal
 			$<val>1 = cmdarg_stack;
 			CMDARG_SET(0);
 		    }
-		  expr {SET_LEX_STATE(EXPR_ENDARG);} rparen
+		  stmt {SET_LEX_STATE(EXPR_ENDARG);} rparen
 		    {
 			CMDARG_SET($<val>1);
 		    /*%%%*/
diff --git a/test/ruby/test_syntax.rb b/test/ruby/test_syntax.rb
index ce013583be..c135cec4ea 100644
--- a/test/ruby/test_syntax.rb
+++ b/test/ruby/test_syntax.rb
@@ -827,6 +827,11 @@ eom
     end
   end
 
+  def test_parenthesised_statement_argument
+    assert_syntax_error("foo(bar rescue nil)", /unexpected modifier_rescue/)
+    assert_valid_syntax("foo (bar rescue nil)")
+  end
+
   private
 
   def not_label(x) @result = x; @not_label ||= nil end