diff --git a/lib/Parse/ParseExpr.cpp b/lib/Parse/ParseExpr.cpp
index 426c96b09c094..82a98eeb48867 100644
--- a/lib/Parse/ParseExpr.cpp
+++ b/lib/Parse/ParseExpr.cpp
@@ -1664,19 +1664,35 @@ ParserResult<Expr> Parser::parseExprPrimary(Diag<> ID, bool isExprBasic) {
   }
 
   case tok::identifier:  // foo
-  case tok::kw_self:     // self
-
+  case tok::kw_self: {   // self
+    auto canParseBindingInPattern = [&]() {
+      if (InBindingPattern != PatternBindingState::ImplicitlyImmutable &&
+          !InBindingPattern.getIntroducer().hasValue()) {
+        return false;
+      }
+      // If we have "case let x.", "case let x(", or "case let x[", we parse 'x'
+      // as a normal name, not a binding, because it is the start of an enum
+      // pattern, call, or subscript.
+      if (peekToken().isAny(tok::period, tok::period_prefix, tok::l_paren,
+                            tok::l_square)) {
+        return false;
+      }
+      // If we have a generic argument list, this is something like
+      // "case let E<Int>.e(y)", and 'E' should be parsed as a normal name, not
+      // a binding.
+      if (peekToken().isAnyOperator() && peekToken().getText().equals("<")) {
+        BacktrackingScope S(*this);
+        consumeToken();
+        return !canParseAsGenericArgumentList();
+      }
+      return true;
+    }();
     // If we are parsing a refutable pattern and are inside a let/var pattern,
     // the identifiers change to be value bindings instead of decl references.
     // Parse and return this as an UnresolvedPatternExpr around a binding.  This
     // will be resolved (or rejected) by sema when the overall refutable pattern
     // it transformed from an expression into a pattern.
-    if ((InBindingPattern == PatternBindingState::ImplicitlyImmutable ||
-         InBindingPattern.getIntroducer().hasValue()) &&
-        // If we have "case let x." or "case let x(", we parse x as a normal
-        // name, not a binding, because it is the start of an enum pattern or
-        // call pattern.
-        peekToken().isNot(tok::period, tok::period_prefix, tok::l_paren)) {
+    if (canParseBindingInPattern) {
       Identifier name;
       SourceLoc loc = consumeIdentifier(name, /*diagnoseDollarPrefix=*/false);
       // If we have an inout/let/var, set that as our introducer. otherwise
@@ -1710,6 +1726,7 @@ ParserResult<Expr> Parser::parseExprPrimary(Diag<> ID, bool isExprBasic) {
     }
 
     LLVM_FALLTHROUGH;
+  }
   case tok::kw_Self:     // Self
     return parseExprIdentifier();
 
diff --git a/test/Constraints/rdar108738034.swift b/test/Constraints/rdar108738034.swift
new file mode 100644
index 0000000000000..368eb480884b3
--- /dev/null
+++ b/test/Constraints/rdar108738034.swift
@@ -0,0 +1,21 @@
+// RUN: %target-typecheck-verify-swift
+
+// rdar://108738034: Make sure we can type-check this.
+enum E<T>: Error {
+  case e(T)
+}
+
+struct S {
+  func bar(_: (Error?) -> Void) {}
+}
+
+func foo(_ s: S) {
+  s.bar { error in
+      guard let error = error else {
+        return
+      }
+      if case let E<Int>.e(y) = error {
+        print(y)
+      }
+    }
+}
diff --git a/test/Parse/matching_patterns.swift b/test/Parse/matching_patterns.swift
index 050916fac0574..2a78444f7719e 100644
--- a/test/Parse/matching_patterns.swift
+++ b/test/Parse/matching_patterns.swift
@@ -364,3 +364,51 @@ let (responseObject: Int?) = op1
 // expected-error @-1 {{expected ',' separator}} {{25-25=,}}
 // expected-error @-2 {{expected pattern}}
 // expected-error @-3 {{cannot convert value of type 'Int?' to specified type '(responseObject: _)'}}
+
+enum E<T> {
+  case e(T)
+}
+
+// rdar://108738034 - Make sure we don't treat 'E' as a binding, but can treat
+// 'y' as a binding
+func testNonBinding1(_ x: E<Int>) -> Int {
+  if case let E<Int>.e(y) = x { y } else { 0 }
+}
+
+func testNonBinding2(_ e: E<Int>) -> Int {
+  switch e {
+  case let E<Int>.e(y):
+    y
+  }
+}
+
+// In this case, 'y' should be an identifier, but 'z' is a binding.
+func testNonBinding3(_ x: (Int, Int), y: [Int]) -> Int {
+  if case let (y[0], z) = x { z } else { 0 }
+}
+
+func testNonBinding4(_ x: (Int, Int), y: [Int]) -> Int {
+  switch x {
+  case let (y[0], z):
+    z
+  default:
+    0
+  }
+}
+
+func testNonBinding5(_ x: Int, y: [Int]) {
+  // We treat 'z' here as a binding, which is invalid.
+  if case let y[z] = x {} // expected-error {{pattern variable binding cannot appear in an expression}}
+}
+
+func testNonBinding6(y: [Int], z: Int) -> Int {
+  switch 0 {
+  // We treat 'z' here as a binding, which is invalid.
+  case let y[z]: // expected-error {{pattern variable binding cannot appear in an expression}}
+    z
+  case y[z]: // This is fine
+    0
+  default:
+    0
+  }
+}