diff --git a/example/issues.cpp b/example/issues.cpp
index 1a4fc31a0..c9f9e8b07 100644
--- a/example/issues.cpp
+++ b/example/issues.cpp
@@ -9,7 +9,25 @@
 
 #include "example.h"
 
+struct Base {
+    virtual void dispatch(void) const = 0;
+};
 
+struct DispatchIssue : Base {
+    virtual void dispatch(void) const {
+        PYBIND11_OVERLOAD_PURE(void, Base, dispatch);
+    }
+};
+
+void dispatch_issue_go(const Base * b) { b->dispatch(); }
+
+PYBIND11_PLUGIN(mytest)
+{
+    pybind11::module m("mytest", "A test");
+
+
+    return m.ptr();
+}
 void init_issues(py::module &m) {
     py::module m2 = m.def_submodule("issues");
 
@@ -18,4 +36,12 @@ void init_issues(py::module &m) {
 
     // #150: char bindings broken
     m2.def("print_char", [](char c) { std::cout << c << std::endl; });
+
+    // #159: virtual function dispatch has problems with similar-named functions
+    pybind11::class_<DispatchIssue> base(m2, "DispatchIssue");
+    base.alias<Base>()
+        .def(pybind11::init<>())
+        .def("dispatch", &Base::dispatch);
+
+    m2.def("dispatch_issue_go", &dispatch_issue_go);
 }
diff --git a/example/issues.py b/example/issues.py
index 8628439e7..84752b0d3 100644
--- a/example/issues.py
+++ b/example/issues.py
@@ -4,6 +4,25 @@ import sys
 sys.path.append('.')
 
 from example.issues import print_cchar, print_char
+from example.issues import DispatchIssue, dispatch_issue_go
 
 print_cchar("const char *")
 print_char('c')
+
+
+class PyClass1(DispatchIssue):
+    def dispatch(self):
+        print("Yay..")
+
+
+class PyClass2(DispatchIssue):
+    def dispatch(self):
+        try:
+            super(PyClass2, self).dispatch()
+        except Exception as e:
+            print("Failed as expected: " + str(e))
+        p = PyClass1()
+        dispatch_issue_go(p)
+
+b = PyClass2()
+dispatch_issue_go(b)
diff --git a/example/issues.ref b/example/issues.ref
index 4e021217f..55cbdda1d 100644
--- a/example/issues.ref
+++ b/example/issues.ref
@@ -1,2 +1,4 @@
 const char *
 c
+Failed as expected: Tried to call pure virtual function "dispatch"
+Yay..
diff --git a/include/pybind11/pybind11.h b/include/pybind11/pybind11.h
index 03ff737ca..6c51e1881 100644
--- a/include/pybind11/pybind11.h
+++ b/include/pybind11/pybind11.h
@@ -1032,8 +1032,8 @@ inline function get_overload(const void *this_ptr, const char *name)  {
     handle type = py_object.get_type();
     auto key = std::make_pair(type.ptr(), name);
 
-    /* Cache functions that aren't overloaded in python to avoid
-       many costly dictionary lookups in Python */
+    /* Cache functions that aren't overloaded in Python to avoid
+       many costly Python dictionary lookups below */
     auto &cache = detail::get_internals().inactive_overload_cache;
     if (cache.find(key) != cache.end())
         return function();
@@ -1044,10 +1044,16 @@ inline function get_overload(const void *this_ptr, const char *name)  {
         return function();
     }
 
+    /* Don't call dispatch code if invoked from overridden function */
     PyFrameObject *frame = PyThreadState_Get()->frame;
-    pybind11::str caller = pybind11::handle(frame->f_code->co_name).str();
-    if ((std::string) caller == name)
-        return function();
+    if ((std::string) pybind11::handle(frame->f_code->co_name).str() == name &&
+        frame->f_code->co_argcount > 0) {
+        PyFrame_FastToLocals(frame);
+        PyObject *self_caller = PyDict_GetItem(
+            frame->f_locals, PyTuple_GET_ITEM(frame->f_code->co_varnames, 0));
+        if (self_caller == py_object.ptr())
+            return function();
+    }
     return overload;
 }