diff --git a/src/event.js b/src/event.js
index 33610fd6f..8e17273f9 100644
--- a/src/event.js
+++ b/src/event.js
@@ -384,7 +384,7 @@ jQuery.event = {
 
 			// Pregenerate a single jQuery object for reuse with .is()
 			jqcur = jQuery(this);
-			jqcur.context = this.ownerDocument || this;
+			jqcur.context = this;
 
 			for ( cur = event.target; cur != this; cur = cur.parentNode || this ) {
 
diff --git a/test/unit/event.js b/test/unit/event.js
index a6ee455fb..07da83260 100644
--- a/test/unit/event.js
+++ b/test/unit/event.js
@@ -2333,6 +2333,20 @@ test("jQuery.off using dispatched jQuery.Event", function() {
 		.remove();
 });
 
+test( "delegated event with delegateTarget-relative selector (#)", function() {
+	expect(1);
+	var markup = jQuery( '<ul><li><ul id="u1"><li id="f1"></li></ul></li>' ).appendTo("body");
+	
+	markup
+		.find("#u1")
+			.on( "click", "li:first", function() {
+				ok( this.id === "f1" , "first li under #u1 was clicked" );
+			})
+			.find("#f1").click().end()
+		.end()
+		.remove();
+});
+
 test("stopPropagation() stops directly-bound events on delegated target", function() {
 	expect(1);