diff --git a/CHANGELOG.md b/CHANGELOG.md
index 38f2da05..d2f2f103 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -70,6 +70,7 @@ Users may have to change how they access the system
 
 ### Corrected Bugs
 
+* Fixed: [Validate error when appending module B grouping to module A item use augment statement #308](https://github.com/clicon/clixon/issues/308)
 * Fixed: [ Restconf PATCH method request failed on item defined by submodule #306](https://github.com/clicon/clixon/issues/306)
 * Fixed: [restconf GET json response does not encode top level node with namespace as per rfc #303](https://github.com/clicon/clixon/issues/303)
 * Fixed: [statement: require-instance should be true if not present according to rfc7950 Sec 9.9.3](https://github.com/clicon/clixon/issues/302)
diff --git a/lib/src/clixon_validate.c b/lib/src/clixon_validate.c
index 13052cdd..aa4cb6a8 100644
--- a/lib/src/clixon_validate.c
+++ b/lib/src/clixon_validate.c
@@ -111,7 +111,7 @@
  *      node is the leaf or leaf-list node in the data tree that
  *      references the typedef. (ie ys)
  *   o  Otherwise, the context node is the node in the data tree for which
- *      the "path" statement is defined. (ie yc)
+ *      the "path" statement is defined. (ie ys)
  * 
  */
 static int
@@ -162,8 +162,7 @@ validate_leafref(cxobj     *xt,
     }
     if ((leafrefbody = xml_body(xt)) == NULL)
 	goto ok;
-    /* See comment^: If path is defined in typedef or not */
-    if (xml_nsctx_node(xt, &nsc) < 0)
+    if (xml_nsctx_yang(ys, &nsc) < 0)
 	goto done;
     if (xpath_vec(xt, nsc, "%s", &xvec, &xlen, path_arg) < 0) 
 	goto done;
diff --git a/test/test_leafref_uses_augment.sh b/test/test_leafref_uses_augment.sh
new file mode 100755
index 00000000..999b4a9e
--- /dev/null
+++ b/test/test_leafref_uses_augment.sh
@@ -0,0 +1,130 @@
+#!/usr/bin/env bash
+# leafref + augment + grouping, essentially test of default namespaces in augment+uses
+# See also https://github.com/clicon/clixon/issues/308
+
+# Magic line must be first in script (see README.md)
+s="$_" ; . ./lib.sh || if [ "$s" = $0 ]; then exit 0; else return 0; fi
+
+APPNAME=example
+
+cfg=$dir/conf_yang.xml
+fyang1=$dir/test1.yang 
+fyang2=$dir/test2.yang 
+fyang3=$dir/test3.yang 
+
+# Generate autocli for these modules
+AUTOCLI=$(autocli_config test\* kw-nokey false)
+
+cat <<EOF > $cfg
+<clixon-config xmlns="http://clicon.org/config">
+  <CLICON_CONFIGFILE>$cfg</CLICON_CONFIGFILE>
+  <CLICON_FEATURE>a:test</CLICON_FEATURE>
+  <CLICON_YANG_DIR>$dir</CLICON_YANG_DIR>
+  <CLICON_YANG_DIR>${YANG_INSTALLDIR}</CLICON_YANG_DIR>
+  <CLICON_YANG_MAIN_FILE>$fyang1</CLICON_YANG_MAIN_FILE>
+  <CLICON_CLISPEC_DIR>/usr/local/lib/$APPNAME/clispec</CLICON_CLISPEC_DIR>
+  <CLICON_CLI_DIR>/usr/local/lib/$APPNAME/cli</CLICON_CLI_DIR>
+  <CLICON_CLI_MODE>$APPNAME</CLICON_CLI_MODE>
+  <CLICON_SOCK>/usr/local/var/$APPNAME/$APPNAME.sock</CLICON_SOCK>
+  <CLICON_BACKEND_PIDFILE>/usr/local/var/$APPNAME/$APPNAME.pidfile</CLICON_BACKEND_PIDFILE>
+  <CLICON_BACKEND_DIR>/usr/local/lib/$APPNAME/backend</CLICON_BACKEND_DIR>
+  <CLICON_XMLDB_DIR>/usr/local/var/$APPNAME</CLICON_XMLDB_DIR>
+  <CLICON_MODULE_LIBRARY_RFC7895>false</CLICON_MODULE_LIBRARY_RFC7895>
+  ${AUTOCLI}
+</clixon-config>
+EOF
+
+# This is the lib function with the base container
+cat <<EOF > $fyang1
+module test1 {
+    yang-version 1.1;
+    namespace "http://www.test1.com/test1";
+    prefix t1;
+    import test3 { prefix t3; }
+
+    grouping t1-group {
+        container t1-con {
+            leaf t1-a {
+                type string;
+            }        
+            leaf t1-ref-a {
+                type leafref {
+                    path "../t1-a"; // This should have t1 namespace regardless of augment/uses
+                }
+            }
+        }
+    }
+    container t1-con {
+    }
+    augment "/t1-con" {
+        uses t1-group;
+    }
+    augment "/t3:t3-con" {
+        uses t1:t1-group;
+    }
+}
+EOF
+
+cat <<EOF > $fyang3
+module test3 {
+    yang-version 1.1;
+    namespace "http://www.test3.com/test3";
+    prefix t3;
+
+    container t3-con {
+    }
+}
+EOF
+
+new "test params: -f $cfg"
+
+if [ $BE -ne 0 ]; then
+    new "kill old backend"
+    sudo clixon_backend -zf $cfg
+    if [ $? -ne 0 ]; then
+	err
+    fi
+    new "start backend -s init -f $cfg"
+    start_backend -s init -f $cfg
+fi
+new "waiting"
+wait_backend
+
+if true; then
+new "cli set t1-con t1-con t1-a 123"
+expectpart "$($clixon_cli -1 -f $cfg set t1-con t1-con t1-a 123)" 0 ""
+
+new "cli set t1-con t1-con t1-ref-a 123"
+expectpart "$($clixon_cli -1 -f $cfg set t1-con t1-con t1-ref-a 123)" 0 ""
+
+new "cli validate"
+expectpart "$($clixon_cli -1 -f $cfg validate)" 0 ""
+
+new "cli discard"
+expectpart "$($clixon_cli -1 -f $cfg discard)" 0 ""
+fi
+
+new "cli set t3-con t1-con t1-a 123"
+expectpart "$($clixon_cli -1 -f $cfg set t3-con t1-con t1-a 123)" 0 ""
+
+new "cli set t3-con t1-con t1-ref-a 123"
+expectpart "$($clixon_cli -1 -f $cfg set t3-con t1-con t1-ref-a 123)" 0 ""
+
+new "cli validate"
+expectpart "$($clixon_cli -1 -f $cfg validate)" 0 ""
+
+if [ $BE -ne 0 ]; then
+    new "Kill backend"
+    # Check if premature kill
+    pid=$(pgrep -u root -f clixon_backend)
+    if [ -z "$pid" ]; then
+	err "backend already dead"
+    fi
+    # kill backend
+    stop_backend -f $cfg
+fi
+
+rm -rf $dir
+
+new "endtest"
+endtest