diff --git a/CHANGELOG.md b/CHANGELOG.md
index 17133714..d11dc535 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -49,6 +49,7 @@ Developers may need to change their code
 
 ### Corrected Busg
 
+* Fixed: Deviated types were resolved in target context, not lexically in deviation context
 * Fixed: Signal handling of recv message
    Revert to signal handling in 6.5 that was changed in the netconf uniform handling in 7.0
 * Fixed: [NETCONF error reply from failed leafref rquire-instance does not comply to RFC 7950](https://github.com/clicon/clixon/issues/536)
diff --git a/lib/src/clixon_yang.c b/lib/src/clixon_yang.c
index affd9068..4c91b1aa 100644
--- a/lib/src/clixon_yang.c
+++ b/lib/src/clixon_yang.c
@@ -2416,6 +2416,14 @@ yang_deviation(yang_stmt *ys,
                 /* Make a copy of deviate child and insert. */
                 if ((yc1 = ys_dup(yc)) == NULL)
                     goto done;
+                /* Special case: resolve types in temporary old deviation context */
+                if (yn_insert(yd, yc1) < 0)
+                    goto done;
+                if (yang_apply(yc1, Y_TYPE, ys_resolve_type, -1, h) < 0)
+                    goto done;
+                if (ys_prune_self(yc1) < 0)
+                    goto done;
+                /* Mark all as refined */
                 if (yang_apply(yc1, -1, (yang_applyfn_t*)yang_flag_set, -1, (void*)YANG_FLAG_REFINE) < 0)
                     goto done;
                 if (yn_insert(ytarget, yc1) < 0)
@@ -2451,6 +2459,14 @@ yang_deviation(yang_stmt *ys,
                 /* Make a copy of deviate child and insert. */
                 if ((yc1 = ys_dup(yc)) == NULL)
                     goto done;
+                /* Special case: resolve types in temporary old deviation context */
+                if (yn_insert(yd, yc1) < 0)
+                    goto done;
+                if (yang_apply(yc1, Y_TYPE, ys_resolve_type, -1, h) < 0)
+                    goto done;
+                if (ys_prune_self(yc1) < 0)
+                    goto done;
+                /* Mark all as refined */
                 if (yang_apply(yc1, -1, (yang_applyfn_t*)yang_flag_set, -1, (void*)YANG_FLAG_REFINE) < 0)
                     goto done;
                 if (yn_insert(ytarget, yc1) < 0)
diff --git a/lib/src/clixon_yang_type.c b/lib/src/clixon_yang_type.c
index 22b6c62d..3e1a5cd7 100644
--- a/lib/src/clixon_yang_type.c
+++ b/lib/src/clixon_yang_type.c
@@ -256,11 +256,16 @@ ys_resolve_type(yang_stmt *ytype,
     uint8_t       fraction = 0;
     yang_stmt    *resolved = NULL;
     cvec         *regexps = NULL;
+    yang_stmt    *yp;
 
     if (yang_keyword_get(ytype) != Y_TYPE){
         clixon_err(OE_YANG, EINVAL, "Expected Y_TYPE");
         goto done;
     }
+    if ((yp = yang_parent_get(ytype)) == NULL){
+        clixon_err(OE_YANG, EINVAL, "ytype has no parent");
+        goto done;
+    }
     if ((patterns = cvec_new(0)) == NULL){
        clixon_err(OE_UNIX, errno, "cvec_new");
        goto done;
@@ -268,8 +273,7 @@ ys_resolve_type(yang_stmt *ytype,
     /* Recursively resolve ytype -> resolve with restrictions(options, etc)
      * Note that the resolved type could be ytype itself.
      */
-    if (yang_type_resolve(yang_parent_get(ytype), yang_parent_get(ytype),
-                          ytype, &resolved,
+    if (yang_type_resolve(yp, yp, ytype, &resolved,
                           &options, &cvv, patterns, NULL, &fraction) < 0){
         goto done;
     }
diff --git a/test/test_yang_deviation.sh b/test/test_yang_deviation.sh
index 84aad67f..eddeb60b 100755
--- a/test/test_yang_deviation.sh
+++ b/test/test_yang_deviation.sh
@@ -230,7 +230,7 @@ testrun true false true false
 cat <<EOF > $fyangdev
 module example-deviations{
    yang-version 1.1;
-   prefix md;
+   prefix ed;
    namespace "urn:example:deviations";
    import example-base {
          prefix base;
@@ -246,7 +246,9 @@ EOF
 new "5. deviate delete"
 testrun true false false true
 
-# Replace example from RFC 7950 Sec 7.20.3.3
+# Here follows advanced deviations (from arista/openconfig deviations)
+new "6. deviate replace default"
+
 cat <<EOF > $fyangdev
 module example-deviations{
    yang-version 1.1;
@@ -268,8 +270,6 @@ module example-deviations{
 }
 EOF
 
-new "6. deviate replace default"
-
 if [ "$BE" -ne 0 ]; then
     new "kill old backend"
     sudo clixon_backend -zf "$cfg"
@@ -309,6 +309,63 @@ if [ "$BE" -ne 0 ]; then
     stop_backend -f "$cfg"
 fi
 
+# lexically scoped
+new "7. deviate with own type"
+cat <<EOF > $fyangdev
+module example-deviations{
+   yang-version 1.1;
+   prefix ed;
+   namespace "urn:example:deviations";
+   import example-base {
+         prefix base;
+   }
+   typedef mytype {
+      type int8;
+   }
+   deviation /base:system/base:my {
+      deviate replace {
+         type ed:mytype;
+      }
+   }
+}
+EOF
+
+if [ "$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 "wait backend"
+wait_backend
+
+new "set negative value"
+expecteof_netconf "$clixon_netconf -qf $cfg" 0 "$DEFAULTHELLO" "<rpc $DEFAULTNS><edit-config><target><candidate/></target><config><system xmlns=\"urn:example:base\"><daytime>Sept17</daytime><my>-77</my></system></config></edit-config></rpc>" "" "<rpc-reply $DEFAULTNS><ok/></rpc-reply>"
+
+new "netconf validate ok"
+expecteof_netconf "$clixon_netconf -qf $cfg" 0 "$DEFAULTHELLO" "<rpc $DEFAULTNS><validate><source><candidate/></source></validate></rpc>" "" "<rpc-reply $DEFAULTNS><ok/></rpc-reply>"
+
+new "set large value"
+expecteof_netconf "$clixon_netconf -qf $cfg" 0 "$DEFAULTHELLO" "<rpc $DEFAULTNS><edit-config><target><candidate/></target><config><system xmlns=\"urn:example:base\"><my>98735</my></system></config></edit-config></rpc>" "" "<rpc-reply $DEFAULTNS><ok/></rpc-reply>"
+
+new "netconf validate expect fail"
+expecteof_netconf "$clixon_netconf -qf $cfg" 0 "$DEFAULTHELLO" "<rpc $DEFAULTNS><validate><source><candidate/></source></validate></rpc>" "" "<rpc-reply $DEFAULTNS><rpc-error><error-type>application</error-type><error-tag>bad-element</error-tag><error-info><bad-element>my</bad-element></error-info><error-severity>error</error-severity><error-message>Number 98735 out of range: -128 - 127</error-message></rpc-error></rpc-reply>"
+
+if [ "$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"