diff --git a/autotests/ktexttohtmltest.cpp b/autotests/ktexttohtmltest.cpp
--- a/autotests/ktexttohtmltest.cpp
+++ b/autotests/ktexttohtmltest.cpp
@@ -423,7 +423,7 @@
    //Bug 346132
    QTest::newRow("url-with-ref-in-<") << "http://www.foo.bar<http://foo.bar/>"
                                << KTextToHTML::Options(KTextToHTML::PreserveSpaces)
-                               << "<a href=\"http://www.foo.bar\">http://www.foo.bar</a>[1]";
+                               << "<a href=\"http://www.foo.bar\">http://www.foo.bar</a>&lt;<a href=\"http://foo.bar/\">http://foo.bar/</a>&gt;";
 
    QTest::newRow("url-with-ref-in-]") << "[Please visit our booth 24-25 http://example.com/]"
                                << KTextToHTML::Options(KTextToHTML::PreserveSpaces)
@@ -440,9 +440,6 @@
     QEXPECT_FAIL("punctation-bug", "Linklocator does not properly detect punctation as boundaries",
                  Continue);
 
-    QEXPECT_FAIL("url-with-ref-in-<", "Linklocator does not properly parse url with <",
-                 Continue);
-
     QString actualHtml = KTextToHTML::convertToHtml(plainText, flags);
     QCOMPARE(actualHtml, htmlText);
 }
diff --git a/src/lib/text/ktexttohtml.cpp b/src/lib/text/ktexttohtml.cpp
--- a/src/lib/text/ktexttohtml.cpp
+++ b/src/lib/text/ktexttohtml.cpp
@@ -234,6 +234,18 @@
                 (mText[mPos].isPrint() || mText[mPos].isSpace()) &&
                 ((afterUrl.isNull() && !mText[mPos].isSpace()) ||
                  (!afterUrl.isNull() && mText[mPos] != afterUrl))) {
+            if (!previousCharIsSpace && (mText[mPos] == QLatin1Char('<')) && ((mPos + 1) < mText.length())) {
+                // Fix Bug #346132: allow "http://www.foo.bar<http://foo.bar/>"
+                // < inside a URL is not allowed, however there is a test which
+                // checks that "http://some<Host>/path" should be allowed
+                // Therefore: check if what follows is another URL and if so, stop here
+                mPos++;
+                if (atUrl()) {
+                    mPos--;
+                    break;
+                }
+                mPos--;
+            }
             if (mText[mPos].isSpace()) {
                 previousCharIsSpace = true;
             } else if (!previousIsAnAnchor && mText[mPos] == QLatin1Char('[')) {