diff --git a/CHANGELOG.md b/CHANGELOG.md
index aa3114b39af..1a8450a80e8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,7 @@
 - [Issue #1298](https://github.com/grafana/grafana/issues/1298). InfluxDB: Fix handling of empty array in templating variable query
 - [Issue #1309](https://github.com/grafana/grafana/issues/1309). Graph: Fixed issue when using zero as a grid threshold
 - [Issue #1345](https://github.com/grafana/grafana/issues/1345). UI: Fixed position of confirm modal when scrolled down
+- [Issue #1372](https://github.com/grafana/grafana/issues/1372). Graphite: Fix for nested complex queries, where a query references a query that references another query (ie the #[A-Z] syntax)
 
 **Tech**
 - [Issue #1311](https://github.com/grafana/grafana/issues/1311). Tech: Updated Font-Awesome from 3.2 to 4.2
diff --git a/src/app/features/graphite/datasource.js b/src/app/features/graphite/datasource.js
index 639e150a320..a486250ac74 100644
--- a/src/app/features/graphite/datasource.js
+++ b/src/app/features/graphite/datasource.js
@@ -276,6 +276,7 @@ function (angular, _, $, config, kbn, moment) {
 
         targetValue = targets[this._seriesRefLetters[i]];
         targetValue = targetValue.replace(regex, nestedSeriesRegexReplacer);
+        targets[this._seriesRefLetters[i]] = targetValue;
 
         clean_options.push("target=" + encodeURIComponent(targetValue));
       }
diff --git a/src/test/specs/graphiteDatasource-specs.js b/src/test/specs/graphiteDatasource-specs.js
index e23f0e89d4c..58bc62be7ce 100644
--- a/src/test/specs/graphiteDatasource-specs.js
+++ b/src/test/specs/graphiteDatasource-specs.js
@@ -74,6 +74,13 @@ define([
         expect(results[2]).to.be('target=asPercent(series1%2Cseries2)');
       });
 
+      it('should replace target placeholder when nesting query references', function() {
+        var results = ctx.ds.buildGraphiteParams({
+          targets: [{target: 'series1'}, {target: 'sumSeries(#A)'}, {target: 'asPercent(#A,#B)'}]
+        });
+        expect(results[2]).to.be('target=' + encodeURIComponent("asPercent(series1,sumSeries(series1))"));
+      });
+
       it('should fix wrong minute interval parameters', function() {
         var results = ctx.ds.buildGraphiteParams({
           targets: [{target: "summarize(prod.25m.count, '25m', 'sum')" }]