diff --git a/src/documentation/content/xdocs/status.xml b/src/documentation/content/xdocs/status.xml
index 8ddac5f12..8ef8414db 100644
--- a/src/documentation/content/xdocs/status.xml
+++ b/src/documentation/content/xdocs/status.xml
@@ -34,6 +34,7 @@
 
     <changes>
         <release version="3.8-beta2" date="2011-??-??">
+           <action dev="poi-developers" type="fix">50718 - More helpful error message when you try to create a CellReference with #REF!</action>
            <action dev="poi-developers" type="fix">50784 - XSSFColors return by XSSFFont now have theme information applied to them</action>
            <action dev="poi-developers" type="fix">50846 - Improve how XSSFColor inherits from Themes</action>
            <action dev="poi-developers" type="fix">50847 - XSSFFont now accepts the full range of Charsets from FontChartset</action>
diff --git a/src/java/org/apache/poi/ss/util/CellReference.java b/src/java/org/apache/poi/ss/util/CellReference.java
index 67f8fa0b1..12120b748 100644
--- a/src/java/org/apache/poi/ss/util/CellReference.java
+++ b/src/java/org/apache/poi/ss/util/CellReference.java
@@ -85,6 +85,10 @@ public class CellReference {
 	 * delimited and escaped as per normal syntax rules for formulas.
 	 */
 	public CellReference(String cellRef) {
+      if(cellRef.endsWith("#REF!")) {
+         throw new IllegalArgumentException("Cell reference invalid: " + cellRef);
+      }
+
 		String[] parts = separateRefParts(cellRef);
 		_sheetName = parts[0];
 		String colRef = parts[1];
@@ -335,7 +339,6 @@ public class CellReference {
 	 * name still in ALPHA-26 number format.  The third element is the row.
 	 */
 	private static String[] separateRefParts(String reference) {
-
 		int plingPos = reference.lastIndexOf(SHEET_NAME_DELIMITER);
 		String sheetName = parseSheetName(reference, plingPos);
 		int start = plingPos+1;
diff --git a/src/testcases/org/apache/poi/hssf/usermodel/TestHSSFName.java b/src/testcases/org/apache/poi/hssf/usermodel/TestHSSFName.java
index 45da3e7e9..3a61f3cd3 100644
--- a/src/testcases/org/apache/poi/hssf/usermodel/TestHSSFName.java
+++ b/src/testcases/org/apache/poi/hssf/usermodel/TestHSSFName.java
@@ -231,7 +231,7 @@ public final class TestHSSFName extends BaseTestNamedRange {
         try {
             new AreaReference(name2.getRefersToFormula());
             fail("attempt to supply an invalid reference to AreaReference constructor results in exception");
-        } catch (StringIndexOutOfBoundsException e) { // TODO - use a different exception for this condition
+        } catch (IllegalArgumentException e) { // TODO - use a stronger typed exception for this condition
             // expected during successful test
         }
     }
diff --git a/src/testcases/org/apache/poi/ss/util/TestCellReference.java b/src/testcases/org/apache/poi/ss/util/TestCellReference.java
index 4c86c0f74..c6ad609c5 100644
--- a/src/testcases/org/apache/poi/ss/util/TestCellReference.java
+++ b/src/testcases/org/apache/poi/ss/util/TestCellReference.java
@@ -192,6 +192,23 @@ public final class TestCellReference extends TestCase {
 		confirmCrInRange(false, "A", "0", v97);
 		confirmCrInRange(false, "A", "0", v2007);
 	}
+	
+	public void testInvalidReference() {
+      try {
+         new CellReference("Sheet1!#REF!");
+         fail("Shouldn't be able to create a #REF! refence");
+      } catch(IllegalArgumentException e) {}
+      
+	   try {
+	      new CellReference("'MySheetName'!#REF!");
+	      fail("Shouldn't be able to create a #REF! refence");
+	   } catch(IllegalArgumentException e) {}
+	   
+	   try {
+	      new CellReference("#REF!");
+	      fail("Shouldn't be able to create a #REF! refence");
+	   } catch(IllegalArgumentException e) {}
+	}
 
 	private static void confirmCrInRange(boolean expResult, String colStr, String rowStr,
 			SpreadsheetVersion sv) {