Index: orbsvcs/tests/FaultTolerance/GroupRef_Manipulation/server.cpp
===================================================================
--- orbsvcs/tests/FaultTolerance/GroupRef_Manipulation/server.cpp	(revision 74303)
+++ orbsvcs/tests/FaultTolerance/GroupRef_Manipulation/server.cpp	(working copy)
@@ -120,6 +120,45 @@
   return;
 }
 
+void test_colocal (ForwardRequestTest::test_ptr server
+                   ACE_ENV_ARG_DECL)
+{
+  CORBA::ULong number = 0;
+  for (int i = 1; i <= 25; ++i)
+    {
+      ACE_DEBUG ((LM_INFO,
+                  "CLIENT: Issuing colocal request %d.\n",
+                  i));
+      CORBA::ULong retval =
+         server->number (ACE_ENV_SINGLE_ARG_PARAMETER);
+      if (retval != 1 && retval != 317)
+        {
+          // Not a valid return value, forwarding went wrong and
+          // retval is in udefined state
+          ACE_ERROR ((LM_ERROR,
+                      "(%P|%t) ERROR: colocal invocation returned invalid"
+                      " value, location-forwarding must have failed.\n"));
+          ACE_OS::abort ();
+        }
+
+      number += retval;
+      ACE_TRY_CHECK;
+
+
+      ACE_DEBUG ((LM_INFO,
+                  "CLIENT: Number %d .\n",
+                  number));
+    }
+
+  if (number < 250)
+    {
+      ACE_ERROR ((LM_ERROR,
+                  "(%P|%t) ERROR: Did not forward to new location \n"));
+      ACE_OS::abort ();
+    }
+}
+
+
 int
 main (int argc, char *argv[])
 {
@@ -233,6 +272,16 @@
                                        ACE_ENV_ARG_PARAMETER);
       ACE_TRY_CHECK;
 
+      // Run co-local test
+        {
+          ForwardRequestTest::test_var server =
+            ForwardRequestTest::test::_narrow (obj1.in () ACE_ENV_ARG_PARAMETER);
+          test_colocal (server.in() ACE_ENV_ARG_PARAMETER);
+
+          // Reset interceptor for remote tests
+          interceptor->reset (ACE_ENV_SINGLE_ARG_PARAMETER);
+        }
+
       // Write each IOR to a file.
 
       // IOR 1
Index: tao/PortableServer/Object_Adapter.cpp
===================================================================
--- tao/PortableServer/Object_Adapter.cpp	(revision 74303)
+++ tao/PortableServer/Object_Adapter.cpp	(working copy)
@@ -382,6 +382,19 @@
     ACE_CHECK_RETURN (result);
   }
 
+#if TAO_HAS_INTERCEPTORS == 1
+  // ServerInterceptor might have raised ForwardRequest. In case of
+  // remote calls invocations the LocationForwardReply would have been
+  // sent in earlier stage, but in colocal scenario no message is sent
+  // and the LocationForward object must be passed over here to
+  // calling operation's mem-space.
+  if (req.collocated() && req.reply_status () == PortableInterceptor::LOCATION_FORWARD)
+    {
+      forward_to = CORBA::Object::_duplicate (req.forward_location ());
+      result = TAO_Adapter::DS_FORWARD;
+    }
+#endif
+
   return result;
 }