diff --git a/CHANGELOG b/CHANGELOG
index 0c7f453e5..75ff8927b 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -5,6 +5,8 @@ Changes between 2.3.3 and 2.3.4.dev
   with autouse fixtures.  If you need generative tests, use
   @pytest.mark.parametrize or pytest_generate_tests, see the
   many examples at http://pytest.org/latest/example/parametrize.html
+- fix autouse-issue where autouse-fixtures would not be discovered
+  if defined in a a/conftest.py file and tests in a/tests/test_some.py
 - fix issue226 - LIFO ordering for fixture teardowns
 - fix issue224 - invocations with >256 char arguments now work
 - fix issue91 - add/discuss package/directory level setups in example
diff --git a/_pytest/__init__.py b/_pytest/__init__.py
index b3ea02e4e..5c84caa5f 100644
--- a/_pytest/__init__.py
+++ b/_pytest/__init__.py
@@ -1,2 +1,2 @@
 #
-__version__ = '2.3.4.dev5'
+__version__ = '2.3.4.dev6'
diff --git a/_pytest/python.py b/_pytest/python.py
index 476296cb4..cc7b5ba20 100644
--- a/_pytest/python.py
+++ b/_pytest/python.py
@@ -1455,7 +1455,7 @@ class FixtureManager:
         for baseid, basenames in self._nodeid_and_autousenames:
             if nodeid.startswith(baseid):
                 if baseid:
-                    i = len(baseid) + 1
+                    i = len(baseid)
                     nextchar = nodeid[i:i+1]
                     if nextchar and nextchar not in ":/":
                         continue
diff --git a/setup.py b/setup.py
index 626a82e55..4b5dcbb4a 100644
--- a/setup.py
+++ b/setup.py
@@ -48,7 +48,7 @@ def main():
         name='pytest',
         description='py.test: simple powerful testing with Python',
         long_description = long_description,
-        version='2.3.4.dev5',
+        version='2.3.4.dev6',
         url='http://pytest.org',
         license='MIT license',
         platforms=['unix', 'linux', 'osx', 'cygwin', 'win32'],
diff --git a/testing/python/fixture.py b/testing/python/fixture.py
index 0e412dbe7..a1afe9f57 100644
--- a/testing/python/fixture.py
+++ b/testing/python/fixture.py
@@ -948,7 +948,26 @@ class TestAutouseDiscovery:
         reprec = testdir.inline_run()
         reprec.assertoutcome(passed=3)
 
+
 class TestAutouseManagement:
+    def test_autouse_conftest_mid_directory(self, testdir):
+        pkgdir = testdir.mkpydir("xyz123")
+        pkgdir.join("conftest.py").write(py.code.Source("""
+            import pytest
+            @pytest.fixture(autouse=True)
+            def app():
+                import sys
+                sys._myapp = "hello"
+        """))
+        t = pkgdir.ensure("tests", "test_app.py")
+        t.write(py.code.Source("""
+            import sys
+            def test_app():
+                assert sys._myapp == "hello"
+        """))
+        reprec = testdir.inline_run("-s")
+        reprec.assertoutcome(passed=1)
+
     def test_funcarg_and_setup(self, testdir):
         testdir.makepyfile("""
             import pytest