diff --git a/dlls/user.exe16/user.c b/dlls/user.exe16/user.c
index 5063f9d2343..29a975a28ba 100644
--- a/dlls/user.exe16/user.c
+++ b/dlls/user.exe16/user.c
@@ -1478,6 +1478,53 @@ static LPCSTR parse_menu_resource( LPCSTR res, HMENU hMenu, BOOL oldFormat )
     return res;
 }
 
+static LPCSTR parse_menuex_resource( LPCSTR res, HMENU hMenu )
+{
+    BYTE resinfo;
+    do {
+        MENUITEMINFOA mii;
+
+        mii.cbSize = sizeof(mii);
+        mii.fMask = MIIM_STATE | MIIM_ID | MIIM_TYPE;
+        mii.fType = GET_DWORD(res);
+        res += sizeof(DWORD);
+        mii.fState = GET_DWORD(res);
+        res += sizeof(DWORD);
+        mii.wID = GET_WORD(res);
+        res += sizeof(WORD);
+        resinfo = GET_BYTE(res);
+        res += sizeof(BYTE);
+        mii.dwTypeData = (LPSTR) res;
+        res += 1 + strlen(mii.dwTypeData);
+
+        TRACE("Menu item: [%08x,%08x,%04x,%04x,%s]\n",
+              mii.fType, mii.fState, mii.wID, resinfo, debugstr_a(mii.dwTypeData));
+
+        if (resinfo & 1)
+        {
+            /* DWORD helpid = GET_DWORD(res); FIXME: use this.  */
+            res += sizeof(DWORD);
+            mii.hSubMenu = CreatePopupMenu();
+            if (!mii.hSubMenu)
+                return NULL;
+            if (!(res = parse_menuex_resource(res, mii.hSubMenu))) {
+                DestroyMenu(mii.hSubMenu);
+                return NULL;
+            }
+            mii.fMask |= MIIM_SUBMENU;
+            mii.fType |= MF_POPUP;
+        }
+        else if(!*mii.dwTypeData && !(mii.fType & MF_SEPARATOR))
+        {
+            WARN("Converting NULL menu item %04x, type %04x to SEPARATOR\n",
+                mii.wID, mii.fType);
+            mii.fType |= MF_SEPARATOR;
+        }
+        InsertMenuItemA(hMenu, -1, MF_BYPOSITION, &mii);
+    } while (!(resinfo & MF_END));
+    return res;
+}
+
 /**********************************************************************
  *	    LoadMenuIndirect    (USER.220)
  */
@@ -1485,8 +1532,9 @@ HMENU16 WINAPI LoadMenuIndirect16( LPCVOID template )
 {
     BOOL oldFormat;
     HMENU hMenu;
-    WORD version, offset;
+    WORD version = 0, offset;
     LPCSTR p = template;
+    LPCSTR ret = NULL;
 
     TRACE("(%p)\n", template );
 
@@ -1498,17 +1546,18 @@ HMENU16 WINAPI LoadMenuIndirect16( LPCVOID template )
     {
         version = GET_WORD(p);
         p += sizeof(WORD);
-        if (version)
-        {
-            WARN("version must be 0 for Win16 >= 3.00 applications\n" );
-            return 0;
-        }
         offset = GET_WORD(p);
         p += sizeof(WORD) + offset;
     }
 
     if (!(hMenu = CreateMenu())) return 0;
-    if (!parse_menu_resource( p, hMenu, oldFormat ))
+    if (version == 0)
+        ret = parse_menu_resource( p, hMenu, oldFormat );
+    else if (version == 1)
+        ret = parse_menuex_resource( p, hMenu );
+    else
+        FIXME("invalid version %d for Win16 application\n", version);
+    if (!ret)
     {
         DestroyMenu( hMenu );
         return 0;