diff --git a/Parsedown.php b/Parsedown.php
index 1ce5bd3..2be4056 100755
--- a/Parsedown.php
+++ b/Parsedown.php
@@ -1476,7 +1476,7 @@ class Parsedown
             return self::$instances[$name];
         }
 
-        $instance = new self();
+        $instance = new static();
 
         self::$instances[$name] = $instance;
 
diff --git a/test/ParsedownTest.php b/test/ParsedownTest.php
index 759b8fd..c922ab1 100644
--- a/test/ParsedownTest.php
+++ b/test/ParsedownTest.php
@@ -136,4 +136,24 @@ EXPECTED_HTML;
         $parsedownWithNoMarkup->setMarkupEscaped(true);
         $this->assertEquals($expectedHtml, $parsedownWithNoMarkup->text($markdownWithHtml));
     }
+
+    public function testLateStaticBinding()
+    {
+        include 'test/TestParsedown.php';
+
+        $parsedown = Parsedown::instance();
+        $this->assertInstanceOf('Parsedown', $parsedown);
+
+        // After instance is already called on Parsedown
+        // subsequent calls with the same arguments return the same instance
+        $sameParsedown = TestParsedown::instance();
+        $this->assertInstanceOf('Parsedown', $sameParsedown);
+        $this->assertSame($parsedown, $sameParsedown);
+
+        $testParsedown = TestParsedown::instance('test late static binding');
+        $this->assertInstanceOf('TestParsedown', $testParsedown);
+
+        $sameInstanceAgain = TestParsedown::instance('test late static binding');
+        $this->assertSame($testParsedown, $sameInstanceAgain);
+    }
 }
diff --git a/test/TestParsedown.php b/test/TestParsedown.php
new file mode 100644
index 0000000..7024dfb
--- /dev/null
+++ b/test/TestParsedown.php
@@ -0,0 +1,5 @@
+<?php
+
+class TestParsedown extends Parsedown
+{
+}