diff --git a/h2/src/docsrc/html/changelog.html b/h2/src/docsrc/html/changelog.html
index ae2c8dc629..4980d4c15a 100644
--- a/h2/src/docsrc/html/changelog.html
+++ b/h2/src/docsrc/html/changelog.html
@@ -21,6 +21,10 @@ <h1>Change Log</h1>
 
 <h2>Next Version (unreleased)</h2>
 <ul>
+<li>Issue #3554: Regression in 2.1.214 when joining 2 recursive CTE containing bind values
+</li>
+<li>PR #3989: Refactor CTE-related code and reduce recompilations
+</li>
 <li>Issue #3987: Allow empty &lt;with column list&gt;
 </li>
 <li>Issue #822: WITH clauses' column aliases are not maintained correctly when selecting from CTE from within a derived
diff --git a/h2/src/main/org/h2/command/ParserBase.java b/h2/src/main/org/h2/command/ParserBase.java
index c9288f43b6..f92c9afd41 100644
--- a/h2/src/main/org/h2/command/ParserBase.java
+++ b/h2/src/main/org/h2/command/ParserBase.java
@@ -217,7 +217,19 @@ public final void setLiteralsChecked(boolean literalsChecked) {
     }
 
     public final void setSuppliedParameters(ArrayList<Parameter> suppliedParameters) {
-        this.parameters = suppliedParameters;
+        int max = Parameter.getMaxIndex(suppliedParameters);
+        if (max > suppliedParameters.size()) {
+            ArrayList<Parameter> parameters = new ArrayList<>(max);
+            for (int i = 0; i < max; i++) {
+                parameters.add(null);
+            }
+            for (Parameter p : suppliedParameters) {
+                parameters.set(p.getIndex(), p);
+            }
+            this.parameters = parameters;
+        } else {
+            this.parameters = suppliedParameters;
+        }
     }
 
     /**
diff --git a/h2/src/main/org/h2/expression/Parameter.java b/h2/src/main/org/h2/expression/Parameter.java
index 0626255946..294d172fb2 100644
--- a/h2/src/main/org/h2/expression/Parameter.java
+++ b/h2/src/main/org/h2/expression/Parameter.java
@@ -5,6 +5,8 @@
  */
 package org.h2.expression;
 
+import java.util.ArrayList;
+
 import org.h2.api.ErrorCode;
 import org.h2.engine.SessionLocal;
 import org.h2.expression.condition.Comparison;
@@ -20,6 +22,26 @@
  */
 public final class Parameter extends Operation0 implements ParameterInterface {
 
+    /**
+     * Returns the maximum 1-based index.
+     *
+     * @param parameters
+     *            parameters
+     * @return the maximum 1-based index, or {@code -1}
+     */
+    public static int getMaxIndex(ArrayList<Parameter> parameters) {
+        int result = 0;
+        for (Parameter p : parameters) {
+            if (p != null) {
+                int index = p.getIndex() + 1;
+                if (index > result) {
+                    result = index;
+                }
+            }
+        }
+        return result;
+    }
+
     private Value value;
     private Column column;
     private final int index;
diff --git a/h2/src/main/org/h2/table/QueryExpressionTable.java b/h2/src/main/org/h2/table/QueryExpressionTable.java
index 8c93e6be9a..0f2ccc8145 100644
--- a/h2/src/main/org/h2/table/QueryExpressionTable.java
+++ b/h2/src/main/org/h2/table/QueryExpressionTable.java
@@ -105,16 +105,6 @@ public static List<Column> createQueryColumnTemplateList(String[] cols, Query th
         return columnTemplateList;
     }
 
-    static int getMaxParameterIndex(ArrayList<Parameter> parameters) {
-        int result = -1;
-        for (Parameter p : parameters) {
-            if (p != null) {
-                result = Math.max(result, p.getIndex());
-            }
-        }
-        return result;
-    }
-
     Query viewQuery;
 
     ArrayList<Table> tables;
@@ -249,11 +239,11 @@ public final long getRowCountApproximation(SessionLocal session) {
      */
     public final int getParameterOffset(ArrayList<Parameter> additionalParameters) {
         Query topQuery = getTopQuery();
-        int result = topQuery == null ? -1 : getMaxParameterIndex(topQuery.getParameters());
+        int result = topQuery == null ? 0 : Parameter.getMaxIndex(topQuery.getParameters());
         if (additionalParameters != null) {
-            result = Math.max(result, getMaxParameterIndex(additionalParameters));
+            result = Math.max(result, Parameter.getMaxIndex(additionalParameters));
         }
-        return result + 1;
+        return result;
     }
 
     @Override
diff --git a/h2/src/test/org/h2/test/db/TestRecursiveQueries.java b/h2/src/test/org/h2/test/db/TestRecursiveQueries.java
index 27f2db4ac3..5ffc62b542 100644
--- a/h2/src/test/org/h2/test/db/TestRecursiveQueries.java
+++ b/h2/src/test/org/h2/test/db/TestRecursiveQueries.java
@@ -32,6 +32,7 @@ public void test() throws Exception {
         testWrongLinkLargeResult();
         testSimpleUnionAll();
         testSimpleUnion();
+        testParameters();
     }
 
     private void testWrongLinkLargeResult() throws Exception {
@@ -180,4 +181,42 @@ private void testSimpleUnion() throws Exception {
         deleteDb("recursiveQueries");
     }
 
+    private void testParameters() throws Exception {
+        deleteDb("recursiveQueries");
+        Connection conn = getConnection("recursiveQueries");
+        PreparedStatement prep = conn.prepareStatement("WITH RECURSIVE T1(F1, F2) AS (\n" //
+                + "    SELECT CAST(? AS INT), CAST(? AS VARCHAR(15))\n" //
+                + "    UNION ALL\n" //
+                + "    SELECT (T1.F1 + CAST(? AS INT)), CAST((CAST(? AS VARCHAR) || T1.F2) AS VARCHAR(15))\n" //
+                + "    FROM T1 WHERE T1.F1 < 10\n" //
+                + "  ),\n" //
+                + "T2(G1, G2) AS (\n" //
+                + "    SELECT CAST(? AS INT), CAST(? AS VARCHAR(15))\n" //
+                + "    UNION ALL\n" //
+                + "    SELECT (T2.G1 + 1), CAST(('b' || T2.G2) AS VARCHAR(15))\n" //
+                + "    FROM T2 WHERE T2.G1 < 10\n" //
+                + "  )\n" //
+                + "SELECT T1.F1, T1.F2, T2.G1, T2.G2 FROM T1 JOIN T2 ON T1.F1 = T2.G1");
+        prep.setInt(1, 1);
+        prep.setString(2, "a");
+        prep.setInt(3, 1);
+        prep.setString(4, "a");
+        prep.setInt(5, 1);
+        prep.setString(6, "b");
+        ResultSet rs = prep.executeQuery();
+        StringBuilder a = new StringBuilder(10), b = new StringBuilder(10);
+        for (int i = 1; i <= 10; i++) {
+            a.append('a');
+            b.append('b');
+            assertTrue(rs.next());
+            assertEquals(i, rs.getInt(1));
+            assertEquals(a.toString(), rs.getString(2));
+            assertEquals(i, rs.getInt(3));
+            assertEquals(b.toString(), rs.getString(4));
+        }
+        assertFalse(rs.next());
+        conn.close();
+        deleteDb("recursiveQueries");
+    }
+
 }