Floer constructed instanton homology for homology 3-spheres. In this paper, we extend instanton Floer homology to lens spaces L(p, q). Moreover we show a gluing formula for a variant of Donaldson invariant along lens spaces. As an application, we prove that X = CP 2 #CP 2 does not admit a decomposition X = X 1 ∪ X 2 . Here X 1 and X 2 are oriented, simply connected, non-spin 4-manifolds with b + = 1 and with boundary L(p, 2), and p is a prime number of the form 16N + 1.