diff --git a/src/compiler/emitter.ts b/src/compiler/emitter.ts
index a91d7a68b8..aaee1e1ef9 100644
--- a/src/compiler/emitter.ts
+++ b/src/compiler/emitter.ts
@@ -3232,8 +3232,9 @@ var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, ge
 
                 // loop is considered simple if it does not have any return statements or break\continue that transfer control outside of the loop
                 // simple loops are emitted as just 'loop()';
+                // NOTE: if loop uses only 'continue' it still will be emitted as simple loop
                 const isSimpleLoop =
-                    !loop.state.nonLocalJumps &&
+                    !(loop.state.nonLocalJumps & ~Jump.Continue) &&
                     !loop.state.labeledNonLocalBreaks &&
                     !loop.state.labeledNonLocalContinues;
 
@@ -3274,13 +3275,9 @@ var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, ge
                         writeLine();
                     }
 
-                    if (loop.state.nonLocalJumps & Jump.Continue) {
-                        write(`if (${loopResult} === "continue") continue;`);
-                        writeLine();
-                    }
-
                     // in case of labeled breaks emit code that either breaks to some known label inside outer loop or delegates jump decision to outer loop
                     emitDispatchTableForLabeledJumps(loopResult, loop.state, convertedLoopState);
+                    // in case of 'continue' we'll just fallthough here
                 }
 
                 if (emitAsBlock) {
@@ -3575,6 +3572,7 @@ var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, ge
                             }
                             else {
                                 convertedLoopState.nonLocalJumps |= Jump.Continue;
+                                // note: return value is emitted only to simplify debugging, call to converted loop body does not do any dispatching on it.     
                                 write(`"continue";`);
                             }
                         }
diff --git a/tests/baselines/reference/blockScopedBindingsReassignedInLoop2.js b/tests/baselines/reference/blockScopedBindingsReassignedInLoop2.js
index c48ecd96ff..68bfd3cb67 100644
--- a/tests/baselines/reference/blockScopedBindingsReassignedInLoop2.js
+++ b/tests/baselines/reference/blockScopedBindingsReassignedInLoop2.js
@@ -73,10 +73,9 @@ var _loop_2 = function(x, y) {
 };
 var out_x_2, out_y_2;
 for (var x = 1, y = 2; x < y; ++x, --y) {
-    var state_2 = _loop_2(x, y);
+    _loop_2(x, y);
     x = out_x_2;
     y = out_y_2;
-    if (state_2 === "continue") continue;
 }
 var _loop_3 = function(x, y) {
     var a = function () { return x++ + y++; };
diff --git a/tests/baselines/reference/blockScopedBindingsReassignedInLoop3.js b/tests/baselines/reference/blockScopedBindingsReassignedInLoop3.js
index 1016020262..7e3bac4ff5 100644
--- a/tests/baselines/reference/blockScopedBindingsReassignedInLoop3.js
+++ b/tests/baselines/reference/blockScopedBindingsReassignedInLoop3.js
@@ -147,9 +147,8 @@ var _loop_3 = function(x, y) {
         };
         var out_a_2_1;
         for (var a_2 = 1; a_2 < 5; --a_2) {
-            var state_3 = _loop_4(a_2);
+            _loop_4(a_2);
             a_2 = out_a_2_1;
-            if (state_3 === "continue") continue;
         }
         y = 5;
     }
@@ -158,10 +157,9 @@ var _loop_3 = function(x, y) {
 };
 var out_x_2, out_y_2;
 for (var x = 1, y = 2; x < y; ++x, --y) {
-    var state_4 = _loop_3(x, y);
+    _loop_3(x, y);
     x = out_x_2;
     y = out_y_2;
-    if (state_4 === "continue") continue;
 }
 var _loop_5 = function(x, y) {
     var a = function () { return x++ + y++; };
diff --git a/tests/baselines/reference/capturedLetConstInLoop6.js b/tests/baselines/reference/capturedLetConstInLoop6.js
index e196950e69..6a2b4c9a33 100644
--- a/tests/baselines/reference/capturedLetConstInLoop6.js
+++ b/tests/baselines/reference/capturedLetConstInLoop6.js
@@ -254,7 +254,6 @@ for (var _i = 0, _a = []; _i < _a.length; _i++) {
     var x = _a[_i];
     var state_1 = _loop_1(x);
     if (state_1 === "break") break;
-    if (state_1 === "continue") continue;
 }
 var _loop_2 = function(x) {
     (function () { return x; });
@@ -269,7 +268,6 @@ var _loop_2 = function(x) {
 for (var x in []) {
     var state_2 = _loop_2(x);
     if (state_2 === "break") break;
-    if (state_2 === "continue") continue;
 }
 var _loop_3 = function(x) {
     (function () { return x; });
@@ -284,7 +282,6 @@ var _loop_3 = function(x) {
 for (var x = 0; x < 1; ++x) {
     var state_3 = _loop_3(x);
     if (state_3 === "break") break;
-    if (state_3 === "continue") continue;
 }
 var _loop_4 = function() {
     var x;
@@ -300,7 +297,6 @@ var _loop_4 = function() {
 while (1 === 1) {
     var state_4 = _loop_4();
     if (state_4 === "break") break;
-    if (state_4 === "continue") continue;
 }
 var _loop_5 = function() {
     var x;
@@ -316,7 +312,6 @@ var _loop_5 = function() {
 do {
     var state_5 = _loop_5();
     if (state_5 === "break") break;
-    if (state_5 === "continue") continue;
 } while (1 === 1);
 var _loop_6 = function(y) {
     var x = 1;
@@ -332,7 +327,6 @@ var _loop_6 = function(y) {
 for (var y = 0; y < 1; ++y) {
     var state_6 = _loop_6(y);
     if (state_6 === "break") break;
-    if (state_6 === "continue") continue;
 }
 var _loop_7 = function(x, y) {
     (function () { return x + y; });
@@ -347,7 +341,6 @@ var _loop_7 = function(x, y) {
 for (var x = 0, y = 1; x < 1; ++x) {
     var state_7 = _loop_7(x, y);
     if (state_7 === "break") break;
-    if (state_7 === "continue") continue;
 }
 var _loop_8 = function() {
     var x, y;
@@ -363,7 +356,6 @@ var _loop_8 = function() {
 while (1 === 1) {
     var state_8 = _loop_8();
     if (state_8 === "break") break;
-    if (state_8 === "continue") continue;
 }
 var _loop_9 = function() {
     var x, y;
@@ -379,7 +371,6 @@ var _loop_9 = function() {
 do {
     var state_9 = _loop_9();
     if (state_9 === "break") break;
-    if (state_9 === "continue") continue;
 } while (1 === 1);
 var _loop_10 = function(y) {
     var x = 1;
@@ -395,7 +386,6 @@ var _loop_10 = function(y) {
 for (var y = 0; y < 1; ++y) {
     var state_10 = _loop_10(y);
     if (state_10 === "break") break;
-    if (state_10 === "continue") continue;
 }
 // ====const
 var _loop_11 = function(x) {
@@ -412,7 +402,6 @@ for (var _b = 0, _c = []; _b < _c.length; _b++) {
     var x = _c[_b];
     var state_11 = _loop_11(x);
     if (state_11 === "break") break;
-    if (state_11 === "continue") continue;
 }
 var _loop_12 = function(x) {
     (function () { return x; });
@@ -427,7 +416,6 @@ var _loop_12 = function(x) {
 for (var x in []) {
     var state_12 = _loop_12(x);
     if (state_12 === "break") break;
-    if (state_12 === "continue") continue;
 }
 var _loop_13 = function(x) {
     (function () { return x; });
@@ -442,7 +430,6 @@ var _loop_13 = function(x) {
 for (var x = 0; x < 1;) {
     var state_13 = _loop_13(x);
     if (state_13 === "break") break;
-    if (state_13 === "continue") continue;
 }
 var _loop_14 = function() {
     var x = 1;
@@ -458,7 +445,6 @@ var _loop_14 = function() {
 while (1 === 1) {
     var state_14 = _loop_14();
     if (state_14 === "break") break;
-    if (state_14 === "continue") continue;
 }
 var _loop_15 = function() {
     var x = 1;
@@ -474,7 +460,6 @@ var _loop_15 = function() {
 do {
     var state_15 = _loop_15();
     if (state_15 === "break") break;
-    if (state_15 === "continue") continue;
 } while (1 === 1);
 var _loop_16 = function(y) {
     var x = 1;
@@ -490,7 +475,6 @@ var _loop_16 = function(y) {
 for (var y = 0; y < 1;) {
     var state_16 = _loop_16(y);
     if (state_16 === "break") break;
-    if (state_16 === "continue") continue;
 }
 var _loop_17 = function(x, y) {
     (function () { return x + y; });
@@ -505,7 +489,6 @@ var _loop_17 = function(x, y) {
 for (var x = 0, y = 1; x < 1;) {
     var state_17 = _loop_17(x, y);
     if (state_17 === "break") break;
-    if (state_17 === "continue") continue;
 }
 var _loop_18 = function() {
     var x = 1, y = 1;
@@ -521,7 +504,6 @@ var _loop_18 = function() {
 while (1 === 1) {
     var state_18 = _loop_18();
     if (state_18 === "break") break;
-    if (state_18 === "continue") continue;
 }
 var _loop_19 = function() {
     var x = 1, y = 1;
@@ -537,7 +519,6 @@ var _loop_19 = function() {
 do {
     var state_19 = _loop_19();
     if (state_19 === "break") break;
-    if (state_19 === "continue") continue;
 } while (1 === 1);
 var _loop_20 = function(y) {
     var x = 1;
@@ -553,5 +534,4 @@ var _loop_20 = function(y) {
 for (var y = 0; y < 1;) {
     var state_20 = _loop_20(y);
     if (state_20 === "break") break;
-    if (state_20 === "continue") continue;
 }
diff --git a/tests/baselines/reference/capturedLetConstInLoop7.js b/tests/baselines/reference/capturedLetConstInLoop7.js
index 8df93bca60..56b84e7802 100644
--- a/tests/baselines/reference/capturedLetConstInLoop7.js
+++ b/tests/baselines/reference/capturedLetConstInLoop7.js
@@ -397,7 +397,6 @@ l0: for (var _i = 0, _a = []; _i < _a.length; _i++) {
     var x = _a[_i];
     var state_1 = _loop_1(x);
     if (state_1 === "break") break;
-    if (state_1 === "continue") continue;
     switch(state_1) {
         case "break-l0": break l0;
         case "continue-l0": continue l0;
@@ -422,7 +421,6 @@ var _loop_2 = function(x) {
 l00: for (var x in []) {
     var state_2 = _loop_2(x);
     if (state_2 === "break") break;
-    if (state_2 === "continue") continue;
     switch(state_2) {
         case "break-l00": break l00;
         case "continue-l00": continue l00;
@@ -447,7 +445,6 @@ var _loop_3 = function(x) {
 l1: for (var x = 0; x < 1; ++x) {
     var state_3 = _loop_3(x);
     if (state_3 === "break") break;
-    if (state_3 === "continue") continue;
     switch(state_3) {
         case "break-l1": break l1;
         case "continue-l1": continue l1;
@@ -473,7 +470,6 @@ var _loop_4 = function() {
 l2: while (1 === 1) {
     var state_4 = _loop_4();
     if (state_4 === "break") break;
-    if (state_4 === "continue") continue;
     switch(state_4) {
         case "break-l2": break l2;
         case "continue-l2": continue l2;
@@ -499,7 +495,6 @@ var _loop_5 = function() {
 l3: do {
     var state_5 = _loop_5();
     if (state_5 === "break") break;
-    if (state_5 === "continue") continue;
     switch(state_5) {
         case "break-l3": break l3;
         case "continue-l3": continue l3;
@@ -525,7 +520,6 @@ var _loop_6 = function(y) {
 l4: for (var y = 0; y < 1; ++y) {
     var state_6 = _loop_6(y);
     if (state_6 === "break") break;
-    if (state_6 === "continue") continue;
     switch(state_6) {
         case "break-l4": break l4;
         case "continue-l4": continue l4;
@@ -550,7 +544,6 @@ var _loop_7 = function(x, y) {
 l5: for (var x = 0, y = 1; x < 1; ++x) {
     var state_7 = _loop_7(x, y);
     if (state_7 === "break") break;
-    if (state_7 === "continue") continue;
     switch(state_7) {
         case "break-l5": break l5;
         case "continue-l5": continue l5;
@@ -576,7 +569,6 @@ var _loop_8 = function() {
 l6: while (1 === 1) {
     var state_8 = _loop_8();
     if (state_8 === "break") break;
-    if (state_8 === "continue") continue;
     switch(state_8) {
         case "break-l6": break l6;
         case "continue-l6": continue l6;
@@ -602,7 +594,6 @@ var _loop_9 = function() {
 l7: do {
     var state_9 = _loop_9();
     if (state_9 === "break") break;
-    if (state_9 === "continue") continue;
     switch(state_9) {
         case "break-l7": break l7;
         case "continue-l7": continue l7;
@@ -628,7 +619,6 @@ var _loop_10 = function(y) {
 l8: for (var y = 0; y < 1; ++y) {
     var state_10 = _loop_10(y);
     if (state_10 === "break") break;
-    if (state_10 === "continue") continue;
     switch(state_10) {
         case "break-l8": break l8;
         case "continue-l8": continue l8;
@@ -655,7 +645,6 @@ l0_c: for (var _b = 0, _c = []; _b < _c.length; _b++) {
     var x = _c[_b];
     var state_11 = _loop_11(x);
     if (state_11 === "break") break;
-    if (state_11 === "continue") continue;
     switch(state_11) {
         case "break-l0_c": break l0_c;
         case "continue-l0_c": continue l0_c;
@@ -680,7 +669,6 @@ var _loop_12 = function(x) {
 l00_c: for (var x in []) {
     var state_12 = _loop_12(x);
     if (state_12 === "break") break;
-    if (state_12 === "continue") continue;
     switch(state_12) {
         case "break-l00_c": break l00_c;
         case "continue-l00_c": continue l00_c;
@@ -705,7 +693,6 @@ var _loop_13 = function(x) {
 l1_c: for (var x = 0; x < 1;) {
     var state_13 = _loop_13(x);
     if (state_13 === "break") break;
-    if (state_13 === "continue") continue;
     switch(state_13) {
         case "break-l1_c": break l1_c;
         case "continue-l1_c": continue l1_c;
@@ -731,7 +718,6 @@ var _loop_14 = function() {
 l2_c: while (1 === 1) {
     var state_14 = _loop_14();
     if (state_14 === "break") break;
-    if (state_14 === "continue") continue;
     switch(state_14) {
         case "break-l2_c": break l2_c;
         case "continue-l2_c": continue l2_c;
@@ -757,7 +743,6 @@ var _loop_15 = function() {
 l3_c: do {
     var state_15 = _loop_15();
     if (state_15 === "break") break;
-    if (state_15 === "continue") continue;
     switch(state_15) {
         case "break-l3_c": break l3_c;
         case "continue-l3_c": continue l3_c;
@@ -783,7 +768,6 @@ var _loop_16 = function(y) {
 l4_c: for (var y = 0; y < 1;) {
     var state_16 = _loop_16(y);
     if (state_16 === "break") break;
-    if (state_16 === "continue") continue;
     switch(state_16) {
         case "break-l4_c": break l4_c;
         case "continue-l4_c": continue l4_c;
@@ -808,7 +792,6 @@ var _loop_17 = function(x, y) {
 l5_c: for (var x = 0, y = 1; x < 1;) {
     var state_17 = _loop_17(x, y);
     if (state_17 === "break") break;
-    if (state_17 === "continue") continue;
     switch(state_17) {
         case "break-l5_c": break l5_c;
         case "continue-l5_c": continue l5_c;
@@ -834,7 +817,6 @@ var _loop_18 = function() {
 l6_c: while (1 === 1) {
     var state_18 = _loop_18();
     if (state_18 === "break") break;
-    if (state_18 === "continue") continue;
     switch(state_18) {
         case "break-l6_c": break l6_c;
         case "continue-l6_c": continue l6_c;
@@ -860,7 +842,6 @@ var _loop_19 = function() {
 l7_c: do {
     var state_19 = _loop_19();
     if (state_19 === "break") break;
-    if (state_19 === "continue") continue;
     switch(state_19) {
         case "break-l7_c": break l7_c;
         case "continue-l7_c": continue l7_c;
@@ -886,7 +867,6 @@ var _loop_20 = function(y) {
 l8_c: for (var y = 0; y < 1;) {
     var state_20 = _loop_20(y);
     if (state_20 === "break") break;
-    if (state_20 === "continue") continue;
     switch(state_20) {
         case "break-l8_c": break l8_c;
         case "continue-l8_c": continue l8_c;
diff --git a/tests/baselines/reference/capturedLetConstInLoop8.js b/tests/baselines/reference/capturedLetConstInLoop8.js
index 560b99bb56..122bdb96e3 100644
--- a/tests/baselines/reference/capturedLetConstInLoop8.js
+++ b/tests/baselines/reference/capturedLetConstInLoop8.js
@@ -165,7 +165,6 @@ function foo() {
                 var state_1 = _loop_2(y);
                 if (typeof state_1 === "object") return state_1;
                 if (state_1 === "break") break;
-                if (state_1 === "continue") continue;
                 switch(state_1) {
                     case "break-l1": return state_1;
                     case "break-ll1": break ll1;
@@ -200,7 +199,6 @@ function foo() {
             var state_2 = _loop_1(x);
             if (typeof state_2 === "object") return state_2.value;
             if (state_2 === "break") break;
-            if (state_2 === "continue") continue;
             switch(state_2) {
                 case "break-l1": break l1;
                 case "continue-l0": continue l0;
@@ -247,7 +245,6 @@ function foo_c() {
                 var state_3 = _loop_4(y);
                 if (typeof state_3 === "object") return state_3;
                 if (state_3 === "break") break;
-                if (state_3 === "continue") continue;
                 switch(state_3) {
                     case "break-l1": return state_3;
                     case "break-ll1": break ll1;
@@ -282,7 +279,6 @@ function foo_c() {
             var state_4 = _loop_3(x);
             if (typeof state_4 === "object") return state_4.value;
             if (state_4 === "break") break;
-            if (state_4 === "continue") continue;
             switch(state_4) {
                 case "break-l1": break l1;
                 case "continue-l0": continue l0;
diff --git a/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.js b/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.js
new file mode 100644
index 0000000000..431bdee6c8
--- /dev/null
+++ b/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.js
@@ -0,0 +1,30 @@
+//// [continueInLoopsWithCapturedBlockScopedBindings1.ts]
+function foo() {
+    for (const i of [0, 1]) {
+        if (i === 0) {
+            continue;
+        }
+
+        // Trigger non-simple-loop emit
+        (() => {
+            return i;
+        })();
+    }
+}
+
+//// [continueInLoopsWithCapturedBlockScopedBindings1.js]
+function foo() {
+    var _loop_1 = function(i) {
+        if (i === 0) {
+            return "continue";
+        }
+        // Trigger non-simple-loop emit
+        (function () {
+            return i;
+        })();
+    };
+    for (var _i = 0, _a = [0, 1]; _i < _a.length; _i++) {
+        var i = _a[_i];
+        _loop_1(i);
+    }
+}
diff --git a/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.symbols b/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.symbols
new file mode 100644
index 0000000000..bce177ca81
--- /dev/null
+++ b/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.symbols
@@ -0,0 +1,21 @@
+=== tests/cases/compiler/continueInLoopsWithCapturedBlockScopedBindings1.ts ===
+function foo() {
+>foo : Symbol(foo, Decl(continueInLoopsWithCapturedBlockScopedBindings1.ts, 0, 0))
+
+    for (const i of [0, 1]) {
+>i : Symbol(i, Decl(continueInLoopsWithCapturedBlockScopedBindings1.ts, 1, 14))
+
+        if (i === 0) {
+>i : Symbol(i, Decl(continueInLoopsWithCapturedBlockScopedBindings1.ts, 1, 14))
+
+            continue;
+        }
+
+        // Trigger non-simple-loop emit
+        (() => {
+            return i;
+>i : Symbol(i, Decl(continueInLoopsWithCapturedBlockScopedBindings1.ts, 1, 14))
+
+        })();
+    }
+}
diff --git a/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.types b/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.types
new file mode 100644
index 0000000000..2aeb286d60
--- /dev/null
+++ b/tests/baselines/reference/continueInLoopsWithCapturedBlockScopedBindings1.types
@@ -0,0 +1,30 @@
+=== tests/cases/compiler/continueInLoopsWithCapturedBlockScopedBindings1.ts ===
+function foo() {
+>foo : () => void
+
+    for (const i of [0, 1]) {
+>i : number
+>[0, 1] : number[]
+>0 : number
+>1 : number
+
+        if (i === 0) {
+>i === 0 : boolean
+>i : number
+>0 : number
+
+            continue;
+        }
+
+        // Trigger non-simple-loop emit
+        (() => {
+>(() => {            return i;        })() : number
+>(() => {            return i;        }) : () => number
+>() => {            return i;        } : () => number
+
+            return i;
+>i : number
+
+        })();
+    }
+}
diff --git a/tests/cases/compiler/continueInLoopsWithCapturedBlockScopedBindings1.ts b/tests/cases/compiler/continueInLoopsWithCapturedBlockScopedBindings1.ts
new file mode 100644
index 0000000000..8a17435edd
--- /dev/null
+++ b/tests/cases/compiler/continueInLoopsWithCapturedBlockScopedBindings1.ts
@@ -0,0 +1,13 @@
+// @target: ES5
+function foo() {
+    for (const i of [0, 1]) {
+        if (i === 0) {
+            continue;
+        }
+
+        // Trigger non-simple-loop emit
+        (() => {
+            return i;
+        })();
+    }
+}
\ No newline at end of file