diff --git a/src/compiler/parser.ts b/src/compiler/parser.ts
index fcea7adcff..5b0e48593a 100644
--- a/src/compiler/parser.ts
+++ b/src/compiler/parser.ts
@@ -821,6 +821,18 @@ module ts {
         _syntacticDiagnostics: Diagnostic[];
     }
 
+    function modifierToFlag(token: SyntaxKind): NodeFlags {
+        switch (token) {
+            case SyntaxKind.StaticKeyword: return NodeFlags.Static;
+            case SyntaxKind.PublicKeyword: return NodeFlags.Public;
+            case SyntaxKind.ProtectedKeyword: return NodeFlags.Protected;
+            case SyntaxKind.PrivateKeyword: return NodeFlags.Private;
+            case SyntaxKind.ExportKeyword: return NodeFlags.Export;
+            case SyntaxKind.DeclareKeyword: return NodeFlags.Ambient;
+        }
+        return 0;
+    }
+
     export function createSourceFile(filename: string, sourceText: string, languageVersion: ScriptTarget, version: string, isOpen: boolean = false): SourceFile {
         var file: SourceFileInternal;
         var scanner: Scanner;
@@ -1488,7 +1500,11 @@ module ts {
 
         function parseParameter(flags: NodeFlags = 0): ParameterDeclaration {
             var node = <ParameterDeclaration>createNode(SyntaxKind.Parameter);
-            node.flags |= parseAndCheckModifiers(ModifierContext.Parameters);
+            var modifiers = parseModifiers(ModifierContext.Parameters);
+            if (modifiers) {
+                node.flags |= modifiers.flags;
+                node.modifiers = modifiers;
+            }
             if (parseOptional(SyntaxKind.DotDotDotToken)) {
                 node.flags |= NodeFlags.Rest;
             }
@@ -2472,7 +2488,7 @@ module ts {
             var initialToken = token;
             if (parseContextualModifier(SyntaxKind.GetKeyword) || parseContextualModifier(SyntaxKind.SetKeyword)) {
                 var kind = initialToken === SyntaxKind.GetKeyword ? SyntaxKind.GetAccessor : SyntaxKind.SetAccessor;
-                return parseMemberAccessorDeclaration(kind, initialPos, 0);
+                return parseMemberAccessorDeclaration(kind, initialPos, /*modifiers*/ undefined);
             }
             return parsePropertyAssignment();
         }
@@ -2982,19 +2998,23 @@ module ts {
             return finishNode(node);
         }
 
-        function parseConstructorDeclaration(pos: number, flags: NodeFlags): ConstructorDeclaration {
+        function parseConstructorDeclaration(pos: number, modifiers: ModifiersArray): ConstructorDeclaration {
             var node = <ConstructorDeclaration>createNode(SyntaxKind.Constructor, pos);
-            node.flags = flags;
+            if (modifiers) {
+                node.modifiers = modifiers;
+                node.flags = modifiers.flags;
+            }
             parseExpected(SyntaxKind.ConstructorKeyword);
             var sig = parseSignature(SyntaxKind.CallSignature, SyntaxKind.ColonToken, /* returnTokenRequired */ false);
             node.typeParameters = sig.typeParameters;
             node.parameters = sig.parameters;
             node.type = sig.type;
             node.body = parseFunctionBlockOrSemicolon();
+
             return finishNode(node);
         }
 
-        function parsePropertyMemberDeclaration(pos: number, flags: NodeFlags): Declaration {
+        function parsePropertyMemberDeclaration(pos: number, modifiers: ModifiersArray): Declaration {
             var errorCountBeforePropertyDeclaration = file.parseDiagnostics.length;
             var name = parsePropertyName();
 
@@ -3005,18 +3025,25 @@ module ts {
 
             if (token === SyntaxKind.OpenParenToken || token === SyntaxKind.LessThanToken) {
                 var method = <MethodDeclaration>createNode(SyntaxKind.Method, pos);
-                method.flags = flags;
+                if (modifiers) {
+                    method.modifiers = modifiers;
+                    method.flags = modifiers.flags;
+                }
                 method.name = name;
                 var sig = parseSignature(SyntaxKind.CallSignature, SyntaxKind.ColonToken, /* returnTokenRequired */ false);
                 method.typeParameters = sig.typeParameters;
                 method.parameters = sig.parameters;
                 method.type = sig.type;
                 method.body = parseFunctionBlockOrSemicolon();
+
                 return finishNode(method);
             }
             else {
                 var property = <PropertyDeclaration>createNode(SyntaxKind.Property, pos);
-                property.flags = flags;
+                if (modifiers) {
+                    property.modifiers = modifiers;
+                    property.flags = modifiers.flags;
+                }
                 property.name = name;
                 property.type = parseTypeAnnotation();
 
@@ -3032,9 +3059,12 @@ module ts {
             }
         }
 
-        function parseMemberAccessorDeclaration(kind: SyntaxKind, pos: number, flags: NodeFlags): MethodDeclaration {
+        function parseMemberAccessorDeclaration(kind: SyntaxKind, pos: number, modifiers: ModifiersArray): MethodDeclaration {
             var node = <MethodDeclaration>createNode(kind, pos);
-            node.flags = flags;
+            if (modifiers) {
+                node.modifiers = modifiers;
+                node.flags = modifiers.flags;
+            }
             node.name = parsePropertyName();
             var sig = parseSignature(SyntaxKind.CallSignature, SyntaxKind.ColonToken, /* returnTokenRequired */ false);
             node.typeParameters = sig.typeParameters;
@@ -3103,175 +3133,44 @@ module ts {
             return false;
         }
 
-        function parseAndCheckModifiers(context: ModifierContext): number {
+        function parseModifiers(context: ModifierContext): ModifiersArray {
             var flags = 0;
-            var lastStaticModifierStart: number;
-            var lastStaticModifierLength: number;
-            var lastDeclareModifierStart: number;
-            var lastDeclareModifierLength: number;
-            var lastPrivateModifierStart: number;
-            var lastPrivateModifierLength: number;
-            var lastProtectedModifierStart: number;
-            var lastProtectedModifierLength: number;
-
+            var modifiers: ModifiersArray;
             while (true) {
                 var modifierStart = scanner.getTokenPos();
                 var modifierToken = token;
 
-                // Try to parse the modifier
                 if (!parseAnyContextualModifier()) break;
 
-                var modifierLength = scanner.getStartPos() - modifierStart;
-
-                switch (modifierToken) {
-                    case SyntaxKind.PublicKeyword:
-                        if (flags & NodeFlags.AccessibilityModifier) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics.Accessibility_modifier_already_seen);
-                        }
-                        else if (flags & NodeFlags.Static) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_must_precede_1_modifier, "public", "static");
-                        }
-                        else if (context === ModifierContext.ModuleElements || context === ModifierContext.SourceElements) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_module_element, "public");
-                        }
-                        flags |= NodeFlags.Public;
-                        break;
-
-                    case SyntaxKind.PrivateKeyword:
-                        if (flags & NodeFlags.AccessibilityModifier) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics.Accessibility_modifier_already_seen);
-                        }
-                        else if (flags & NodeFlags.Static) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_must_precede_1_modifier, "private", "static");
-                        }
-                        else if (context === ModifierContext.ModuleElements || context === ModifierContext.SourceElements) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_module_element, "private");
-                        }
-                        lastPrivateModifierStart = modifierStart;
-                        lastPrivateModifierLength = modifierLength;
-                        flags |= NodeFlags.Private;
-                        break;
-
-                    case SyntaxKind.ProtectedKeyword:
-                        if (flags & NodeFlags.Public || flags & NodeFlags.Private || flags & NodeFlags.Protected) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics.Accessibility_modifier_already_seen);
-                        }
-                        else if (flags & NodeFlags.Static) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_must_precede_1_modifier, "protected", "static");
-                        }
-                        else if (context === ModifierContext.ModuleElements || context === ModifierContext.SourceElements) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_module_element, "protected");
-                        }
-                        lastProtectedModifierStart = modifierStart;
-                        lastProtectedModifierLength = modifierLength;
-                        flags |= NodeFlags.Protected;
-                        break;
-
-                    case SyntaxKind.StaticKeyword:
-                        if (flags & NodeFlags.Static) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_already_seen, "static");
-                        }
-                        else if (context === ModifierContext.ModuleElements || context === ModifierContext.SourceElements) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_module_element, "static");
-                        }
-                        else if (context === ModifierContext.Parameters) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_parameter, "static");
-                        }
-                        lastStaticModifierStart = modifierStart;
-                        lastStaticModifierLength = modifierLength;
-                        flags |= NodeFlags.Static;
-                        break;
-
-                    case SyntaxKind.ExportKeyword:
-                        if (flags & NodeFlags.Export) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_already_seen, "export");
-                        }
-                        else if (flags & NodeFlags.Ambient) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_must_precede_1_modifier, "export", "declare");
-                        }
-                        else if (context === ModifierContext.ClassMembers) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_class_element, "export");
-                        }
-                        else if (context === ModifierContext.Parameters) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_parameter, "export");
-                        }
-                        flags |= NodeFlags.Export;
-                        break;
-
-                    case SyntaxKind.DeclareKeyword:
-                        if (flags & NodeFlags.Ambient) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_already_seen, "declare");
-                        }
-                        else if (context === ModifierContext.ClassMembers) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_class_element, "declare");
-                        }
-                        else if (context === ModifierContext.Parameters) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics._0_modifier_cannot_appear_on_a_parameter, "declare");
-                        }
-                        else if (inAmbientContext && context === ModifierContext.ModuleElements) {
-                            grammarErrorAtPos(modifierStart, modifierLength, Diagnostics.A_declare_modifier_cannot_be_used_in_an_already_ambient_context);
-                        }
-                        lastDeclareModifierStart = modifierStart;
-                        lastDeclareModifierLength = modifierLength;
-                        flags |= NodeFlags.Ambient;
-                        break;
+                if (!modifiers) {
+                    modifiers = <ModifiersArray>[];
                 }
+                flags |= modifierToFlag(modifierToken);
+                modifiers.push(finishNode(createNode(modifierToken, modifierStart))); 
             }
-
-            if (token === SyntaxKind.ConstructorKeyword && flags & NodeFlags.Static) {
-                grammarErrorAtPos(lastStaticModifierStart, lastStaticModifierLength, Diagnostics._0_modifier_cannot_appear_on_a_constructor_declaration, "static");
+            if (modifiers) {
+                modifiers.flags = flags;
             }
-            else if (token === SyntaxKind.ConstructorKeyword && flags & NodeFlags.Private) {
-                grammarErrorAtPos(lastPrivateModifierStart, lastPrivateModifierLength, Diagnostics._0_modifier_cannot_appear_on_a_constructor_declaration, "private");
-            }
-            else if (token === SyntaxKind.ConstructorKeyword && flags & NodeFlags.Protected) {
-                grammarErrorAtPos(lastProtectedModifierStart, lastProtectedModifierLength, Diagnostics._0_modifier_cannot_appear_on_a_constructor_declaration, "protected");
-            }
-            else if (token === SyntaxKind.ImportKeyword) {
-                if (flags & NodeFlags.Ambient) {
-                    grammarErrorAtPos(lastDeclareModifierStart, lastDeclareModifierLength, Diagnostics.A_declare_modifier_cannot_be_used_with_an_import_declaration, "declare");
-                }
-            }
-            else if (token === SyntaxKind.InterfaceKeyword) {
-                if (flags & NodeFlags.Ambient) {
-                    grammarErrorAtPos(lastDeclareModifierStart, lastDeclareModifierLength, Diagnostics.A_declare_modifier_cannot_be_used_with_an_interface_declaration, "declare");
-                }
-            }
-            else if (token !== SyntaxKind.ExportKeyword && !(flags & NodeFlags.Ambient) && inAmbientContext && context === ModifierContext.SourceElements) {
-                // A declare modifier is required for any top level .d.ts declaration except export=, interfaces and imports:
-                // categories:
-                //
-                //  DeclarationElement:
-                //     ExportAssignment
-                //     export_opt   InterfaceDeclaration
-                //     export_opt   ImportDeclaration
-                //     export_opt   ExternalImportDeclaration
-                //     export_opt   AmbientDeclaration
-                //
-                var declarationStart = scanner.getTokenPos();
-                var declarationFirstTokenLength = scanner.getTextPos() - declarationStart;
-                grammarErrorAtPos(declarationStart, declarationFirstTokenLength, Diagnostics.A_declare_modifier_is_required_for_a_top_level_declaration_in_a_d_ts_file);
-            }
-            return flags;
+            return modifiers;
         }
 
         function parseClassMemberDeclaration(): Declaration {
             var pos = getNodePos();
-            var flags = parseAndCheckModifiers(ModifierContext.ClassMembers);
+            var modifiers = parseModifiers(ModifierContext.ClassMembers);
             if (parseContextualModifier(SyntaxKind.GetKeyword)) {
-                return parseMemberAccessorDeclaration(SyntaxKind.GetAccessor, pos, flags);
+                return parseMemberAccessorDeclaration(SyntaxKind.GetAccessor, pos, modifiers);
             }
             if (parseContextualModifier(SyntaxKind.SetKeyword)) {
-                return parseMemberAccessorDeclaration(SyntaxKind.SetAccessor, pos, flags);
+                return parseMemberAccessorDeclaration(SyntaxKind.SetAccessor, pos, modifiers);
             }
             if (token === SyntaxKind.ConstructorKeyword) {
-                return parseConstructorDeclaration(pos, flags);
+                return parseConstructorDeclaration(pos, modifiers);
             }
             if (token >= SyntaxKind.Identifier || token === SyntaxKind.StringLiteral || token === SyntaxKind.NumericLiteral) {
-                return parsePropertyMemberDeclaration(pos, flags);
+                return parsePropertyMemberDeclaration(pos, modifiers);
             }
             if (token === SyntaxKind.OpenBracketToken) {
-                if (flags) {
+                if (modifiers) {
                     var start = getTokenPos(pos);
                     var length = getNodePos() - start;
                     errorAtPos(start, length, Diagnostics.Modifiers_not_permitted_on_index_signature_members);
@@ -3472,14 +3371,13 @@ module ts {
         function parseDeclaration(modifierContext: ModifierContext): Statement {
             var pos = getNodePos();
             var errorCountBeforeModifiers = file.parseDiagnostics.length;
-            var flags = parseAndCheckModifiers(modifierContext);
-
+            var modifiers = parseModifiers(modifierContext);
             if (token === SyntaxKind.ExportKeyword) {
                 var modifiersEnd = scanner.getStartPos();
                 nextToken();
                 if (parseOptional(SyntaxKind.EqualsToken)) {
                     var exportAssignmentTail = parseExportAssignmentTail(pos);
-                    if (flags !== 0 && errorCountBeforeModifiers === file.parseDiagnostics.length) {
+                    if (modifiers && errorCountBeforeModifiers === file.parseDiagnostics.length) {
                         var modifiersStart = skipTrivia(sourceText, pos);
                         grammarErrorAtPos(modifiersStart, modifiersEnd - modifiersStart, Diagnostics.An_export_assignment_cannot_have_modifiers);
                     }
@@ -3488,10 +3386,10 @@ module ts {
             }
 
             var saveInAmbientContext = inAmbientContext;
-            if (flags & NodeFlags.Ambient) {
+            if (modifiers && modifiers.flags & NodeFlags.Ambient) {
                 inAmbientContext = true;
             }
-
+            var flags = modifiers ? modifiers.flags : 0;
             var result: Declaration;
             switch (token) {
                 case SyntaxKind.VarKeyword:
@@ -3532,6 +3430,10 @@ module ts {
                     error(Diagnostics.Declaration_expected);
             }
 
+            if (modifiers) {
+                result.modifiers = modifiers;
+            }
+
             inAmbientContext = saveInAmbientContext;
             return result;
         }
@@ -3711,14 +3613,17 @@ module ts {
             node.parent = parent;
             parent = node;
 
-            var savedInAmbientContext = inAmbientContext
-            if (node.flags & NodeFlags.Ambient) {
-                inAmbientContext = true;
+            if (!checkModifiers(node)) {
+                var savedInAmbientContext = inAmbientContext
+                if (node.flags & NodeFlags.Ambient) {
+                    inAmbientContext = true;
+                }
+
+                checkNode(node);
+
+                inAmbientContext = savedInAmbientContext;
             }
 
-            checkNode(node);
-
-            inAmbientContext = savedInAmbientContext;
             parent = savedParent;
         }
 
@@ -3743,7 +3648,7 @@ module ts {
             dispatch(node);
         }
 
-        function dispatch(node: Node) {
+        function dispatch(node: Node): void {
             switch (node.kind) {
                 case SyntaxKind.ArrowFunction:              return visitArrowFunction(<FunctionExpression>node);
                 case SyntaxKind.BinaryExpression:           return visitBinaryExpression(<BinaryExpression>node);
@@ -4026,8 +3931,13 @@ module ts {
         }
 
         function visitEnumDeclaration(enumDecl: EnumDeclaration) {
+            checkEnumInitializer(enumDecl);
+        }
+
+        function checkEnumInitializer(enumDecl: EnumDeclaration): boolean {
             var enumIsConst = (enumDecl.flags & NodeFlags.Const) !== 0;
 
+            var hasError = false;
             // skip checks below for const enums  - they allow arbitrary initializers as long as they can be evaluated to constant expressions.
             // since all values are known in compile time - it is not necessary to check that constant enum section precedes computed enum members.
             if (!enumIsConst) {
@@ -4036,17 +3946,18 @@ module ts {
                     var node = enumDecl.members[i];
                     if (inAmbientContext) {
                         if (node.initializer && !isIntegerLiteral(node.initializer)) {
-                            grammarErrorOnNode(node.name, Diagnostics.Ambient_enum_elements_can_only_have_integer_literal_initializers);
+                            hasError = grammarErrorOnNode(node.name, Diagnostics.Ambient_enum_elements_can_only_have_integer_literal_initializers) || hasError;
                         }
                     }
                     else if (node.initializer) {
                         inConstantEnumMemberSection = isIntegerLiteral(node.initializer);
                     }
                     else if (!inConstantEnumMemberSection) {
-                        grammarErrorOnNode(node.name, Diagnostics.Enum_member_must_have_initializer);
+                        hasError = grammarErrorOnNode(node.name, Diagnostics.Enum_member_must_have_initializer) || hasError;
                     }
                 }
             }
+            return hasError;
         }
 
         function isIntegerLiteral(expression: Expression): boolean {
@@ -4177,14 +4088,18 @@ module ts {
         }
 
         function visitModuleDeclaration(node: ModuleDeclaration): void {
+            checkInternalModule(node);
+        }
+
+        function checkInternalModule(node: ModuleDeclaration): boolean {
             if (node.name.kind === SyntaxKind.Identifier && node.body.kind === SyntaxKind.ModuleBlock) {
-                forEach((<Block>node.body).statements, s => {
+                return forEach((<Block>node.body).statements, s => {
                     if (s.kind === SyntaxKind.ExportAssignment) {
                         // Export assignments are not allowed in an internal module
-                        grammarErrorOnNode(s, Diagnostics.An_export_assignment_cannot_be_used_in_an_internal_module);
+                        return grammarErrorOnNode(s, Diagnostics.An_export_assignment_cannot_be_used_in_an_internal_module);
                     }
                     else if (s.kind === SyntaxKind.ImportDeclaration && (<ImportDeclaration>s).externalModuleName) {
-                        grammarErrorOnNode(s, Diagnostics.Import_declarations_in_an_internal_module_cannot_reference_an_external_module);
+                        return grammarErrorOnNode(s, Diagnostics.Import_declarations_in_an_internal_module_cannot_reference_an_external_module);
                     }
                 });
             }
@@ -4261,6 +4176,148 @@ module ts {
             });
         }
 
+        function checkTopLevelDeclareModifierInAmbientContext(node: Node): boolean {
+            // A declare modifier is required for any top level .d.ts declaration except export=, interfaces and imports:
+            // categories:
+            //
+            //  DeclarationElement:
+            //     ExportAssignment
+            //     export_opt   InterfaceDeclaration
+            //     export_opt   ImportDeclaration
+            //     export_opt   ExternalImportDeclaration
+            //     export_opt   AmbientDeclaration
+            //
+
+            if (!inAmbientContext || 
+                !(isDeclaration(node) || node.kind === SyntaxKind.VariableStatement) || 
+                !node.parent || 
+                node.parent.kind !== SyntaxKind.SourceFile) {
+                return false;
+            }
+
+            if (node.kind === SyntaxKind.InterfaceDeclaration || 
+                node.kind === SyntaxKind.ImportDeclaration ||
+                node.kind === SyntaxKind.ExportAssignment ||
+                (node.flags & NodeFlags.Ambient) || 
+                (node.flags & NodeFlags.Export)) {
+
+                return false;
+            }
+
+            return grammarErrorOnFirstToken(node, Diagnostics.A_declare_modifier_is_required_for_a_top_level_declaration_in_a_d_ts_file);
+        }
+
+
+        function checkModifiers(node: Node): boolean {
+            if (!node.modifiers) {
+                return checkTopLevelDeclareModifierInAmbientContext(node);
+            }
+            var lastStatic: Node, lastPrivate: Node, lastProtected: Node, lastDeclare: Node;
+            var flags = 0;
+            var hasErrors = forEach(node.modifiers, m => {
+                switch (m.kind) {
+                    case SyntaxKind.PublicKeyword:
+                    case SyntaxKind.ProtectedKeyword:
+                    case SyntaxKind.PrivateKeyword:
+                        var text: string;
+                        if (m.kind === SyntaxKind.PublicKeyword) {
+                            text = "public";
+                        }
+                        else if (m.kind === SyntaxKind.ProtectedKeyword) {
+                            text = "protected";
+                            lastProtected = m;
+                        }
+                        else {
+                            text = "private";
+                            lastPrivate = m;
+                        }
+
+                        if (flags & NodeFlags.AccessibilityModifier) {
+                            return grammarErrorOnNode(m, Diagnostics.Accessibility_modifier_already_seen);
+                        }
+                        else if (flags & NodeFlags.Static) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_must_precede_1_modifier, text, "static");
+                        }
+                        else if (node.parent.kind === SyntaxKind.ModuleBlock || node.parent.kind === SyntaxKind.SourceFile) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_cannot_appear_on_a_module_element, text);
+                        }
+                        flags |= modifierToFlag(m.kind);
+                        break;
+
+                    case SyntaxKind.StaticKeyword:
+                        if (flags & NodeFlags.Static) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_already_seen, "static");
+                        }
+                        else if (node.parent.kind === SyntaxKind.ModuleBlock || node.parent.kind === SyntaxKind.SourceFile) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_cannot_appear_on_a_module_element, "static");
+                        }
+                        else if (node.kind === SyntaxKind.Parameter) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_cannot_appear_on_a_parameter, "static");
+                        }
+                        flags |= NodeFlags.Static;
+                        lastStatic = m;
+                        break;
+
+                    case SyntaxKind.ExportKeyword:
+                        if (flags & NodeFlags.Export) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_already_seen, "export");
+                        }
+                        else if (flags & NodeFlags.Ambient) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_must_precede_1_modifier, "export", "declare");
+                        }
+                        else if (node.parent.kind === SyntaxKind.ClassDeclaration) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_cannot_appear_on_a_class_element, "export");
+                        }
+                        else if (node.kind === SyntaxKind.Parameter) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_cannot_appear_on_a_parameter, "export");
+                        }
+                        flags |= NodeFlags.Export;
+                        break;
+
+                    case SyntaxKind.DeclareKeyword:
+                        if (flags & NodeFlags.Ambient) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_already_seen, "declare");
+                        }
+                        else if (node.parent.kind === SyntaxKind.ClassDeclaration) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_cannot_appear_on_a_class_element, "declare");
+                        }
+                        else if (node.kind === SyntaxKind.Parameter) {
+                            return grammarErrorOnNode(m, Diagnostics._0_modifier_cannot_appear_on_a_parameter, "declare");
+                        }
+                        else if (inAmbientContext && node.parent.kind === SyntaxKind.ModuleBlock) {
+                            return grammarErrorOnNode(m, Diagnostics.A_declare_modifier_cannot_be_used_in_an_already_ambient_context);
+                        }
+                        flags |= NodeFlags.Ambient;
+                        lastDeclare = m;
+                        break;
+                }
+            });
+
+            if (hasErrors) {
+                return true;
+            }
+
+            if (node.kind === SyntaxKind.Constructor) {
+                if (flags & NodeFlags.Static) {
+                    return grammarErrorOnNode(lastStatic, Diagnostics._0_modifier_cannot_appear_on_a_constructor_declaration, "static");
+                }
+                else if (flags & NodeFlags.Protected) {
+                    return grammarErrorOnNode(lastProtected, Diagnostics._0_modifier_cannot_appear_on_a_constructor_declaration, "protected");
+                }
+                else if (flags & NodeFlags.Private) {
+                    return grammarErrorOnNode(lastPrivate, Diagnostics._0_modifier_cannot_appear_on_a_constructor_declaration, "private");
+                }
+            }
+            else if (node.kind === SyntaxKind.ImportDeclaration && flags & NodeFlags.Ambient) {
+                return grammarErrorOnNode(lastDeclare, Diagnostics.A_declare_modifier_cannot_be_used_with_an_import_declaration, "declare");
+            }
+            else if (node.kind === SyntaxKind.InterfaceDeclaration && flags & NodeFlags.Ambient) {
+                return grammarErrorOnNode(lastDeclare, Diagnostics.A_declare_modifier_cannot_be_used_with_an_interface_declaration, "declare");
+            }
+
+            return checkTopLevelDeclareModifierInAmbientContext(node);
+        }
+
         function visitParameter(node: ParameterDeclaration): void {
             checkParameterName(node);
         }
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 7865a4f246..6e7beb531f 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -288,12 +288,17 @@ module ts {
         locals?: SymbolTable;         // Locals associated with node (initialized by binding)
         nextContainer?: Node;         // Next container in declaration order (initialized by binding)
         localSymbol?: Symbol;         // Local symbol declared by node (initialized by binding only for exported nodes)
+        modifiers?: ModifiersArray;           // Array of modifiers
     }
 
     export interface NodeArray<T> extends Array<T>, TextRange {
         hasTrailingComma?: boolean;
     }
 
+    export interface ModifiersArray extends Array<Node> {
+        flags: number;
+    }
+
     export interface Identifier extends Node {
         text: string;                 // Text of identifier (with escapes converted to characters)
     }
diff --git a/tests/baselines/reference/accessibilityModifiers.errors.txt b/tests/baselines/reference/accessibilityModifiers.errors.txt
index 137da7f982..1bf9213976 100644
--- a/tests/baselines/reference/accessibilityModifiers.errors.txt
+++ b/tests/baselines/reference/accessibilityModifiers.errors.txt
@@ -11,13 +11,12 @@ tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifier
 tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts(34,12): error TS1029: 'public' modifier must precede 'static' modifier.
 tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts(35,12): error TS1029: 'public' modifier must precede 'static' modifier.
 tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts(40,13): error TS1028: Accessibility modifier already seen.
-tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts(40,20): error TS1028: Accessibility modifier already seen.
 tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts(41,12): error TS1028: Accessibility modifier already seen.
 tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts(42,13): error TS1028: Accessibility modifier already seen.
 tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts(43,12): error TS1028: Accessibility modifier already seen.
 
 
-==== tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts (17 errors) ====
+==== tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifiers.ts (16 errors) ====
     
     // No errors
     class C {
@@ -83,8 +82,6 @@ tests/cases/conformance/classes/propertyMemberDeclarations/accessibilityModifier
     class E {
         private public protected property;
                 ~~~~~~
-!!! error TS1028: Accessibility modifier already seen.
-                       ~~~~~~~~~
 !!! error TS1028: Accessibility modifier already seen.
         public protected method() { }
                ~~~~~~~~~
diff --git a/tests/baselines/reference/exportAlreadySeen.errors.txt b/tests/baselines/reference/exportAlreadySeen.errors.txt
index eb9f0ce1a9..707b34c8d2 100644
--- a/tests/baselines/reference/exportAlreadySeen.errors.txt
+++ b/tests/baselines/reference/exportAlreadySeen.errors.txt
@@ -1,16 +1,12 @@
 tests/cases/compiler/exportAlreadySeen.ts(2,12): error TS1030: 'export' modifier already seen.
 tests/cases/compiler/exportAlreadySeen.ts(3,12): error TS1030: 'export' modifier already seen.
 tests/cases/compiler/exportAlreadySeen.ts(5,12): error TS1030: 'export' modifier already seen.
-tests/cases/compiler/exportAlreadySeen.ts(6,16): error TS1030: 'export' modifier already seen.
-tests/cases/compiler/exportAlreadySeen.ts(7,16): error TS1030: 'export' modifier already seen.
 tests/cases/compiler/exportAlreadySeen.ts(12,12): error TS1030: 'export' modifier already seen.
 tests/cases/compiler/exportAlreadySeen.ts(13,12): error TS1030: 'export' modifier already seen.
 tests/cases/compiler/exportAlreadySeen.ts(15,12): error TS1030: 'export' modifier already seen.
-tests/cases/compiler/exportAlreadySeen.ts(16,16): error TS1030: 'export' modifier already seen.
-tests/cases/compiler/exportAlreadySeen.ts(17,16): error TS1030: 'export' modifier already seen.
 
 
-==== tests/cases/compiler/exportAlreadySeen.ts (10 errors) ====
+==== tests/cases/compiler/exportAlreadySeen.ts (6 errors) ====
     module M {
         export export var x = 1;
                ~~~~~~
@@ -23,11 +19,7 @@ tests/cases/compiler/exportAlreadySeen.ts(17,16): error TS1030: 'export' modifie
                ~~~~~~
 !!! error TS1030: 'export' modifier already seen.
             export export class C { }
-                   ~~~~~~
-!!! error TS1030: 'export' modifier already seen.
             export export interface I { }
-                   ~~~~~~
-!!! error TS1030: 'export' modifier already seen.
         }  
     }
     
@@ -43,10 +35,6 @@ tests/cases/compiler/exportAlreadySeen.ts(17,16): error TS1030: 'export' modifie
                ~~~~~~
 !!! error TS1030: 'export' modifier already seen.
             export export class C { }
-                   ~~~~~~
-!!! error TS1030: 'export' modifier already seen.
             export export interface I { }
-                   ~~~~~~
-!!! error TS1030: 'export' modifier already seen.
         }
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/giant.errors.txt b/tests/baselines/reference/giant.errors.txt
index d70ac7013d..d9d96f5abf 100644
--- a/tests/baselines/reference/giant.errors.txt
+++ b/tests/baselines/reference/giant.errors.txt
@@ -34,10 +34,6 @@ tests/cases/compiler/giant.ts(430,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(432,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(436,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(438,5): error TS1005: '{' expected.
-tests/cases/compiler/giant.ts(615,16): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
-tests/cases/compiler/giant.ts(616,16): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
-tests/cases/compiler/giant.ts(617,16): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
-tests/cases/compiler/giant.ts(618,16): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
 tests/cases/compiler/giant.ts(23,12): error TS2300: Duplicate identifier 'pgF'.
 tests/cases/compiler/giant.ts(24,16): error TS2300: Duplicate identifier 'pgF'.
 tests/cases/compiler/giant.ts(24,16): error TS2378: A 'get' accessor must return a value or consist of a single 'throw' statement.
@@ -174,7 +170,7 @@ tests/cases/compiler/giant.ts(602,9): error TS2386: Overload signatures must all
 tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all be optional or required.
 
 
-==== tests/cases/compiler/giant.ts (174 errors) ====
+==== tests/cases/compiler/giant.ts (170 errors) ====
     
     /*
         Prefixes
@@ -1128,17 +1124,9 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
             export interface eI { }
             export module eM { }
             export declare var eaV
-                   ~~~~~~~
-!!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
             export declare function eaF() { };
-                   ~~~~~~~
-!!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
             export declare class eaC { }
-                   ~~~~~~~
-!!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
             export declare module eaM { }
-                   ~~~~~~~
-!!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
         }
         export var eV;
         export function eF() { };
diff --git a/tests/baselines/reference/importDeclWithDeclareModifier.errors.txt b/tests/baselines/reference/importDeclWithDeclareModifier.errors.txt
index 8aeb64291a..35c91e38dc 100644
--- a/tests/baselines/reference/importDeclWithDeclareModifier.errors.txt
+++ b/tests/baselines/reference/importDeclWithDeclareModifier.errors.txt
@@ -1,17 +1,14 @@
-tests/cases/compiler/importDeclWithDeclareModifier.ts(5,1): error TS1079: A 'declare' modifier cannot be used with an import declaration.
 tests/cases/compiler/importDeclWithDeclareModifier.ts(5,1): error TS1148: Cannot compile external modules unless the '--module' flag is provided.
 tests/cases/compiler/importDeclWithDeclareModifier.ts(5,9): error TS1029: 'export' modifier must precede 'declare' modifier.
 tests/cases/compiler/importDeclWithDeclareModifier.ts(5,1): error TS2305: Module 'x' has no exported member 'c'.
 
 
-==== tests/cases/compiler/importDeclWithDeclareModifier.ts (4 errors) ====
+==== tests/cases/compiler/importDeclWithDeclareModifier.ts (3 errors) ====
     module x {
         interface c {
         }
     }
     declare export import a = x.c;
-    ~~~~~~~
-!!! error TS1079: A 'declare' modifier cannot be used with an import declaration.
     ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 !!! error TS1148: Cannot compile external modules unless the '--module' flag is provided.
             ~~~~~~
diff --git a/tests/baselines/reference/importDeclWithDeclareModifierInAmbientContext.errors.txt b/tests/baselines/reference/importDeclWithDeclareModifierInAmbientContext.errors.txt
index 9773b29303..47d9eb1eec 100644
--- a/tests/baselines/reference/importDeclWithDeclareModifierInAmbientContext.errors.txt
+++ b/tests/baselines/reference/importDeclWithDeclareModifierInAmbientContext.errors.txt
@@ -1,9 +1,7 @@
 tests/cases/compiler/importDeclWithDeclareModifierInAmbientContext.ts(6,5): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
-tests/cases/compiler/importDeclWithDeclareModifierInAmbientContext.ts(6,5): error TS1079: A 'declare' modifier cannot be used with an import declaration.
-tests/cases/compiler/importDeclWithDeclareModifierInAmbientContext.ts(6,13): error TS1029: 'export' modifier must precede 'declare' modifier.
 
 
-==== tests/cases/compiler/importDeclWithDeclareModifierInAmbientContext.ts (3 errors) ====
+==== tests/cases/compiler/importDeclWithDeclareModifierInAmbientContext.ts (1 errors) ====
     declare module "m" {
         module x {
             interface c {
@@ -12,10 +10,6 @@ tests/cases/compiler/importDeclWithDeclareModifierInAmbientContext.ts(6,13): err
         declare export import a = x.c;
         ~~~~~~~
 !!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
-        ~~~~~~~
-!!! error TS1079: A 'declare' modifier cannot be used with an import declaration.
-                ~~~~~~
-!!! error TS1029: 'export' modifier must precede 'declare' modifier.
         var b: a;
     }
     
\ No newline at end of file
diff --git a/tests/baselines/reference/parserConstructorDeclaration7.errors.txt b/tests/baselines/reference/parserConstructorDeclaration7.errors.txt
index 49645ac123..7b3f033e3c 100644
--- a/tests/baselines/reference/parserConstructorDeclaration7.errors.txt
+++ b/tests/baselines/reference/parserConstructorDeclaration7.errors.txt
@@ -1,12 +1,9 @@
 tests/cases/conformance/parser/ecmascript5/ConstructorDeclarations/parserConstructorDeclaration7.ts(2,10): error TS1028: Accessibility modifier already seen.
-tests/cases/conformance/parser/ecmascript5/ConstructorDeclarations/parserConstructorDeclaration7.ts(2,10): error TS1089: 'private' modifier cannot appear on a constructor declaration.
 
 
-==== tests/cases/conformance/parser/ecmascript5/ConstructorDeclarations/parserConstructorDeclaration7.ts (2 errors) ====
+==== tests/cases/conformance/parser/ecmascript5/ConstructorDeclarations/parserConstructorDeclaration7.ts (1 errors) ====
     class C {
       public private constructor() { }
              ~~~~~~~
 !!! error TS1028: Accessibility modifier already seen.
-             ~~~~~~~
-!!! error TS1089: 'private' modifier cannot appear on a constructor declaration.
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/parserIndexMemberDeclaration10.errors.txt b/tests/baselines/reference/parserIndexMemberDeclaration10.errors.txt
index e85a4817d8..dc4da35ebc 100644
--- a/tests/baselines/reference/parserIndexMemberDeclaration10.errors.txt
+++ b/tests/baselines/reference/parserIndexMemberDeclaration10.errors.txt
@@ -1,12 +1,9 @@
 tests/cases/conformance/parser/ecmascript5/IndexMemberDeclarations/parserIndexMemberDeclaration10.ts(2,4): error TS1145: Modifiers not permitted on index signature members.
-tests/cases/conformance/parser/ecmascript5/IndexMemberDeclarations/parserIndexMemberDeclaration10.ts(2,11): error TS1030: 'static' modifier already seen.
 
 
-==== tests/cases/conformance/parser/ecmascript5/IndexMemberDeclarations/parserIndexMemberDeclaration10.ts (2 errors) ====
+==== tests/cases/conformance/parser/ecmascript5/IndexMemberDeclarations/parserIndexMemberDeclaration10.ts (1 errors) ====
     class C {
        static static [x: string]: string;
        ~~~~~~~~~~~~~
 !!! error TS1145: Modifiers not permitted on index signature members.
-              ~~~~~~
-!!! error TS1030: 'static' modifier already seen.
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/parserIndexMemberDeclaration9.errors.txt b/tests/baselines/reference/parserIndexMemberDeclaration9.errors.txt
index 493a789449..00ae01b12d 100644
--- a/tests/baselines/reference/parserIndexMemberDeclaration9.errors.txt
+++ b/tests/baselines/reference/parserIndexMemberDeclaration9.errors.txt
@@ -1,9 +1,9 @@
-tests/cases/conformance/parser/ecmascript5/IndexMemberDeclarations/parserIndexMemberDeclaration9.ts(2,4): error TS1031: 'export' modifier cannot appear on a class element.
+tests/cases/conformance/parser/ecmascript5/IndexMemberDeclarations/parserIndexMemberDeclaration9.ts(2,4): error TS1145: Modifiers not permitted on index signature members.
 
 
 ==== tests/cases/conformance/parser/ecmascript5/IndexMemberDeclarations/parserIndexMemberDeclaration9.ts (1 errors) ====
     class C {
        export [x: string]: string;
        ~~~~~~
-!!! error TS1031: 'export' modifier cannot appear on a class element.
+!!! error TS1145: Modifiers not permitted on index signature members.
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/parserModuleDeclaration4.d.errors.txt b/tests/baselines/reference/parserModuleDeclaration4.d.errors.txt
index 2e75c6cbc5..3f7cc9c53d 100644
--- a/tests/baselines/reference/parserModuleDeclaration4.d.errors.txt
+++ b/tests/baselines/reference/parserModuleDeclaration4.d.errors.txt
@@ -1,13 +1,10 @@
 tests/cases/conformance/parser/ecmascript5/ModuleDeclarations/parserModuleDeclaration4.d.ts(1,1): error TS1046: A 'declare' modifier is required for a top level declaration in a .d.ts file.
-tests/cases/conformance/parser/ecmascript5/ModuleDeclarations/parserModuleDeclaration4.d.ts(2,3): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
 
 
-==== tests/cases/conformance/parser/ecmascript5/ModuleDeclarations/parserModuleDeclaration4.d.ts (2 errors) ====
+==== tests/cases/conformance/parser/ecmascript5/ModuleDeclarations/parserModuleDeclaration4.d.ts (1 errors) ====
     module M {
     ~~~~~~
 !!! error TS1046: A 'declare' modifier is required for a top level declaration in a .d.ts file.
       declare module M1 {
-      ~~~~~~~
-!!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
       }
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/privacyGloImportParseErrors.errors.txt b/tests/baselines/reference/privacyGloImportParseErrors.errors.txt
index 0ac0ed3510..4b7cbfa744 100644
--- a/tests/baselines/reference/privacyGloImportParseErrors.errors.txt
+++ b/tests/baselines/reference/privacyGloImportParseErrors.errors.txt
@@ -1,4 +1,7 @@
+tests/cases/compiler/privacyGloImportParseErrors.ts(59,5): error TS1147: Import declarations in an internal module cannot reference an external module.
+tests/cases/compiler/privacyGloImportParseErrors.ts(125,13): error TS1147: Import declarations in an internal module cannot reference an external module.
 tests/cases/compiler/privacyGloImportParseErrors.ts(133,9): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
+tests/cases/compiler/privacyGloImportParseErrors.ts(149,9): error TS1147: Import declarations in an internal module cannot reference an external module.
 tests/cases/compiler/privacyGloImportParseErrors.ts(22,27): error TS2435: Ambient external modules cannot be nested in other modules.
 tests/cases/compiler/privacyGloImportParseErrors.ts(30,20): error TS2435: Ambient external modules cannot be nested in other modules.
 tests/cases/compiler/privacyGloImportParseErrors.ts(59,37): error TS2307: Cannot find external module 'm1_M3_public'.
@@ -8,7 +11,7 @@ tests/cases/compiler/privacyGloImportParseErrors.ts(138,16): error TS2435: Ambie
 tests/cases/compiler/privacyGloImportParseErrors.ts(141,12): error TS2435: Ambient external modules cannot be nested in other modules.
 
 
-==== tests/cases/compiler/privacyGloImportParseErrors.ts (8 errors) ====
+==== tests/cases/compiler/privacyGloImportParseErrors.ts (11 errors) ====
     module m1 {
         export module m1_M1_public {
             export class c1 {
@@ -72,6 +75,8 @@ tests/cases/compiler/privacyGloImportParseErrors.ts(141,12): error TS2435: Ambie
         var m1_im2_private_v4_private = m1_im2_private.f1();
     
         import m1_im3_private = require("m1_M3_public");
+        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
                                         ~~~~~~~~~~~~~~
 !!! error TS2307: Cannot find external module 'm1_M3_public'.
         export var m1_im3_private_v1_public = m1_im3_private.c1;
@@ -142,6 +147,8 @@ tests/cases/compiler/privacyGloImportParseErrors.ts(141,12): error TS2435: Ambie
     
             module m5 {
                 import m5_errorImport = require("glo_M2_public");
+                ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
                 import m5_nonerrorImport = glo_M1_public;
             }
         }
@@ -174,6 +181,8 @@ tests/cases/compiler/privacyGloImportParseErrors.ts(141,12): error TS2435: Ambie
         module m4 {
             var a = 10;
             import m2 = require("use_glo_M1_public");
+            ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         }
     
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/privacyImportParseErrors.errors.txt b/tests/baselines/reference/privacyImportParseErrors.errors.txt
index 6e901ab2b6..81f0d3fd27 100644
--- a/tests/baselines/reference/privacyImportParseErrors.errors.txt
+++ b/tests/baselines/reference/privacyImportParseErrors.errors.txt
@@ -1,6 +1,11 @@
+tests/cases/compiler/privacyImportParseErrors.ts(59,5): error TS1147: Import declarations in an internal module cannot reference an external module.
+tests/cases/compiler/privacyImportParseErrors.ts(143,5): error TS1147: Import declarations in an internal module cannot reference an external module.
+tests/cases/compiler/privacyImportParseErrors.ts(277,13): error TS1147: Import declarations in an internal module cannot reference an external module.
+tests/cases/compiler/privacyImportParseErrors.ts(306,13): error TS1147: Import declarations in an internal module cannot reference an external module.
 tests/cases/compiler/privacyImportParseErrors.ts(314,9): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
 tests/cases/compiler/privacyImportParseErrors.ts(326,9): error TS1029: 'export' modifier must precede 'declare' modifier.
-tests/cases/compiler/privacyImportParseErrors.ts(328,9): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
+tests/cases/compiler/privacyImportParseErrors.ts(344,9): error TS1147: Import declarations in an internal module cannot reference an external module.
+tests/cases/compiler/privacyImportParseErrors.ts(353,9): error TS1147: Import declarations in an internal module cannot reference an external module.
 tests/cases/compiler/privacyImportParseErrors.ts(22,27): error TS2435: Ambient external modules cannot be nested in other modules.
 tests/cases/compiler/privacyImportParseErrors.ts(30,20): error TS2435: Ambient external modules cannot be nested in other modules.
 tests/cases/compiler/privacyImportParseErrors.ts(59,37): error TS2307: Cannot find external module 'm1_M3_public'.
@@ -33,7 +38,7 @@ tests/cases/compiler/privacyImportParseErrors.ts(333,16): error TS2435: Ambient
 tests/cases/compiler/privacyImportParseErrors.ts(336,12): error TS2435: Ambient external modules cannot be nested in other modules.
 
 
-==== tests/cases/compiler/privacyImportParseErrors.ts (33 errors) ====
+==== tests/cases/compiler/privacyImportParseErrors.ts (38 errors) ====
     export module m1 {
         export module m1_M1_public {
             export class c1 {
@@ -97,6 +102,8 @@ tests/cases/compiler/privacyImportParseErrors.ts(336,12): error TS2435: Ambient
         var m1_im2_private_v4_private = m1_im2_private.f1();
     
         import m1_im3_private = require("m1_M3_public");
+        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
                                         ~~~~~~~~~~~~~~
 !!! error TS2307: Cannot find external module 'm1_M3_public'.
         export var m1_im3_private_v1_public = m1_im3_private.c1;
@@ -189,6 +196,8 @@ tests/cases/compiler/privacyImportParseErrors.ts(336,12): error TS2435: Ambient
         var m1_im2_private_v4_private = m1_im2_private.f1();
     
         import m1_im3_private = require("m2_M3_public");
+        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
                                         ~~~~~~~~~~~~~~
 !!! error TS2307: Cannot find external module 'm2_M3_public'.
         export var m1_im3_private_v1_public = m1_im3_private.c1;
@@ -347,6 +356,8 @@ tests/cases/compiler/privacyImportParseErrors.ts(336,12): error TS2435: Ambient
     
             module m5 {
                 import m5_errorImport = require("glo_M2_public");
+                ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
                 import m5_nonerrorImport = glo_M1_public;
             }
         }
@@ -384,6 +395,8 @@ tests/cases/compiler/privacyImportParseErrors.ts(336,12): error TS2435: Ambient
     
             module m5 {
                 import m5_errorImport = require("glo_M4_private");
+                ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
                 import m5_nonerrorImport = glo_M3_private;
             }
         }
@@ -420,8 +433,6 @@ tests/cases/compiler/privacyImportParseErrors.ts(336,12): error TS2435: Ambient
 !!! error TS2435: Ambient external modules cannot be nested in other modules.
         module m2 {
             declare module "abc" {
-            ~~~~~~~
-!!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
                            ~~~~~
 !!! error TS2435: Ambient external modules cannot be nested in other modules.
             }
@@ -444,6 +455,8 @@ tests/cases/compiler/privacyImportParseErrors.ts(336,12): error TS2435: Ambient
         module m4 {
             var a = 10;
             import m2 = require("use_glo_M1_public");
+            ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         }
     
     }
@@ -453,6 +466,8 @@ tests/cases/compiler/privacyImportParseErrors.ts(336,12): error TS2435: Ambient
         module m4 {
             var a = 10;
             import m2 = require("use_glo_M1_public");
+            ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         }
     
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideModule/amd/privacyCheckOnImportedModuleDeclarationsInsideModule.errors.txt b/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideModule/amd/privacyCheckOnImportedModuleDeclarationsInsideModule.errors.txt
index b92bb48308..cb53bb4783 100644
--- a/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideModule/amd/privacyCheckOnImportedModuleDeclarationsInsideModule.errors.txt
+++ b/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideModule/amd/privacyCheckOnImportedModuleDeclarationsInsideModule.errors.txt
@@ -1,8 +1,7 @@
 testGlo.ts(2,5): error TS1147: Import declarations in an internal module cannot reference an external module.
-testGlo.ts(21,5): error TS1147: Import declarations in an internal module cannot reference an external module.
 
 
-==== testGlo.ts (2 errors) ====
+==== testGlo.ts (1 errors) ====
     module m2 {
         export import mExported = require("mExported");
         ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
@@ -26,8 +25,6 @@ testGlo.ts(21,5): error TS1147: Import declarations in an internal module cannot
         }
     
         import mNonExported = require("mNonExported");
-        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         export var c3 = new mNonExported.mne.class1;
         export function f3() {
             return new mNonExported.mne.class1();
diff --git a/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideModule/node/privacyCheckOnImportedModuleDeclarationsInsideModule.errors.txt b/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideModule/node/privacyCheckOnImportedModuleDeclarationsInsideModule.errors.txt
index b92bb48308..cb53bb4783 100644
--- a/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideModule/node/privacyCheckOnImportedModuleDeclarationsInsideModule.errors.txt
+++ b/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideModule/node/privacyCheckOnImportedModuleDeclarationsInsideModule.errors.txt
@@ -1,8 +1,7 @@
 testGlo.ts(2,5): error TS1147: Import declarations in an internal module cannot reference an external module.
-testGlo.ts(21,5): error TS1147: Import declarations in an internal module cannot reference an external module.
 
 
-==== testGlo.ts (2 errors) ====
+==== testGlo.ts (1 errors) ====
     module m2 {
         export import mExported = require("mExported");
         ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
@@ -26,8 +25,6 @@ testGlo.ts(21,5): error TS1147: Import declarations in an internal module cannot
         }
     
         import mNonExported = require("mNonExported");
-        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         export var c3 = new mNonExported.mne.class1;
         export function f3() {
             return new mNonExported.mne.class1();
diff --git a/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule/amd/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule.errors.txt b/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule/amd/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule.errors.txt
index bbf4831914..6be6fe0f92 100644
--- a/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule/amd/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule.errors.txt
+++ b/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule/amd/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule.errors.txt
@@ -1,8 +1,7 @@
 test.ts(5,5): error TS1147: Import declarations in an internal module cannot reference an external module.
-test.ts(24,5): error TS1147: Import declarations in an internal module cannot reference an external module.
 
 
-==== test.ts (2 errors) ====
+==== test.ts (1 errors) ====
     export module m1 {
     }
     
@@ -29,8 +28,6 @@ test.ts(24,5): error TS1147: Import declarations in an internal module cannot re
         }
     
         import mNonExported = require("mNonExported");
-        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         export var c3 = new mNonExported.mne.class1;
         export function f3() {
             return new mNonExported.mne.class1();
diff --git a/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule/node/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule.errors.txt b/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule/node/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule.errors.txt
index bbf4831914..6be6fe0f92 100644
--- a/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule/node/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule.errors.txt
+++ b/tests/baselines/reference/project/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule/node/privacyCheckOnImportedModuleDeclarationsInsideNonExportedModule.errors.txt
@@ -1,8 +1,7 @@
 test.ts(5,5): error TS1147: Import declarations in an internal module cannot reference an external module.
-test.ts(24,5): error TS1147: Import declarations in an internal module cannot reference an external module.
 
 
-==== test.ts (2 errors) ====
+==== test.ts (1 errors) ====
     export module m1 {
     }
     
@@ -29,8 +28,6 @@ test.ts(24,5): error TS1147: Import declarations in an internal module cannot re
         }
     
         import mNonExported = require("mNonExported");
-        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         export var c3 = new mNonExported.mne.class1;
         export function f3() {
             return new mNonExported.mne.class1();
diff --git a/tests/baselines/reference/project/privacyCheckOnImportedModuleImportStatementInParentModule/amd/privacyCheckOnImportedModuleImportStatementInParentModule.errors.txt b/tests/baselines/reference/project/privacyCheckOnImportedModuleImportStatementInParentModule/amd/privacyCheckOnImportedModuleImportStatementInParentModule.errors.txt
index ff9a9f604a..24ce0e94be 100644
--- a/tests/baselines/reference/project/privacyCheckOnImportedModuleImportStatementInParentModule/amd/privacyCheckOnImportedModuleImportStatementInParentModule.errors.txt
+++ b/tests/baselines/reference/project/privacyCheckOnImportedModuleImportStatementInParentModule/amd/privacyCheckOnImportedModuleImportStatementInParentModule.errors.txt
@@ -1,8 +1,7 @@
 test.ts(2,5): error TS1147: Import declarations in an internal module cannot reference an external module.
-test.ts(42,5): error TS1147: Import declarations in an internal module cannot reference an external module.
 
 
-==== test.ts (2 errors) ====
+==== test.ts (1 errors) ====
     export module m2 {
         export import mExported = require("mExported");
         ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
@@ -47,8 +46,6 @@ test.ts(42,5): error TS1147: Import declarations in an internal module cannot re
         }
     
         import mNonExported = require("mNonExported");
-        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         module Internal_M3 {
             export var c3 = new mNonExported.mne.class1;
             export function f3() {
diff --git a/tests/baselines/reference/project/privacyCheckOnImportedModuleImportStatementInParentModule/node/privacyCheckOnImportedModuleImportStatementInParentModule.errors.txt b/tests/baselines/reference/project/privacyCheckOnImportedModuleImportStatementInParentModule/node/privacyCheckOnImportedModuleImportStatementInParentModule.errors.txt
index ff9a9f604a..24ce0e94be 100644
--- a/tests/baselines/reference/project/privacyCheckOnImportedModuleImportStatementInParentModule/node/privacyCheckOnImportedModuleImportStatementInParentModule.errors.txt
+++ b/tests/baselines/reference/project/privacyCheckOnImportedModuleImportStatementInParentModule/node/privacyCheckOnImportedModuleImportStatementInParentModule.errors.txt
@@ -1,8 +1,7 @@
 test.ts(2,5): error TS1147: Import declarations in an internal module cannot reference an external module.
-test.ts(42,5): error TS1147: Import declarations in an internal module cannot reference an external module.
 
 
-==== test.ts (2 errors) ====
+==== test.ts (1 errors) ====
     export module m2 {
         export import mExported = require("mExported");
         ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
@@ -47,8 +46,6 @@ test.ts(42,5): error TS1147: Import declarations in an internal module cannot re
         }
     
         import mNonExported = require("mNonExported");
-        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-!!! error TS1147: Import declarations in an internal module cannot reference an external module.
         module Internal_M3 {
             export var c3 = new mNonExported.mne.class1;
             export function f3() {