diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 8ee39ab18f..d296ea5fa2 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -344,21 +344,38 @@ module ts {
                     case SyntaxKind.SourceFile:
                         if (!isExternalModule(<SourceFile>location)) break;
                     case SyntaxKind.ModuleDeclaration:
-                        if (result = getSymbol(getSymbolOfNode(location).exports, name, meaning & SymbolFlags.ModuleMember)) {
-                            if (result.flags & meaning || !(result.flags & SymbolFlags.Alias && getDeclarationOfAliasSymbol(result).kind === SyntaxKind.ExportSpecifier)) {
-                                break loop;
-                            }
-                            result = undefined;
-                        }
-                        else if (location.kind === SyntaxKind.SourceFile ||
+                        let moduleExports = getSymbolOfNode(location).exports;
+                        if (location.kind === SyntaxKind.SourceFile ||
                             (location.kind === SyntaxKind.ModuleDeclaration && (<ModuleDeclaration>location).name.kind === SyntaxKind.StringLiteral)) {
-                            result = getSymbolOfNode(location).exports["default"];
+                            
+                            // It's an external module. Because of module/namespace merging, a module's exports are in scope,
+                            // yet we never want to treat an export specifier as putting a member in scope. Therefore,
+                            // if the name we find is purely an export specifier, it is not actually considered in scope.
+                            // Two things to note about this:
+                            //     1. We have to check this without calling getSymbol. The problem with calling getSymbol
+                            //        on an export specifier is that it might find the export specifier itself, and try to
+                            //        resolve it as an alias. This will cause the checker to consider the export specifier
+                            //        a circular alias reference when it might not be.
+                            //     2. We check === SymbolFlags.Alias in order to check that the symbol is *purely*
+                            //        an alias. If we used &, we'd be throwing out symbols that have non alias aspects,
+                            //        which is not the desired behavior.
+                            if (hasProperty(moduleExports, name) &&
+                                moduleExports[name].flags === SymbolFlags.Alias &&
+                                getDeclarationOfKind(moduleExports[name], SyntaxKind.ExportSpecifier)) {
+                                break;
+                            }
+
+                            result = moduleExports["default"];
                             let localSymbol = getLocalSymbolForExportDefault(result);
                             if (result && localSymbol && (result.flags & meaning) && localSymbol.name === name) {
                                 break loop;
                             }
                             result = undefined;
                         }
+
+                        if (result = getSymbol(moduleExports, name, meaning & SymbolFlags.ModuleMember)) {
+                            break loop;
+                        }
                         break;
                     case SyntaxKind.EnumDeclaration:
                         if (result = getSymbol(getSymbolOfNode(location).exports, name, meaning & SymbolFlags.EnumMember)) {
diff --git a/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.js b/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.js
new file mode 100644
index 0000000000..3fc4012101
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.js
@@ -0,0 +1,15 @@
+//// [exportSpecifierAndExportedMemberDeclaration.ts]
+declare module "m2" {
+    export module X {
+        interface I { }
+    }
+    function Y();
+    export { Y as X };
+    function Z(): X.I;
+}
+
+declare module "m2" {
+    function Z2(): X.I;
+}
+
+//// [exportSpecifierAndExportedMemberDeclaration.js]
diff --git a/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.symbols b/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.symbols
new file mode 100644
index 0000000000..7e2de735c4
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.symbols
@@ -0,0 +1,27 @@
+=== tests/cases/compiler/exportSpecifierAndExportedMemberDeclaration.ts ===
+declare module "m2" {
+    export module X {
+>X : Symbol(X, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 0, 21), Decl(exportSpecifierAndExportedMemberDeclaration.ts, 5, 12))
+
+        interface I { }
+>I : Symbol(I, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 1, 21))
+    }
+    function Y();
+>Y : Symbol(Y, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 3, 5))
+
+    export { Y as X };
+>Y : Symbol(X, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 0, 21), Decl(exportSpecifierAndExportedMemberDeclaration.ts, 5, 12))
+>X : Symbol(X, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 0, 21), Decl(exportSpecifierAndExportedMemberDeclaration.ts, 5, 12))
+
+    function Z(): X.I;
+>Z : Symbol(Z, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 5, 22))
+>X : Symbol(X, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 0, 21), Decl(exportSpecifierAndExportedMemberDeclaration.ts, 5, 12))
+>I : Symbol(X.I, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 1, 21))
+}
+
+declare module "m2" {
+    function Z2(): X.I;
+>Z2 : Symbol(Z2, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 9, 21))
+>X : Symbol(X, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 0, 21), Decl(exportSpecifierAndExportedMemberDeclaration.ts, 5, 12))
+>I : Symbol(X.I, Decl(exportSpecifierAndExportedMemberDeclaration.ts, 1, 21))
+}
diff --git a/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.types b/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.types
new file mode 100644
index 0000000000..931552819c
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierAndExportedMemberDeclaration.types
@@ -0,0 +1,27 @@
+=== tests/cases/compiler/exportSpecifierAndExportedMemberDeclaration.ts ===
+declare module "m2" {
+    export module X {
+>X : () => any
+
+        interface I { }
+>I : I
+    }
+    function Y();
+>Y : () => any
+
+    export { Y as X };
+>Y : () => any
+>X : () => any
+
+    function Z(): X.I;
+>Z : () => X.I
+>X : any
+>I : X.I
+}
+
+declare module "m2" {
+    function Z2(): X.I;
+>Z2 : () => X.I
+>X : any
+>I : X.I
+}
diff --git a/tests/baselines/reference/exportSpecifierAndLocalMemberDeclaration.errors.txt b/tests/baselines/reference/exportSpecifierAndLocalMemberDeclaration.errors.txt
new file mode 100644
index 0000000000..eb444919f2
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierAndLocalMemberDeclaration.errors.txt
@@ -0,0 +1,18 @@
+tests/cases/compiler/exportSpecifierAndLocalMemberDeclaration.ts(11,20): error TS2503: Cannot find namespace 'X'.
+
+
+==== tests/cases/compiler/exportSpecifierAndLocalMemberDeclaration.ts (1 errors) ====
+    declare module "m2" {
+        module X {
+            interface I { }
+        }
+        function Y();
+        export { Y as X };
+        function Z(): X.I;
+    }
+    
+    declare module "m2" {
+        function Z2(): X.I;
+                       ~
+!!! error TS2503: Cannot find namespace 'X'.
+    }
\ No newline at end of file
diff --git a/tests/baselines/reference/exportSpecifierAndLocalMemberDeclaration.js b/tests/baselines/reference/exportSpecifierAndLocalMemberDeclaration.js
new file mode 100644
index 0000000000..d99ff3627e
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierAndLocalMemberDeclaration.js
@@ -0,0 +1,15 @@
+//// [exportSpecifierAndLocalMemberDeclaration.ts]
+declare module "m2" {
+    module X {
+        interface I { }
+    }
+    function Y();
+    export { Y as X };
+    function Z(): X.I;
+}
+
+declare module "m2" {
+    function Z2(): X.I;
+}
+
+//// [exportSpecifierAndLocalMemberDeclaration.js]
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.js b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.js
new file mode 100644
index 0000000000..003956e282
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.js
@@ -0,0 +1,8 @@
+//// [exportSpecifierReferencingOuterDeclaration1.ts]
+declare module X { export interface bar { } }
+declare module "m" {
+    export { X };
+    export function foo(): X.bar;
+}
+
+//// [exportSpecifierReferencingOuterDeclaration1.js]
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.symbols b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.symbols
new file mode 100644
index 0000000000..16abde86d3
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.symbols
@@ -0,0 +1,14 @@
+=== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration1.ts ===
+declare module X { export interface bar { } }
+>X : Symbol(X, Decl(exportSpecifierReferencingOuterDeclaration1.ts, 0, 0))
+>bar : Symbol(bar, Decl(exportSpecifierReferencingOuterDeclaration1.ts, 0, 18))
+
+declare module "m" {
+    export { X };
+>X : Symbol(X, Decl(exportSpecifierReferencingOuterDeclaration1.ts, 2, 12))
+
+    export function foo(): X.bar;
+>foo : Symbol(foo, Decl(exportSpecifierReferencingOuterDeclaration1.ts, 2, 17))
+>X : Symbol(X, Decl(exportSpecifierReferencingOuterDeclaration1.ts, 0, 0))
+>bar : Symbol(X.bar, Decl(exportSpecifierReferencingOuterDeclaration1.ts, 0, 18))
+}
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.types b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.types
new file mode 100644
index 0000000000..be03554a1b
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration1.types
@@ -0,0 +1,14 @@
+=== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration1.ts ===
+declare module X { export interface bar { } }
+>X : any
+>bar : bar
+
+declare module "m" {
+    export { X };
+>X : any
+
+    export function foo(): X.bar;
+>foo : () => X.bar
+>X : any
+>bar : X.bar
+}
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.js b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.js
new file mode 100644
index 0000000000..e8e9678408
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.js
@@ -0,0 +1,11 @@
+//// [tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2.ts] ////
+
+//// [exportSpecifierReferencingOuterDeclaration2_A.ts]
+declare module X { export interface bar { } }
+
+//// [exportSpecifierReferencingOuterDeclaration2_B.ts]
+export { X };
+export declare function foo(): X.bar;
+
+//// [exportSpecifierReferencingOuterDeclaration2_A.js]
+//// [exportSpecifierReferencingOuterDeclaration2_B.js]
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.symbols b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.symbols
new file mode 100644
index 0000000000..9a57645b1c
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.symbols
@@ -0,0 +1,14 @@
+=== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2_A.ts ===
+declare module X { export interface bar { } }
+>X : Symbol(X, Decl(exportSpecifierReferencingOuterDeclaration2_A.ts, 0, 0))
+>bar : Symbol(bar, Decl(exportSpecifierReferencingOuterDeclaration2_A.ts, 0, 18))
+
+=== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2_B.ts ===
+export { X };
+>X : Symbol(X, Decl(exportSpecifierReferencingOuterDeclaration2_B.ts, 0, 8))
+
+export declare function foo(): X.bar;
+>foo : Symbol(foo, Decl(exportSpecifierReferencingOuterDeclaration2_B.ts, 0, 13))
+>X : Symbol(X, Decl(exportSpecifierReferencingOuterDeclaration2_A.ts, 0, 0))
+>bar : Symbol(X.bar, Decl(exportSpecifierReferencingOuterDeclaration2_A.ts, 0, 18))
+
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.types b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.types
new file mode 100644
index 0000000000..fa59948c11
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration2.types
@@ -0,0 +1,14 @@
+=== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2_A.ts ===
+declare module X { export interface bar { } }
+>X : any
+>bar : bar
+
+=== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2_B.ts ===
+export { X };
+>X : any
+
+export declare function foo(): X.bar;
+>foo : () => X.bar
+>X : any
+>bar : X.bar
+
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration3.errors.txt b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration3.errors.txt
new file mode 100644
index 0000000000..e144c48bea
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration3.errors.txt
@@ -0,0 +1,13 @@
+tests/cases/compiler/exportSpecifierReferencingOuterDeclaration3.ts(6,30): error TS2305: Module 'X' has no exported member 'bar'.
+
+
+==== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration3.ts (1 errors) ====
+    declare module X { export interface bar { } }
+    declare module "m" {
+        module X { export interface foo { } }
+        export { X };
+        export function foo(): X.foo;
+        export function bar(): X.bar; // error
+                                 ~~~
+!!! error TS2305: Module 'X' has no exported member 'bar'.
+    }
\ No newline at end of file
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration3.js b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration3.js
new file mode 100644
index 0000000000..0f6fff977d
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration3.js
@@ -0,0 +1,10 @@
+//// [exportSpecifierReferencingOuterDeclaration3.ts]
+declare module X { export interface bar { } }
+declare module "m" {
+    module X { export interface foo { } }
+    export { X };
+    export function foo(): X.foo;
+    export function bar(): X.bar; // error
+}
+
+//// [exportSpecifierReferencingOuterDeclaration3.js]
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration4.errors.txt b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration4.errors.txt
new file mode 100644
index 0000000000..6ac67c70d1
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration4.errors.txt
@@ -0,0 +1,13 @@
+tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2_B.ts(4,34): error TS2305: Module 'X' has no exported member 'bar'.
+
+
+==== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2_A.ts (0 errors) ====
+    declare module X { export interface bar { } }
+    
+==== tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2_B.ts (1 errors) ====
+    declare module X { export interface foo { } }
+    export { X };
+    export declare function foo(): X.foo;
+    export declare function bar(): X.bar; // error
+                                     ~~~
+!!! error TS2305: Module 'X' has no exported member 'bar'.
\ No newline at end of file
diff --git a/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration4.js b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration4.js
new file mode 100644
index 0000000000..4edb5f711a
--- /dev/null
+++ b/tests/baselines/reference/exportSpecifierReferencingOuterDeclaration4.js
@@ -0,0 +1,13 @@
+//// [tests/cases/compiler/exportSpecifierReferencingOuterDeclaration4.ts] ////
+
+//// [exportSpecifierReferencingOuterDeclaration2_A.ts]
+declare module X { export interface bar { } }
+
+//// [exportSpecifierReferencingOuterDeclaration2_B.ts]
+declare module X { export interface foo { } }
+export { X };
+export declare function foo(): X.foo;
+export declare function bar(): X.bar; // error
+
+//// [exportSpecifierReferencingOuterDeclaration2_A.js]
+//// [exportSpecifierReferencingOuterDeclaration2_B.js]
diff --git a/tests/cases/compiler/exportSpecifierAndExportedMemberDeclaration.ts b/tests/cases/compiler/exportSpecifierAndExportedMemberDeclaration.ts
new file mode 100644
index 0000000000..1c20ffb043
--- /dev/null
+++ b/tests/cases/compiler/exportSpecifierAndExportedMemberDeclaration.ts
@@ -0,0 +1,12 @@
+declare module "m2" {
+    export module X {
+        interface I { }
+    }
+    function Y();
+    export { Y as X };
+    function Z(): X.I;
+}
+
+declare module "m2" {
+    function Z2(): X.I;
+}
\ No newline at end of file
diff --git a/tests/cases/compiler/exportSpecifierAndLocalMemberDeclaration.ts b/tests/cases/compiler/exportSpecifierAndLocalMemberDeclaration.ts
new file mode 100644
index 0000000000..5f942a75a7
--- /dev/null
+++ b/tests/cases/compiler/exportSpecifierAndLocalMemberDeclaration.ts
@@ -0,0 +1,12 @@
+declare module "m2" {
+    module X {
+        interface I { }
+    }
+    function Y();
+    export { Y as X };
+    function Z(): X.I;
+}
+
+declare module "m2" {
+    function Z2(): X.I;
+}
\ No newline at end of file
diff --git a/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration1.ts b/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration1.ts
new file mode 100644
index 0000000000..e3d0a9000a
--- /dev/null
+++ b/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration1.ts
@@ -0,0 +1,5 @@
+declare module X { export interface bar { } }
+declare module "m" {
+    export { X };
+    export function foo(): X.bar;
+}
\ No newline at end of file
diff --git a/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2.ts b/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2.ts
new file mode 100644
index 0000000000..683358a0e3
--- /dev/null
+++ b/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration2.ts
@@ -0,0 +1,7 @@
+// @module: commonjs
+// @Filename: exportSpecifierReferencingOuterDeclaration2_A.ts
+declare module X { export interface bar { } }
+
+// @Filename: exportSpecifierReferencingOuterDeclaration2_B.ts
+export { X };
+export declare function foo(): X.bar;
\ No newline at end of file
diff --git a/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration3.ts b/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration3.ts
new file mode 100644
index 0000000000..d4ddf3cc4a
--- /dev/null
+++ b/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration3.ts
@@ -0,0 +1,7 @@
+declare module X { export interface bar { } }
+declare module "m" {
+    module X { export interface foo { } }
+    export { X };
+    export function foo(): X.foo;
+    export function bar(): X.bar; // error
+}
\ No newline at end of file
diff --git a/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration4.ts b/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration4.ts
new file mode 100644
index 0000000000..5beaf1de12
--- /dev/null
+++ b/tests/cases/compiler/exportSpecifierReferencingOuterDeclaration4.ts
@@ -0,0 +1,9 @@
+// @module: commonjs
+// @Filename: exportSpecifierReferencingOuterDeclaration2_A.ts
+declare module X { export interface bar { } }
+
+// @Filename: exportSpecifierReferencingOuterDeclaration2_B.ts
+declare module X { export interface foo { } }
+export { X };
+export declare function foo(): X.foo;
+export declare function bar(): X.bar; // error
\ No newline at end of file