diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index bcb84a4814..dce1ca3f16 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -13048,7 +13048,7 @@ namespace ts {
                 // must instead be rewritten to point to a temporary variable to avoid issues with the double-bind
                 // behavior of class names in ES6.
                 if (declaration.kind === SyntaxKind.ClassDeclaration
-                    && nodeIsDecorated(declaration)) {
+                    && nodeIsDecorated(declaration as ClassDeclaration)) {
                     let container = getContainingClass(node);
                     while (container !== undefined) {
                         if (container === declaration && container.name !== node) {
@@ -20697,7 +20697,7 @@ namespace ts {
 
             // skip this check for nodes that cannot have decorators. These should have already had an error reported by
             // checkGrammarDecorators.
-            if (!nodeCanBeDecorated(node)) {
+            if (!nodeCanBeDecorated(node, node.parent, node.parent.parent)) {
                 return;
             }
 
@@ -25203,7 +25203,7 @@ namespace ts {
             if (!node.decorators) {
                 return false;
             }
-            if (!nodeCanBeDecorated(node)) {
+            if (!nodeCanBeDecorated(node, node.parent, node.parent.parent)) {
                 if (node.kind === SyntaxKind.MethodDeclaration && !nodeIsPresent((<MethodDeclaration>node).body)) {
                     return grammarErrorOnFirstToken(node, Diagnostics.A_decorator_can_only_decorate_a_method_implementation_not_an_overload);
                 }
diff --git a/src/compiler/transformers/ts.ts b/src/compiler/transformers/ts.ts
index 39a4cc83bd..3c1bba280f 100644
--- a/src/compiler/transformers/ts.ts
+++ b/src/compiler/transformers/ts.ts
@@ -1261,7 +1261,7 @@ namespace ts {
          *                 the class.
          */
         function getDecoratedClassElements(node: ClassExpression | ClassDeclaration, isStatic: boolean): ReadonlyArray<ClassElement> {
-            return filter(node.members, isStatic ? isStaticDecoratedClassElement : isInstanceDecoratedClassElement);
+            return filter(node.members, isStatic ? m => isStaticDecoratedClassElement(m, node) : m => isInstanceDecoratedClassElement(m, node));
         }
 
         /**
@@ -1270,8 +1270,8 @@ namespace ts {
          *
          * @param member The class member.
          */
-        function isStaticDecoratedClassElement(member: ClassElement) {
-            return isDecoratedClassElement(member, /*isStatic*/ true);
+        function isStaticDecoratedClassElement(member: ClassElement, parent: ClassLikeDeclaration) {
+            return isDecoratedClassElement(member, /*isStatic*/ true, parent);
         }
 
         /**
@@ -1280,8 +1280,8 @@ namespace ts {
          *
          * @param member The class member.
          */
-        function isInstanceDecoratedClassElement(member: ClassElement) {
-            return isDecoratedClassElement(member, /*isStatic*/ false);
+        function isInstanceDecoratedClassElement(member: ClassElement, parent: ClassLikeDeclaration) {
+            return isDecoratedClassElement(member, /*isStatic*/ false, parent);
         }
 
         /**
@@ -1290,8 +1290,8 @@ namespace ts {
          *
          * @param member The class member.
          */
-        function isDecoratedClassElement(member: ClassElement, isStatic: boolean) {
-            return nodeOrChildIsDecorated(member)
+        function isDecoratedClassElement(member: ClassElement, isStatic: boolean, parent: ClassLikeDeclaration) {
+            return nodeOrChildIsDecorated(member, parent)
                 && isStatic === hasModifier(member, ModifierFlags.Static);
         }
 
diff --git a/src/compiler/utilities.ts b/src/compiler/utilities.ts
index 366c4bc229..9426cd7783 100644
--- a/src/compiler/utilities.ts
+++ b/src/compiler/utilities.ts
@@ -1205,7 +1205,10 @@ namespace ts {
         return (<CallExpression | Decorator>node).expression;
     }
 
-    export function nodeCanBeDecorated(node: Node): boolean {
+    export function nodeCanBeDecorated(node: ClassDeclaration): true;
+    export function nodeCanBeDecorated(node: ClassElement, parent: Node): boolean;
+    export function nodeCanBeDecorated(node: Node, parent: Node, grandparent: Node): boolean;
+    export function nodeCanBeDecorated(node: Node, parent?: Node, grandparent?: Node): boolean {
         switch (node.kind) {
             case SyntaxKind.ClassDeclaration:
                 // classes are valid targets
@@ -1213,43 +1216,51 @@ namespace ts {
 
             case SyntaxKind.PropertyDeclaration:
                 // property declarations are valid if their parent is a class declaration.
-                return node.parent.kind === SyntaxKind.ClassDeclaration;
+                return parent.kind === SyntaxKind.ClassDeclaration;
 
             case SyntaxKind.GetAccessor:
             case SyntaxKind.SetAccessor:
             case SyntaxKind.MethodDeclaration:
                 // if this method has a body and its parent is a class declaration, this is a valid target.
                 return (<FunctionLikeDeclaration>node).body !== undefined
-                    && node.parent.kind === SyntaxKind.ClassDeclaration;
+                    && parent.kind === SyntaxKind.ClassDeclaration;
 
             case SyntaxKind.Parameter:
                 // if the parameter's parent has a body and its grandparent is a class declaration, this is a valid target;
-                return (<FunctionLikeDeclaration>node.parent).body !== undefined
-                    && (node.parent.kind === SyntaxKind.Constructor
-                        || node.parent.kind === SyntaxKind.MethodDeclaration
-                        || node.parent.kind === SyntaxKind.SetAccessor)
-                    && node.parent.parent.kind === SyntaxKind.ClassDeclaration;
+                return (<FunctionLikeDeclaration>parent).body !== undefined
+                    && (parent.kind === SyntaxKind.Constructor
+                        || parent.kind === SyntaxKind.MethodDeclaration
+                        || parent.kind === SyntaxKind.SetAccessor)
+                    && grandparent.kind === SyntaxKind.ClassDeclaration;
         }
 
         return false;
     }
 
-    export function nodeIsDecorated(node: Node): boolean {
+    export function nodeIsDecorated(node: ClassDeclaration): boolean;
+    export function nodeIsDecorated(node: ClassElement, parent: Node): boolean;
+    export function nodeIsDecorated(node: Node, parent: Node, grandparent: Node): boolean;
+    export function nodeIsDecorated(node: Node, parent?: Node, grandparent?: Node): boolean {
         return node.decorators !== undefined
-            && nodeCanBeDecorated(node);
+            && nodeCanBeDecorated(node, parent, grandparent);
     }
 
-    export function nodeOrChildIsDecorated(node: Node): boolean {
-        return nodeIsDecorated(node) || childIsDecorated(node);
+    export function nodeOrChildIsDecorated(node: ClassDeclaration): boolean;
+    export function nodeOrChildIsDecorated(node: ClassElement, parent: Node): boolean;
+    export function nodeOrChildIsDecorated(node: Node, parent: Node, grandparent: Node): boolean;
+    export function nodeOrChildIsDecorated(node: Node, parent?: Node, grandparent?: Node): boolean {
+        return nodeIsDecorated(node, parent, grandparent) || childIsDecorated(node, parent);
     }
 
-    export function childIsDecorated(node: Node): boolean {
+    export function childIsDecorated(node: ClassDeclaration): boolean;
+    export function childIsDecorated(node: Node, parent: Node): boolean;
+    export function childIsDecorated(node: Node, parent?: Node): boolean {
         switch (node.kind) {
             case SyntaxKind.ClassDeclaration:
-                return forEach((<ClassDeclaration>node).members, nodeOrChildIsDecorated);
+                return forEach((<ClassDeclaration>node).members, m => nodeOrChildIsDecorated(m, node, parent));
             case SyntaxKind.MethodDeclaration:
             case SyntaxKind.SetAccessor:
-                return forEach((<FunctionLikeDeclaration>node).parameters, nodeIsDecorated);
+                return forEach((<FunctionLikeDeclaration>node).parameters, p => nodeIsDecorated(p, node, parent));
         }
     }
 
diff --git a/src/harness/unittests/transform.ts b/src/harness/unittests/transform.ts
index a39249bb22..64f0a19b32 100644
--- a/src/harness/unittests/transform.ts
+++ b/src/harness/unittests/transform.ts
@@ -224,6 +224,32 @@ namespace ts {
                 }
             }
         });
+
+        // https://github.com/Microsoft/TypeScript/issues/17384
+        testBaseline("transformAddDecoratedNode", () => {
+            return ts.transpileModule("", {
+                transformers: {
+                    before: [transformAddDecoratedNode],
+                },
+                compilerOptions: {
+                    target: ts.ScriptTarget.ES5,
+                    newLine: NewLineKind.CarriageReturnLineFeed,
+                }
+            }).outputText;
+
+            function transformAddDecoratedNode(_context: ts.TransformationContext) {
+                return (sourceFile: ts.SourceFile): ts.SourceFile => {
+                    return visitNode(sourceFile);
+                };
+                function visitNode(sf: ts.SourceFile) {
+                    // produce `class Foo { @Bar baz() {} }`;
+                    const classDecl = ts.createClassDeclaration([], [], "Foo", /*typeParameters*/ undefined, /*heritageClauses*/ undefined, [
+                        ts.createMethod([ts.createDecorator(ts.createIdentifier("Bar"))], [], /**/ undefined, "baz", /**/ undefined, /**/ undefined, [], /**/ undefined, ts.createBlock([]))
+                    ]);
+                    return ts.updateSourceFileNode(sf, [classDecl]);
+                }
+            }
+        });
     });
 }
 
diff --git a/tests/baselines/reference/transformApi/transformsCorrectly.transformAddDecoratedNode.js b/tests/baselines/reference/transformApi/transformsCorrectly.transformAddDecoratedNode.js
new file mode 100644
index 0000000000..de841226c0
--- /dev/null
+++ b/tests/baselines/reference/transformApi/transformsCorrectly.transformAddDecoratedNode.js
@@ -0,0 +1,16 @@
+var __decorate = (this && this.__decorate) || function (decorators, target, key, desc) {
+    var c = arguments.length, r = c < 3 ? target : desc === null ? desc = Object.getOwnPropertyDescriptor(target, key) : desc, d;
+    if (typeof Reflect === "object" && typeof Reflect.decorate === "function") r = Reflect.decorate(decorators, target, key, desc);
+    else for (var i = decorators.length - 1; i >= 0; i--) if (d = decorators[i]) r = (c < 3 ? d(r) : c > 3 ? d(target, key, r) : d(target, key)) || r;
+    return c > 3 && r && Object.defineProperty(target, key, r), r;
+};
+var Foo = /** @class */ (function () {
+    function Foo() {
+    }
+    Foo.prototype.baz = function () { };
+    __decorate([
+        Bar
+    ], Foo.prototype, "baz", null);
+    Foo = __decorate([], Foo);
+    return Foo;
+}());