diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index dcbe7162b7..b0c0305670 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -8647,6 +8647,8 @@ module ts {
                 case SyntaxKind.CallExpression:
                 case SyntaxKind.NewExpression:
                 case SyntaxKind.TaggedTemplateExpression:
+                case SyntaxKind.TemplateExpression:
+                case SyntaxKind.TemplateSpan:
                 case SyntaxKind.TypeAssertionExpression:
                 case SyntaxKind.ParenthesizedExpression:
                 case SyntaxKind.TypeOfExpression:
diff --git a/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
index e14ffc481f..b38a70ca18 100644
--- a/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
+++ b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
@@ -1,7 +1,8 @@
 tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts(6,5): error TS1159: Tagged templates are only available when targeting ECMAScript 6 and higher.
+tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts(6,31): error TS2322: Type 'string' is not assignable to type 'number'.
 
 
-==== tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts (1 errors) ====
+==== tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts (2 errors) ====
     
     
     function foo(...rest: any[]) {
@@ -9,4 +10,6 @@ tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFuncti
     
     foo `${function (x: number) { x = "bad"; } }`;
         ~~~
-!!! error TS1159: Tagged templates are only available when targeting ECMAScript 6 and higher.
\ No newline at end of file
+!!! error TS1159: Tagged templates are only available when targeting ECMAScript 6 and higher.
+                                  ~
+!!! error TS2322: Type 'string' is not assignable to type 'number'.
\ No newline at end of file
diff --git a/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt
new file mode 100644
index 0000000000..6b0f4b642f
--- /dev/null
+++ b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt
@@ -0,0 +1,11 @@
+tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts(5,31): error TS2322: Type 'string' is not assignable to type 'number'.
+
+
+==== tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts (1 errors) ====
+    
+    function foo(...rest: any[]) {
+    }
+    
+    foo `${function (x: number) { x = "bad"; } }`;
+                                  ~
+!!! error TS2322: Type 'string' is not assignable to type 'number'.
\ No newline at end of file
diff --git a/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.types b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.types
deleted file mode 100644
index 9d7e44f27d..0000000000
--- a/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.types
+++ /dev/null
@@ -1,14 +0,0 @@
-=== tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts ===
-
-function foo(...rest: any[]) {
->foo : (...rest: any[]) => void
->rest : any[]
-}
-
-foo `${function (x: number) { x = "bad"; } }`;
->foo : (...rest: any[]) => void
->function (x: number) { x = "bad"; } : (x: number) => void
->x : number
->x = "bad" : string
->x : number
-
diff --git a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
new file mode 100644
index 0000000000..7204f32dba
--- /dev/null
+++ b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
@@ -0,0 +1,9 @@
+tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts(3,27): error TS2322: Type 'string' is not assignable to type 'number'.
+
+
+==== tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts (1 errors) ====
+    
+    
+    `${function (x: number) { x = "bad"; } }`;
+                              ~
+!!! error TS2322: Type 'string' is not assignable to type 'number'.
\ No newline at end of file
diff --git a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.types b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.types
deleted file mode 100644
index 1afa1592ec..0000000000
--- a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.types
+++ /dev/null
@@ -1,9 +0,0 @@
-=== tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts ===
-
-
-`${function (x: number) { x = "bad"; } }`;
->function (x: number) { x = "bad"; } : (x: number) => void
->x : number
->x = "bad" : string
->x : number
-
diff --git a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt
new file mode 100644
index 0000000000..9fece57ef5
--- /dev/null
+++ b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt
@@ -0,0 +1,8 @@
+tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts(2,27): error TS2322: Type 'string' is not assignable to type 'number'.
+
+
+==== tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts (1 errors) ====
+    
+    `${function (x: number) { x = "bad"; } }`;
+                              ~
+!!! error TS2322: Type 'string' is not assignable to type 'number'.
\ No newline at end of file
diff --git a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.types b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.types
deleted file mode 100644
index 0a15a49141..0000000000
--- a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.types
+++ /dev/null
@@ -1,8 +0,0 @@
-=== tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts ===
-
-`${function (x: number) { x = "bad"; } }`;
->function (x: number) { x = "bad"; } : (x: number) => void
->x : number
->x = "bad" : string
->x : number
-