diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 782ffccc0ed..000ee35d21f 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -8609,36 +8609,47 @@ module ts {
             //          const x = 0; // localDeclarationSymbol obtained after name resolution will correspond to this declaration
             //          var x = 0; // symbol for this declaration will be 'symbol'
             //      }
-            if (node.initializer && (getCombinedNodeFlags(node) & NodeFlags.BlockScoped) === 0) {
-                var symbol = getSymbolOfNode(node);
-                if (symbol.flags & SymbolFlags.FunctionScopedVariable) {
-                    var localDeclarationSymbol = resolveName(node, (<Identifier>node.name).text, SymbolFlags.Variable, /*nodeNotFoundErrorMessage*/ undefined, /*nameArg*/ undefined);
-                    if (localDeclarationSymbol &&
-                        localDeclarationSymbol !== symbol &&
-                        localDeclarationSymbol.flags & SymbolFlags.BlockScopedVariable) {
-                        if (getDeclarationFlagsFromSymbol(localDeclarationSymbol) & NodeFlags.BlockScoped) {
 
-                            var varDeclList = getAncestor(localDeclarationSymbol.valueDeclaration, SyntaxKind.VariableDeclarationList);
-                            var container =
-                                varDeclList.parent.kind === SyntaxKind.VariableStatement &&
-                                varDeclList.parent.parent;
+            // skip block-scoped variables and parameters
+            if ((getCombinedNodeFlags(node) & NodeFlags.BlockScoped) !== 0 || isParameterDeclaration(node)) {
+                return;
+            }
 
-                            // names of block-scoped and function scoped variables can collide only
-                            // if block scoped variable is defined in the function\module\source file scope (because of variable hoisting)
-                            var namesShareScope =
-                                container &&
-                                (container.kind === SyntaxKind.Block && isFunctionLike(container.parent) ||
-                                    (container.kind === SyntaxKind.ModuleBlock && container.kind === SyntaxKind.ModuleDeclaration) ||
-                                    container.kind === SyntaxKind.SourceFile);
+            // skip variable declarations that don't have initializers
+            // NOTE: in ES6 spec initializer is required in variable declarations where name is binding pattern
+            // so we'll always treat binding elements as initialized
+            if (node.kind === SyntaxKind.VariableDeclaration && !node.initializer) {
+                return;
+            }
 
-                            // here we know that function scoped variable is shadowed by block scoped one
-                            // if they are defined in the same scope - binder has already reported redeclaration error
-                            // otherwise if variable has an initializer - show error that initialization will fail
-                            // since LHS will be block scoped name instead of function scoped
-                            if (!namesShareScope) {
-                                var name = symbolToString(localDeclarationSymbol);
-                                error(node, Diagnostics.Cannot_initialize_outer_scoped_variable_0_in_the_same_scope_as_block_scoped_declaration_1, name, name);
-                            }
+            var symbol = getSymbolOfNode(node);
+            if (symbol.flags & SymbolFlags.FunctionScopedVariable) {
+                var localDeclarationSymbol = resolveName(node, (<Identifier>node.name).text, SymbolFlags.Variable, /*nodeNotFoundErrorMessage*/ undefined, /*nameArg*/ undefined);
+                if (localDeclarationSymbol &&
+                    localDeclarationSymbol !== symbol &&
+                    localDeclarationSymbol.flags & SymbolFlags.BlockScopedVariable) {
+                    if (getDeclarationFlagsFromSymbol(localDeclarationSymbol) & NodeFlags.BlockScoped) {
+
+                        var varDeclList = getAncestor(localDeclarationSymbol.valueDeclaration, SyntaxKind.VariableDeclarationList);
+                        var container =
+                            varDeclList.parent.kind === SyntaxKind.VariableStatement &&
+                            varDeclList.parent.parent;
+
+                        // names of block-scoped and function scoped variables can collide only
+                        // if block scoped variable is defined in the function\module\source file scope (because of variable hoisting)
+                        var namesShareScope =
+                            container &&
+                            (container.kind === SyntaxKind.Block && isFunctionLike(container.parent) ||
+                                (container.kind === SyntaxKind.ModuleBlock && container.kind === SyntaxKind.ModuleDeclaration) ||
+                                container.kind === SyntaxKind.SourceFile);
+
+                        // here we know that function scoped variable is shadowed by block scoped one
+                        // if they are defined in the same scope - binder has already reported redeclaration error
+                        // otherwise if variable has an initializer - show error that initialization will fail
+                        // since LHS will be block scoped name instead of function scoped
+                        if (!namesShareScope) {
+                            var name = symbolToString(localDeclarationSymbol);
+                            error(node, Diagnostics.Cannot_initialize_outer_scoped_variable_0_in_the_same_scope_as_block_scoped_declaration_1, name, name);
                         }
                     }
                 }
diff --git a/tests/baselines/reference/shadowingViaLocalValueOrBindingElement.errors.txt b/tests/baselines/reference/shadowingViaLocalValueOrBindingElement.errors.txt
new file mode 100644
index 00000000000..663f83c1ffb
--- /dev/null
+++ b/tests/baselines/reference/shadowingViaLocalValueOrBindingElement.errors.txt
@@ -0,0 +1,28 @@
+tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts(4,13): error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts(5,15): error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts(6,18): error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts(7,15): error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts(8,18): error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+
+
+==== tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts (5 errors) ====
+    if (true) {
+        let x;
+        if (true) {
+            var x = 0; // Error
+                ~
+!!! error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+            var { x = 0 } = { x: 0 }; // Error
+                  ~
+!!! error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+            var { x: x = 0 } = { x: 0 }; // Error
+                     ~
+!!! error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+            var { x } = { x: 0 }; // No error, even though the let x is being initialized
+                  ~
+!!! error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+            var { x: x } = { x: 0 }; // No error, even though the let x is being initialized
+                     ~
+!!! error TS2481: Cannot initialize outer scoped variable 'x' in the same scope as block scoped declaration 'x'.
+        }
+    }
\ No newline at end of file
diff --git a/tests/baselines/reference/shadowingViaLocalValueOrBindingElement.js b/tests/baselines/reference/shadowingViaLocalValueOrBindingElement.js
new file mode 100644
index 00000000000..8d6319f5ea7
--- /dev/null
+++ b/tests/baselines/reference/shadowingViaLocalValueOrBindingElement.js
@@ -0,0 +1,31 @@
+//// [shadowingViaLocalValueOrBindingElement.ts]
+if (true) {
+    let x;
+    if (true) {
+        var x = 0; // Error
+        var { x = 0 } = { x: 0 }; // Error
+        var { x: x = 0 } = { x: 0 }; // Error
+        var { x } = { x: 0 }; // No error, even though the let x is being initialized
+        var { x: x } = { x: 0 }; // No error, even though the let x is being initialized
+    }
+}
+
+//// [shadowingViaLocalValueOrBindingElement.js]
+if (true) {
+    var _x;
+    if (true) {
+        var x = 0; // Error
+        var _a = ({
+            _x: 0
+        }).x, x = _a === void 0 ? 0 : _a; // Error
+        var _b = ({
+            _x: 0
+        }).x, x = _b === void 0 ? 0 : _b; // Error
+        var x = ({
+            _x: 0
+        }).x; // No error, even though the let x is being initialized
+        var x = ({
+            _x: 0
+        }).x; // No error, even though the let x is being initialized
+    }
+}
diff --git a/tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts b/tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts
new file mode 100644
index 00000000000..9afeb79aa79
--- /dev/null
+++ b/tests/cases/compiler/shadowingViaLocalValueOrBindingElement.ts
@@ -0,0 +1,10 @@
+if (true) {
+    let x;
+    if (true) {
+        var x = 0; // Error
+        var { x = 0 } = { x: 0 }; // Error
+        var { x: x = 0 } = { x: 0 }; // Error
+        var { x } = { x: 0 }; // No error, even though the let x is being initialized
+        var { x: x } = { x: 0 }; // No error, even though the let x is being initialized
+    }
+}
\ No newline at end of file