diff --git a/src/compiler/program.ts b/src/compiler/program.ts
index 08321da82e9..ca0c7d9adaa 100644
--- a/src/compiler/program.ts
+++ b/src/compiler/program.ts
@@ -990,16 +990,15 @@ namespace ts {
                 if (options.mapRoot) {
                     programDiagnostics.add(createCompilerDiagnostic(Diagnostics.Option_0_cannot_be_specified_with_option_1, "mapRoot", "inlineSourceMap"));
                 }
-                if (options.sourceRoot) {
-                    programDiagnostics.add(createCompilerDiagnostic(Diagnostics.Option_0_cannot_be_specified_with_option_1, "sourceRoot", "inlineSourceMap"));
-                }
             }
 
-
             if (options.inlineSources) {
                 if (!options.sourceMap && !options.inlineSourceMap) {
                     programDiagnostics.add(createCompilerDiagnostic(Diagnostics.Option_inlineSources_can_only_be_used_when_either_option_inlineSourceMap_or_option_sourceMap_is_provided));
                 }
+                if (options.sourceRoot) {
+                    programDiagnostics.add(createCompilerDiagnostic(Diagnostics.Option_0_cannot_be_specified_with_option_1, "sourceRoot", "inlineSources"));
+                }
             }
 
             if (options.out && options.outFile) {
@@ -1011,10 +1010,9 @@ namespace ts {
                 if (options.mapRoot) {
                     programDiagnostics.add(createCompilerDiagnostic(Diagnostics.Option_0_cannot_be_specified_without_specifying_option_1, "mapRoot", "sourceMap"));
                 }
-                if (options.sourceRoot) {
+                if (options.sourceRoot && !options.inlineSourceMap) {
                     programDiagnostics.add(createCompilerDiagnostic(Diagnostics.Option_0_cannot_be_specified_without_specifying_option_1, "sourceRoot", "sourceMap"));
                 }
-                return;
             }
 
             const languageVersion = options.target || ScriptTarget.ES3;
diff --git a/tests/baselines/reference/inlineSourceMap2.errors.txt b/tests/baselines/reference/inlineSourceMap2.errors.txt
index 24b0fddf942..26db1415593 100644
--- a/tests/baselines/reference/inlineSourceMap2.errors.txt
+++ b/tests/baselines/reference/inlineSourceMap2.errors.txt
@@ -1,12 +1,10 @@
 error TS5053: Option 'mapRoot' cannot be specified with option 'inlineSourceMap'.
 error TS5053: Option 'sourceMap' cannot be specified with option 'inlineSourceMap'.
-error TS5053: Option 'sourceRoot' cannot be specified with option 'inlineSourceMap'.
 tests/cases/compiler/inlineSourceMap2.ts(5,1): error TS2304: Cannot find name 'console'.
 
 
 !!! error TS5053: Option 'mapRoot' cannot be specified with option 'inlineSourceMap'.
 !!! error TS5053: Option 'sourceMap' cannot be specified with option 'inlineSourceMap'.
-!!! error TS5053: Option 'sourceRoot' cannot be specified with option 'inlineSourceMap'.
 ==== tests/cases/compiler/inlineSourceMap2.ts (1 errors) ====
     
     // configuration errors
diff --git a/tests/baselines/reference/optionsInlineSourceMapMapRoot.js b/tests/baselines/reference/optionsInlineSourceMapMapRoot.js
index 6389f9eb84a..c165c49ec29 100644
--- a/tests/baselines/reference/optionsInlineSourceMapMapRoot.js
+++ b/tests/baselines/reference/optionsInlineSourceMapMapRoot.js
@@ -4,4 +4,4 @@ var a = 10;
 
 //// [optionsInlineSourceMapMapRoot.js]
 var a = 10;
-//# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJmaWxlIjoib3B0aW9uc0lubGluZVNvdXJjZU1hcE1hcFJvb3QuanMiLCJzb3VyY2VSb290IjoiIiwic291cmNlcyI6WyJvcHRpb25zSW5saW5lU291cmNlTWFwTWFwUm9vdC50cyJdLCJuYW1lcyI6W10sIm1hcHBpbmdzIjoiQUFDQSxJQUFJLENBQUMsR0FBRyxFQUFFLENBQUMifQ==
\ No newline at end of file
+//# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJmaWxlIjoib3B0aW9uc0lubGluZVNvdXJjZU1hcE1hcFJvb3QuanMiLCJzb3VyY2VSb290IjoiIiwic291cmNlcyI6WyIuLi9vcHRpb25zSW5saW5lU291cmNlTWFwTWFwUm9vdC50cyJdLCJuYW1lcyI6W10sIm1hcHBpbmdzIjoiQUFDQSxJQUFJLENBQUMsR0FBRyxFQUFFLENBQUMifQ==
\ No newline at end of file
diff --git a/tests/baselines/reference/optionsInlineSourceMapMapRoot.sourcemap.txt b/tests/baselines/reference/optionsInlineSourceMapMapRoot.sourcemap.txt
index e12e2d1096a..32e5f85d02f 100644
--- a/tests/baselines/reference/optionsInlineSourceMapMapRoot.sourcemap.txt
+++ b/tests/baselines/reference/optionsInlineSourceMapMapRoot.sourcemap.txt
@@ -1,12 +1,12 @@
 ===================================================================
 JsFile: optionsInlineSourceMapMapRoot.js
-mapUrl: c:/TypeScript/tests/cases/compiler/optionsInlineSourceMapMapRoot.js.map
+mapUrl: local/optionsInlineSourceMapMapRoot.js.map
 sourceRoot: 
-sources: optionsInlineSourceMapMapRoot.ts
+sources: ../optionsInlineSourceMapMapRoot.ts
 ===================================================================
 -------------------------------------------------------------------
 emittedFile:tests/cases/compiler/optionsInlineSourceMapMapRoot.js
-sourceFile:optionsInlineSourceMapMapRoot.ts
+sourceFile:../optionsInlineSourceMapMapRoot.ts
 -------------------------------------------------------------------
 >>>var a = 10;
 1 >
@@ -15,7 +15,7 @@ sourceFile:optionsInlineSourceMapMapRoot.ts
 4 >     ^^^
 5 >        ^^
 6 >          ^
-7 >           ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^->
+7 >           ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^->
 1 >
   >
 2 >var 
@@ -30,4 +30,4 @@ sourceFile:optionsInlineSourceMapMapRoot.ts
 5 >Emitted(1, 11) Source(2, 11) + SourceIndex(0)
 6 >Emitted(1, 12) Source(2, 12) + SourceIndex(0)
 ---
->>>//# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJmaWxlIjoib3B0aW9uc0lubGluZVNvdXJjZU1hcE1hcFJvb3QuanMiLCJzb3VyY2VSb290IjoiIiwic291cmNlcyI6WyJvcHRpb25zSW5saW5lU291cmNlTWFwTWFwUm9vdC50cyJdLCJuYW1lcyI6W10sIm1hcHBpbmdzIjoiQUFDQSxJQUFJLENBQUMsR0FBRyxFQUFFLENBQUMifQ==
\ No newline at end of file
+>>>//# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJmaWxlIjoib3B0aW9uc0lubGluZVNvdXJjZU1hcE1hcFJvb3QuanMiLCJzb3VyY2VSb290IjoiIiwic291cmNlcyI6WyIuLi9vcHRpb25zSW5saW5lU291cmNlTWFwTWFwUm9vdC50cyJdLCJuYW1lcyI6W10sIm1hcHBpbmdzIjoiQUFDQSxJQUFJLENBQUMsR0FBRyxFQUFFLENBQUMifQ==
\ No newline at end of file
diff --git a/tests/baselines/reference/optionsInlineSourceMapSourceRoot.js b/tests/baselines/reference/optionsInlineSourceMapSourceRoot.js
new file mode 100644
index 00000000000..748fae7320c
--- /dev/null
+++ b/tests/baselines/reference/optionsInlineSourceMapSourceRoot.js
@@ -0,0 +1,7 @@
+//// [optionsInlineSourceMapSourceRoot.ts]
+
+var a = 10;
+
+//// [optionsInlineSourceMapSourceRoot.js]
+var a = 10;
+//# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJmaWxlIjoib3B0aW9uc0lubGluZVNvdXJjZU1hcFNvdXJjZVJvb3QuanMiLCJzb3VyY2VSb290IjoibG9jYWwvIiwic291cmNlcyI6WyJvcHRpb25zSW5saW5lU291cmNlTWFwU291cmNlUm9vdC50cyJdLCJuYW1lcyI6W10sIm1hcHBpbmdzIjoiQUFDQSxJQUFJLENBQUMsR0FBRyxFQUFFLENBQUMifQ==
\ No newline at end of file
diff --git a/tests/baselines/reference/optionsInlineSourceMapSourceRoot.sourcemap.txt b/tests/baselines/reference/optionsInlineSourceMapSourceRoot.sourcemap.txt
new file mode 100644
index 00000000000..b3f81493aa9
--- /dev/null
+++ b/tests/baselines/reference/optionsInlineSourceMapSourceRoot.sourcemap.txt
@@ -0,0 +1,33 @@
+===================================================================
+JsFile: optionsInlineSourceMapSourceRoot.js
+mapUrl: optionsInlineSourceMapSourceRoot.js.map
+sourceRoot: local/
+sources: optionsInlineSourceMapSourceRoot.ts
+===================================================================
+-------------------------------------------------------------------
+emittedFile:tests/cases/compiler/optionsInlineSourceMapSourceRoot.js
+sourceFile:optionsInlineSourceMapSourceRoot.ts
+-------------------------------------------------------------------
+>>>var a = 10;
+1 >
+2 >^^^^
+3 >    ^
+4 >     ^^^
+5 >        ^^
+6 >          ^
+7 >           ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^->
+1 >
+  >
+2 >var 
+3 >    a
+4 >      = 
+5 >        10
+6 >          ;
+1 >Emitted(1, 1) Source(2, 1) + SourceIndex(0)
+2 >Emitted(1, 5) Source(2, 5) + SourceIndex(0)
+3 >Emitted(1, 6) Source(2, 6) + SourceIndex(0)
+4 >Emitted(1, 9) Source(2, 9) + SourceIndex(0)
+5 >Emitted(1, 11) Source(2, 11) + SourceIndex(0)
+6 >Emitted(1, 12) Source(2, 12) + SourceIndex(0)
+---
+>>>//# sourceMappingURL=data:application/json;base64,eyJ2ZXJzaW9uIjozLCJmaWxlIjoib3B0aW9uc0lubGluZVNvdXJjZU1hcFNvdXJjZVJvb3QuanMiLCJzb3VyY2VSb290IjoibG9jYWwvIiwic291cmNlcyI6WyJvcHRpb25zSW5saW5lU291cmNlTWFwU291cmNlUm9vdC50cyJdLCJuYW1lcyI6W10sIm1hcHBpbmdzIjoiQUFDQSxJQUFJLENBQUMsR0FBRyxFQUFFLENBQUMifQ==
\ No newline at end of file
diff --git a/tests/baselines/reference/optionsInlineSourceMapSourceRoot.symbols b/tests/baselines/reference/optionsInlineSourceMapSourceRoot.symbols
new file mode 100644
index 00000000000..cf8c0826d8e
--- /dev/null
+++ b/tests/baselines/reference/optionsInlineSourceMapSourceRoot.symbols
@@ -0,0 +1,5 @@
+=== tests/cases/compiler/optionsInlineSourceMapSourceRoot.ts ===
+
+var a = 10;
+>a : Symbol(a, Decl(optionsInlineSourceMapSourceRoot.ts, 1, 3))
+
diff --git a/tests/baselines/reference/optionsInlineSourceMapSourceRoot.types b/tests/baselines/reference/optionsInlineSourceMapSourceRoot.types
new file mode 100644
index 00000000000..1f6a5fc9dc6
--- /dev/null
+++ b/tests/baselines/reference/optionsInlineSourceMapSourceRoot.types
@@ -0,0 +1,6 @@
+=== tests/cases/compiler/optionsInlineSourceMapSourceRoot.ts ===
+
+var a = 10;
+>a : number
+>10 : number
+
diff --git a/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.errors.txt b/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.errors.txt
new file mode 100644
index 00000000000..bfa77ff5a3e
--- /dev/null
+++ b/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.errors.txt
@@ -0,0 +1,7 @@
+error TS5053: Option 'sourceRoot' cannot be specified with option 'inlineSources'.
+
+
+!!! error TS5053: Option 'sourceRoot' cannot be specified with option 'inlineSources'.
+==== tests/cases/compiler/optionsSourcemapInlineSourcesSourceRoot.ts (0 errors) ====
+    
+    var a = 10;
\ No newline at end of file
diff --git a/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.symbols b/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.symbols
deleted file mode 100644
index 76f2dc5fdc4..00000000000
--- a/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.symbols
+++ /dev/null
@@ -1,5 +0,0 @@
-=== tests/cases/compiler/optionsSourcemapInlineSourcesSourceRoot.ts ===
-
-var a = 10;
->a : Symbol(a, Decl(optionsSourcemapInlineSourcesSourceRoot.ts, 1, 3))
-
diff --git a/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.types b/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.types
deleted file mode 100644
index 3689afc382c..00000000000
--- a/tests/baselines/reference/optionsSourcemapInlineSourcesSourceRoot.types
+++ /dev/null
@@ -1,6 +0,0 @@
-=== tests/cases/compiler/optionsSourcemapInlineSourcesSourceRoot.ts ===
-
-var a = 10;
->a : number
->10 : number
-