diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 8c383368df2..d3d4ae2088e 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -164,6 +164,13 @@ module ts {
         var diagnostics: Diagnostic[] = [];
         var diagnosticsModified: boolean = false;
 
+        // Grammar checking
+        var sourceText: string = undefined;
+        var scanner: Scanner = undefined;
+        var hasParserError: boolean;
+        var grammarDiagnostics: Diagnostic[];
+        var sourceFile: SourceFile;
+
         function addDiagnostic(diagnostic: Diagnostic) {
             diagnostics.push(diagnostic);
             diagnosticsModified = true;
@@ -7017,6 +7024,11 @@ module ts {
         // DECLARATION AND STATEMENT TYPE CHECKING
 
         function checkTypeParameter(node: TypeParameterDeclaration) {
+            // Grammar Checking
+            if (!hasParserError && node.expression) {
+                grammarErrorOnFirstToken(node.expression, Diagnostics.Type_expected);
+            }
+
             checkSourceElement(node.constraint);
             if (fullTypeCheck) {
                 checkTypeParameterHasIllegalReferencesInConstraint(node);
@@ -8655,6 +8667,36 @@ module ts {
             return <Identifier>node;
         }
 
+        // Grammar checking helper functions
+        function scanToken(pos: number) {
+            var start = skipTrivia(sourceText, pos);
+            scanner.setTextPos(start);
+            scanner.scan();
+            return start;
+        }
+
+        function grammarErrorOnFirstToken(node: Node, message: DiagnosticMessage, arg0?: any, arg1?: any, arg2?: any): void {
+            var start = scanToken(node.pos);
+            diagnostics.push(createFileDiagnostic(sourceFile, start, scanner.getTextPos() - start, message, arg0, arg1, arg2));
+        }
+
+        function grammarErrorAfterFirstToken(node: Node, message: DiagnosticMessage, arg0?: any, arg1?: any, arg2?: any): void {
+            scanToken(node.pos);
+            diagnostics.push(createFileDiagnostic(sourceFile, scanner.getTextPos(), 0, message, arg0, arg1, arg2));
+        }
+
+        function grammarErrorOnNode(node: Node, message: DiagnosticMessage, arg0?: any, arg1?: any, arg2?: any): void {
+            var span = getErrorSpanForNode(node);
+            var start = span.end > span.pos ? skipTrivia(sourceFile.text, span.pos) : span.pos;
+            var length = span.end - start;
+
+            diagnostics.push(createFileDiagnostic(sourceFile, start, length, message, arg0, arg1, arg2));
+        }
+
+        function grammarErrorAtPos(start: number, length: number, message: DiagnosticMessage, arg0?: any, arg1?: any, arg2?: any): void {
+            diagnostics.push(createFileDiagnostic(sourceFile, start, length, message, arg0, arg1, arg2));
+        }
+
         function checkImportDeclaration(node: ImportDeclaration) {
             checkCollisionWithCapturedThisVariable(node, node.name);
             checkCollisionWithRequireExportsInGeneratedCode(node, node.name);
@@ -8909,6 +8951,12 @@ module ts {
 
         // Fully type check a source file and collect the relevant diagnostics.
         function checkSourceFile(node: SourceFile) {
+            sourceText = node.text;
+            scanner = createScanner(compilerOptions.target, /*skipTrivia*/ true, sourceText);
+            hasParserError = node.parseDiagnostics.length > 0 ? true : false;
+            sourceFile = node;
+            //grammarDiagnostics = [];
+
             var links = getNodeLinks(node);
             if (!(links.flags & NodeCheckFlags.TypeChecked)) {
                 emitExtends = false;
@@ -9469,7 +9517,7 @@ module ts {
             return program.getDiagnostics(sourceFile).length !== 0 ||
                 hasEarlyErrors(sourceFile) ||
                 (compilerOptions.noEmitOnError && getDiagnostics(sourceFile).length !== 0);
-        }
+       }
 
         function hasEarlyErrors(sourceFile?: SourceFile): boolean {
             return forEach(getDiagnostics(sourceFile), d => d.isEarly);
diff --git a/src/compiler/diagnosticInformationMap.generated.ts b/src/compiler/diagnosticInformationMap.generated.ts
index 17dbae83bf2..5f54befb89b 100644
--- a/src/compiler/diagnosticInformationMap.generated.ts
+++ b/src/compiler/diagnosticInformationMap.generated.ts
@@ -73,7 +73,7 @@ module ts {
         Jump_target_cannot_cross_function_boundary: { code: 1107, category: DiagnosticCategory.Error, key: "Jump target cannot cross function boundary." },
         A_return_statement_can_only_be_used_within_a_function_body: { code: 1108, category: DiagnosticCategory.Error, key: "A 'return' statement can only be used within a function body." },
         Expression_expected: { code: 1109, category: DiagnosticCategory.Error, key: "Expression expected." },
-        Type_expected: { code: 1110, category: DiagnosticCategory.Error, key: "Type expected." },
+        Type_expected: { code: 1110, category: DiagnosticCategory.Error, key: "Type expected.", isEarly: true },
         A_constructor_implementation_cannot_be_declared_in_an_ambient_context: { code: 1111, category: DiagnosticCategory.Error, key: "A constructor implementation cannot be declared in an ambient context." },
         A_class_member_cannot_be_declared_optional: { code: 1112, category: DiagnosticCategory.Error, key: "A class member cannot be declared optional." },
         A_default_clause_cannot_appear_more_than_once_in_a_switch_statement: { code: 1113, category: DiagnosticCategory.Error, key: "A 'default' clause cannot appear more than once in a 'switch' statement." },
diff --git a/src/compiler/diagnosticMessages.json b/src/compiler/diagnosticMessages.json
index a06b71d460e..f694ccfc32f 100644
--- a/src/compiler/diagnosticMessages.json
+++ b/src/compiler/diagnosticMessages.json
@@ -285,7 +285,8 @@
     },
     "Type expected.": {
         "category": "Error",
-        "code": 1110
+        "code": 1110,
+        "isEarly": true
     },
     "A constructor implementation cannot be declared in an ambient context.": {
         "category": "Error",
diff --git a/src/compiler/parser.ts b/src/compiler/parser.ts
index d406b938d4e..58582964550 100644
--- a/src/compiler/parser.ts
+++ b/src/compiler/parser.ts
@@ -4679,7 +4679,6 @@ module ts {
                 case SyntaxKind.TaggedTemplateExpression:       return checkTaggedTemplateExpression(<TaggedTemplateExpression>node);
                 case SyntaxKind.ThrowStatement:                 return checkThrowStatement(<ThrowStatement>node);
                 case SyntaxKind.TupleType:                      return checkTupleType(<TupleTypeNode>node);
-                case SyntaxKind.TypeParameter:                  return checkTypeParameter(<TypeParameterDeclaration>node);
                 case SyntaxKind.TypeReference:                  return checkTypeReference(<TypeReferenceNode>node);
                 case SyntaxKind.VariableDeclaration:            return checkVariableDeclaration(<VariableDeclaration>node);
                 case SyntaxKind.VariableStatement:              return checkVariableStatement(<VariableStatement>node);
@@ -5727,12 +5726,6 @@ module ts {
             }
         }
 
-        function checkTypeParameter(node: TypeParameterDeclaration) {
-            if (node.expression) {
-                return grammarErrorOnFirstToken(node.expression, Diagnostics.Type_expected);
-            }
-        }
-
         function checkTypeReference(node: TypeReferenceNode) {
             return checkTypeArguments(node.typeArguments);
         }
diff --git a/tests/baselines/reference/typeParameterConstraints1.errors.txt b/tests/baselines/reference/typeParameterConstraints1.errors.txt
index d2e1f505c83..f30fd4f6700 100644
--- a/tests/baselines/reference/typeParameterConstraints1.errors.txt
+++ b/tests/baselines/reference/typeParameterConstraints1.errors.txt
@@ -1,8 +1,8 @@
+tests/cases/compiler/typeParameterConstraints1.ts(6,25): error TS2304: Cannot find name 'hm'.
 tests/cases/compiler/typeParameterConstraints1.ts(8,25): error TS1110: Type expected.
 tests/cases/compiler/typeParameterConstraints1.ts(9,25): error TS1110: Type expected.
 tests/cases/compiler/typeParameterConstraints1.ts(10,26): error TS1110: Type expected.
 tests/cases/compiler/typeParameterConstraints1.ts(11,26): error TS1110: Type expected.
-tests/cases/compiler/typeParameterConstraints1.ts(6,25): error TS2304: Cannot find name 'hm'.
 tests/cases/compiler/typeParameterConstraints1.ts(12,26): error TS2304: Cannot find name 'undefined'.