diff --git a/src/compiler/program.ts b/src/compiler/program.ts
index 64a2ce2e57a..96e1773172b 100644
--- a/src/compiler/program.ts
+++ b/src/compiler/program.ts
@@ -9,6 +9,9 @@ module ts {
 
     /** The version of the TypeScript compiler release */
     export const version = "1.5.0";
+	
+	const NEWLINE_CRLF = "\r\n";
+	const NEWLINE_LF = "\n";
 
     export function findConfigFile(searchPath: string): string {
         var fileName = "tsconfig.json";
@@ -91,9 +94,9 @@ module ts {
             }
         }
 
-		let newLine =
-            options.newLine === NewLineKind.CarriageReturnLineFeed ? "\r\n" :
-            options.newLine === NewLineKind.LineFeed ? "\n" :
+        let newLine =
+            options.newLine === NewLineKind.CarriageReturnLineFeed ? NEWLINE_CRLF :
+            options.newLine === NewLineKind.LineFeed ? NEWLINE_LF :
             sys.newLine;
 
         return {
diff --git a/src/harness/harness.ts b/src/harness/harness.ts
index 30ae22a9e4a..75e8d1e4590 100644
--- a/src/harness/harness.ts
+++ b/src/harness/harness.ts
@@ -805,6 +805,9 @@ module Harness {
             return result;
         }
 
+        const NEWLINE_CRLF = "\r\n";
+        const NEWLINE_LF = "\n";
+
         export var defaultLibFileName = 'lib.d.ts';
         export var defaultLibSourceFile = createSourceFileAndAssertInvariants(defaultLibFileName, IO.readFile(libFolder + 'lib.core.d.ts'), /*languageVersion*/ ts.ScriptTarget.Latest);
         export var defaultES6LibSourceFile = createSourceFileAndAssertInvariants(defaultLibFileName, IO.readFile(libFolder + 'lib.core.es6.d.ts'), /*languageVersion*/ ts.ScriptTarget.Latest);
@@ -822,7 +825,8 @@ module Harness {
             scriptTarget: ts.ScriptTarget,
             useCaseSensitiveFileNames: boolean,
             // the currentDirectory is needed for rwcRunner to passed in specified current directory to compiler host
-            currentDirectory?: string): ts.CompilerHost {
+            currentDirectory?: string,
+			newLineKind?: ts.NewLineKind): ts.CompilerHost {
 
             // Local get canonical file name function, that depends on passed in parameter for useCaseSensitiveFileNames
             function getCanonicalFileName(fileName: string): string {
@@ -841,6 +845,11 @@ module Harness {
             };
             inputFiles.forEach(register);
 
+            let newLine =
+                newLineKind === ts.NewLineKind.CarriageReturnLineFeed ? NEWLINE_CRLF :
+                newLineKind === ts.NewLineKind.LineFeed ? NEWLINE_LF :
+                ts.sys.newLine;
+
             return {
                 getCurrentDirectory,
                 getSourceFile: (fn, languageVersion) => {
@@ -869,7 +878,7 @@ module Harness {
                 writeFile,
                 getCanonicalFileName,
                 useCaseSensitiveFileNames: () => useCaseSensitiveFileNames,
-                getNewLine: () => ts.sys.newLine
+                getNewLine: () => newLine
             };
         }
 
@@ -1042,7 +1051,16 @@ module Harness {
 
                         case 'newline':
                         case 'newlines':
-                            newLine = setting.value;
+                            if (setting.value.toLowerCase() === 'crlf') {
+                                options.newLine = ts.NewLineKind.CarriageReturnLineFeed;
+                            } else if (setting.value.toLowerCase() === 'lf') {
+                                options.newLine = ts.NewLineKind.LineFeed;
+                            } else if (setting.value === '\\n') {
+                                // Handle old usage, e.g. contextualTyping.ts:// @newline: \n
+                                newLine = setting.value;
+                            } else {
+                                throw new Error('Unknown option for newLine: ' + setting.value);
+                            }
                             break;
 
                         case 'comments':
@@ -1103,7 +1121,7 @@ module Harness {
                 var programFiles = inputFiles.concat(includeBuiltFiles).map(file => file.unitName);
                 var program = ts.createProgram(programFiles, options, createCompilerHost(inputFiles.concat(includeBuiltFiles).concat(otherFiles),
                     (fn, contents, writeByteOrderMark) => fileOutputs.push({ fileName: fn, code: contents, writeByteOrderMark: writeByteOrderMark }),
-                    options.target, useCaseSensitiveFileNames, currentDirectory));
+                    options.target, useCaseSensitiveFileNames, currentDirectory, options.newLine));
 
                 var emitResult = program.emit();
 
diff --git a/tests/baselines/reference/newLineFlagWithCRLF.js b/tests/baselines/reference/newLineFlagWithCRLF.js
new file mode 100644
index 00000000000..ebf095e5fc7
--- /dev/null
+++ b/tests/baselines/reference/newLineFlagWithCRLF.js
@@ -0,0 +1,9 @@
+//// [newLineFlagWithCRLF.ts]
+var x=1;
+x=2;
+
+
+
+//// [newLineFlagWithCRLF.js]
+var x = 1;
+x = 2;
diff --git a/tests/baselines/reference/newLineFlagWithCRLF.symbols b/tests/baselines/reference/newLineFlagWithCRLF.symbols
new file mode 100644
index 00000000000..07825959fbe
--- /dev/null
+++ b/tests/baselines/reference/newLineFlagWithCRLF.symbols
@@ -0,0 +1,8 @@
+=== tests/cases/compiler/newLineFlagWithCRLF.ts ===
+var x=1;
+>x : Symbol(x, Decl(newLineFlagWithCRLF.ts, 0, 3))
+
+x=2;
+>x : Symbol(x, Decl(newLineFlagWithCRLF.ts, 0, 3))
+
+
diff --git a/tests/baselines/reference/newLineFlagWithCRLF.types b/tests/baselines/reference/newLineFlagWithCRLF.types
new file mode 100644
index 00000000000..2663f4bbc7b
--- /dev/null
+++ b/tests/baselines/reference/newLineFlagWithCRLF.types
@@ -0,0 +1,11 @@
+=== tests/cases/compiler/newLineFlagWithCRLF.ts ===
+var x=1;
+>x : number
+>1 : number
+
+x=2;
+>x=2 : number
+>x : number
+>2 : number
+
+
diff --git a/tests/baselines/reference/newLineFlagWithLF.js b/tests/baselines/reference/newLineFlagWithLF.js
new file mode 100644
index 00000000000..be1b9ed644e
--- /dev/null
+++ b/tests/baselines/reference/newLineFlagWithLF.js
@@ -0,0 +1,9 @@
+//// [newLineFlagWithLF.ts]
+var x=1;
+x=2;
+
+
+
+//// [newLineFlagWithLF.js]
+var x = 1;
+x = 2;
diff --git a/tests/baselines/reference/newLineFlagWithLF.symbols b/tests/baselines/reference/newLineFlagWithLF.symbols
new file mode 100644
index 00000000000..f4edf68dcb0
--- /dev/null
+++ b/tests/baselines/reference/newLineFlagWithLF.symbols
@@ -0,0 +1,8 @@
+=== tests/cases/compiler/newLineFlagWithLF.ts ===
+var x=1;
+>x : Symbol(x, Decl(newLineFlagWithLF.ts, 0, 3))
+
+x=2;
+>x : Symbol(x, Decl(newLineFlagWithLF.ts, 0, 3))
+
+
diff --git a/tests/baselines/reference/newLineFlagWithLF.types b/tests/baselines/reference/newLineFlagWithLF.types
new file mode 100644
index 00000000000..735f31d6c52
--- /dev/null
+++ b/tests/baselines/reference/newLineFlagWithLF.types
@@ -0,0 +1,11 @@
+=== tests/cases/compiler/newLineFlagWithLF.ts ===
+var x=1;
+>x : number
+>1 : number
+
+x=2;
+>x=2 : number
+>x : number
+>2 : number
+
+
diff --git a/tests/cases/compiler/newLineFlagWithCR.ts b/tests/cases/compiler/newLineFlagWithCR.ts
new file mode 100644
index 00000000000..4a1fbbfe3d3
--- /dev/null
+++ b/tests/cases/compiler/newLineFlagWithCR.ts
@@ -0,0 +1,4 @@
+// @newline: CR
+var x=1;
+x=2;
+
diff --git a/tests/cases/compiler/newLineFlagWithCRLF.ts b/tests/cases/compiler/newLineFlagWithCRLF.ts
new file mode 100644
index 00000000000..2a25ebc50d1
--- /dev/null
+++ b/tests/cases/compiler/newLineFlagWithCRLF.ts
@@ -0,0 +1,4 @@
+// @newline: CRLF
+var x=1;
+x=2;
+
diff --git a/tests/cases/compiler/newLineFlagWithLF.ts b/tests/cases/compiler/newLineFlagWithLF.ts
new file mode 100644
index 00000000000..2f85a3a1e7f
--- /dev/null
+++ b/tests/cases/compiler/newLineFlagWithLF.ts
@@ -0,0 +1,4 @@
+// @newline: LF
+var x=1;
+x=2;
+