diff --git a/src/services/services.ts b/src/services/services.ts
index 42f6160bd3e..9edc38be669 100644
--- a/src/services/services.ts
+++ b/src/services/services.ts
@@ -4656,7 +4656,6 @@ module ts {
             function classifySymbol(symbol: Symbol, meaningAtPosition: SemanticMeaning) {
                 var flags = symbol.getFlags();
 
-                // TODO(drosen): use meaningAtPosition.
                 if (flags & SymbolFlags.Class) {
                     return ClassificationTypeNames.className;
                 }
@@ -4672,10 +4671,25 @@ module ts {
                     }
                 }
                 else if (flags & SymbolFlags.Module) {
-                    return ClassificationTypeNames.moduleName;
+                    // Only classify a module as such if
+                    //  - It appears in a namespace context.
+                    //  - There exists a module declaration which actually impacts the value side.
+                    if (meaningAtPosition & SemanticMeaning.Namespace ||
+                        (meaningAtPosition & SemanticMeaning.Value && hasValueSideModule(symbol))) {
+                        return ClassificationTypeNames.moduleName;
+                    }
                 }
 
                 return undefined;
+
+                /**
+                 * Returns true if there exists a module that introduces entities on the value side.
+                 */
+                function hasValueSideModule(symbol: Symbol): boolean {
+                    return !!forEach(symbol.declarations, declaration => {
+                        return declaration.kind === SyntaxKind.ModuleDeclaration && isInstantiated(declaration);
+                    });
+                }
             }
 
             function processNode(node: Node) {
diff --git a/tests/cases/fourslash/semanticClassification3.ts b/tests/cases/fourslash/semanticClassification3.ts
index c1d8da243e7..fb3717006fe 100644
--- a/tests/cases/fourslash/semanticClassification3.ts
+++ b/tests/cases/fourslash/semanticClassification3.ts
@@ -9,4 +9,4 @@
 ////var M = { I: 10 };
 
 var c = classification;
-verify.semanticClassificationsAre(c.moduleName("M"), c.interfaceName("I"), c.moduleName("M"));
\ No newline at end of file
+verify.semanticClassificationsAre(c.moduleName("M"), c.interfaceName("I"));
\ No newline at end of file
diff --git a/tests/cases/fourslash/semanticClassification4.ts b/tests/cases/fourslash/semanticClassification4.ts
new file mode 100644
index 00000000000..295af091e75
--- /dev/null
+++ b/tests/cases/fourslash/semanticClassification4.ts
@@ -0,0 +1,19 @@
+/// <reference path="fourslash.ts"/>
+
+////module M {
+////    export interface I {
+////    }
+////}
+////
+////var M = {
+////    foo: 10,
+////    bar: 20
+////}
+////
+////var v: M.I;
+////
+////var x = M;
+
+var c = classification;
+verify.semanticClassificationsAre(
+    c.moduleName("M"), c.interfaceName("I"), c.moduleName("M"), c.interfaceName("I"));
diff --git a/tests/cases/fourslash/semanticClassification5.ts b/tests/cases/fourslash/semanticClassification5.ts
new file mode 100644
index 00000000000..96cce6f4255
--- /dev/null
+++ b/tests/cases/fourslash/semanticClassification5.ts
@@ -0,0 +1,20 @@
+/// <reference path="fourslash.ts"/>
+
+////module M {
+////    export interface I {
+////    }
+////    var x = 10;
+////}
+////
+////var M = {
+////    foo: 10,
+////    bar: 20
+////}
+////
+////var v: M.I;
+////
+////var x = M;
+
+var c = classification;
+verify.semanticClassificationsAre(
+    c.moduleName("M"), c.interfaceName("I"), c.moduleName("M"), c.interfaceName("I"), c.moduleName("M"));
diff --git a/tests/cases/fourslash/semanticClassification6.ts b/tests/cases/fourslash/semanticClassification6.ts
new file mode 100644
index 00000000000..bcbd5f514f4
--- /dev/null
+++ b/tests/cases/fourslash/semanticClassification6.ts
@@ -0,0 +1,23 @@
+/// <reference path="fourslash.ts"/>
+
+////module M {
+////    export interface I {
+////    }
+////}
+////
+////module M {
+////    var x = 10;
+////}
+////
+////var M = {
+////    foo: 10,
+////    bar: 20
+////}
+////
+////var v: M.I;
+////
+////var x = M;
+
+var c = classification;
+verify.semanticClassificationsAre(
+    c.moduleName("M"), c.interfaceName("I"), c.moduleName("M"), c.moduleName("M"), c.interfaceName("I"), c.moduleName("M"));