diff --git a/tests/baselines/reference/cloduleWithPriorInstantiatedModule.errors.txt b/tests/baselines/reference/cloduleWithPriorInstantiatedModule.errors.txt
new file mode 100644
index 00000000000..1b0d9cf13ca
--- /dev/null
+++ b/tests/baselines/reference/cloduleWithPriorInstantiatedModule.errors.txt
@@ -0,0 +1,22 @@
+tests/cases/compiler/cloduleWithPriorInstantiatedModule.ts(2,8): error TS2434: A module declaration cannot be located prior to a class or function with which it is merged
+
+
+==== tests/cases/compiler/cloduleWithPriorInstantiatedModule.ts (1 errors) ====
+    // Non-ambient & instantiated module.
+    module Moclodule {
+           ~~~~~~~~~
+!!! error TS2434: A module declaration cannot be located prior to a class or function with which it is merged
+        export interface Someinterface {
+            foo(): void;
+        }
+        var x = 10;
+    }
+    
+    class Moclodule {
+    }
+    
+    // Instantiated module.
+    module Moclodule {
+        export class Manager {
+        }
+    }
\ No newline at end of file
diff --git a/tests/baselines/reference/cloduleWithPriorInstantiatedModule.js b/tests/baselines/reference/cloduleWithPriorInstantiatedModule.js
new file mode 100644
index 00000000000..601ab0a7536
--- /dev/null
+++ b/tests/baselines/reference/cloduleWithPriorInstantiatedModule.js
@@ -0,0 +1,39 @@
+//// [cloduleWithPriorInstantiatedModule.ts]
+// Non-ambient & instantiated module.
+module Moclodule {
+    export interface Someinterface {
+        foo(): void;
+    }
+    var x = 10;
+}
+
+class Moclodule {
+}
+
+// Instantiated module.
+module Moclodule {
+    export class Manager {
+    }
+}
+
+//// [cloduleWithPriorInstantiatedModule.js]
+// Non-ambient & instantiated module.
+var Moclodule;
+(function (Moclodule) {
+    var x = 10;
+})(Moclodule || (Moclodule = {}));
+var Moclodule = (function () {
+    function Moclodule() {
+    }
+    return Moclodule;
+})();
+// Instantiated module.
+var Moclodule;
+(function (Moclodule) {
+    var Manager = (function () {
+        function Manager() {
+        }
+        return Manager;
+    })();
+    Moclodule.Manager = Manager;
+})(Moclodule || (Moclodule = {}));
diff --git a/tests/baselines/reference/cloduleWithPriorUninstantiatedModule.js b/tests/baselines/reference/cloduleWithPriorUninstantiatedModule.js
index 37bfb617375..cf06f1134fb 100644
--- a/tests/baselines/reference/cloduleWithPriorUninstantiatedModule.js
+++ b/tests/baselines/reference/cloduleWithPriorUninstantiatedModule.js
@@ -1,5 +1,5 @@
 //// [cloduleWithPriorUninstantiatedModule.ts]
-// Ambient/uninstantiated module.
+// Non-ambient & uninstantiated module.
 module Moclodule {
     export interface Someinterface {
         foo(): void;
diff --git a/tests/baselines/reference/cloduleWithPriorUninstantiatedModule.types b/tests/baselines/reference/cloduleWithPriorUninstantiatedModule.types
index 1ab286b5964..8dc14646a6b 100644
--- a/tests/baselines/reference/cloduleWithPriorUninstantiatedModule.types
+++ b/tests/baselines/reference/cloduleWithPriorUninstantiatedModule.types
@@ -1,5 +1,5 @@
 === tests/cases/compiler/cloduleWithPriorUninstantiatedModule.ts ===
-// Ambient/uninstantiated module.
+// Non-ambient & uninstantiated module.
 module Moclodule {
 >Moclodule : typeof Moclodule
 
diff --git a/tests/cases/compiler/cloduleWithPriorInstantiatedModule.ts b/tests/cases/compiler/cloduleWithPriorInstantiatedModule.ts
new file mode 100644
index 00000000000..c6423ce41a7
--- /dev/null
+++ b/tests/cases/compiler/cloduleWithPriorInstantiatedModule.ts
@@ -0,0 +1,16 @@
+// Non-ambient & instantiated module.
+module Moclodule {
+    export interface Someinterface {
+        foo(): void;
+    }
+    var x = 10;
+}
+
+class Moclodule {
+}
+
+// Instantiated module.
+module Moclodule {
+    export class Manager {
+    }
+}
\ No newline at end of file
diff --git a/tests/cases/compiler/cloduleWithPriorUninstantiatedModule.ts b/tests/cases/compiler/cloduleWithPriorUninstantiatedModule.ts
index 8c9c646b687..0c603b71a4d 100644
--- a/tests/cases/compiler/cloduleWithPriorUninstantiatedModule.ts
+++ b/tests/cases/compiler/cloduleWithPriorUninstantiatedModule.ts
@@ -1,4 +1,4 @@
-// Ambient/uninstantiated module.
+// Non-ambient & uninstantiated module.
 module Moclodule {
     export interface Someinterface {
         foo(): void;