diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index fb4af5d7298..a5b96c4a9a8 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -8248,27 +8248,31 @@ namespace ts {
                     // Get the element instance type (the result of newing or invoking this tag)
                     const elemInstanceType = getJsxElementInstanceType(node);
 
-                    // Is this is a stateless function component? See if its single signature is
-                    // assignable to the JSX Element Type
-                    const callSignature = getSingleCallSignature(getTypeOfSymbol(sym));
-                    const callReturnType = callSignature && getReturnTypeOfSignature(callSignature);
-                    let paramType = callReturnType && (callSignature.parameters.length === 0 ? emptyObjectType : getTypeOfSymbol(callSignature.parameters[0]));
-                    if (callReturnType && isTypeAssignableTo(callReturnType, jsxElementType) && (paramType.flags & TypeFlags.ObjectType)) {
-                        // Intersect in JSX.IntrinsicAttributes if it exists
-                        const intrinsicAttributes = getJsxType(JsxNames.IntrinsicAttributes);
-                        if (intrinsicAttributes !== unknownType) {
-                            paramType = intersectTypes(intrinsicAttributes, paramType);
+                    const elemClassType = getJsxGlobalElementClassType();
+
+                    if (!elemClassType || !isTypeAssignableTo(elemInstanceType, elemClassType)) {
+                        // Is this is a stateless function component? See if its single signature's return type is
+                        // assignable to the JSX Element Type
+                        const elemType = getTypeOfSymbol(sym);
+                        const callSignatures = elemType && getSignaturesOfType(elemType, SignatureKind.Call);
+                        const callSignature = callSignatures && callSignatures.length > 0 && callSignatures[0];
+                        const callReturnType = callSignature && getReturnTypeOfSignature(callSignature);
+                        let paramType = callReturnType && (callSignature.parameters.length === 0 ? emptyObjectType : getTypeOfSymbol(callSignature.parameters[0]));
+                        if (callReturnType && isTypeAssignableTo(callReturnType, jsxElementType)) {
+                            // Intersect in JSX.IntrinsicAttributes if it exists
+                            const intrinsicAttributes = getJsxType(JsxNames.IntrinsicAttributes);
+                            if (intrinsicAttributes !== unknownType) {
+                                paramType = intersectTypes(intrinsicAttributes, paramType);
+                            }
+                            return paramType;
                         }
-                        return paramType;
                     }
 
                     // Issue an error if this return type isn't assignable to JSX.ElementClass
-                    const elemClassType = getJsxGlobalElementClassType();
                     if (elemClassType) {
                         checkTypeRelatedTo(elemInstanceType, elemClassType, assignableRelation, node, Diagnostics.JSX_element_type_0_is_not_a_constructor_function_for_JSX_elements);
                     }
 
-
                     if (isTypeAny(elemInstanceType)) {
                         return links.resolvedJsxType = elemInstanceType;
                     }
diff --git a/tests/baselines/reference/tsxElementResolution9.js b/tests/baselines/reference/tsxElementResolution9.js
index bc65bb0bb02..5ad47730e4a 100644
--- a/tests/baselines/reference/tsxElementResolution9.js
+++ b/tests/baselines/reference/tsxElementResolution9.js
@@ -1,6 +1,6 @@
 //// [file.tsx]
 declare module JSX {
-	interface Element { }
+	interface Element { something; }
 	interface IntrinsicElements { }
 }
 
diff --git a/tests/baselines/reference/tsxElementResolution9.symbols b/tests/baselines/reference/tsxElementResolution9.symbols
index e38c64d0847..0aec19a8094 100644
--- a/tests/baselines/reference/tsxElementResolution9.symbols
+++ b/tests/baselines/reference/tsxElementResolution9.symbols
@@ -2,11 +2,12 @@
 declare module JSX {
 >JSX : Symbol(JSX, Decl(file.tsx, 0, 0))
 
-	interface Element { }
+	interface Element { something; }
 >Element : Symbol(Element, Decl(file.tsx, 0, 20))
+>something : Symbol(something, Decl(file.tsx, 1, 20))
 
 	interface IntrinsicElements { }
->IntrinsicElements : Symbol(IntrinsicElements, Decl(file.tsx, 1, 22))
+>IntrinsicElements : Symbol(IntrinsicElements, Decl(file.tsx, 1, 33))
 }
 
 interface Obj1 {
diff --git a/tests/baselines/reference/tsxElementResolution9.types b/tests/baselines/reference/tsxElementResolution9.types
index dd84e6f07b5..b138aa0509e 100644
--- a/tests/baselines/reference/tsxElementResolution9.types
+++ b/tests/baselines/reference/tsxElementResolution9.types
@@ -2,8 +2,9 @@
 declare module JSX {
 >JSX : any
 
-	interface Element { }
+	interface Element { something; }
 >Element : Element
+>something : any
 
 	interface IntrinsicElements { }
 >IntrinsicElements : IntrinsicElements
diff --git a/tests/baselines/reference/tsxStatelessFunctionComponents3.js b/tests/baselines/reference/tsxStatelessFunctionComponents3.js
new file mode 100644
index 00000000000..d58586dd1ee
--- /dev/null
+++ b/tests/baselines/reference/tsxStatelessFunctionComponents3.js
@@ -0,0 +1,37 @@
+//// [file.tsx]
+
+import React = require('react');
+
+const Foo = (props: any) => <div/>;
+// Should be OK
+const foo = <Foo />;
+
+
+// Should be OK
+var MainMenu: React.StatelessComponent<{}> = (props) => (<div>
+    <h3>Main Menu</h3>
+</div>);
+
+var App: React.StatelessComponent<{ children }> = ({children}) => (
+    <div >
+        <MainMenu/>
+	</div>
+);
+
+//// [file.jsx]
+define(["require", "exports", 'react'], function (require, exports, React) {
+    "use strict";
+    var Foo = function (props) { return <div />; };
+    // Should be OK
+    var foo = <Foo />;
+    // Should be OK
+    var MainMenu = function (props) { return (<div>
+    <h3>Main Menu</h3>
+</div>); };
+    var App = function (_a) {
+        var children = _a.children;
+        return (<div>
+        <MainMenu />
+	</div>);
+    };
+});
diff --git a/tests/baselines/reference/tsxStatelessFunctionComponents3.symbols b/tests/baselines/reference/tsxStatelessFunctionComponents3.symbols
new file mode 100644
index 00000000000..4ce502c6a6a
--- /dev/null
+++ b/tests/baselines/reference/tsxStatelessFunctionComponents3.symbols
@@ -0,0 +1,48 @@
+=== tests/cases/conformance/jsx/file.tsx ===
+
+import React = require('react');
+>React : Symbol(React, Decl(file.tsx, 0, 0))
+
+const Foo = (props: any) => <div/>;
+>Foo : Symbol(Foo, Decl(file.tsx, 3, 5))
+>props : Symbol(props, Decl(file.tsx, 3, 13))
+>div : Symbol(JSX.IntrinsicElements.div, Decl(react.d.ts, 927, 45))
+
+// Should be OK
+const foo = <Foo />;
+>foo : Symbol(foo, Decl(file.tsx, 5, 5))
+>Foo : Symbol(Foo, Decl(file.tsx, 3, 5))
+
+
+// Should be OK
+var MainMenu: React.StatelessComponent<{}> = (props) => (<div>
+>MainMenu : Symbol(MainMenu, Decl(file.tsx, 9, 3))
+>React : Symbol(React, Decl(file.tsx, 0, 0))
+>StatelessComponent : Symbol(React.StatelessComponent, Decl(react.d.ts, 139, 5))
+>props : Symbol(props, Decl(file.tsx, 9, 46))
+>div : Symbol(JSX.IntrinsicElements.div, Decl(react.d.ts, 927, 45))
+
+    <h3>Main Menu</h3>
+>h3 : Symbol(JSX.IntrinsicElements.h3, Decl(react.d.ts, 939, 48))
+>h3 : Symbol(JSX.IntrinsicElements.h3, Decl(react.d.ts, 939, 48))
+
+</div>);
+>div : Symbol(JSX.IntrinsicElements.div, Decl(react.d.ts, 927, 45))
+
+var App: React.StatelessComponent<{ children }> = ({children}) => (
+>App : Symbol(App, Decl(file.tsx, 13, 3))
+>React : Symbol(React, Decl(file.tsx, 0, 0))
+>StatelessComponent : Symbol(React.StatelessComponent, Decl(react.d.ts, 139, 5))
+>children : Symbol(children, Decl(file.tsx, 13, 35))
+>children : Symbol(children, Decl(file.tsx, 13, 52))
+
+    <div >
+>div : Symbol(JSX.IntrinsicElements.div, Decl(react.d.ts, 927, 45))
+
+        <MainMenu/>
+>MainMenu : Symbol(MainMenu, Decl(file.tsx, 9, 3))
+
+	</div>
+>div : Symbol(JSX.IntrinsicElements.div, Decl(react.d.ts, 927, 45))
+
+);
diff --git a/tests/baselines/reference/tsxStatelessFunctionComponents3.types b/tests/baselines/reference/tsxStatelessFunctionComponents3.types
new file mode 100644
index 00000000000..6531ff737ba
--- /dev/null
+++ b/tests/baselines/reference/tsxStatelessFunctionComponents3.types
@@ -0,0 +1,59 @@
+=== tests/cases/conformance/jsx/file.tsx ===
+
+import React = require('react');
+>React : typeof React
+
+const Foo = (props: any) => <div/>;
+>Foo : (props: any) => JSX.Element
+>(props: any) => <div/> : (props: any) => JSX.Element
+>props : any
+><div/> : JSX.Element
+>div : any
+
+// Should be OK
+const foo = <Foo />;
+>foo : JSX.Element
+><Foo /> : JSX.Element
+>Foo : (props: any) => JSX.Element
+
+
+// Should be OK
+var MainMenu: React.StatelessComponent<{}> = (props) => (<div>
+>MainMenu : React.StatelessComponent<{}>
+>React : any
+>StatelessComponent : React.StatelessComponent<P>
+>(props) => (<div>    <h3>Main Menu</h3></div>) : (props: {}) => JSX.Element
+>props : {}
+>(<div>    <h3>Main Menu</h3></div>) : JSX.Element
+><div>    <h3>Main Menu</h3></div> : JSX.Element
+>div : any
+
+    <h3>Main Menu</h3>
+><h3>Main Menu</h3> : JSX.Element
+>h3 : any
+>h3 : any
+
+</div>);
+>div : any
+
+var App: React.StatelessComponent<{ children }> = ({children}) => (
+>App : React.StatelessComponent<{ children: any; }>
+>React : any
+>StatelessComponent : React.StatelessComponent<P>
+>children : any
+>({children}) => (    <div >        <MainMenu/>	</div>) : ({children}: { children: any; }) => JSX.Element
+>children : any
+>(    <div >        <MainMenu/>	</div>) : JSX.Element
+
+    <div >
+><div >        <MainMenu/>	</div> : JSX.Element
+>div : any
+
+        <MainMenu/>
+><MainMenu/> : JSX.Element
+>MainMenu : React.StatelessComponent<{}>
+
+	</div>
+>div : any
+
+);
diff --git a/tests/cases/conformance/jsx/tsxElementResolution9.tsx b/tests/cases/conformance/jsx/tsxElementResolution9.tsx
index 7165f8277b3..4854484a225 100644
--- a/tests/cases/conformance/jsx/tsxElementResolution9.tsx
+++ b/tests/cases/conformance/jsx/tsxElementResolution9.tsx
@@ -1,7 +1,7 @@
 //@filename: file.tsx
 //@jsx: preserve
 declare module JSX {
-	interface Element { }
+	interface Element { something; }
 	interface IntrinsicElements { }
 }
 
diff --git a/tests/cases/conformance/jsx/tsxStatelessFunctionComponents3.tsx b/tests/cases/conformance/jsx/tsxStatelessFunctionComponents3.tsx
new file mode 100644
index 00000000000..48ce5fb5efb
--- /dev/null
+++ b/tests/cases/conformance/jsx/tsxStatelessFunctionComponents3.tsx
@@ -0,0 +1,23 @@
+// @filename: file.tsx
+// @jsx: preserve
+// @module: amd
+// @noLib: true
+// @libFiles: react.d.ts,lib.d.ts
+
+import React = require('react');
+
+const Foo = (props: any) => <div/>;
+// Should be OK
+const foo = <Foo />;
+
+
+// Should be OK
+var MainMenu: React.StatelessComponent<{}> = (props) => (<div>
+    <h3>Main Menu</h3>
+</div>);
+
+var App: React.StatelessComponent<{ children }> = ({children}) => (
+    <div >
+        <MainMenu/>
+	</div>
+);
\ No newline at end of file