diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 7a4ba23ca2a..d956ac189a5 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -732,7 +732,7 @@ module ts {
             let target = resolveAlias(symbol);
             if (target) {
                 let markAlias =
-                    (target === unknownSymbol && compilerOptions.separateCompilation) ||
+                    (target === unknownSymbol && compilerOptions.isolatedModules) ||
                     (target !== unknownSymbol && (target.flags & SymbolFlags.Value) && !isConstEnumOrConstEnumOnlyModule(target));
 
                 if (markAlias) {
@@ -8889,7 +8889,7 @@ module ts {
             // serialize the type metadata.
             if (node && node.kind === SyntaxKind.TypeReference) {
                 let type = getTypeFromTypeNode(node);
-                let shouldCheckIfUnknownType = type === unknownType && compilerOptions.separateCompilation;
+                let shouldCheckIfUnknownType = type === unknownType && compilerOptions.isolatedModules;
                 if (!type || (!shouldCheckIfUnknownType && type.flags & (TypeFlags.Intrinsic | TypeFlags.NumberLike | TypeFlags.StringLike))) {
                     return;
                 }
@@ -10054,7 +10054,7 @@ module ts {
                 }
             }
 
-            if (baseTypes.length || (baseTypeNode && compilerOptions.separateCompilation)) {
+            if (baseTypes.length || (baseTypeNode && compilerOptions.isolatedModules)) {
                 // Check that base type can be evaluated as expression
                 checkExpressionOrQualifiedName(baseTypeNode.expression);
             }
@@ -10470,8 +10470,8 @@ module ts {
             computeEnumMemberValues(node);
 
             let enumIsConst = isConst(node);
-            if (compilerOptions.separateCompilation && enumIsConst && isInAmbientContext(node)) {
-                error(node.name, Diagnostics.Ambient_const_enums_are_not_allowed_when_the_separateCompilation_flag_is_provided);
+            if (compilerOptions.isolatedModules && enumIsConst && isInAmbientContext(node)) {
+                error(node.name, Diagnostics.Ambient_const_enums_are_not_allowed_when_the_isolatedModules_flag_is_provided);
             }
 
             // Spec 2014 - Section 9.3:
@@ -10561,7 +10561,7 @@ module ts {
                 if (symbol.flags & SymbolFlags.ValueModule
                     && symbol.declarations.length > 1
                     && !isInAmbientContext(node)
-                    && isInstantiatedModule(node, compilerOptions.preserveConstEnums || compilerOptions.separateCompilation)) {
+                    && isInstantiatedModule(node, compilerOptions.preserveConstEnums || compilerOptions.isolatedModules)) {
                     let firstNonAmbientClassOrFunc = getFirstNonAmbientClassOrFunctionDeclaration(symbol);
                     if (firstNonAmbientClassOrFunc) {
                         if (getSourceFileOfNode(node) !== getSourceFileOfNode(firstNonAmbientClassOrFunc)) {
@@ -11661,7 +11661,7 @@ module ts {
 
         function isAliasResolvedToValue(symbol: Symbol): boolean {
             let target = resolveAlias(symbol);
-            if (target === unknownSymbol && compilerOptions.separateCompilation) {
+            if (target === unknownSymbol && compilerOptions.isolatedModules) {
                 return true;
             }
             // const enums and modules that contain only const enums are not considered values from the emit perespective
diff --git a/src/compiler/commandLineParser.ts b/src/compiler/commandLineParser.ts
index 6a055aebf6a..64784590024 100644
--- a/src/compiler/commandLineParser.ts
+++ b/src/compiler/commandLineParser.ts
@@ -142,7 +142,7 @@ module ts {
             paramType: Diagnostics.LOCATION,
         },
         {
-            name: "separateCompilation",
+            name: "isolatedModules",
             type: "boolean",
         },
         {
diff --git a/src/compiler/diagnosticInformationMap.generated.ts b/src/compiler/diagnosticInformationMap.generated.ts
index 1f8edf8fee3..8dd6ea6dc55 100644
--- a/src/compiler/diagnosticInformationMap.generated.ts
+++ b/src/compiler/diagnosticInformationMap.generated.ts
@@ -165,8 +165,8 @@ module ts {
         Decorators_are_only_available_when_targeting_ECMAScript_5_and_higher: { code: 1205, category: DiagnosticCategory.Error, key: "Decorators are only available when targeting ECMAScript 5 and higher." },
         Decorators_are_not_valid_here: { code: 1206, category: DiagnosticCategory.Error, key: "Decorators are not valid here." },
         Decorators_cannot_be_applied_to_multiple_get_Slashset_accessors_of_the_same_name: { code: 1207, category: DiagnosticCategory.Error, key: "Decorators cannot be applied to multiple get/set accessors of the same name." },
-        Cannot_compile_namespaces_when_the_separateCompilation_flag_is_provided: { code: 1208, category: DiagnosticCategory.Error, key: "Cannot compile namespaces when the '--separateCompilation' flag is provided." },
-        Ambient_const_enums_are_not_allowed_when_the_separateCompilation_flag_is_provided: { code: 1209, category: DiagnosticCategory.Error, key: "Ambient const enums are not allowed when the '--separateCompilation' flag is provided." },
+        Cannot_compile_namespaces_when_the_isolatedModules_flag_is_provided: { code: 1208, category: DiagnosticCategory.Error, key: "Cannot compile namespaces when the '--isolatedModules' flag is provided." },
+        Ambient_const_enums_are_not_allowed_when_the_isolatedModules_flag_is_provided: { code: 1209, category: DiagnosticCategory.Error, key: "Ambient const enums are not allowed when the '--isolatedModules' flag is provided." },
         Invalid_use_of_0_Class_definitions_are_automatically_in_strict_mode: { code: 1210, category: DiagnosticCategory.Error, key: "Invalid use of '{0}'. Class definitions are automatically in strict mode." },
         A_class_declaration_without_the_default_modifier_must_have_a_name: { code: 1211, category: DiagnosticCategory.Error, key: "A class declaration without the 'default' modifier must have a name" },
         Identifier_expected_0_is_a_reserved_word_in_strict_mode: { code: 1212, category: DiagnosticCategory.Error, key: "Identifier expected. '{0}' is a reserved word in strict mode" },
@@ -449,11 +449,11 @@ module ts {
         Option_noEmit_cannot_be_specified_with_option_out_or_outDir: { code: 5040, category: DiagnosticCategory.Error, key: "Option 'noEmit' cannot be specified with option 'out' or 'outDir'." },
         Option_noEmit_cannot_be_specified_with_option_declaration: { code: 5041, category: DiagnosticCategory.Error, key: "Option 'noEmit' cannot be specified with option 'declaration'." },
         Option_project_cannot_be_mixed_with_source_files_on_a_command_line: { code: 5042, category: DiagnosticCategory.Error, key: "Option 'project' cannot be mixed with source files on a command line." },
-        Option_sourceMap_cannot_be_specified_with_option_separateCompilation: { code: 5043, category: DiagnosticCategory.Error, key: "Option 'sourceMap' cannot be specified with option 'separateCompilation'." },
-        Option_declaration_cannot_be_specified_with_option_separateCompilation: { code: 5044, category: DiagnosticCategory.Error, key: "Option 'declaration' cannot be specified with option 'separateCompilation'." },
-        Option_noEmitOnError_cannot_be_specified_with_option_separateCompilation: { code: 5045, category: DiagnosticCategory.Error, key: "Option 'noEmitOnError' cannot be specified with option 'separateCompilation'." },
-        Option_out_cannot_be_specified_with_option_separateCompilation: { code: 5046, category: DiagnosticCategory.Error, key: "Option 'out' cannot be specified with option 'separateCompilation'." },
-        Option_separateCompilation_can_only_be_used_when_either_option_module_is_provided_or_option_target_is_ES6_or_higher: { code: 5047, category: DiagnosticCategory.Error, key: "Option 'separateCompilation' can only be used when either option'--module' is provided or option 'target' is 'ES6' or higher." },
+        Option_sourceMap_cannot_be_specified_with_option_isolatedModules: { code: 5043, category: DiagnosticCategory.Error, key: "Option 'sourceMap' cannot be specified with option 'isolatedModules'." },
+        Option_declaration_cannot_be_specified_with_option_isolatedModules: { code: 5044, category: DiagnosticCategory.Error, key: "Option 'declaration' cannot be specified with option 'isolatedModules'." },
+        Option_noEmitOnError_cannot_be_specified_with_option_isolatedModules: { code: 5045, category: DiagnosticCategory.Error, key: "Option 'noEmitOnError' cannot be specified with option 'isolatedModules'." },
+        Option_out_cannot_be_specified_with_option_isolatedModules: { code: 5046, category: DiagnosticCategory.Error, key: "Option 'out' cannot be specified with option 'isolatedModules'." },
+        Option_isolatedModules_can_only_be_used_when_either_option_module_is_provided_or_option_target_is_ES6_or_higher: { code: 5047, category: DiagnosticCategory.Error, key: "Option 'isolatedModules' can only be used when either option'--module' is provided or option 'target' is 'ES6' or higher." },
         Option_sourceMap_cannot_be_specified_with_option_inlineSourceMap: { code: 5048, category: DiagnosticCategory.Error, key: "Option 'sourceMap' cannot be specified with option 'inlineSourceMap'." },
         Option_sourceRoot_cannot_be_specified_with_option_inlineSourceMap: { code: 5049, category: DiagnosticCategory.Error, key: "Option 'sourceRoot' cannot be specified with option 'inlineSourceMap'." },
         Option_mapRoot_cannot_be_specified_with_option_inlineSourceMap: { code: 5050, category: DiagnosticCategory.Error, key: "Option 'mapRoot' cannot be specified with option 'inlineSourceMap'." },
diff --git a/src/compiler/diagnosticMessages.json b/src/compiler/diagnosticMessages.json
index 42eae83e269..416936e741b 100644
--- a/src/compiler/diagnosticMessages.json
+++ b/src/compiler/diagnosticMessages.json
@@ -647,11 +647,11 @@
         "category": "Error",
         "code": 1207
     },
-    "Cannot compile namespaces when the '--separateCompilation' flag is provided.": {
+    "Cannot compile namespaces when the '--isolatedModules' flag is provided.": {
         "category": "Error",
         "code": 1208
     },
-    "Ambient const enums are not allowed when the '--separateCompilation' flag is provided.": {
+    "Ambient const enums are not allowed when the '--isolatedModules' flag is provided.": {
         "category": "Error",
         "code": 1209
     },
@@ -1785,23 +1785,23 @@
         "category": "Error",
         "code": 5042
     },
-    "Option 'sourceMap' cannot be specified with option 'separateCompilation'.": {
+    "Option 'sourceMap' cannot be specified with option 'isolatedModules'.": {
         "category": "Error",
         "code": 5043
     },
-    "Option 'declaration' cannot be specified with option 'separateCompilation'.": {
+    "Option 'declaration' cannot be specified with option 'isolatedModules'.": {
         "category": "Error",
         "code": 5044
     },
-    "Option 'noEmitOnError' cannot be specified with option 'separateCompilation'.": {
+    "Option 'noEmitOnError' cannot be specified with option 'isolatedModules'.": {
         "category": "Error",
         "code": 5045
     },
-    "Option 'out' cannot be specified with option 'separateCompilation'.": {
+    "Option 'out' cannot be specified with option 'isolatedModules'.": {
         "category": "Error",
         "code": 5046
     },
-    "Option 'separateCompilation' can only be used when either option'--module' is provided or option 'target' is 'ES6' or higher.": {
+    "Option 'isolatedModules' can only be used when either option'--module' is provided or option 'target' is 'ES6' or higher.": {
         "category": "Error",
         "code": 5047
     },
diff --git a/src/compiler/emitter.ts b/src/compiler/emitter.ts
index 59b6fcd7eb6..028a65ddfa1 100644
--- a/src/compiler/emitter.ts
+++ b/src/compiler/emitter.ts
@@ -1717,7 +1717,7 @@ var __param = (this && this.__param) || function (paramIndex, decorator) {
             }
 
             function tryEmitConstantValue(node: PropertyAccessExpression | ElementAccessExpression): boolean {
-                if (compilerOptions.separateCompilation) {
+                if (compilerOptions.isolatedModules) {
                     // do not inline enum values in separate compilation mode
                     return false;
                 }
@@ -4368,7 +4368,7 @@ var __param = (this && this.__param) || function (paramIndex, decorator) {
 
             function shouldEmitEnumDeclaration(node: EnumDeclaration) {
                 let isConstEnum = isConst(node);
-                return !isConstEnum || compilerOptions.preserveConstEnums || compilerOptions.separateCompilation;
+                return !isConstEnum || compilerOptions.preserveConstEnums || compilerOptions.isolatedModules;
             }
 
             function emitEnumDeclaration(node: EnumDeclaration) {
@@ -4473,7 +4473,7 @@ var __param = (this && this.__param) || function (paramIndex, decorator) {
             }
 
             function shouldEmitModuleDeclaration(node: ModuleDeclaration) {
-                return isInstantiatedModule(node, compilerOptions.preserveConstEnums || compilerOptions.separateCompilation);
+                return isInstantiatedModule(node, compilerOptions.preserveConstEnums || compilerOptions.isolatedModules);
             }
 
             function isModuleMergedWithES6Class(node: ModuleDeclaration) {
@@ -5682,7 +5682,7 @@ var __param = (this && this.__param) || function (paramIndex, decorator) {
                     }
                 }
 
-                if (isExternalModule(node) || compilerOptions.separateCompilation) {
+                if (isExternalModule(node) || compilerOptions.isolatedModules) {
                     if (languageVersion >= ScriptTarget.ES6) {
                         emitES6Module(node, startIndex);
                     }
diff --git a/src/compiler/program.ts b/src/compiler/program.ts
index 4ad82c069c2..232a74107f7 100644
--- a/src/compiler/program.ts
+++ b/src/compiler/program.ts
@@ -529,21 +529,21 @@ module ts {
         }
 
         function verifyCompilerOptions() {
-            if (options.separateCompilation) {
+            if (options.isolatedModules) {
                 if (options.sourceMap) {
-                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_sourceMap_cannot_be_specified_with_option_separateCompilation));
+                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_sourceMap_cannot_be_specified_with_option_isolatedModules));
                 }
 
                 if (options.declaration) {
-                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_declaration_cannot_be_specified_with_option_separateCompilation));
+                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_declaration_cannot_be_specified_with_option_isolatedModules));
                 }
 
                 if (options.noEmitOnError) {
-                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_noEmitOnError_cannot_be_specified_with_option_separateCompilation));
+                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_noEmitOnError_cannot_be_specified_with_option_isolatedModules));
                 }
 
                 if (options.out) {
-                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_out_cannot_be_specified_with_option_separateCompilation));
+                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_out_cannot_be_specified_with_option_isolatedModules));
                 }
             }
 
@@ -580,15 +580,15 @@ module ts {
             let languageVersion = options.target || ScriptTarget.ES3;
 
             let firstExternalModuleSourceFile = forEach(files, f => isExternalModule(f) ? f : undefined);
-            if (options.separateCompilation) {
+            if (options.isolatedModules) {
                 if (!options.module && languageVersion < ScriptTarget.ES6) {
-                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_separateCompilation_can_only_be_used_when_either_option_module_is_provided_or_option_target_is_ES6_or_higher));
+                    diagnostics.add(createCompilerDiagnostic(Diagnostics.Option_isolatedModules_can_only_be_used_when_either_option_module_is_provided_or_option_target_is_ES6_or_higher));
                 }
 
                 let firstNonExternalModuleSourceFile = forEach(files, f => !isExternalModule(f) && !isDeclarationFile(f) ? f : undefined);
                 if (firstNonExternalModuleSourceFile) {
                     let span = getErrorSpanForNode(firstNonExternalModuleSourceFile, firstNonExternalModuleSourceFile);
-                    diagnostics.add(createFileDiagnostic(firstNonExternalModuleSourceFile, span.start, span.length, Diagnostics.Cannot_compile_namespaces_when_the_separateCompilation_flag_is_provided));
+                    diagnostics.add(createFileDiagnostic(firstNonExternalModuleSourceFile, span.start, span.length, Diagnostics.Cannot_compile_namespaces_when_the_isolatedModules_flag_is_provided));
                 }
             }
             else if (firstExternalModuleSourceFile && languageVersion < ScriptTarget.ES6 && !options.module) {
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 86e680ca8b0..a6fa89846bb 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -1676,7 +1676,7 @@ module ts {
         target?: ScriptTarget;
         version?: boolean;
         watch?: boolean;
-        separateCompilation?: boolean;
+        isolatedModules?: boolean;
         emitDecoratorMetadata?: boolean;
         /* @internal */ stripInternal?: boolean;
         [option: string]: string | number | boolean;
diff --git a/src/compiler/utilities.ts b/src/compiler/utilities.ts
index 0bb0065d1b0..3ded0a7cfd9 100644
--- a/src/compiler/utilities.ts
+++ b/src/compiler/utilities.ts
@@ -1438,7 +1438,7 @@ module ts {
             if ((isExternalModule(sourceFile) || !compilerOptions.out)) {
                 // 1. in-browser single file compilation scenario
                 // 2. non .js file
-                return compilerOptions.separateCompilation || !fileExtensionIs(sourceFile.fileName, ".js");
+                return compilerOptions.isolatedModules || !fileExtensionIs(sourceFile.fileName, ".js");
             }
             return false;
         }
diff --git a/src/harness/harness.ts b/src/harness/harness.ts
index 9ed515eb5b6..63eff36b30a 100644
--- a/src/harness/harness.ts
+++ b/src/harness/harness.ts
@@ -45,10 +45,10 @@ module Utils {
     export function getExecutionEnvironment() {
         if (typeof WScript !== "undefined" && typeof ActiveXObject === "function") {
             return ExecutionEnvironment.CScript;
-        } else if (typeof window !== "undefined") {
+        } else if (typeof window !== "undefined") {
             return ExecutionEnvironment.Browser;
-        } else {
-            return ExecutionEnvironment.Node;
+        } else {
+            return ExecutionEnvironment.Node;
         }
     }
 
@@ -1092,8 +1092,8 @@ module Harness {
                             options.preserveConstEnums = setting.value === 'true';
                             break;
 
-                        case 'separatecompilation':
-                            options.separateCompilation = setting.value === 'true';
+                        case 'isolatedmodules':
+                            options.isolatedModules = setting.value === 'true';
                             break;
 
                         case 'suppressimplicitanyindexerrors':
@@ -1509,7 +1509,7 @@ module Harness {
             "noimplicitany", "noresolve", "newline", "normalizenewline", "emitbom",
             "errortruncation", "usecasesensitivefilenames", "preserveconstenums",
             "includebuiltfile", "suppressimplicitanyindexerrors", "stripinternal",
-            "separatecompilation", "inlinesourcemap", "maproot", "sourceroot",
+            "isolatedmodules", "inlinesourcemap", "maproot", "sourceroot",
             "inlinesources", "emitdecoratormetadata"];
 
         function extractCompilerSettings(content: string): CompilerSetting[] {
diff --git a/src/services/services.ts b/src/services/services.ts
index aa690e3715d..d5ba024cee5 100644
--- a/src/services/services.ts
+++ b/src/services/services.ts
@@ -1761,13 +1761,13 @@ module ts {
      * This function will compile source text from 'input' argument using specified compiler options.
      * If not options are provided - it will use a set of default compiler options.
      * Extra compiler options that will unconditionally be used bu this function are:
-     * - separateCompilation = true
+     * - isolatedModules = true
      * - allowNonTsExtensions = true
      */
     export function transpile(input: string, compilerOptions?: CompilerOptions, fileName?: string, diagnostics?: Diagnostic[]): string {
         let options = compilerOptions ? clone(compilerOptions) : getDefaultCompilerOptions();
 
-        options.separateCompilation = true;
+        options.isolatedModules = true;
 
         // Filename can be non-ts file.
         options.allowNonTsExtensions = true;
diff --git a/tests/baselines/reference/isolatedModulesAmbientConstEnum.errors.txt b/tests/baselines/reference/isolatedModulesAmbientConstEnum.errors.txt
new file mode 100644
index 00000000000..bb8a5202bc5
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesAmbientConstEnum.errors.txt
@@ -0,0 +1,10 @@
+tests/cases/compiler/isolatedModulesAmbientConstEnum.ts(3,20): error TS1209: Ambient const enums are not allowed when the '--isolatedModules' flag is provided.
+
+
+==== tests/cases/compiler/isolatedModulesAmbientConstEnum.ts (1 errors) ====
+    
+    
+    declare const enum E { X = 1}
+                       ~
+!!! error TS1209: Ambient const enums are not allowed when the '--isolatedModules' flag is provided.
+    export var y;
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesAmbientConstEnum.js b/tests/baselines/reference/isolatedModulesAmbientConstEnum.js
new file mode 100644
index 00000000000..7742122b687
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesAmbientConstEnum.js
@@ -0,0 +1,8 @@
+//// [isolatedModulesAmbientConstEnum.ts]
+
+
+declare const enum E { X = 1}
+export var y;
+
+//// [isolatedModulesAmbientConstEnum.js]
+export var y;
diff --git a/tests/baselines/reference/isolatedModulesDeclaration.errors.txt b/tests/baselines/reference/isolatedModulesDeclaration.errors.txt
new file mode 100644
index 00000000000..de5cb97586c
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesDeclaration.errors.txt
@@ -0,0 +1,7 @@
+error TS5044: Option 'declaration' cannot be specified with option 'isolatedModules'.
+
+
+!!! error TS5044: Option 'declaration' cannot be specified with option 'isolatedModules'.
+==== tests/cases/compiler/isolatedModulesDeclaration.ts (0 errors) ====
+    
+    export var x;
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesDeclaration.js b/tests/baselines/reference/isolatedModulesDeclaration.js
new file mode 100644
index 00000000000..12e6f23f92e
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesDeclaration.js
@@ -0,0 +1,10 @@
+//// [isolatedModulesDeclaration.ts]
+
+export var x;
+
+//// [isolatedModulesDeclaration.js]
+export var x;
+
+
+//// [isolatedModulesDeclaration.d.ts]
+export declare var x: any;
diff --git a/tests/baselines/reference/isolatedModulesES6.js b/tests/baselines/reference/isolatedModulesES6.js
new file mode 100644
index 00000000000..eb2ee3ee33a
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesES6.js
@@ -0,0 +1,5 @@
+//// [isolatedModulesES6.ts]
+export var x;
+
+//// [isolatedModulesES6.js]
+export var x;
diff --git a/tests/baselines/reference/isolatedModulesES6.symbols b/tests/baselines/reference/isolatedModulesES6.symbols
new file mode 100644
index 00000000000..c705cbc5af8
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesES6.symbols
@@ -0,0 +1,4 @@
+=== tests/cases/compiler/isolatedModulesES6.ts ===
+export var x;
+>x : Symbol(x, Decl(isolatedModulesES6.ts, 0, 10))
+
diff --git a/tests/baselines/reference/isolatedModulesES6.types b/tests/baselines/reference/isolatedModulesES6.types
new file mode 100644
index 00000000000..898b9715ca4
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesES6.types
@@ -0,0 +1,4 @@
+=== tests/cases/compiler/isolatedModulesES6.ts ===
+export var x;
+>x : any
+
diff --git a/tests/baselines/reference/isolatedModulesImportExportElision.errors.txt b/tests/baselines/reference/isolatedModulesImportExportElision.errors.txt
new file mode 100644
index 00000000000..8c6881a9bc1
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesImportExportElision.errors.txt
@@ -0,0 +1,28 @@
+tests/cases/compiler/isolatedModulesImportExportElision.ts(2,17): error TS2307: Cannot find module 'module'.
+tests/cases/compiler/isolatedModulesImportExportElision.ts(3,18): error TS2307: Cannot find module 'module'.
+tests/cases/compiler/isolatedModulesImportExportElision.ts(4,21): error TS2307: Cannot find module 'module'.
+tests/cases/compiler/isolatedModulesImportExportElision.ts(12,18): error TS2307: Cannot find module 'module'.
+
+
+==== tests/cases/compiler/isolatedModulesImportExportElision.ts (4 errors) ====
+    
+    import {c} from "module"
+                    ~~~~~~~~
+!!! error TS2307: Cannot find module 'module'.
+    import {c2} from "module"
+                     ~~~~~~~~
+!!! error TS2307: Cannot find module 'module'.
+    import * as ns from "module"
+                        ~~~~~~~~
+!!! error TS2307: Cannot find module 'module'.
+    
+    class C extends c2.C {
+    }
+    
+    let x = new c();
+    let y = ns.value;
+    
+    export {c1} from "module";
+                     ~~~~~~~~
+!!! error TS2307: Cannot find module 'module'.
+    export var z = x;
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationImportExportElision.js b/tests/baselines/reference/isolatedModulesImportExportElision.js
similarity index 86%
rename from tests/baselines/reference/separateCompilationImportExportElision.js
rename to tests/baselines/reference/isolatedModulesImportExportElision.js
index cfa57980249..ca3eee0ac2b 100644
--- a/tests/baselines/reference/separateCompilationImportExportElision.js
+++ b/tests/baselines/reference/isolatedModulesImportExportElision.js
@@ -1,4 +1,4 @@
-//// [separateCompilationImportExportElision.ts]
+//// [isolatedModulesImportExportElision.ts]
 
 import {c} from "module"
 import {c2} from "module"
@@ -13,7 +13,7 @@ let y = ns.value;
 export {c1} from "module";
 export var z = x;
 
-//// [separateCompilationImportExportElision.js]
+//// [isolatedModulesImportExportElision.js]
 var __extends = (this && this.__extends) || function (d, b) {
     for (var p in b) if (b.hasOwnProperty(p)) d[p] = b[p];
     function __() { this.constructor = d; }
diff --git a/tests/baselines/reference/isolatedModulesNoEmitOnError.errors.txt b/tests/baselines/reference/isolatedModulesNoEmitOnError.errors.txt
new file mode 100644
index 00000000000..68b2747cf6b
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesNoEmitOnError.errors.txt
@@ -0,0 +1,7 @@
+error TS5045: Option 'noEmitOnError' cannot be specified with option 'isolatedModules'.
+
+
+!!! error TS5045: Option 'noEmitOnError' cannot be specified with option 'isolatedModules'.
+==== tests/cases/compiler/isolatedModulesNoEmitOnError.ts (0 errors) ====
+    
+    export var x;
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesNoExternalModule.errors.txt b/tests/baselines/reference/isolatedModulesNoExternalModule.errors.txt
new file mode 100644
index 00000000000..d00520a0618
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesNoExternalModule.errors.txt
@@ -0,0 +1,8 @@
+tests/cases/compiler/isolatedModulesNoExternalModule.ts(2,1): error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+
+
+==== tests/cases/compiler/isolatedModulesNoExternalModule.ts (1 errors) ====
+    
+    var x;
+    ~~~
+!!! error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesNoExternalModule.js b/tests/baselines/reference/isolatedModulesNoExternalModule.js
new file mode 100644
index 00000000000..dd5d23a538c
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesNoExternalModule.js
@@ -0,0 +1,6 @@
+//// [isolatedModulesNoExternalModule.ts]
+
+var x;
+
+//// [isolatedModulesNoExternalModule.js]
+var x;
diff --git a/tests/baselines/reference/separateCompilationNonAmbientConstEnum.js b/tests/baselines/reference/isolatedModulesNonAmbientConstEnum.js
similarity index 58%
rename from tests/baselines/reference/separateCompilationNonAmbientConstEnum.js
rename to tests/baselines/reference/isolatedModulesNonAmbientConstEnum.js
index 74096adca1f..efdba17dc93 100644
--- a/tests/baselines/reference/separateCompilationNonAmbientConstEnum.js
+++ b/tests/baselines/reference/isolatedModulesNonAmbientConstEnum.js
@@ -1,10 +1,10 @@
-//// [separateCompilationNonAmbientConstEnum.ts]
+//// [isolatedModulesNonAmbientConstEnum.ts]
 
 const enum E { X = 100 };
 var e = E.X;
 export var x;
 
-//// [separateCompilationNonAmbientConstEnum.js]
+//// [isolatedModulesNonAmbientConstEnum.js]
 var E;
 (function (E) {
     E[E["X"] = 100] = "X";
diff --git a/tests/baselines/reference/isolatedModulesNonAmbientConstEnum.symbols b/tests/baselines/reference/isolatedModulesNonAmbientConstEnum.symbols
new file mode 100644
index 00000000000..5e30fd0b2ff
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesNonAmbientConstEnum.symbols
@@ -0,0 +1,15 @@
+=== tests/cases/compiler/isolatedModulesNonAmbientConstEnum.ts ===
+
+const enum E { X = 100 };
+>E : Symbol(E, Decl(isolatedModulesNonAmbientConstEnum.ts, 0, 0))
+>X : Symbol(E.X, Decl(isolatedModulesNonAmbientConstEnum.ts, 1, 14))
+
+var e = E.X;
+>e : Symbol(e, Decl(isolatedModulesNonAmbientConstEnum.ts, 2, 3))
+>E.X : Symbol(E.X, Decl(isolatedModulesNonAmbientConstEnum.ts, 1, 14))
+>E : Symbol(E, Decl(isolatedModulesNonAmbientConstEnum.ts, 0, 0))
+>X : Symbol(E.X, Decl(isolatedModulesNonAmbientConstEnum.ts, 1, 14))
+
+export var x;
+>x : Symbol(x, Decl(isolatedModulesNonAmbientConstEnum.ts, 3, 10))
+
diff --git a/tests/baselines/reference/separateCompilationNonAmbientConstEnum.types b/tests/baselines/reference/isolatedModulesNonAmbientConstEnum.types
similarity index 60%
rename from tests/baselines/reference/separateCompilationNonAmbientConstEnum.types
rename to tests/baselines/reference/isolatedModulesNonAmbientConstEnum.types
index ce55b80f41d..d7e83b81070 100644
--- a/tests/baselines/reference/separateCompilationNonAmbientConstEnum.types
+++ b/tests/baselines/reference/isolatedModulesNonAmbientConstEnum.types
@@ -1,4 +1,4 @@
-=== tests/cases/compiler/separateCompilationNonAmbientConstEnum.ts ===
+=== tests/cases/compiler/isolatedModulesNonAmbientConstEnum.ts ===
 
 const enum E { X = 100 };
 >E : E
diff --git a/tests/baselines/reference/separateCompilationOut.errors.txt b/tests/baselines/reference/isolatedModulesOut.errors.txt
similarity index 50%
rename from tests/baselines/reference/separateCompilationOut.errors.txt
rename to tests/baselines/reference/isolatedModulesOut.errors.txt
index 9017809901f..8234ba94585 100644
--- a/tests/baselines/reference/separateCompilationOut.errors.txt
+++ b/tests/baselines/reference/isolatedModulesOut.errors.txt
@@ -1,12 +1,12 @@
-error TS5046: Option 'out' cannot be specified with option 'separateCompilation'.
-tests/cases/compiler/file2.ts(1,1): error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
+error TS5046: Option 'out' cannot be specified with option 'isolatedModules'.
+tests/cases/compiler/file2.ts(1,1): error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
 
 
-!!! error TS5046: Option 'out' cannot be specified with option 'separateCompilation'.
+!!! error TS5046: Option 'out' cannot be specified with option 'isolatedModules'.
 ==== tests/cases/compiler/file1.ts (0 errors) ====
     
     export var x;
 ==== tests/cases/compiler/file2.ts (1 errors) ====
     var y;
     ~~~
-!!! error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
\ No newline at end of file
+!!! error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationOut.js b/tests/baselines/reference/isolatedModulesOut.js
similarity index 60%
rename from tests/baselines/reference/separateCompilationOut.js
rename to tests/baselines/reference/isolatedModulesOut.js
index 67dd2dcfbfa..ca5eb2b7579 100644
--- a/tests/baselines/reference/separateCompilationOut.js
+++ b/tests/baselines/reference/isolatedModulesOut.js
@@ -1,4 +1,4 @@
-//// [tests/cases/compiler/separateCompilationOut.ts] ////
+//// [tests/cases/compiler/isolatedModulesOut.ts] ////
 
 //// [file1.ts]
 
diff --git a/tests/baselines/reference/isolatedModulesPlainFile-AMD.errors.txt b/tests/baselines/reference/isolatedModulesPlainFile-AMD.errors.txt
new file mode 100644
index 00000000000..680070a73c8
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesPlainFile-AMD.errors.txt
@@ -0,0 +1,10 @@
+tests/cases/compiler/isolatedModulesPlainFile-AMD.ts(2,1): error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+
+
+==== tests/cases/compiler/isolatedModulesPlainFile-AMD.ts (1 errors) ====
+    
+    declare function run(a: number): void;
+    ~~~~~~~
+!!! error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+    run(1);
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationPlainFile-AMD.js b/tests/baselines/reference/isolatedModulesPlainFile-AMD.js
similarity index 57%
rename from tests/baselines/reference/separateCompilationPlainFile-AMD.js
rename to tests/baselines/reference/isolatedModulesPlainFile-AMD.js
index e3e9fc1eaeb..7f4f4219123 100644
--- a/tests/baselines/reference/separateCompilationPlainFile-AMD.js
+++ b/tests/baselines/reference/isolatedModulesPlainFile-AMD.js
@@ -1,10 +1,10 @@
-//// [separateCompilationPlainFile-AMD.ts]
+//// [isolatedModulesPlainFile-AMD.ts]
 
 declare function run(a: number): void;
 run(1);
 
 
-//// [separateCompilationPlainFile-AMD.js]
+//// [isolatedModulesPlainFile-AMD.js]
 define(["require", "exports"], function (require, exports) {
     run(1);
 });
diff --git a/tests/baselines/reference/isolatedModulesPlainFile-CommonJS.errors.txt b/tests/baselines/reference/isolatedModulesPlainFile-CommonJS.errors.txt
new file mode 100644
index 00000000000..d1f0ca3caad
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesPlainFile-CommonJS.errors.txt
@@ -0,0 +1,10 @@
+tests/cases/compiler/isolatedModulesPlainFile-CommonJS.ts(2,1): error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+
+
+==== tests/cases/compiler/isolatedModulesPlainFile-CommonJS.ts (1 errors) ====
+    
+    declare function run(a: number): void;
+    ~~~~~~~
+!!! error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+    run(1);
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesPlainFile-CommonJS.js b/tests/baselines/reference/isolatedModulesPlainFile-CommonJS.js
new file mode 100644
index 00000000000..7026a7d9bed
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesPlainFile-CommonJS.js
@@ -0,0 +1,8 @@
+//// [isolatedModulesPlainFile-CommonJS.ts]
+
+declare function run(a: number): void;
+run(1);
+
+
+//// [isolatedModulesPlainFile-CommonJS.js]
+run(1);
diff --git a/tests/baselines/reference/isolatedModulesPlainFile-ES6.errors.txt b/tests/baselines/reference/isolatedModulesPlainFile-ES6.errors.txt
new file mode 100644
index 00000000000..d46fce22fd7
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesPlainFile-ES6.errors.txt
@@ -0,0 +1,10 @@
+tests/cases/compiler/isolatedModulesPlainFile-ES6.ts(2,1): error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+
+
+==== tests/cases/compiler/isolatedModulesPlainFile-ES6.ts (1 errors) ====
+    
+    declare function run(a: number): void;
+    ~~~~~~~
+!!! error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+    run(1);
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesPlainFile-ES6.js b/tests/baselines/reference/isolatedModulesPlainFile-ES6.js
new file mode 100644
index 00000000000..245d3fe668f
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesPlainFile-ES6.js
@@ -0,0 +1,8 @@
+//// [isolatedModulesPlainFile-ES6.ts]
+
+declare function run(a: number): void;
+run(1);
+
+
+//// [isolatedModulesPlainFile-ES6.js]
+run(1);
diff --git a/tests/baselines/reference/isolatedModulesPlainFile-System.errors.txt b/tests/baselines/reference/isolatedModulesPlainFile-System.errors.txt
new file mode 100644
index 00000000000..fe1a2f80018
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesPlainFile-System.errors.txt
@@ -0,0 +1,10 @@
+tests/cases/compiler/isolatedModulesPlainFile-System.ts(2,1): error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+
+
+==== tests/cases/compiler/isolatedModulesPlainFile-System.ts (1 errors) ====
+    
+    declare function run(a: number): void;
+    ~~~~~~~
+!!! error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+    run(1);
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationPlainFile-System.js b/tests/baselines/reference/isolatedModulesPlainFile-System.js
similarity index 65%
rename from tests/baselines/reference/separateCompilationPlainFile-System.js
rename to tests/baselines/reference/isolatedModulesPlainFile-System.js
index c256ed7862a..b924a3b21f9 100644
--- a/tests/baselines/reference/separateCompilationPlainFile-System.js
+++ b/tests/baselines/reference/isolatedModulesPlainFile-System.js
@@ -1,10 +1,10 @@
-//// [separateCompilationPlainFile-System.ts]
+//// [isolatedModulesPlainFile-System.ts]
 
 declare function run(a: number): void;
 run(1);
 
 
-//// [separateCompilationPlainFile-System.js]
+//// [isolatedModulesPlainFile-System.js]
 System.register([], function(exports_1) {
     return {
         setters:[],
diff --git a/tests/baselines/reference/isolatedModulesPlainFile-UMD.errors.txt b/tests/baselines/reference/isolatedModulesPlainFile-UMD.errors.txt
new file mode 100644
index 00000000000..24c5c86f8f8
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesPlainFile-UMD.errors.txt
@@ -0,0 +1,10 @@
+tests/cases/compiler/isolatedModulesPlainFile-UMD.ts(2,1): error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+
+
+==== tests/cases/compiler/isolatedModulesPlainFile-UMD.ts (1 errors) ====
+    
+    declare function run(a: number): void;
+    ~~~~~~~
+!!! error TS1208: Cannot compile namespaces when the '--isolatedModules' flag is provided.
+    run(1);
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationPlainFile-UMD.js b/tests/baselines/reference/isolatedModulesPlainFile-UMD.js
similarity index 80%
rename from tests/baselines/reference/separateCompilationPlainFile-UMD.js
rename to tests/baselines/reference/isolatedModulesPlainFile-UMD.js
index 6a145e7d239..0ed6e83a37f 100644
--- a/tests/baselines/reference/separateCompilationPlainFile-UMD.js
+++ b/tests/baselines/reference/isolatedModulesPlainFile-UMD.js
@@ -1,10 +1,10 @@
-//// [separateCompilationPlainFile-UMD.ts]
+//// [isolatedModulesPlainFile-UMD.ts]
 
 declare function run(a: number): void;
 run(1);
 
 
-//// [separateCompilationPlainFile-UMD.js]
+//// [isolatedModulesPlainFile-UMD.js]
 (function (deps, factory) {
     if (typeof module === 'object' && typeof module.exports === 'object') {
         var v = factory(require, exports); if (v !== undefined) module.exports = v;
diff --git a/tests/baselines/reference/isolatedModulesSourceMap.errors.txt b/tests/baselines/reference/isolatedModulesSourceMap.errors.txt
new file mode 100644
index 00000000000..6383e85ecd5
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesSourceMap.errors.txt
@@ -0,0 +1,7 @@
+error TS5043: Option 'sourceMap' cannot be specified with option 'isolatedModules'.
+
+
+!!! error TS5043: Option 'sourceMap' cannot be specified with option 'isolatedModules'.
+==== tests/cases/compiler/isolatedModulesSourceMap.ts (0 errors) ====
+    
+    export var x;
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesSourceMap.js b/tests/baselines/reference/isolatedModulesSourceMap.js
new file mode 100644
index 00000000000..ca6f4b4190e
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesSourceMap.js
@@ -0,0 +1,7 @@
+//// [isolatedModulesSourceMap.ts]
+
+export var x;
+
+//// [isolatedModulesSourceMap.js]
+export var x;
+//# sourceMappingURL=isolatedModulesSourceMap.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesSourceMap.js.map b/tests/baselines/reference/isolatedModulesSourceMap.js.map
new file mode 100644
index 00000000000..8e505dcda7a
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesSourceMap.js.map
@@ -0,0 +1,2 @@
+//// [isolatedModulesSourceMap.js.map]
+{"version":3,"file":"isolatedModulesSourceMap.js","sourceRoot":"","sources":["isolatedModulesSourceMap.ts"],"names":[],"mappings":"AACA,WAAW,CAAC,CAAC"}
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationSourceMap.sourcemap.txt b/tests/baselines/reference/isolatedModulesSourceMap.sourcemap.txt
similarity index 61%
rename from tests/baselines/reference/separateCompilationSourceMap.sourcemap.txt
rename to tests/baselines/reference/isolatedModulesSourceMap.sourcemap.txt
index 74e0d73d7e0..5c6b7659bc6 100644
--- a/tests/baselines/reference/separateCompilationSourceMap.sourcemap.txt
+++ b/tests/baselines/reference/isolatedModulesSourceMap.sourcemap.txt
@@ -1,19 +1,19 @@
 ===================================================================
-JsFile: separateCompilationSourceMap.js
-mapUrl: separateCompilationSourceMap.js.map
+JsFile: isolatedModulesSourceMap.js
+mapUrl: isolatedModulesSourceMap.js.map
 sourceRoot: 
-sources: separateCompilationSourceMap.ts
+sources: isolatedModulesSourceMap.ts
 ===================================================================
 -------------------------------------------------------------------
-emittedFile:tests/cases/compiler/separateCompilationSourceMap.js
-sourceFile:separateCompilationSourceMap.ts
+emittedFile:tests/cases/compiler/isolatedModulesSourceMap.js
+sourceFile:isolatedModulesSourceMap.ts
 -------------------------------------------------------------------
 >>>export var x;
 1 >
 2 >^^^^^^^^^^^
 3 >           ^
 4 >            ^
-5 >             ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^->
+5 >             ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^->
 1 >
   >
 2 >export var 
@@ -24,4 +24,4 @@ sourceFile:separateCompilationSourceMap.ts
 3 >Emitted(1, 13) Source(2, 13) + SourceIndex(0)
 4 >Emitted(1, 14) Source(2, 14) + SourceIndex(0)
 ---
->>>//# sourceMappingURL=separateCompilationSourceMap.js.map
\ No newline at end of file
+>>>//# sourceMappingURL=isolatedModulesSourceMap.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesSpecifiedModule.js b/tests/baselines/reference/isolatedModulesSpecifiedModule.js
new file mode 100644
index 00000000000..6e868360e71
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesSpecifiedModule.js
@@ -0,0 +1,5 @@
+//// [isolatedModulesSpecifiedModule.ts]
+export var x;
+
+//// [isolatedModulesSpecifiedModule.js]
+exports.x;
diff --git a/tests/baselines/reference/isolatedModulesSpecifiedModule.symbols b/tests/baselines/reference/isolatedModulesSpecifiedModule.symbols
new file mode 100644
index 00000000000..91ede682d7c
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesSpecifiedModule.symbols
@@ -0,0 +1,4 @@
+=== tests/cases/compiler/isolatedModulesSpecifiedModule.ts ===
+export var x;
+>x : Symbol(x, Decl(isolatedModulesSpecifiedModule.ts, 0, 10))
+
diff --git a/tests/baselines/reference/isolatedModulesSpecifiedModule.types b/tests/baselines/reference/isolatedModulesSpecifiedModule.types
new file mode 100644
index 00000000000..8dee90a199f
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesSpecifiedModule.types
@@ -0,0 +1,4 @@
+=== tests/cases/compiler/isolatedModulesSpecifiedModule.ts ===
+export var x;
+>x : any
+
diff --git a/tests/baselines/reference/isolatedModulesUnspecifiedModule.errors.txt b/tests/baselines/reference/isolatedModulesUnspecifiedModule.errors.txt
new file mode 100644
index 00000000000..7d290bcae44
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesUnspecifiedModule.errors.txt
@@ -0,0 +1,6 @@
+error TS5047: Option 'isolatedModules' can only be used when either option'--module' is provided or option 'target' is 'ES6' or higher.
+
+
+!!! error TS5047: Option 'isolatedModules' can only be used when either option'--module' is provided or option 'target' is 'ES6' or higher.
+==== tests/cases/compiler/isolatedModulesUnspecifiedModule.ts (0 errors) ====
+    export var x;
\ No newline at end of file
diff --git a/tests/baselines/reference/isolatedModulesUnspecifiedModule.js b/tests/baselines/reference/isolatedModulesUnspecifiedModule.js
new file mode 100644
index 00000000000..104eda6c052
--- /dev/null
+++ b/tests/baselines/reference/isolatedModulesUnspecifiedModule.js
@@ -0,0 +1,5 @@
+//// [isolatedModulesUnspecifiedModule.ts]
+export var x;
+
+//// [isolatedModulesUnspecifiedModule.js]
+exports.x;
diff --git a/tests/baselines/reference/separateCompilationWithDeclarationFile.js b/tests/baselines/reference/isolatedModulesWithDeclarationFile.js
similarity index 57%
rename from tests/baselines/reference/separateCompilationWithDeclarationFile.js
rename to tests/baselines/reference/isolatedModulesWithDeclarationFile.js
index 71d7ef41929..42d091b6108 100644
--- a/tests/baselines/reference/separateCompilationWithDeclarationFile.js
+++ b/tests/baselines/reference/isolatedModulesWithDeclarationFile.js
@@ -1,4 +1,4 @@
-//// [tests/cases/compiler/separateCompilationWithDeclarationFile.ts] ////
+//// [tests/cases/compiler/isolatedModulesWithDeclarationFile.ts] ////
 
 //// [file1.d.ts]
 
diff --git a/tests/baselines/reference/separateCompilationWithDeclarationFile.symbols b/tests/baselines/reference/isolatedModulesWithDeclarationFile.symbols
similarity index 100%
rename from tests/baselines/reference/separateCompilationWithDeclarationFile.symbols
rename to tests/baselines/reference/isolatedModulesWithDeclarationFile.symbols
diff --git a/tests/baselines/reference/separateCompilationWithDeclarationFile.types b/tests/baselines/reference/isolatedModulesWithDeclarationFile.types
similarity index 100%
rename from tests/baselines/reference/separateCompilationWithDeclarationFile.types
rename to tests/baselines/reference/isolatedModulesWithDeclarationFile.types
diff --git a/tests/baselines/reference/separateCompilationAmbientConstEnum.errors.txt b/tests/baselines/reference/separateCompilationAmbientConstEnum.errors.txt
deleted file mode 100644
index 6ea2e445e29..00000000000
--- a/tests/baselines/reference/separateCompilationAmbientConstEnum.errors.txt
+++ /dev/null
@@ -1,10 +0,0 @@
-tests/cases/compiler/separateCompilationAmbientConstEnum.ts(3,20): error TS1209: Ambient const enums are not allowed when the '--separateCompilation' flag is provided.
-
-
-==== tests/cases/compiler/separateCompilationAmbientConstEnum.ts (1 errors) ====
-    
-    
-    declare const enum E { X = 1}
-                       ~
-!!! error TS1209: Ambient const enums are not allowed when the '--separateCompilation' flag is provided.
-    export var y;
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationAmbientConstEnum.js b/tests/baselines/reference/separateCompilationAmbientConstEnum.js
deleted file mode 100644
index 5b3af0957e7..00000000000
--- a/tests/baselines/reference/separateCompilationAmbientConstEnum.js
+++ /dev/null
@@ -1,8 +0,0 @@
-//// [separateCompilationAmbientConstEnum.ts]
-
-
-declare const enum E { X = 1}
-export var y;
-
-//// [separateCompilationAmbientConstEnum.js]
-export var y;
diff --git a/tests/baselines/reference/separateCompilationDeclaration.errors.txt b/tests/baselines/reference/separateCompilationDeclaration.errors.txt
deleted file mode 100644
index 8951184584c..00000000000
--- a/tests/baselines/reference/separateCompilationDeclaration.errors.txt
+++ /dev/null
@@ -1,7 +0,0 @@
-error TS5044: Option 'declaration' cannot be specified with option 'separateCompilation'.
-
-
-!!! error TS5044: Option 'declaration' cannot be specified with option 'separateCompilation'.
-==== tests/cases/compiler/separateCompilationDeclaration.ts (0 errors) ====
-    
-    export var x;
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationDeclaration.js b/tests/baselines/reference/separateCompilationDeclaration.js
deleted file mode 100644
index 33d64b088de..00000000000
--- a/tests/baselines/reference/separateCompilationDeclaration.js
+++ /dev/null
@@ -1,10 +0,0 @@
-//// [separateCompilationDeclaration.ts]
-
-export var x;
-
-//// [separateCompilationDeclaration.js]
-export var x;
-
-
-//// [separateCompilationDeclaration.d.ts]
-export declare var x: any;
diff --git a/tests/baselines/reference/separateCompilationES6.js b/tests/baselines/reference/separateCompilationES6.js
deleted file mode 100644
index cf05e5590a8..00000000000
--- a/tests/baselines/reference/separateCompilationES6.js
+++ /dev/null
@@ -1,5 +0,0 @@
-//// [separateCompilationES6.ts]
-export var x;
-
-//// [separateCompilationES6.js]
-export var x;
diff --git a/tests/baselines/reference/separateCompilationES6.symbols b/tests/baselines/reference/separateCompilationES6.symbols
deleted file mode 100644
index 737d5e41365..00000000000
--- a/tests/baselines/reference/separateCompilationES6.symbols
+++ /dev/null
@@ -1,4 +0,0 @@
-=== tests/cases/compiler/separateCompilationES6.ts ===
-export var x;
->x : Symbol(x, Decl(separateCompilationES6.ts, 0, 10))
-
diff --git a/tests/baselines/reference/separateCompilationES6.types b/tests/baselines/reference/separateCompilationES6.types
deleted file mode 100644
index 70381906800..00000000000
--- a/tests/baselines/reference/separateCompilationES6.types
+++ /dev/null
@@ -1,4 +0,0 @@
-=== tests/cases/compiler/separateCompilationES6.ts ===
-export var x;
->x : any
-
diff --git a/tests/baselines/reference/separateCompilationImportExportElision.errors.txt b/tests/baselines/reference/separateCompilationImportExportElision.errors.txt
deleted file mode 100644
index 0bac01d8134..00000000000
--- a/tests/baselines/reference/separateCompilationImportExportElision.errors.txt
+++ /dev/null
@@ -1,28 +0,0 @@
-tests/cases/compiler/separateCompilationImportExportElision.ts(2,17): error TS2307: Cannot find module 'module'.
-tests/cases/compiler/separateCompilationImportExportElision.ts(3,18): error TS2307: Cannot find module 'module'.
-tests/cases/compiler/separateCompilationImportExportElision.ts(4,21): error TS2307: Cannot find module 'module'.
-tests/cases/compiler/separateCompilationImportExportElision.ts(12,18): error TS2307: Cannot find module 'module'.
-
-
-==== tests/cases/compiler/separateCompilationImportExportElision.ts (4 errors) ====
-    
-    import {c} from "module"
-                    ~~~~~~~~
-!!! error TS2307: Cannot find module 'module'.
-    import {c2} from "module"
-                     ~~~~~~~~
-!!! error TS2307: Cannot find module 'module'.
-    import * as ns from "module"
-                        ~~~~~~~~
-!!! error TS2307: Cannot find module 'module'.
-    
-    class C extends c2.C {
-    }
-    
-    let x = new c();
-    let y = ns.value;
-    
-    export {c1} from "module";
-                     ~~~~~~~~
-!!! error TS2307: Cannot find module 'module'.
-    export var z = x;
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationNoEmitOnError.errors.txt b/tests/baselines/reference/separateCompilationNoEmitOnError.errors.txt
deleted file mode 100644
index 61d4f2d6d9e..00000000000
--- a/tests/baselines/reference/separateCompilationNoEmitOnError.errors.txt
+++ /dev/null
@@ -1,7 +0,0 @@
-error TS5045: Option 'noEmitOnError' cannot be specified with option 'separateCompilation'.
-
-
-!!! error TS5045: Option 'noEmitOnError' cannot be specified with option 'separateCompilation'.
-==== tests/cases/compiler/separateCompilationNoEmitOnError.ts (0 errors) ====
-    
-    export var x;
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationNoExternalModule.errors.txt b/tests/baselines/reference/separateCompilationNoExternalModule.errors.txt
deleted file mode 100644
index 71d7da73a80..00000000000
--- a/tests/baselines/reference/separateCompilationNoExternalModule.errors.txt
+++ /dev/null
@@ -1,8 +0,0 @@
-tests/cases/compiler/separateCompilationNoExternalModule.ts(2,1): error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-
-
-==== tests/cases/compiler/separateCompilationNoExternalModule.ts (1 errors) ====
-    
-    var x;
-    ~~~
-!!! error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationNoExternalModule.js b/tests/baselines/reference/separateCompilationNoExternalModule.js
deleted file mode 100644
index 9ddc8bdef2c..00000000000
--- a/tests/baselines/reference/separateCompilationNoExternalModule.js
+++ /dev/null
@@ -1,6 +0,0 @@
-//// [separateCompilationNoExternalModule.ts]
-
-var x;
-
-//// [separateCompilationNoExternalModule.js]
-var x;
diff --git a/tests/baselines/reference/separateCompilationNonAmbientConstEnum.symbols b/tests/baselines/reference/separateCompilationNonAmbientConstEnum.symbols
deleted file mode 100644
index da3f7ce6452..00000000000
--- a/tests/baselines/reference/separateCompilationNonAmbientConstEnum.symbols
+++ /dev/null
@@ -1,15 +0,0 @@
-=== tests/cases/compiler/separateCompilationNonAmbientConstEnum.ts ===
-
-const enum E { X = 100 };
->E : Symbol(E, Decl(separateCompilationNonAmbientConstEnum.ts, 0, 0))
->X : Symbol(E.X, Decl(separateCompilationNonAmbientConstEnum.ts, 1, 14))
-
-var e = E.X;
->e : Symbol(e, Decl(separateCompilationNonAmbientConstEnum.ts, 2, 3))
->E.X : Symbol(E.X, Decl(separateCompilationNonAmbientConstEnum.ts, 1, 14))
->E : Symbol(E, Decl(separateCompilationNonAmbientConstEnum.ts, 0, 0))
->X : Symbol(E.X, Decl(separateCompilationNonAmbientConstEnum.ts, 1, 14))
-
-export var x;
->x : Symbol(x, Decl(separateCompilationNonAmbientConstEnum.ts, 3, 10))
-
diff --git a/tests/baselines/reference/separateCompilationPlainFile-AMD.errors.txt b/tests/baselines/reference/separateCompilationPlainFile-AMD.errors.txt
deleted file mode 100644
index 6b80da30d33..00000000000
--- a/tests/baselines/reference/separateCompilationPlainFile-AMD.errors.txt
+++ /dev/null
@@ -1,10 +0,0 @@
-tests/cases/compiler/separateCompilationPlainFile-AMD.ts(2,1): error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-
-
-==== tests/cases/compiler/separateCompilationPlainFile-AMD.ts (1 errors) ====
-    
-    declare function run(a: number): void;
-    ~~~~~~~
-!!! error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-    run(1);
-    
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationPlainFile-CommonJS.errors.txt b/tests/baselines/reference/separateCompilationPlainFile-CommonJS.errors.txt
deleted file mode 100644
index 48a23a39653..00000000000
--- a/tests/baselines/reference/separateCompilationPlainFile-CommonJS.errors.txt
+++ /dev/null
@@ -1,10 +0,0 @@
-tests/cases/compiler/separateCompilationPlainFile-CommonJS.ts(2,1): error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-
-
-==== tests/cases/compiler/separateCompilationPlainFile-CommonJS.ts (1 errors) ====
-    
-    declare function run(a: number): void;
-    ~~~~~~~
-!!! error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-    run(1);
-    
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationPlainFile-CommonJS.js b/tests/baselines/reference/separateCompilationPlainFile-CommonJS.js
deleted file mode 100644
index cd82cdf20a6..00000000000
--- a/tests/baselines/reference/separateCompilationPlainFile-CommonJS.js
+++ /dev/null
@@ -1,8 +0,0 @@
-//// [separateCompilationPlainFile-CommonJS.ts]
-
-declare function run(a: number): void;
-run(1);
-
-
-//// [separateCompilationPlainFile-CommonJS.js]
-run(1);
diff --git a/tests/baselines/reference/separateCompilationPlainFile-ES6.errors.txt b/tests/baselines/reference/separateCompilationPlainFile-ES6.errors.txt
deleted file mode 100644
index b0b059c73bd..00000000000
--- a/tests/baselines/reference/separateCompilationPlainFile-ES6.errors.txt
+++ /dev/null
@@ -1,10 +0,0 @@
-tests/cases/compiler/separateCompilationPlainFile-ES6.ts(2,1): error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-
-
-==== tests/cases/compiler/separateCompilationPlainFile-ES6.ts (1 errors) ====
-    
-    declare function run(a: number): void;
-    ~~~~~~~
-!!! error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-    run(1);
-    
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationPlainFile-ES6.js b/tests/baselines/reference/separateCompilationPlainFile-ES6.js
deleted file mode 100644
index 1cb6082f134..00000000000
--- a/tests/baselines/reference/separateCompilationPlainFile-ES6.js
+++ /dev/null
@@ -1,8 +0,0 @@
-//// [separateCompilationPlainFile-ES6.ts]
-
-declare function run(a: number): void;
-run(1);
-
-
-//// [separateCompilationPlainFile-ES6.js]
-run(1);
diff --git a/tests/baselines/reference/separateCompilationPlainFile-System.errors.txt b/tests/baselines/reference/separateCompilationPlainFile-System.errors.txt
deleted file mode 100644
index c3161c57275..00000000000
--- a/tests/baselines/reference/separateCompilationPlainFile-System.errors.txt
+++ /dev/null
@@ -1,10 +0,0 @@
-tests/cases/compiler/separateCompilationPlainFile-System.ts(2,1): error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-
-
-==== tests/cases/compiler/separateCompilationPlainFile-System.ts (1 errors) ====
-    
-    declare function run(a: number): void;
-    ~~~~~~~
-!!! error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-    run(1);
-    
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationPlainFile-UMD.errors.txt b/tests/baselines/reference/separateCompilationPlainFile-UMD.errors.txt
deleted file mode 100644
index 6a0fb1ac8df..00000000000
--- a/tests/baselines/reference/separateCompilationPlainFile-UMD.errors.txt
+++ /dev/null
@@ -1,10 +0,0 @@
-tests/cases/compiler/separateCompilationPlainFile-UMD.ts(2,1): error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-
-
-==== tests/cases/compiler/separateCompilationPlainFile-UMD.ts (1 errors) ====
-    
-    declare function run(a: number): void;
-    ~~~~~~~
-!!! error TS1208: Cannot compile namespaces when the '--separateCompilation' flag is provided.
-    run(1);
-    
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationSourceMap.errors.txt b/tests/baselines/reference/separateCompilationSourceMap.errors.txt
deleted file mode 100644
index 5274ef3921e..00000000000
--- a/tests/baselines/reference/separateCompilationSourceMap.errors.txt
+++ /dev/null
@@ -1,7 +0,0 @@
-error TS5043: Option 'sourceMap' cannot be specified with option 'separateCompilation'.
-
-
-!!! error TS5043: Option 'sourceMap' cannot be specified with option 'separateCompilation'.
-==== tests/cases/compiler/separateCompilationSourceMap.ts (0 errors) ====
-    
-    export var x;
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationSourceMap.js b/tests/baselines/reference/separateCompilationSourceMap.js
deleted file mode 100644
index 1e8f141eb47..00000000000
--- a/tests/baselines/reference/separateCompilationSourceMap.js
+++ /dev/null
@@ -1,7 +0,0 @@
-//// [separateCompilationSourceMap.ts]
-
-export var x;
-
-//// [separateCompilationSourceMap.js]
-export var x;
-//# sourceMappingURL=separateCompilationSourceMap.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationSourceMap.js.map b/tests/baselines/reference/separateCompilationSourceMap.js.map
deleted file mode 100644
index 68c4e2c78db..00000000000
--- a/tests/baselines/reference/separateCompilationSourceMap.js.map
+++ /dev/null
@@ -1,2 +0,0 @@
-//// [separateCompilationSourceMap.js.map]
-{"version":3,"file":"separateCompilationSourceMap.js","sourceRoot":"","sources":["separateCompilationSourceMap.ts"],"names":[],"mappings":"AACA,WAAW,CAAC,CAAC"}
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationSpecifiedModule.js b/tests/baselines/reference/separateCompilationSpecifiedModule.js
deleted file mode 100644
index 5f3c7ceb39c..00000000000
--- a/tests/baselines/reference/separateCompilationSpecifiedModule.js
+++ /dev/null
@@ -1,5 +0,0 @@
-//// [separateCompilationSpecifiedModule.ts]
-export var x;
-
-//// [separateCompilationSpecifiedModule.js]
-exports.x;
diff --git a/tests/baselines/reference/separateCompilationSpecifiedModule.symbols b/tests/baselines/reference/separateCompilationSpecifiedModule.symbols
deleted file mode 100644
index a69b579b34d..00000000000
--- a/tests/baselines/reference/separateCompilationSpecifiedModule.symbols
+++ /dev/null
@@ -1,4 +0,0 @@
-=== tests/cases/compiler/separateCompilationSpecifiedModule.ts ===
-export var x;
->x : Symbol(x, Decl(separateCompilationSpecifiedModule.ts, 0, 10))
-
diff --git a/tests/baselines/reference/separateCompilationSpecifiedModule.types b/tests/baselines/reference/separateCompilationSpecifiedModule.types
deleted file mode 100644
index 497f63faf62..00000000000
--- a/tests/baselines/reference/separateCompilationSpecifiedModule.types
+++ /dev/null
@@ -1,4 +0,0 @@
-=== tests/cases/compiler/separateCompilationSpecifiedModule.ts ===
-export var x;
->x : any
-
diff --git a/tests/baselines/reference/separateCompilationUnspecifiedModule.errors.txt b/tests/baselines/reference/separateCompilationUnspecifiedModule.errors.txt
deleted file mode 100644
index ab0fd7ffe9d..00000000000
--- a/tests/baselines/reference/separateCompilationUnspecifiedModule.errors.txt
+++ /dev/null
@@ -1,6 +0,0 @@
-error TS5047: Option 'separateCompilation' can only be used when either option'--module' is provided or option 'target' is 'ES6' or higher.
-
-
-!!! error TS5047: Option 'separateCompilation' can only be used when either option'--module' is provided or option 'target' is 'ES6' or higher.
-==== tests/cases/compiler/separateCompilationUnspecifiedModule.ts (0 errors) ====
-    export var x;
\ No newline at end of file
diff --git a/tests/baselines/reference/separateCompilationUnspecifiedModule.js b/tests/baselines/reference/separateCompilationUnspecifiedModule.js
deleted file mode 100644
index 0f2e5c71a87..00000000000
--- a/tests/baselines/reference/separateCompilationUnspecifiedModule.js
+++ /dev/null
@@ -1,5 +0,0 @@
-//// [separateCompilationUnspecifiedModule.ts]
-export var x;
-
-//// [separateCompilationUnspecifiedModule.js]
-exports.x;
diff --git a/tests/cases/compiler/separateCompilationAmbientConstEnum.ts b/tests/cases/compiler/isolatedModulesAmbientConstEnum.ts
similarity index 59%
rename from tests/cases/compiler/separateCompilationAmbientConstEnum.ts
rename to tests/cases/compiler/isolatedModulesAmbientConstEnum.ts
index aaccfaaf02c..59fcdcd1fe4 100644
--- a/tests/cases/compiler/separateCompilationAmbientConstEnum.ts
+++ b/tests/cases/compiler/isolatedModulesAmbientConstEnum.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @target: es6
 
 // @filename: file1.ts
diff --git a/tests/cases/compiler/separateCompilationDeclaration.ts b/tests/cases/compiler/isolatedModulesDeclaration.ts
similarity index 56%
rename from tests/cases/compiler/separateCompilationDeclaration.ts
rename to tests/cases/compiler/isolatedModulesDeclaration.ts
index 11003a19193..3d5e7db9b4f 100644
--- a/tests/cases/compiler/separateCompilationDeclaration.ts
+++ b/tests/cases/compiler/isolatedModulesDeclaration.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @declaration: true
 // @target: es6
 
diff --git a/tests/cases/compiler/isolatedModulesES6.ts b/tests/cases/compiler/isolatedModulesES6.ts
new file mode 100644
index 00000000000..12e8d8adb7f
--- /dev/null
+++ b/tests/cases/compiler/isolatedModulesES6.ts
@@ -0,0 +1,4 @@
+// @isolatedModules: true
+// @target: es6
+// @filename: file1.ts
+export var x;
\ No newline at end of file
diff --git a/tests/cases/compiler/separateCompilationImportExportElision.ts b/tests/cases/compiler/isolatedModulesImportExportElision.ts
similarity index 78%
rename from tests/cases/compiler/separateCompilationImportExportElision.ts
rename to tests/cases/compiler/isolatedModulesImportExportElision.ts
index d7af74a1a69..e50a0f8eb88 100644
--- a/tests/cases/compiler/separateCompilationImportExportElision.ts
+++ b/tests/cases/compiler/isolatedModulesImportExportElision.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @target: es5
 // @module: commonjs
 
diff --git a/tests/cases/compiler/separateCompilationNoEmitOnError.ts b/tests/cases/compiler/isolatedModulesNoEmitOnError.ts
similarity index 56%
rename from tests/cases/compiler/separateCompilationNoEmitOnError.ts
rename to tests/cases/compiler/isolatedModulesNoEmitOnError.ts
index fe0f59199f6..ce3085dbc3b 100644
--- a/tests/cases/compiler/separateCompilationNoEmitOnError.ts
+++ b/tests/cases/compiler/isolatedModulesNoEmitOnError.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @noEmitOnError:true
 // @target: es6
 
diff --git a/tests/cases/compiler/separateCompilationNoExternalModule.ts b/tests/cases/compiler/isolatedModulesNoExternalModule.ts
similarity index 50%
rename from tests/cases/compiler/separateCompilationNoExternalModule.ts
rename to tests/cases/compiler/isolatedModulesNoExternalModule.ts
index e66ef27c005..37b61fcbc1a 100644
--- a/tests/cases/compiler/separateCompilationNoExternalModule.ts
+++ b/tests/cases/compiler/isolatedModulesNoExternalModule.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @target: es6
 
 // @filename: file1.ts
diff --git a/tests/cases/compiler/separateCompilationNonAmbientConstEnum.ts b/tests/cases/compiler/isolatedModulesNonAmbientConstEnum.ts
similarity index 61%
rename from tests/cases/compiler/separateCompilationNonAmbientConstEnum.ts
rename to tests/cases/compiler/isolatedModulesNonAmbientConstEnum.ts
index 5f3054238d9..d5aae618d8f 100644
--- a/tests/cases/compiler/separateCompilationNonAmbientConstEnum.ts
+++ b/tests/cases/compiler/isolatedModulesNonAmbientConstEnum.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @target: es6
 
 // @filename: file1.ts
diff --git a/tests/cases/compiler/separateCompilationOut.ts b/tests/cases/compiler/isolatedModulesOut.ts
similarity index 68%
rename from tests/cases/compiler/separateCompilationOut.ts
rename to tests/cases/compiler/isolatedModulesOut.ts
index 6c0a95f8ae5..c977a4b54da 100644
--- a/tests/cases/compiler/separateCompilationOut.ts
+++ b/tests/cases/compiler/isolatedModulesOut.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @out:all.js
 // @target: es6
 
diff --git a/tests/cases/compiler/separateCompilationPlainFile-AMD.ts b/tests/cases/compiler/isolatedModulesPlainFile-AMD.ts
similarity index 68%
rename from tests/cases/compiler/separateCompilationPlainFile-AMD.ts
rename to tests/cases/compiler/isolatedModulesPlainFile-AMD.ts
index a1010ce3e8c..d28aea86250 100644
--- a/tests/cases/compiler/separateCompilationPlainFile-AMD.ts
+++ b/tests/cases/compiler/isolatedModulesPlainFile-AMD.ts
@@ -1,6 +1,6 @@
 // @target: es5
 // @module: amd
-// @separateCompilation: true
+// @isolatedModules: true
 
 declare function run(a: number): void;
 run(1);
diff --git a/tests/cases/compiler/separateCompilationPlainFile-CommonJS.ts b/tests/cases/compiler/isolatedModulesPlainFile-CommonJS.ts
similarity index 70%
rename from tests/cases/compiler/separateCompilationPlainFile-CommonJS.ts
rename to tests/cases/compiler/isolatedModulesPlainFile-CommonJS.ts
index 532d97f09eb..6d07f10c4d0 100644
--- a/tests/cases/compiler/separateCompilationPlainFile-CommonJS.ts
+++ b/tests/cases/compiler/isolatedModulesPlainFile-CommonJS.ts
@@ -1,6 +1,6 @@
 // @target: es5
 // @module: commonjs
-// @separateCompilation: true
+// @isolatedModules: true
 
 declare function run(a: number): void;
 run(1);
diff --git a/tests/cases/compiler/separateCompilationPlainFile-ES6.ts b/tests/cases/compiler/isolatedModulesPlainFile-ES6.ts
similarity index 64%
rename from tests/cases/compiler/separateCompilationPlainFile-ES6.ts
rename to tests/cases/compiler/isolatedModulesPlainFile-ES6.ts
index 20d4e8d79a2..051aa548149 100644
--- a/tests/cases/compiler/separateCompilationPlainFile-ES6.ts
+++ b/tests/cases/compiler/isolatedModulesPlainFile-ES6.ts
@@ -1,5 +1,5 @@
 // @target: es6
-// @separateCompilation: true
+// @isolatedModules: true
 
 declare function run(a: number): void;
 run(1);
diff --git a/tests/cases/compiler/separateCompilationPlainFile-System.ts b/tests/cases/compiler/isolatedModulesPlainFile-System.ts
similarity index 69%
rename from tests/cases/compiler/separateCompilationPlainFile-System.ts
rename to tests/cases/compiler/isolatedModulesPlainFile-System.ts
index 69065718254..e16720596d9 100644
--- a/tests/cases/compiler/separateCompilationPlainFile-System.ts
+++ b/tests/cases/compiler/isolatedModulesPlainFile-System.ts
@@ -1,6 +1,6 @@
 // @target: es5
 // @module: system
-// @separateCompilation: true
+// @isolatedModules: true
 
 declare function run(a: number): void;
 run(1);
diff --git a/tests/cases/compiler/separateCompilationPlainFile-UMD.ts b/tests/cases/compiler/isolatedModulesPlainFile-UMD.ts
similarity index 68%
rename from tests/cases/compiler/separateCompilationPlainFile-UMD.ts
rename to tests/cases/compiler/isolatedModulesPlainFile-UMD.ts
index 4ab45686c90..d452bbff96b 100644
--- a/tests/cases/compiler/separateCompilationPlainFile-UMD.ts
+++ b/tests/cases/compiler/isolatedModulesPlainFile-UMD.ts
@@ -1,6 +1,6 @@
 // @target: es5
 // @module: umd
-// @separateCompilation: true
+// @isolatedModules: true
 
 declare function run(a: number): void;
 run(1);
diff --git a/tests/cases/compiler/separateCompilationSourceMap.ts b/tests/cases/compiler/isolatedModulesSourceMap.ts
similarity index 55%
rename from tests/cases/compiler/separateCompilationSourceMap.ts
rename to tests/cases/compiler/isolatedModulesSourceMap.ts
index 84c6290caf5..31dd4d9f0cf 100644
--- a/tests/cases/compiler/separateCompilationSourceMap.ts
+++ b/tests/cases/compiler/isolatedModulesSourceMap.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @sourceMap:true
 // @target: es6
 
diff --git a/tests/cases/compiler/isolatedModulesSpecifiedModule.ts b/tests/cases/compiler/isolatedModulesSpecifiedModule.ts
new file mode 100644
index 00000000000..0e72e6480b6
--- /dev/null
+++ b/tests/cases/compiler/isolatedModulesSpecifiedModule.ts
@@ -0,0 +1,4 @@
+// @isolatedModules: true
+// @module: commonjs
+// @filename: file1.ts
+export var x;
\ No newline at end of file
diff --git a/tests/cases/compiler/isolatedModulesUnspecifiedModule.ts b/tests/cases/compiler/isolatedModulesUnspecifiedModule.ts
new file mode 100644
index 00000000000..2435f22e952
--- /dev/null
+++ b/tests/cases/compiler/isolatedModulesUnspecifiedModule.ts
@@ -0,0 +1,3 @@
+// @isolatedModules: true
+// @filename: file1.ts
+export var x;
\ No newline at end of file
diff --git a/tests/cases/compiler/separateCompilationWithDeclarationFile.ts b/tests/cases/compiler/isolatedModulesWithDeclarationFile.ts
similarity index 65%
rename from tests/cases/compiler/separateCompilationWithDeclarationFile.ts
rename to tests/cases/compiler/isolatedModulesWithDeclarationFile.ts
index 121db1702a5..01e96b4ec2a 100644
--- a/tests/cases/compiler/separateCompilationWithDeclarationFile.ts
+++ b/tests/cases/compiler/isolatedModulesWithDeclarationFile.ts
@@ -1,4 +1,4 @@
-// @separateCompilation: true
+// @isolatedModules: true
 // @target: es6
 
 // @filename: file1.d.ts
diff --git a/tests/cases/compiler/separateCompilationES6.ts b/tests/cases/compiler/separateCompilationES6.ts
deleted file mode 100644
index a2ac8c8d94e..00000000000
--- a/tests/cases/compiler/separateCompilationES6.ts
+++ /dev/null
@@ -1,4 +0,0 @@
-// @separateCompilation: true
-// @target: es6
-// @filename: file1.ts
-export var x;
\ No newline at end of file
diff --git a/tests/cases/compiler/separateCompilationSpecifiedModule.ts b/tests/cases/compiler/separateCompilationSpecifiedModule.ts
deleted file mode 100644
index 6ba3a0d3bf4..00000000000
--- a/tests/cases/compiler/separateCompilationSpecifiedModule.ts
+++ /dev/null
@@ -1,4 +0,0 @@
-// @separateCompilation: true
-// @module: commonjs
-// @filename: file1.ts
-export var x;
\ No newline at end of file
diff --git a/tests/cases/compiler/separateCompilationUnspecifiedModule.ts b/tests/cases/compiler/separateCompilationUnspecifiedModule.ts
deleted file mode 100644
index 38a3fd82868..00000000000
--- a/tests/cases/compiler/separateCompilationUnspecifiedModule.ts
+++ /dev/null
@@ -1,3 +0,0 @@
-// @separateCompilation: true
-// @filename: file1.ts
-export var x;
\ No newline at end of file
diff --git a/tests/cases/compiler/systemModule10.ts b/tests/cases/compiler/systemModule10.ts
index 49e99fb1c63..41aea2c8244 100644
--- a/tests/cases/compiler/systemModule10.ts
+++ b/tests/cases/compiler/systemModule10.ts
@@ -1,5 +1,5 @@
 // @module: system
-// @separateCompilation: true
+// @isolatedModules: true
 
 import n, {x} from 'file1'
 import n2 = require('file2');
diff --git a/tests/cases/compiler/systemModule10_ES5.ts b/tests/cases/compiler/systemModule10_ES5.ts
index 6468e4125d1..5e51b9152f8 100644
--- a/tests/cases/compiler/systemModule10_ES5.ts
+++ b/tests/cases/compiler/systemModule10_ES5.ts
@@ -1,6 +1,6 @@
 // @target: es5
 // @module: system
-// @separateCompilation: true
+// @isolatedModules: true
 
 import n, {x} from 'file1'
 import n2 = require('file2');
diff --git a/tests/cases/compiler/systemModule11.ts b/tests/cases/compiler/systemModule11.ts
index 28e88688f87..15784b2f8c4 100644
--- a/tests/cases/compiler/systemModule11.ts
+++ b/tests/cases/compiler/systemModule11.ts
@@ -1,5 +1,5 @@
 // @module: system
-// @separateCompilation: true
+// @isolatedModules: true
 
 // set of tests cases that checks generation of local storage for exported names
 
diff --git a/tests/cases/compiler/systemModule9.ts b/tests/cases/compiler/systemModule9.ts
index c6ff742b1bf..f124a1112c3 100644
--- a/tests/cases/compiler/systemModule9.ts
+++ b/tests/cases/compiler/systemModule9.ts
@@ -1,5 +1,5 @@
 // @module: system
-// @separateCompilation: true
+// @isolatedModules: true
 
 import * as ns from 'file1';
 import {a, b as c} from 'file2';