diff --git a/src/compiler/binder.ts b/src/compiler/binder.ts
index 2fe7d30ab56..c8785819b9e 100644
--- a/src/compiler/binder.ts
+++ b/src/compiler/binder.ts
@@ -2000,7 +2000,9 @@ namespace ts {
         function setCommonJsModuleIndicator(node: Node) {
             if (!file.commonJsModuleIndicator) {
                 file.commonJsModuleIndicator = node;
-                bindSourceFileAsExternalModule();
+                if (!file.externalModuleIndicator) {
+                    bindSourceFileAsExternalModule();
+                }
             }
         }
 
diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 422f2a70dcc..1354002a29e 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -12535,7 +12535,10 @@ namespace ts {
             }
 
             // In JavaScript files, calls to any identifier 'require' are treated as external module imports
-            if (isInJavaScriptFile(node) && isRequireCall(node, /*checkArgumentIsStringLiteral*/true)) {
+            if (isInJavaScriptFile(node) &&
+                isRequireCall(node, /*checkArgumentIsStringLiteral*/true) &&
+                // Make sure require is not a local function
+                !resolveName(node.expression, (<Identifier>node.expression).text, SymbolFlags.Value | SymbolFlags.ExportValue, /*nameNotFoundMessage*/ undefined, /*nameArg*/ undefined)) {
                 return resolveExternalModuleTypeByLiteral(<StringLiteral>node.arguments[0]);
             }
 
diff --git a/tests/baselines/reference/requireAsFunctionInExternalModule.errors.txt b/tests/baselines/reference/requireAsFunctionInExternalModule.errors.txt
deleted file mode 100644
index 58e3b145f35..00000000000
--- a/tests/baselines/reference/requireAsFunctionInExternalModule.errors.txt
+++ /dev/null
@@ -1,20 +0,0 @@
-tests/cases/compiler/m2.ts(1,10): error TS2305: Module '"tests/cases/compiler/m"' has no exported member 'hello'.
-
-
-==== tests/cases/compiler/c.js (0 errors) ====
-    export default function require(a) { }
-    export function has(a) { return true }
-    
-==== tests/cases/compiler/m.js (0 errors) ====
-    import require, { has } from "./c"
-    export function hello() { }
-    if (has('ember-debug')) {
-        require('ember-debug');
-    }
-    
-==== tests/cases/compiler/m2.ts (1 errors) ====
-    import { hello } from "./m";
-             ~~~~~
-!!! error TS2305: Module '"tests/cases/compiler/m"' has no exported member 'hello'.
-    hello();
-    
\ No newline at end of file
diff --git a/tests/baselines/reference/requireAsFunctionInExternalModule.symbols b/tests/baselines/reference/requireAsFunctionInExternalModule.symbols
new file mode 100644
index 00000000000..2f44d6b6611
--- /dev/null
+++ b/tests/baselines/reference/requireAsFunctionInExternalModule.symbols
@@ -0,0 +1,31 @@
+=== tests/cases/compiler/c.js ===
+export default function require(a) { }
+>require : Symbol(require, Decl(c.js, 0, 0))
+>a : Symbol(a, Decl(c.js, 0, 32))
+
+export function has(a) { return true }
+>has : Symbol(has, Decl(c.js, 0, 38))
+>a : Symbol(a, Decl(c.js, 1, 20))
+
+=== tests/cases/compiler/m.js ===
+import require, { has } from "./c"
+>require : Symbol(require, Decl(m.js, 0, 6))
+>has : Symbol(has, Decl(m.js, 0, 17))
+
+export function hello() { }
+>hello : Symbol(hello, Decl(m.js, 0, 34))
+
+if (has('ember-debug')) {
+>has : Symbol(has, Decl(m.js, 0, 17))
+
+    require('ember-debug');
+>require : Symbol(require, Decl(m.js, 0, 6))
+}
+
+=== tests/cases/compiler/m2.ts ===
+import { hello } from "./m";
+>hello : Symbol(hello, Decl(m2.ts, 0, 8))
+
+hello();
+>hello : Symbol(hello, Decl(m2.ts, 0, 8))
+
diff --git a/tests/baselines/reference/requireAsFunctionInExternalModule.types b/tests/baselines/reference/requireAsFunctionInExternalModule.types
new file mode 100644
index 00000000000..2ce5f3aed38
--- /dev/null
+++ b/tests/baselines/reference/requireAsFunctionInExternalModule.types
@@ -0,0 +1,37 @@
+=== tests/cases/compiler/c.js ===
+export default function require(a) { }
+>require : (a: any) => void
+>a : any
+
+export function has(a) { return true }
+>has : (a: any) => boolean
+>a : any
+>true : true
+
+=== tests/cases/compiler/m.js ===
+import require, { has } from "./c"
+>require : (a: any) => void
+>has : (a: any) => boolean
+
+export function hello() { }
+>hello : () => void
+
+if (has('ember-debug')) {
+>has('ember-debug') : boolean
+>has : (a: any) => boolean
+>'ember-debug' : "ember-debug"
+
+    require('ember-debug');
+>require('ember-debug') : void
+>require : (a: any) => void
+>'ember-debug' : "ember-debug"
+}
+
+=== tests/cases/compiler/m2.ts ===
+import { hello } from "./m";
+>hello : () => void
+
+hello();
+>hello() : void
+>hello : () => void
+