diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 8ce3aa04046..f533cb52c17 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -1005,6 +1005,9 @@ namespace ts {
         let lastFlowNode: FlowNode | undefined;
         let lastFlowNodeReachable: boolean;
         let flowTypeCache: Type[] | undefined;
+        let isWithinSpreadAssignment = false;
+
+        const objectsWithinSpread = new WeakSet<Node>();
 
         const emptyStringType = getStringLiteralType("");
         const zeroType = getNumberLiteralType(0);
@@ -28032,7 +28035,10 @@ namespace ts {
                         hasComputedNumberProperty = false;
                         hasComputedSymbolProperty = false;
                     }
+                    const isAlreadyWithinSpread = isWithinSpreadAssignment;
+                    isWithinSpreadAssignment = true;
                     const type = getReducedType(checkExpression(memberDecl.expression));
+                    isWithinSpreadAssignment = isAlreadyWithinSpread;
                     if (isValidSpreadType(type)) {
                         const mergedType = tryMergeUnionOfObjectTypeAndEmptyObject(type, inConstContext);
                         if (allPropertiesTable) {
@@ -28082,31 +28088,23 @@ namespace ts {
                 propertiesArray.push(member);
             }
 
+            if (isWithinSpreadAssignment) {
+                objectsWithinSpread.add(node);
+            }
+
             // If object literal is contextually typed by the implied type of a binding pattern, augment the result
             // type with those properties for which the binding pattern specifies a default value.
             // If the object literal is spread into another object literal, skip this step and let the top-level object
             // literal handle it instead.
-            if (contextualTypeHasPattern) {
-                const rootPatternParent = findAncestor(contextualType.pattern!.parent, n =>
-                    n.kind === SyntaxKind.VariableDeclaration ||
-                    n.kind === SyntaxKind.BinaryExpression ||
-                    n.kind === SyntaxKind.Parameter
-                );
-                const spreadOrOutsideRootObject = findAncestor(node, n =>
-                    n === rootPatternParent ||
-                    n.kind === SyntaxKind.SpreadAssignment
-                )!;
-
-                if (spreadOrOutsideRootObject.kind !== SyntaxKind.SpreadAssignment) {
-                    for (const prop of getPropertiesOfType(contextualType)) {
-                        if (!propertiesTable.get(prop.escapedName) && !getPropertyOfType(spread, prop.escapedName)) {
-                            if (!(prop.flags & SymbolFlags.Optional)) {
-                                error(prop.valueDeclaration || (prop as TransientSymbol).bindingElement,
-                                    Diagnostics.Initializer_provides_no_value_for_this_binding_element_and_the_binding_element_has_no_default_value);
-                            }
-                            propertiesTable.set(prop.escapedName, prop);
-                            propertiesArray.push(prop);
+            if (contextualTypeHasPattern && !objectsWithinSpread.has(node)) {
+                for (const prop of getPropertiesOfType(contextualType)) {
+                    if (!propertiesTable.get(prop.escapedName) && !getPropertyOfType(spread, prop.escapedName)) {
+                        if (!(prop.flags & SymbolFlags.Optional)) {
+                            error(prop.valueDeclaration || (prop as TransientSymbol).bindingElement,
+                                Diagnostics.Initializer_provides_no_value_for_this_binding_element_and_the_binding_element_has_no_default_value);
                         }
+                        propertiesTable.set(prop.escapedName, prop);
+                        propertiesArray.push(prop);
                     }
                 }
             }