diff --git a/src/services/navigationBar.ts b/src/services/navigationBar.ts
index f62c6cb1700..24ca0519859 100644
--- a/src/services/navigationBar.ts
+++ b/src/services/navigationBar.ts
@@ -154,6 +154,16 @@ namespace ts.NavigationBar {
             for (let node of nodes) {
                 switch (node.kind) {
                     case SyntaxKind.ClassDeclaration:
+                        topLevelNodes.push(node);
+                        forEach((<ClassDeclaration>node).members, (node) => {
+                            if (node.kind === SyntaxKind.MethodDeclaration ||
+                                node.kind === SyntaxKind.Constructor) {
+                                if ((<MethodDeclaration>node).body) {
+                                    addTopLevelNodes((<Block>(<MethodDeclaration>node).body).statements, topLevelNodes);
+                                }
+                            }
+                        });
+                        break;
                     case SyntaxKind.EnumDeclaration:
                     case SyntaxKind.InterfaceDeclaration:
                         topLevelNodes.push(node);
@@ -193,6 +203,15 @@ namespace ts.NavigationBar {
                     if (!isFunctionBlock(functionDeclaration.parent)) {
                         return true;
                     }
+                    else {
+                        // Except for parent functions that are methods and constructors.
+                        const grandParentKind = functionDeclaration.parent.parent.kind;
+                        if (grandParentKind === SyntaxKind.MethodDeclaration ||
+                            grandParentKind === SyntaxKind.Constructor) {
+
+                            return true;
+                        }
+                    }
                 }
             }
 
@@ -407,7 +426,7 @@ namespace ts.NavigationBar {
 
             function createModuleItem(node: ModuleDeclaration): NavigationBarItem {
                 let moduleName = getModuleName(node);
-                
+
                 let childItems = getItemsWorker(getChildNodes((<Block>getInnermostModule(node).body).statements), createChildItem);
 
                 return getNavigationBarItem(moduleName,
@@ -422,7 +441,7 @@ namespace ts.NavigationBar {
                 if (node.body && node.body.kind === SyntaxKind.Block) {
                     let childItems = getItemsWorker(sortNodes((<Block>node.body).statements), createChildItem);
 
-                    return getNavigationBarItem(!node.name ? "default": node.name.text ,
+                    return getNavigationBarItem(!node.name ? "default": node.name.text,
                         ts.ScriptElementKind.functionElement,
                         getNodeModifiers(node),
                         [getNodeSpan(node)],
diff --git a/tests/cases/fourslash/navigationBarItemsInsideMethodsAndConstructors.ts b/tests/cases/fourslash/navigationBarItemsInsideMethodsAndConstructors.ts
new file mode 100644
index 00000000000..65e3384e61b
--- /dev/null
+++ b/tests/cases/fourslash/navigationBarItemsInsideMethodsAndConstructors.ts
@@ -0,0 +1,38 @@
+/// <reference path="fourslash.ts"/>
+
+////class Class {
+////    constructor() {
+////        {| "itemName": "LocalFunctionInConstructor", "kind": "function", "parentName": "Class"|}function LocalFunctionInConstructor() {
+////
+////        }
+////
+////        {| "itemName": "LocalInterfaceInConstrcutor", "kind": "interface", "parentName": "foo"|}interface LocalInterfaceInConstrcutor {
+////        }
+////
+////        enum LocalEnumInConstructor {
+////            {| "itemName": "LocalEnumMemberInConstructor", "kind": "property", "parentName": "LocalEnumInConstructor"|}LocalEnumMemberInConstructor,
+////        }
+////    }
+////    method() {
+////        {| "itemName": "LocalFunctionInMethod", "kind": "function", "parentName": "foo"|}function LocalFunctionInMethod() {
+////            {| "itemName": "LocalFunctionInLocalFunctionInMethod", "kind": "function", "parentName": "bar"|}function LocalFunctionInLocalFunctionInMethod() {
+////
+////            }
+////        }
+////
+////        {| "itemName": "LocalInterfaceInMethod", "kind": "interface", "parentName": "foo"|}interface LocalInterfaceInMethod {
+////        }
+////
+////        enum LocalEnumInMethod {
+////            {| "itemName": "LocalEnumMemberInMethod", "kind": "property", "parentName": "foo"|}LocalEnumMemberInMethod,
+////        }
+////    }
+////}
+
+test.markers().forEach((marker) => {
+    verify.getScriptLexicalStructureListContains(marker.data.itemName, marker.data.kind, marker.fileName, marker.data.parentName);
+});
+
+// no other items
+verify.getScriptLexicalStructureListCount(12);
+