diff --git a/src/compiler/parser.ts b/src/compiler/parser.ts
index 25f470d5919..f4c22ad4add 100644
--- a/src/compiler/parser.ts
+++ b/src/compiler/parser.ts
@@ -2682,20 +2682,12 @@ module ts {
 
         function parseWithStatement(): WithStatement {
             var node = <WithStatement>createNode(SyntaxKind.WithStatement);
-            var startPos = scanner.getTokenPos();
             parseExpected(SyntaxKind.WithKeyword);
-            var endPos = scanner.getStartPos();
             parseExpected(SyntaxKind.OpenParenToken);
             node.expression = parseExpression();
             parseExpected(SyntaxKind.CloseParenToken);
             node.statement = parseStatement();
-            node = finishNode(node);
-            if (isInStrictMode) {
-                // Strict mode code may not include a WithStatement. The occurrence of a WithStatement in such 
-                // a context is an 
-                grammarErrorAtPos(startPos, endPos - startPos, Diagnostics.with_statements_are_not_allowed_in_strict_mode);
-            }
-            return node;
+            return finishNode(node);
         }
 
         function parseCaseClause(): CaseOrDefaultClause {
@@ -2730,16 +2722,6 @@ module ts {
             node.clauses = parseList(ParsingContext.SwitchClauses, /*checkForStrictMode*/ false, parseCaseOrDefaultClause);
 
             parseExpected(SyntaxKind.CloseBraceToken);
-
-            // Error on duplicate 'default' clauses.
-            var defaultClauses: CaseOrDefaultClause[] = filter(node.clauses, clause => clause.kind === SyntaxKind.DefaultClause);
-            for (var i = 1, n = defaultClauses.length; i < n; i++) {
-                var clause = defaultClauses[i];
-                var start = skipTrivia(file.text, clause.pos);
-                var end = clause.statements.length > 0 ? clause.statements[0].pos : clause.end;
-                grammarErrorAtPos(start, end - start, Diagnostics.A_default_clause_cannot_appear_more_than_once_in_a_switch_statement);
-            }
-
             return finishNode(node);
         }
 
@@ -2935,21 +2917,16 @@ module ts {
             }
         }
 
-        function parseAndCheckFunctionBody(isConstructor: boolean): Block {
-            var initialPosition = scanner.getTokenPos();
-            var errorCountBeforeBody = file._parserDiagnostics.length;
+        function parseFunctionBlockOrSemicolon(): Block {
             if (token === SyntaxKind.OpenBraceToken) {
-                var body = parseBody(/* ignoreMissingOpenBrace */ false);
-                if (body && inAmbientContext && file._parserDiagnostics.length === errorCountBeforeBody) {
-                    var diagnostic = isConstructor ? Diagnostics.A_constructor_implementation_cannot_be_declared_in_an_ambient_context : Diagnostics.A_function_implementation_cannot_be_declared_in_an_ambient_context;
-                    grammarErrorAtPos(initialPosition, 1, diagnostic);
-                }
-                return body;
+                return parseBody(/* ignoreMissingOpenBrace */ false);
             }
+
             if (canParseSemicolon()) {
                 parseSemicolon();
                 return undefined;
             }
+
             error(Diagnostics.Block_or_expected); // block or ';' expected
         }
 
@@ -3004,7 +2981,7 @@ module ts {
             node.typeParameters = sig.typeParameters;
             node.parameters = sig.parameters;
             node.type = sig.type;
-            node.body = parseAndCheckFunctionBody(/*isConstructor*/ false);
+            node.body = parseFunctionBlockOrSemicolon();
             return finishNode(node);
         }
 
@@ -3016,7 +2993,7 @@ module ts {
             node.typeParameters = sig.typeParameters;
             node.parameters = sig.parameters;
             node.type = sig.type;
-            node.body = parseAndCheckFunctionBody(/*isConstructor*/ true);
+            node.body = parseFunctionBlockOrSemicolon();
             return finishNode(node);
         }
 
@@ -3037,7 +3014,7 @@ module ts {
                 method.typeParameters = sig.typeParameters;
                 method.parameters = sig.parameters;
                 method.type = sig.type;
-                method.body = parseAndCheckFunctionBody(/*isConstructor*/ false);
+                method.body = parseFunctionBlockOrSemicolon();
                 return finishNode(method);
             }
             else {
@@ -3312,16 +3289,13 @@ module ts {
         function parseClassDeclaration(pos: number, flags: NodeFlags): ClassDeclaration {
             var node = <ClassDeclaration>createNode(SyntaxKind.ClassDeclaration, pos);
             node.flags = flags;
-            var errorCountBeforeClassDeclaration = file._parserDiagnostics.length;
             parseExpected(SyntaxKind.ClassKeyword);
             node.name = parseIdentifier();
             node.typeParameters = parseTypeParameters();
             // TODO(jfreeman): Parse arbitrary sequence of heritage clauses and error for order and duplicates
+
             node.baseType = parseOptional(SyntaxKind.ExtendsKeyword) ? parseTypeReference() : undefined;
-            var implementsKeywordStart = scanner.getTokenPos();
-            var implementsKeywordLength: number;
             if (parseOptional(SyntaxKind.ImplementsKeyword)) {
-                implementsKeywordLength = scanner.getStartPos() - implementsKeywordStart;
                 node.implementedTypes = parseDelimitedList(ParsingContext.BaseTypeReferences, parseTypeReference);
             }
             var errorCountBeforeClassBody = file._parserDiagnostics.length;
@@ -3332,31 +3306,20 @@ module ts {
             else {
                 node.members = createMissingList<Declaration>();
             }
-            if (node.implementedTypes && !node.implementedTypes.length && errorCountBeforeClassBody === errorCountBeforeClassDeclaration) {
-                grammarErrorAtPos(implementsKeywordStart, implementsKeywordLength, Diagnostics._0_list_cannot_be_empty, "implements");
-            }
             return finishNode(node);
         }
 
         function parseInterfaceDeclaration(pos: number, flags: NodeFlags): InterfaceDeclaration {
             var node = <InterfaceDeclaration>createNode(SyntaxKind.InterfaceDeclaration, pos);
             node.flags = flags;
-            var errorCountBeforeInterfaceDeclaration = file._parserDiagnostics.length;
             parseExpected(SyntaxKind.InterfaceKeyword);
             node.name = parseIdentifier();
             node.typeParameters = parseTypeParameters();
             // TODO(jfreeman): Parse arbitrary sequence of heritage clauses and error for order and duplicates
-            var extendsKeywordStart = scanner.getTokenPos();
-            var extendsKeywordLength: number;
             if (parseOptional(SyntaxKind.ExtendsKeyword)) {
-                extendsKeywordLength = scanner.getStartPos() - extendsKeywordStart;
                 node.baseTypes = parseDelimitedList(ParsingContext.BaseTypeReferences, parseTypeReference);
             }
-            var errorCountBeforeInterfaceBody = file._parserDiagnostics.length;
             node.members = parseTypeLiteral().members;
-            if (node.baseTypes && !node.baseTypes.length && errorCountBeforeInterfaceBody === errorCountBeforeInterfaceDeclaration) {
-                grammarErrorAtPos(extendsKeywordStart, extendsKeywordLength, Diagnostics._0_list_cannot_be_empty, "extends");
-            }
             return finishNode(node);
         }
 
@@ -3589,20 +3552,9 @@ module ts {
         }
 
         function parseSourceElementOrModuleElement(modifierContext: ModifierContext): Statement {
-            if (isDeclarationStart()) {
-                return parseDeclaration(modifierContext);
-            }
-
-            var statementStart = scanner.getTokenPos();
-            var statementFirstTokenLength = scanner.getTextPos() - statementStart;
-            var errorCountBeforeStatement = file._parserDiagnostics.length;
-            var statement = parseStatement();
-
-            if (inAmbientContext && file._parserDiagnostics.length === errorCountBeforeStatement) {
-                grammarErrorAtPos(statementStart, statementFirstTokenLength, Diagnostics.Statements_are_not_allowed_in_ambient_contexts);
-            }
-
-            return statement;
+            return isDeclarationStart()
+                ? parseDeclaration(modifierContext)
+                : parseStatement();
         }
 
         function processReferenceComments(): ReferenceComments {
@@ -3749,6 +3701,7 @@ module ts {
 
     function checkGrammar(sourceText: string, languageVersion: ScriptTarget, file: SourceFileInternal) {
         var syntacticDiagnostics = file._syntacticDiagnostics;
+        var scanner = createScanner(languageVersion, /*skipTrivia*/ true, sourceText);
 
         // We're automatically in an ambient context if this is a .d.ts file.
         var inAmbientContext = fileExtensionIs(file.filename, ".d.ts");
@@ -3756,31 +3709,44 @@ module ts {
         visitNode(file);
 
         function visitNode(node: Node): void {
+            // Store and restore our recursive state here.
             var savedParent = parent;
             node.parent = parent;
             parent = node;
 
-            // First recurse and perform all grammar checks on the children of this node. 
             var savedInAmbientContext = inAmbientContext
             if (node.flags & NodeFlags.Ambient) {
                 inAmbientContext = true;
             }
 
-            var diagnosticCount = syntacticDiagnostics.length;
-            forEachChild(node, visitNode);
-
-            // If any children had an grammar error, then skip reporting errors for this node or 
-            // anything higher.
-            if (diagnosticCount === syntacticDiagnostics.length) {
-                checkNode(node);
-            }
+            checkNode(node);
 
             inAmbientContext = savedInAmbientContext;
             parent = savedParent;
         }
 
         function checkNode(node: Node) {
-            // No grammar errors on any of our children.  Check this node for grammar errors.
+            // First, check if you have a statement in a place where it is not allowed.  We want 
+            // to do this before recursing, because we'd prefer to report these errors at the top
+            // level instead of at some nested level.
+            if (checkForStatementInAmbientContext(node)) {
+                return;
+            }
+
+            // Now recurse and perform all grammar checks on the children of this node. 
+            var diagnosticCount = syntacticDiagnostics.length;
+            forEachChild(node, visitNode);
+
+            // if we got any errors, just stop performing any more checks on this node or higher.
+            if (diagnosticCount !== syntacticDiagnostics.length) {
+                return;
+            }
+
+            // Now do node specific checks.
+            dispatch(node);
+        }
+
+        function dispatch(node: Node) {
             switch (node.kind) {
                 case SyntaxKind.ArrowFunction:              return visitArrowFunction(<FunctionExpression>node);
                 case SyntaxKind.BinaryExpression:           return visitBinaryExpression(<BinaryExpression>node);
@@ -3811,14 +3777,25 @@ module ts {
                 case SyntaxKind.PostfixOperator:            return visitPostfixOperator(<UnaryExpression>node);
                 case SyntaxKind.PrefixOperator:             return visitPrefixOperator(<UnaryExpression>node);
                 case SyntaxKind.SetAccessor:                return visitSetAccessor(<MethodDeclaration>node);
+                case SyntaxKind.SwitchStatement:            return visitSwitchStatement(<SwitchStatement>node);
                 case SyntaxKind.TaggedTemplateExpression:   return visitTaggedTemplateExpression(<TaggedTemplateExpression>node);
                 case SyntaxKind.TupleType:                  return visitTupleType(<TupleTypeNode>node);
                 case SyntaxKind.TypeReference:              return visitTypeReference(<TypeReferenceNode>node);
                 case SyntaxKind.VariableDeclaration:        return visitVariableDeclaration(<VariableDeclaration>node);
                 case SyntaxKind.VariableStatement:          return visitVariableStatement(<VariableStatement>node);
+                case SyntaxKind.WithStatement:              return visitWithStatement(<WithStatement>node);
             }
         }
 
+        function grammarErrorOnFirstToken(node: Node, message: DiagnosticMessage, arg0?: any, arg1?: any, arg2?: any): boolean {
+            var start = skipTrivia(sourceText, node.pos);
+            scanner.setTextPos(start);
+            scanner.scan();
+            var end = scanner.getTextPos();
+            file._syntacticDiagnostics.push(createFileDiagnostic(file, start, end - start, message, arg0, arg1, arg2));
+            return true;
+        }
+
         function grammarErrorOnNode(node: Node, message: DiagnosticMessage, arg0?: any, arg1?: any, arg2?: any): boolean {
             var span = getErrorSpanForNode(node);
             var start = span.end > span.pos ? skipTrivia(file.text, span.pos) : span.pos;
@@ -3839,6 +3816,31 @@ module ts {
             return grammarErrorOnNode(node, Diagnostics.Invalid_use_of_0_in_strict_mode, name);
         }
 
+        function checkForStatementInAmbientContext(node: Node): boolean {
+            if (inAmbientContext) {
+                switch (node.kind) {
+                    case SyntaxKind.Block:
+                    case SyntaxKind.EmptyStatement:
+                    case SyntaxKind.IfStatement:
+                    case SyntaxKind.DoStatement:
+                    case SyntaxKind.WhileStatement:
+                    case SyntaxKind.ForStatement:
+                    case SyntaxKind.ForInStatement:
+                    case SyntaxKind.ContinueStatement:
+                    case SyntaxKind.BreakStatement:
+                    case SyntaxKind.ReturnStatement:
+                    case SyntaxKind.WithStatement:
+                    case SyntaxKind.SwitchStatement:
+                    case SyntaxKind.ThrowStatement:
+                    case SyntaxKind.TryStatement:
+                    case SyntaxKind.DebuggerStatement:
+                    case SyntaxKind.LabeledStatement:
+                    case SyntaxKind.ExpressionStatement:
+                        return grammarErrorOnFirstToken(node, Diagnostics.Statements_are_not_allowed_in_ambient_contexts);
+                }
+            }
+        }
+
         function visitArrowFunction(node: FunctionExpression) {
             checkTypeParameterList(node.typeParameters) ||
                 checkParameterList(node.parameters);
@@ -3955,7 +3957,7 @@ module ts {
         function checkForAtLeastOneTypeArgument(typeArguments: NodeArray<TypeNode>) {
             if (typeArguments && typeArguments.length === 0) {
                 var start = typeArguments.pos - "<".length;
-                var end = typeArguments.end + ">".length;
+                var end = skipTrivia(sourceText, typeArguments.end) + ">".length;
                 return grammarErrorAtPos(start, end - start, Diagnostics.Type_argument_list_cannot_be_empty);
             }
         }
@@ -3986,14 +3988,22 @@ module ts {
         }
 
         function visitClassDeclaration(node: ClassDeclaration) {
-            checkForTrailingComma(node.implementedTypes);
+            checkForTrailingComma(node.implementedTypes) ||
+                checkForAtLeastOneHeritageClause(node.implementedTypes, "implements");
+        }
+
+        function checkForAtLeastOneHeritageClause(types: NodeArray<TypeNode>, listType: string): boolean {
+            if (types && types.length === 0) {
+                return grammarErrorAtPos(types.pos, 0, Diagnostics._0_list_cannot_be_empty, listType)
+            }
         }
 
         function visitConstructor(node: ConstructorDeclaration) {
             checkTypeParameterList(node.typeParameters) ||
                 checkParameterList(node.parameters) ||
                 checkConstructorTypeParameters(node) ||
-                checkConstructorTypeAnnotation(node);
+                checkConstructorTypeAnnotation(node) ||
+                checkForBodyInAmbientContext(node.body, /*isConstructor:*/ true);
         }
 
         function checkConstructorTypeParameters(node: ConstructorDeclaration) {
@@ -4083,7 +4093,8 @@ module ts {
         function visitFunctionDeclaration(node: FunctionLikeDeclaration) {
             checkTypeParameterList(node.typeParameters) ||
                 checkParameterList(node.parameters) ||
-                checkFunctionName(node.name);
+                checkFunctionName(node.name) ||
+                checkForBodyInAmbientContext(node.body, /*isConstructor:*/ false);
         }
 
         function visitFunctionExpression(node: FunctionExpression) {
@@ -4149,12 +4160,23 @@ module ts {
         }
 
         function visitInterfaceDeclaration(node: InterfaceDeclaration) {
-            checkForTrailingComma(node.baseTypes);
+            checkForTrailingComma(node.baseTypes) ||
+                checkForAtLeastOneHeritageClause(node.baseTypes, "extends");
         }
 
         function visitMethod(node: MethodDeclaration) {
             checkTypeParameterList(node.typeParameters) ||
-                checkParameterList(node.parameters);
+                checkParameterList(node.parameters) ||
+                checkForBodyInAmbientContext(node.body, /*isConstructor:*/ false);
+        }
+
+        function checkForBodyInAmbientContext(body: Block | Expression, isConstructor: boolean): boolean {
+            if (inAmbientContext && body && body.kind === SyntaxKind.FunctionBlock) {
+                var diagnostic = isConstructor
+                    ? Diagnostics.A_constructor_implementation_cannot_be_declared_in_an_ambient_context
+                    : Diagnostics.A_function_implementation_cannot_be_declared_in_an_ambient_context;
+                return grammarErrorOnFirstToken(body, diagnostic);
+            }
         }
 
         function visitModuleDeclaration(node: ModuleDeclaration): void {
@@ -4264,7 +4286,7 @@ module ts {
 
             if (typeParameters && typeParameters.length === 0) {
                 var start = typeParameters.pos - "<".length;
-                var end = typeParameters.end + ">".length;
+                var end = skipTrivia(sourceText, typeParameters.end) + ">".length;
                 return grammarErrorAtPos(start, end - start, Diagnostics.Type_parameter_list_cannot_be_empty);
             }
         }
@@ -4377,6 +4399,25 @@ module ts {
             }
         }
 
+        function visitSwitchStatement(node: SwitchStatement) {
+            var firstDefaultClause: CaseOrDefaultClause;
+
+            // Error on duplicate 'default' clauses.
+            for (var i = 0, n = node.clauses.length; i < n; i++) {
+                var clause = node.clauses[i];
+                if (clause.kind === SyntaxKind.DefaultClause) {
+                    if (firstDefaultClause === undefined) {
+                        firstDefaultClause = clause;
+                    }
+                    else {
+                        var start = skipTrivia(file.text, clause.pos);
+                        var end = clause.statements.length > 0 ? clause.statements[0].pos : clause.end;
+                        grammarErrorAtPos(start, end - start, Diagnostics.A_default_clause_cannot_appear_more_than_once_in_a_switch_statement);
+                    }
+                }
+            }
+        }
+
         function visitTaggedTemplateExpression(node: TaggedTemplateExpression) {
             if (languageVersion < ScriptTarget.ES6) {
                 grammarErrorOnNode(node, Diagnostics.Tagged_templates_are_only_available_when_targeting_ECMAScript_6_and_higher);
@@ -4444,8 +4485,8 @@ module ts {
             }
         }
 
-        function allowLetAndConstDeclarations(node: Node): boolean {
-            switch (node.kind) {
+        function allowLetAndConstDeclarations(parent: Node): boolean {
+            switch (parent.kind) {
                 case SyntaxKind.IfStatement:
                 case SyntaxKind.DoStatement:
                 case SyntaxKind.WhileStatement:
@@ -4454,11 +4495,19 @@ module ts {
                 case SyntaxKind.ForInStatement:
                     return false;
                 case SyntaxKind.LabeledStatement:
-                    return allowLetAndConstDeclarations(node.parent);
+                    return allowLetAndConstDeclarations(parent.parent);
             }
 
             return true;
-        } 
+        }
+
+        function visitWithStatement(node: WithStatement): void {
+            if (node.flags & NodeFlags.ParsedInStrictMode) {
+                // Strict mode code may not include a WithStatement. The occurrence of a WithStatement in such 
+                // a context is an 
+                grammarErrorOnFirstToken(node, Diagnostics.with_statements_are_not_allowed_in_strict_mode);
+            }
+        }
     }
 
     export function createProgram(rootNames: string[], options: CompilerOptions, host: CompilerHost): Program {
diff --git a/tests/baselines/reference/accessorsInAmbientContext.errors.txt b/tests/baselines/reference/accessorsInAmbientContext.errors.txt
index ada59f21f65..6028dc898f6 100644
--- a/tests/baselines/reference/accessorsInAmbientContext.errors.txt
+++ b/tests/baselines/reference/accessorsInAmbientContext.errors.txt
@@ -1,10 +1,10 @@
-tests/cases/compiler/accessorsInAmbientContext.ts(4,13): error TS1086: An accessor cannot be declared in an ambient context.
+tests/cases/compiler/accessorsInAmbientContext.ts(4,19): error TS1036: Statements are not allowed in ambient contexts.
 tests/cases/compiler/accessorsInAmbientContext.ts(5,13): error TS1086: An accessor cannot be declared in an ambient context.
-tests/cases/compiler/accessorsInAmbientContext.ts(7,20): error TS1086: An accessor cannot be declared in an ambient context.
+tests/cases/compiler/accessorsInAmbientContext.ts(7,26): error TS1036: Statements are not allowed in ambient contexts.
 tests/cases/compiler/accessorsInAmbientContext.ts(8,20): error TS1086: An accessor cannot be declared in an ambient context.
-tests/cases/compiler/accessorsInAmbientContext.ts(13,9): error TS1086: An accessor cannot be declared in an ambient context.
+tests/cases/compiler/accessorsInAmbientContext.ts(13,15): error TS1036: Statements are not allowed in ambient contexts.
 tests/cases/compiler/accessorsInAmbientContext.ts(14,9): error TS1086: An accessor cannot be declared in an ambient context.
-tests/cases/compiler/accessorsInAmbientContext.ts(16,16): error TS1086: An accessor cannot be declared in an ambient context.
+tests/cases/compiler/accessorsInAmbientContext.ts(16,22): error TS1036: Statements are not allowed in ambient contexts.
 tests/cases/compiler/accessorsInAmbientContext.ts(17,16): error TS1086: An accessor cannot be declared in an ambient context.
 
 
@@ -13,15 +13,15 @@ tests/cases/compiler/accessorsInAmbientContext.ts(17,16): error TS1086: An acces
     declare module M {
         class C {
             get X() { return 1; }
-                ~
-!!! error TS1086: An accessor cannot be declared in an ambient context.
+                      ~~~~~~
+!!! error TS1036: Statements are not allowed in ambient contexts.
             set X(v) { }
                 ~
 !!! error TS1086: An accessor cannot be declared in an ambient context.
     
             static get Y() { return 1; }
-                       ~
-!!! error TS1086: An accessor cannot be declared in an ambient context.
+                             ~~~~~~
+!!! error TS1036: Statements are not allowed in ambient contexts.
             static set Y(v) { }
                        ~
 !!! error TS1086: An accessor cannot be declared in an ambient context.
@@ -30,15 +30,15 @@ tests/cases/compiler/accessorsInAmbientContext.ts(17,16): error TS1086: An acces
     
     declare class C {
         get X() { return 1; }
-            ~
-!!! error TS1086: An accessor cannot be declared in an ambient context.
+                  ~~~~~~
+!!! error TS1036: Statements are not allowed in ambient contexts.
         set X(v) { }
             ~
 !!! error TS1086: An accessor cannot be declared in an ambient context.
     
         static get Y() { return 1; }
-                   ~
-!!! error TS1086: An accessor cannot be declared in an ambient context.
+                         ~~~~~~
+!!! error TS1036: Statements are not allowed in ambient contexts.
         static set Y(v) { }
                    ~
 !!! error TS1086: An accessor cannot be declared in an ambient context.
diff --git a/tests/baselines/reference/ambientErrors.errors.txt b/tests/baselines/reference/ambientErrors.errors.txt
index e89586275a3..a1e85be7401 100644
--- a/tests/baselines/reference/ambientErrors.errors.txt
+++ b/tests/baselines/reference/ambientErrors.errors.txt
@@ -1,10 +1,5 @@
-tests/cases/conformance/ambient/ambientErrors.ts(20,24): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/conformance/ambient/ambientErrors.ts(35,19): error TS1037: A function implementation cannot be declared in an ambient context.
 tests/cases/conformance/ambient/ambientErrors.ts(37,18): error TS1039: Initializers are not allowed in ambient contexts.
 tests/cases/conformance/ambient/ambientErrors.ts(38,11): error TS1039: Initializers are not allowed in ambient contexts.
-tests/cases/conformance/ambient/ambientErrors.ts(39,23): error TS1111: A constructor implementation cannot be declared in an ambient context.
-tests/cases/conformance/ambient/ambientErrors.ts(40,14): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/conformance/ambient/ambientErrors.ts(41,22): error TS1037: A function implementation cannot be declared in an ambient context.
 tests/cases/conformance/ambient/ambientErrors.ts(6,1): error TS2382: Specialized overload signature is not assignable to any non-specialized signature.
 tests/cases/conformance/ambient/ambientErrors.ts(17,22): error TS2371: A parameter initializer is only allowed in a function or constructor implementation.
 tests/cases/conformance/ambient/ambientErrors.ts(47,20): error TS2435: Ambient external modules cannot be nested in other modules.
@@ -12,7 +7,7 @@ tests/cases/conformance/ambient/ambientErrors.ts(51,16): error TS2436: Ambient e
 tests/cases/conformance/ambient/ambientErrors.ts(57,5): error TS2309: An export assignment cannot be used in a module with other exported elements.
 
 
-==== tests/cases/conformance/ambient/ambientErrors.ts (12 errors) ====
+==== tests/cases/conformance/ambient/ambientErrors.ts (7 errors) ====
     // Ambient variable with an initializer 
     declare var x = 4;
     
@@ -37,8 +32,6 @@ tests/cases/conformance/ambient/ambientErrors.ts(57,5): error TS2309: An export
     
     // Ambient function with function body
     declare function fn4() { };
-                           ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
     
     // Ambient enum with non - integer literal constant member
     declare enum E1 {
@@ -54,8 +47,6 @@ tests/cases/conformance/ambient/ambientErrors.ts(57,5): error TS2309: An export
     declare module M1 {
         var x = 3;
         function fn() { }
-                      ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         class C {
             static x = 3;
                      ~
@@ -64,14 +55,8 @@ tests/cases/conformance/ambient/ambientErrors.ts(57,5): error TS2309: An export
               ~
 !!! error TS1039: Initializers are not allowed in ambient contexts.
             constructor() { }
-                          ~
-!!! error TS1111: A constructor implementation cannot be declared in an ambient context.
             fn() { }
-                 ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             static sfn() { }
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         }
     }
     
diff --git a/tests/baselines/reference/ambientGetters.errors.txt b/tests/baselines/reference/ambientGetters.errors.txt
index a56020c41fb..085b30b758e 100644
--- a/tests/baselines/reference/ambientGetters.errors.txt
+++ b/tests/baselines/reference/ambientGetters.errors.txt
@@ -1,5 +1,5 @@
 tests/cases/compiler/ambientGetters.ts(3,9): error TS1086: An accessor cannot be declared in an ambient context.
-tests/cases/compiler/ambientGetters.ts(7,9): error TS1086: An accessor cannot be declared in an ambient context.
+tests/cases/compiler/ambientGetters.ts(7,20): error TS1036: Statements are not allowed in ambient contexts.
 
 
 ==== tests/cases/compiler/ambientGetters.ts (2 errors) ====
@@ -12,6 +12,6 @@ tests/cases/compiler/ambientGetters.ts(7,9): error TS1086: An accessor cannot be
     
     declare class B {
         get length() { return 0; }
-            ~~~~~~
-!!! error TS1086: An accessor cannot be declared in an ambient context.
+                       ~~~~~~
+!!! error TS1036: Statements are not allowed in ambient contexts.
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/ambientStatement1.errors.txt b/tests/baselines/reference/ambientStatement1.errors.txt
new file mode 100644
index 00000000000..be7c7bb750c
--- /dev/null
+++ b/tests/baselines/reference/ambientStatement1.errors.txt
@@ -0,0 +1,14 @@
+tests/cases/compiler/ambientStatement1.ts(2,6): error TS1036: Statements are not allowed in ambient contexts.
+tests/cases/compiler/ambientStatement1.ts(4,20): error TS1039: Initializers are not allowed in ambient contexts.
+
+
+==== tests/cases/compiler/ambientStatement1.ts (2 errors) ====
+        declare module M1 {
+        	while(true);
+        	~~~~~
+!!! error TS1036: Statements are not allowed in ambient contexts.
+        
+        	export var v1 = () => false;
+        	              ~
+!!! error TS1039: Initializers are not allowed in ambient contexts.
+        }
\ No newline at end of file
diff --git a/tests/baselines/reference/exportDeclareClass1.errors.txt b/tests/baselines/reference/exportDeclareClass1.errors.txt
index 36103269f83..c93dc5d0b01 100644
--- a/tests/baselines/reference/exportDeclareClass1.errors.txt
+++ b/tests/baselines/reference/exportDeclareClass1.errors.txt
@@ -1,19 +1,13 @@
-tests/cases/compiler/exportDeclareClass1.ts(2,21): error TS1037: A function implementation cannot be declared in an ambient context.
 tests/cases/compiler/exportDeclareClass1.ts(2,24): error TS1068: Unexpected token. A constructor, method, accessor, or property was expected.
-tests/cases/compiler/exportDeclareClass1.ts(3,31): error TS1037: A function implementation cannot be declared in an ambient context.
 tests/cases/compiler/exportDeclareClass1.ts(3,34): error TS1068: Unexpected token. A constructor, method, accessor, or property was expected.
 
 
-==== tests/cases/compiler/exportDeclareClass1.ts (4 errors) ====
+==== tests/cases/compiler/exportDeclareClass1.ts (2 errors) ====
         export declare class eaC {
             static tF() { };
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                            ~
 !!! error TS1068: Unexpected token. A constructor, method, accessor, or property was expected.
             static tsF(param:any) { };
-                                  ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                                      ~
 !!! error TS1068: Unexpected token. A constructor, method, accessor, or property was expected.
         };
diff --git a/tests/baselines/reference/giant.errors.txt b/tests/baselines/reference/giant.errors.txt
index 0aa14ee0cd3..d70ac7013dd 100644
--- a/tests/baselines/reference/giant.errors.txt
+++ b/tests/baselines/reference/giant.errors.txt
@@ -10,29 +10,12 @@ tests/cases/compiler/giant.ts(93,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(95,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(99,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(101,5): error TS1005: '{' expected.
-tests/cases/compiler/giant.ts(154,39): error TS1037: A function implementation cannot be declared in an ambient context.
 tests/cases/compiler/giant.ts(168,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(170,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(172,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(174,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(178,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(180,5): error TS1005: '{' expected.
-tests/cases/compiler/giant.ts(233,39): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(238,35): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(240,24): error TS1111: A constructor implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(243,21): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(244,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(245,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(247,31): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(249,23): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(251,32): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(254,21): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(255,31): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(257,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(262,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(262,25): error TS1036: Statements are not allowed in ambient contexts.
-tests/cases/compiler/giant.ts(267,30): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(267,33): error TS1036: Statements are not allowed in ambient contexts.
 tests/cases/compiler/giant.ts(283,5): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(285,5): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(287,5): error TS1005: '{' expected.
@@ -45,64 +28,16 @@ tests/cases/compiler/giant.ts(351,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(353,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(357,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(359,5): error TS1005: '{' expected.
-tests/cases/compiler/giant.ts(412,39): error TS1037: A function implementation cannot be declared in an ambient context.
 tests/cases/compiler/giant.ts(426,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(428,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(430,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(432,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(436,9): error TS1005: '{' expected.
 tests/cases/compiler/giant.ts(438,5): error TS1005: '{' expected.
-tests/cases/compiler/giant.ts(491,39): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(496,35): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(498,24): error TS1111: A constructor implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(501,21): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(502,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(503,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(505,31): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(507,23): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(509,32): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(512,21): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(513,31): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(515,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(520,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(520,25): error TS1036: Statements are not allowed in ambient contexts.
-tests/cases/compiler/giant.ts(525,30): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(525,33): error TS1036: Statements are not allowed in ambient contexts.
-tests/cases/compiler/giant.ts(532,31): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(534,20): error TS1111: A constructor implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(537,17): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(538,18): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(539,18): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(541,27): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(543,19): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(545,28): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(548,17): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(549,27): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(551,18): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(556,18): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(556,21): error TS1036: Statements are not allowed in ambient contexts.
-tests/cases/compiler/giant.ts(558,24): error TS1111: A constructor implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(561,21): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(563,21): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(606,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(606,25): error TS1036: Statements are not allowed in ambient contexts.
-tests/cases/compiler/giant.ts(611,30): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(611,33): error TS1036: Statements are not allowed in ambient contexts.
 tests/cases/compiler/giant.ts(615,16): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
 tests/cases/compiler/giant.ts(616,16): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
-tests/cases/compiler/giant.ts(616,39): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(616,42): error TS1036: Statements are not allowed in ambient contexts.
 tests/cases/compiler/giant.ts(617,16): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
 tests/cases/compiler/giant.ts(618,16): error TS1038: A 'declare' modifier cannot be used in an already ambient context.
-tests/cases/compiler/giant.ts(621,26): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(621,29): error TS1036: Statements are not allowed in ambient contexts.
-tests/cases/compiler/giant.ts(623,24): error TS1111: A constructor implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(626,21): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(628,21): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(672,22): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(672,25): error TS1036: Statements are not allowed in ambient contexts.
-tests/cases/compiler/giant.ts(676,30): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/compiler/giant.ts(676,33): error TS1036: Statements are not allowed in ambient contexts.
 tests/cases/compiler/giant.ts(23,12): error TS2300: Duplicate identifier 'pgF'.
 tests/cases/compiler/giant.ts(24,16): error TS2300: Duplicate identifier 'pgF'.
 tests/cases/compiler/giant.ts(24,16): error TS2378: A 'get' accessor must return a value or consist of a single 'throw' statement.
@@ -239,7 +174,7 @@ tests/cases/compiler/giant.ts(602,9): error TS2386: Overload signatures must all
 tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all be optional or required.
 
 
-==== tests/cases/compiler/giant.ts (239 errors) ====
+==== tests/cases/compiler/giant.ts (174 errors) ====
     
     /*
         Prefixes
@@ -482,8 +417,6 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
             export module eM { };
             export declare var eaV;
             export declare function eaF() { };
-                                          ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             export declare class eaC { };
             export declare module eaM { };
         }
@@ -607,54 +540,36 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
             export module eM { };
             export declare var eaV;
             export declare function eaF() { };
-                                          ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             export declare class eaC { };
             export declare module eaM { };
         }
         export declare var eaV;
         export declare function eaF() { };
-                                      ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         export declare class eaC {
             constructor () { }
-                           ~
-!!! error TS1111: A constructor implementation cannot be declared in an ambient context.
             public pV;
             private rV;
             public pF() { }
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             private rF() { }
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             public pgF() { }
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                    ~~~
 !!! error TS2300: Duplicate identifier 'pgF'.
             public get pgF()
                        ~~~
 !!! error TS2300: Duplicate identifier 'pgF'.
             public psF(param:any) { }
-                                  ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                    ~~~
 !!! error TS2300: Duplicate identifier 'psF'.
             public set psF(param:any)
                        ~~~
 !!! error TS2300: Duplicate identifier 'psF'.
             private rgF() { }
-                          ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                     ~~~
 !!! error TS2300: Duplicate identifier 'rgF'.
             private get rgF()
                         ~~~
 !!! error TS2300: Duplicate identifier 'rgF'.
             private rsF(param:any) { }
-                                   ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                     ~~~
 !!! error TS2300: Duplicate identifier 'rsF'.
             private set rsF(param:any)
@@ -662,19 +577,13 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
 !!! error TS2300: Duplicate identifier 'rsF'.
             static tV;
             static tF() { }
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             static tsF(param:any) { }
-                                  ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                    ~~~
 !!! error TS2300: Duplicate identifier 'tsF'.
             static set tsF(param:any)
                        ~~~
 !!! error TS2300: Duplicate identifier 'tsF'.
             static tgF() { }
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                    ~~~
 !!! error TS2300: Duplicate identifier 'tgF'.
             static get tgF()
@@ -684,19 +593,11 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
         export declare module eaM {
             var V;
             function F() { };
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                            ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             class C { }
             interface I { }
             module M { }
             export var eV;
             export function eF() { };
-                                 ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                                    ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             export class eC { }
             export interface eI { }
             export module eM { }
@@ -930,8 +831,6 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
             export module eM { };
             export declare var eaV;
             export declare function eaF() { };
-                                          ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             export declare class eaC { };
             export declare module eaM { };
         }
@@ -1055,54 +954,36 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
             export module eM { };
             export declare var eaV;
             export declare function eaF() { };
-                                          ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             export declare class eaC { };
             export declare module eaM { };
         }
         export declare var eaV;
         export declare function eaF() { };
-                                      ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         export declare class eaC {
             constructor () { }
-                           ~
-!!! error TS1111: A constructor implementation cannot be declared in an ambient context.
             public pV;
             private rV;
             public pF() { }
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             private rF() { }
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             public pgF() { }
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                    ~~~
 !!! error TS2300: Duplicate identifier 'pgF'.
             public get pgF()
                        ~~~
 !!! error TS2300: Duplicate identifier 'pgF'.
             public psF(param:any) { }
-                                  ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                    ~~~
 !!! error TS2300: Duplicate identifier 'psF'.
             public set psF(param:any)
                        ~~~
 !!! error TS2300: Duplicate identifier 'psF'.
             private rgF() { }
-                          ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                     ~~~
 !!! error TS2300: Duplicate identifier 'rgF'.
             private get rgF()
                         ~~~
 !!! error TS2300: Duplicate identifier 'rgF'.
             private rsF(param:any) { }
-                                   ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                     ~~~
 !!! error TS2300: Duplicate identifier 'rsF'.
             private set rsF(param:any)
@@ -1110,19 +991,13 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
 !!! error TS2300: Duplicate identifier 'rsF'.
             static tV;
             static tF() { }
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             static tsF(param:any) { }
-                                  ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                    ~~~
 !!! error TS2300: Duplicate identifier 'tsF'.
             static set tsF(param:any)
                        ~~~
 !!! error TS2300: Duplicate identifier 'tsF'.
             static tgF() { }
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                    ~~~
 !!! error TS2300: Duplicate identifier 'tgF'.
             static get tgF()
@@ -1132,19 +1007,11 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
         export declare module eaM {
             var V;
             function F() { };
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                            ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             class C { }
             interface I { }
             module M { }
             export var eV;
             export function eF() { };
-                                 ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                                    ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             export class eC { }
             export interface eI { }
             export module eM { }
@@ -1152,47 +1019,31 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
     }
     export declare var eaV;
     export declare function eaF() { };
-                                  ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
     export declare class eaC {
         constructor () { }
-                       ~
-!!! error TS1111: A constructor implementation cannot be declared in an ambient context.
         public pV;
         private rV;
         public pF() { }
-                    ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         private rF() { }
-                     ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         public pgF() { }
-                     ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                ~~~
 !!! error TS2300: Duplicate identifier 'pgF'.
         public get pgF()
                    ~~~
 !!! error TS2300: Duplicate identifier 'pgF'.
         public psF(param:any) { }
-                              ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                ~~~
 !!! error TS2300: Duplicate identifier 'psF'.
         public set psF(param:any)
                    ~~~
 !!! error TS2300: Duplicate identifier 'psF'.
         private rgF() { }
-                      ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                 ~~~
 !!! error TS2300: Duplicate identifier 'rgF'.
         private get rgF()
                     ~~~
 !!! error TS2300: Duplicate identifier 'rgF'.
         private rsF(param:any) { }
-                               ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                 ~~~
 !!! error TS2300: Duplicate identifier 'rsF'.
         private set rsF(param:any)
@@ -1200,19 +1051,13 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
 !!! error TS2300: Duplicate identifier 'rsF'.
         static tV;
         static tF() { }
-                    ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         static tsF(param:any) { }
-                              ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                ~~~
 !!! error TS2300: Duplicate identifier 'tsF'.
         static set tsF(param:any)
                    ~~~
 !!! error TS2300: Duplicate identifier 'tsF'.
         static tgF() { }
-                     ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
                ~~~
 !!! error TS2300: Duplicate identifier 'tgF'.
         static get tgF()
@@ -1222,23 +1067,13 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
     export declare module eaM {
         var V;
         function F() { };
-                     ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                        ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
         class C {
             constructor () { }
-                           ~
-!!! error TS1111: A constructor implementation cannot be declared in an ambient context.
             public pV;
             private rV;
             public pF() { }
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             static tV;
             static tF() { }
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         }
         interface I {
             //Call Signature
@@ -1284,19 +1119,11 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
         module M {
             var V;
             function F() { };
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                            ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             class C { }
             interface I { }
             module M { }
             export var eV;
             export function eF() { };
-                                 ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                                    ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             export class eC { }
             export interface eI { }
             export module eM { }
@@ -1306,10 +1133,6 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
             export declare function eaF() { };
                    ~~~~~~~
 !!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
-                                          ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                                             ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             export declare class eaC { }
                    ~~~~~~~
 !!! error TS1038: A 'declare' modifier cannot be used in an already ambient context.
@@ -1319,23 +1142,13 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
         }
         export var eV;
         export function eF() { };
-                             ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                                ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
         export class eC {
             constructor () { }
-                           ~
-!!! error TS1111: A constructor implementation cannot be declared in an ambient context.
             public pV;
             private rV;
             public pF() { }
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
             static tV
             static tF() { }
-                        ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
         }
         export interface eI {
             //Call Signature
@@ -1382,18 +1195,10 @@ tests/cases/compiler/giant.ts(668,9): error TS2386: Overload signatures must all
         export module eM {
             var V;
             function F() { };
-                         ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                            ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             class C { }
             module M { }
             export var eV;
             export function eF() { };
-                                 ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
-                                    ~
-!!! error TS1036: Statements are not allowed in ambient contexts.
             export class eC { }
             export interface eI { }
             export module eM { }
diff --git a/tests/baselines/reference/initializersInDeclarations.errors.txt b/tests/baselines/reference/initializersInDeclarations.errors.txt
index 49a06cf9a29..9e02a1cd747 100644
--- a/tests/baselines/reference/initializersInDeclarations.errors.txt
+++ b/tests/baselines/reference/initializersInDeclarations.errors.txt
@@ -1,10 +1,8 @@
 tests/cases/conformance/externalModules/initializersInDeclarations.ts(5,7): error TS1039: Initializers are not allowed in ambient contexts.
 tests/cases/conformance/externalModules/initializersInDeclarations.ts(6,14): error TS1039: Initializers are not allowed in ambient contexts.
-tests/cases/conformance/externalModules/initializersInDeclarations.ts(7,16): error TS1037: A function implementation cannot be declared in an ambient context.
-tests/cases/conformance/externalModules/initializersInDeclarations.ts(16,2): error TS1036: Statements are not allowed in ambient contexts.
 
 
-==== tests/cases/conformance/externalModules/initializersInDeclarations.ts (4 errors) ====
+==== tests/cases/conformance/externalModules/initializersInDeclarations.ts (2 errors) ====
     
     // Errors: Initializers & statements in declaration file
     
@@ -16,8 +14,6 @@ tests/cases/conformance/externalModules/initializersInDeclarations.ts(16,2): err
     	            ~
 !!! error TS1039: Initializers are not allowed in ambient contexts.
     	fn(): boolean {
-    	              ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
     		return false;
     	}
     }
@@ -27,8 +23,6 @@ tests/cases/conformance/externalModules/initializersInDeclarations.ts(16,2): err
     
     declare module M1 {
     	while(true);
-    	~~~~~
-!!! error TS1036: Statements are not allowed in ambient contexts.
     
     	export var v1 = () => false;
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/methodInAmbientClass1.errors.txt b/tests/baselines/reference/methodInAmbientClass1.errors.txt
new file mode 100644
index 00000000000..3bf8f8af12a
--- /dev/null
+++ b/tests/baselines/reference/methodInAmbientClass1.errors.txt
@@ -0,0 +1,13 @@
+tests/cases/compiler/methodInAmbientClass1.ts(2,20): error TS1037: A function implementation cannot be declared in an ambient context.
+tests/cases/compiler/methodInAmbientClass1.ts(2,12): error TS2355: A function whose declared type is neither 'void' nor 'any' must return a value or consist of a single 'throw' statement.
+
+
+==== tests/cases/compiler/methodInAmbientClass1.ts (2 errors) ====
+        declare class Foo {
+        	fn(): boolean {
+        	              ~
+!!! error TS1037: A function implementation cannot be declared in an ambient context.
+        	      ~~~~~~~
+!!! error TS2355: A function whose declared type is neither 'void' nor 'any' must return a value or consist of a single 'throw' statement.
+        	}
+        }
\ No newline at end of file
diff --git a/tests/baselines/reference/parserAccessors5.errors.txt b/tests/baselines/reference/parserAccessors5.errors.txt
index b7dcd8ef923..f2e3d8c8d37 100644
--- a/tests/baselines/reference/parserAccessors5.errors.txt
+++ b/tests/baselines/reference/parserAccessors5.errors.txt
@@ -1,9 +1,9 @@
-tests/cases/conformance/parser/ecmascript5/Accessors/parserAccessors5.ts(2,7): error TS1086: An accessor cannot be declared in an ambient context.
+tests/cases/conformance/parser/ecmascript5/Accessors/parserAccessors5.ts(2,15): error TS1036: Statements are not allowed in ambient contexts.
 
 
 ==== tests/cases/conformance/parser/ecmascript5/Accessors/parserAccessors5.ts (1 errors) ====
     declare class C {
       get foo() { return 0; }
-          ~~~
-!!! error TS1086: An accessor cannot be declared in an ambient context.
+                  ~~~~~~
+!!! error TS1036: Statements are not allowed in ambient contexts.
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/parserConstructorDeclaration12.errors.txt b/tests/baselines/reference/parserConstructorDeclaration12.errors.txt
index 1af651d6ca9..949098e91da 100644
--- a/tests/baselines/reference/parserConstructorDeclaration12.errors.txt
+++ b/tests/baselines/reference/parserConstructorDeclaration12.errors.txt
@@ -39,22 +39,22 @@ tests/cases/compiler/parserConstructorDeclaration12.ts(9,3): error TS2392: Multi
       ~~~~~~~~~~~~~~~~~~~~~
 !!! error TS2392: Multiple constructor implementations are not allowed.
       constructor< >() { }
-                 ~~
+                 ~~~
 !!! error TS1098: Type parameter list cannot be empty.
       ~~~~~~~~~~~~~~~~~~~~
 !!! error TS2392: Multiple constructor implementations are not allowed.
       constructor< > () { }
-                 ~~
+                 ~~~
 !!! error TS1098: Type parameter list cannot be empty.
       ~~~~~~~~~~~~~~~~~~~~~
 !!! error TS2392: Multiple constructor implementations are not allowed.
       constructor < >() { }
-                  ~~
+                  ~~~
 !!! error TS1098: Type parameter list cannot be empty.
       ~~~~~~~~~~~~~~~~~~~~~
 !!! error TS2392: Multiple constructor implementations are not allowed.
       constructor < > () { }
-                  ~~
+                  ~~~
 !!! error TS1098: Type parameter list cannot be empty.
       ~~~~~~~~~~~~~~~~~~~~~~
 !!! error TS2392: Multiple constructor implementations are not allowed.
diff --git a/tests/baselines/reference/parserErrorRecovery_ExtendsOrImplementsClause4.errors.txt b/tests/baselines/reference/parserErrorRecovery_ExtendsOrImplementsClause4.errors.txt
index 6ec231b9336..6d637831c45 100644
--- a/tests/baselines/reference/parserErrorRecovery_ExtendsOrImplementsClause4.errors.txt
+++ b/tests/baselines/reference/parserErrorRecovery_ExtendsOrImplementsClause4.errors.txt
@@ -1,10 +1,10 @@
-tests/cases/conformance/parser/ecmascript5/ErrorRecovery/ExtendsOrImplementsClauses/parserErrorRecovery_ExtendsOrImplementsClause4.ts(1,19): error TS1097: 'implements' list cannot be empty.
+tests/cases/conformance/parser/ecmascript5/ErrorRecovery/ExtendsOrImplementsClauses/parserErrorRecovery_ExtendsOrImplementsClause4.ts(1,29): error TS1097: 'implements' list cannot be empty.
 tests/cases/conformance/parser/ecmascript5/ErrorRecovery/ExtendsOrImplementsClauses/parserErrorRecovery_ExtendsOrImplementsClause4.ts(1,17): error TS2304: Cannot find name 'A'.
 
 
 ==== tests/cases/conformance/parser/ecmascript5/ErrorRecovery/ExtendsOrImplementsClauses/parserErrorRecovery_ExtendsOrImplementsClause4.ts (2 errors) ====
     class C extends A implements {
-                      ~~~~~~~~~~
+                                
 !!! error TS1097: 'implements' list cannot be empty.
                     ~
 !!! error TS2304: Cannot find name 'A'.
diff --git a/tests/baselines/reference/parserErrorRecovery_ExtendsOrImplementsClause6.errors.txt b/tests/baselines/reference/parserErrorRecovery_ExtendsOrImplementsClause6.errors.txt
index 1f235691df8..2f7ca3d99ae 100644
--- a/tests/baselines/reference/parserErrorRecovery_ExtendsOrImplementsClause6.errors.txt
+++ b/tests/baselines/reference/parserErrorRecovery_ExtendsOrImplementsClause6.errors.txt
@@ -1,7 +1,7 @@
-tests/cases/conformance/parser/ecmascript5/ErrorRecovery/ExtendsOrImplementsClauses/parserErrorRecovery_ExtendsOrImplementsClause6.ts(1,13): error TS1097: 'extends' list cannot be empty.
+tests/cases/conformance/parser/ecmascript5/ErrorRecovery/ExtendsOrImplementsClauses/parserErrorRecovery_ExtendsOrImplementsClause6.ts(1,20): error TS1097: 'extends' list cannot be empty.
 
 
 ==== tests/cases/conformance/parser/ecmascript5/ErrorRecovery/ExtendsOrImplementsClauses/parserErrorRecovery_ExtendsOrImplementsClause6.ts (1 errors) ====
     interface I extends { }
-                ~~~~~~~
+                       
 !!! error TS1097: 'extends' list cannot be empty.
\ No newline at end of file
diff --git a/tests/baselines/reference/parserFunctionDeclaration2.d.errors.txt b/tests/baselines/reference/parserFunctionDeclaration2.d.errors.txt
index 76d47a0a9d4..f623642e827 100644
--- a/tests/baselines/reference/parserFunctionDeclaration2.d.errors.txt
+++ b/tests/baselines/reference/parserFunctionDeclaration2.d.errors.txt
@@ -1,11 +1,8 @@
 tests/cases/conformance/parser/ecmascript5/FunctionDeclarations/parserFunctionDeclaration2.d.ts(1,1): error TS1046: A 'declare' modifier is required for a top level declaration in a .d.ts file.
-tests/cases/conformance/parser/ecmascript5/FunctionDeclarations/parserFunctionDeclaration2.d.ts(1,14): error TS1037: A function implementation cannot be declared in an ambient context.
 
 
-==== tests/cases/conformance/parser/ecmascript5/FunctionDeclarations/parserFunctionDeclaration2.d.ts (2 errors) ====
+==== tests/cases/conformance/parser/ecmascript5/FunctionDeclarations/parserFunctionDeclaration2.d.ts (1 errors) ====
     function F() {
     ~~~~~~~~
 !!! error TS1046: A 'declare' modifier is required for a top level declaration in a .d.ts file.
-                 ~
-!!! error TS1037: A function implementation cannot be declared in an ambient context.
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/switchStatementsWithMultipleDefaults.errors.txt b/tests/baselines/reference/switchStatementsWithMultipleDefaults.errors.txt
index 28c86a7f0f2..cd892f5faa2 100644
--- a/tests/baselines/reference/switchStatementsWithMultipleDefaults.errors.txt
+++ b/tests/baselines/reference/switchStatementsWithMultipleDefaults.errors.txt
@@ -1,15 +1,7 @@
-tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(9,5): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
-tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(10,5): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
-tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(21,13): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
-tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(25,13): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
-tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(26,13): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
-tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(28,13): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
 tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(28,22): error TS1108: A 'return' statement can only be used within a function body.
-tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(29,13): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
-tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(29,22): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
 
 
-==== tests/cases/compiler/switchStatementsWithMultipleDefaults.ts (9 errors) ====
+==== tests/cases/compiler/switchStatementsWithMultipleDefaults.ts (1 errors) ====
     
     var x = 10;
     
@@ -19,11 +11,7 @@ tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(29,22): error TS111
         default:    // No issues.
             break;
         default:    // Error; second 'default' clause.
-        ~~~~~~~~
-!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
         default:    // Error; third 'default' clause.
-        ~~~~~~~~
-!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
         case 3:
             x *= x;
     }
@@ -35,27 +23,15 @@ tests/cases/compiler/switchStatementsWithMultipleDefaults.ts(29,22): error TS111
             switch (x * x) {
                 default:    // No issues.
                 default:    // Error; second 'default' clause.
-                ~~~~~~~~
-!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
                     break;
                 case 10000:
                     x /= x;
                 default:    // Error, third 'default' clause
-                ~~~~~~~~
-!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
                 def\u0061ult: // Error, fourth 'default' clause.
-                ~~~~~~~~~~~~~
-!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
                 // Errors on fifth-seventh
                 default: return;
-                ~~~~~~~~
-!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
                          ~~~~~~
 !!! error TS1108: A 'return' statement can only be used within a function body.
                 default: default:
-                ~~~~~~~~
-!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
-                         ~~~~~~~~
-!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
             }
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/switchStatementsWithMultipleDefaults1.errors.txt b/tests/baselines/reference/switchStatementsWithMultipleDefaults1.errors.txt
new file mode 100644
index 00000000000..80b0560445a
--- /dev/null
+++ b/tests/baselines/reference/switchStatementsWithMultipleDefaults1.errors.txt
@@ -0,0 +1,21 @@
+tests/cases/compiler/switchStatementsWithMultipleDefaults1.ts(8,9): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
+tests/cases/compiler/switchStatementsWithMultipleDefaults1.ts(9,9): error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
+
+
+==== tests/cases/compiler/switchStatementsWithMultipleDefaults1.ts (2 errors) ====
+        var x = 10;
+        
+        switch (x) {
+            case 1:
+            case 2:
+            default:    // No issues.
+                break;
+            default:    // Error; second 'default' clause.
+            ~~~~~~~~
+!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
+            default:    // Error; third 'default' clause.
+            ~~~~~~~~
+!!! error TS1113: A 'default' clause cannot appear more than once in a 'switch' statement.
+            case 3:
+                x *= x;
+        }
\ No newline at end of file
diff --git a/tests/cases/compiler/ambientStatement1.ts b/tests/cases/compiler/ambientStatement1.ts
new file mode 100644
index 00000000000..b2d1bb9d499
--- /dev/null
+++ b/tests/cases/compiler/ambientStatement1.ts
@@ -0,0 +1,5 @@
+    declare module M1 {
+    	while(true);
+    
+    	export var v1 = () => false;
+    }
\ No newline at end of file
diff --git a/tests/cases/compiler/methodInAmbientClass1.ts b/tests/cases/compiler/methodInAmbientClass1.ts
new file mode 100644
index 00000000000..8590977f89b
--- /dev/null
+++ b/tests/cases/compiler/methodInAmbientClass1.ts
@@ -0,0 +1,4 @@
+    declare class Foo {
+    	fn(): boolean {
+    	}
+    }
\ No newline at end of file
diff --git a/tests/cases/compiler/switchStatementsWithMultipleDefaults1.ts b/tests/cases/compiler/switchStatementsWithMultipleDefaults1.ts
new file mode 100644
index 00000000000..f449cf9beb7
--- /dev/null
+++ b/tests/cases/compiler/switchStatementsWithMultipleDefaults1.ts
@@ -0,0 +1,12 @@
+    var x = 10;
+    
+    switch (x) {
+        case 1:
+        case 2:
+        default:    // No issues.
+            break;
+        default:    // Error; second 'default' clause.
+        default:    // Error; third 'default' clause.
+        case 3:
+            x *= x;
+    }
\ No newline at end of file