diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index defdde238fb..298eebc1a5a 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -8126,6 +8126,20 @@ module ts {
         }
 
         function checkReturnStatement(node: ReturnStatement) {
+            // Grammar checking
+            var parent = node.parent;
+            var inFunctionBlock = false;
+            while (parent && parent.kind !== SyntaxKind.SourceFile) {
+                inFunctionBlock = isFunctionBlock(parent);
+                if (inFunctionBlock) {
+                    break;
+                }
+                parent = parent.parent;
+            }
+            if (!inFunctionBlock) {
+                grammarErrorOnFirstToken(node, Diagnostics.A_return_statement_can_only_be_used_within_a_function_body);
+            }
+
             if (node.expression) {
                 var func = getContainingFunction(node);
                 if (func) {
@@ -8149,6 +8163,20 @@ module ts {
         }
 
         function checkWithStatement(node: WithStatement) {
+            // Grammar checking
+            if (node.statement.kind === SyntaxKind.ReturnStatement) {
+                // Grammar check for invalid use of return statement
+                grammarErrorOnFirstToken(node.statement, Diagnostics.A_return_statement_can_only_be_used_within_a_function_body);
+            }
+            else if (node.statement.kind === SyntaxKind.Block) {
+                forEach((<Block>node.statement).statements, statement => {
+                    if (statement.kind === SyntaxKind.ReturnStatement) {
+                        // Grammar check for invalid use of return statement
+                        grammarErrorOnFirstToken(node.statement, Diagnostics.A_return_statement_can_only_be_used_within_a_function_body);
+                    }
+                });
+            }
+
             checkExpression(node.expression);
             error(node.expression, Diagnostics.All_symbols_within_a_with_block_will_be_resolved_to_any);
         }
diff --git a/src/compiler/parser.ts b/src/compiler/parser.ts
index f24bb111db9..ed0aec3c501 100644
--- a/src/compiler/parser.ts
+++ b/src/compiler/parser.ts
@@ -4665,7 +4665,7 @@ module ts {
                 case SyntaxKind.PropertyDeclaration:
                 case SyntaxKind.PropertySignature:
                     return checkProperty(<PropertyDeclaration>node);
-                case SyntaxKind.ReturnStatement:                return checkReturnStatement(<ReturnStatement>node);
+                //case SyntaxKind.ReturnStatement:                return checkReturnStatement(<ReturnStatement>node);
                 case SyntaxKind.SetAccessor:                    return checkSetAccessor(<MethodDeclaration>node);
                 case SyntaxKind.SourceFile:                     return checkSourceFile(<SourceFile>node);
                 case SyntaxKind.ShorthandPropertyAssignment:    return checkShorthandPropertyAssignment(<ShorthandPropertyAssignment>node);
diff --git a/tests/baselines/reference/parserNotRegex1.errors.txt b/tests/baselines/reference/parserNotRegex1.errors.txt
index 9e592541fd0..7eb06157dfc 100644
--- a/tests/baselines/reference/parserNotRegex1.errors.txt
+++ b/tests/baselines/reference/parserNotRegex1.errors.txt
@@ -1,5 +1,5 @@
-tests/cases/conformance/parser/ecmascript5/parserNotRegex1.ts(3,5): error TS1108: A 'return' statement can only be used within a function body.
 tests/cases/conformance/parser/ecmascript5/parserNotRegex1.ts(1,7): error TS2304: Cannot find name 'a'.
+tests/cases/conformance/parser/ecmascript5/parserNotRegex1.ts(3,5): error TS1108: A 'return' statement can only be used within a function body.
 
 
 ==== tests/cases/conformance/parser/ecmascript5/parserNotRegex1.ts (2 errors) ====
diff --git a/tests/baselines/reference/parserWithStatement2.errors.txt b/tests/baselines/reference/parserWithStatement2.errors.txt
index 47ad0c8a920..c2d4b2efa96 100644
--- a/tests/baselines/reference/parserWithStatement2.errors.txt
+++ b/tests/baselines/reference/parserWithStatement2.errors.txt
@@ -1,5 +1,5 @@
-tests/cases/conformance/parser/ecmascript5/Statements/parserWithStatement2.ts(2,3): error TS1108: A 'return' statement can only be used within a function body.
 tests/cases/conformance/parser/ecmascript5/Statements/parserWithStatement2.ts(1,7): error TS2410: All symbols within a 'with' block will be resolved to 'any'.
+tests/cases/conformance/parser/ecmascript5/Statements/parserWithStatement2.ts(2,3): error TS1108: A 'return' statement can only be used within a function body.
 
 
 ==== tests/cases/conformance/parser/ecmascript5/Statements/parserWithStatement2.ts (2 errors) ====