diff --git a/src/compiler/binder.ts b/src/compiler/binder.ts
index 813a7e2cd43..57d610c931e 100644
--- a/src/compiler/binder.ts
+++ b/src/compiler/binder.ts
@@ -131,7 +131,8 @@ namespace ts {
             }
 
             if (symbolFlags & SymbolFlags.Value &&
-                (!symbol.valueDeclaration || symbol.valueDeclaration.kind === SyntaxKind.ModuleDeclaration)) {
+                (!symbol.valueDeclaration ||
+                 (symbol.valueDeclaration.kind === SyntaxKind.ModuleDeclaration && node.kind !== SyntaxKind.ModuleDeclaration))) {
                 // other kinds of value declarations take precedence over modules
                 symbol.valueDeclaration = node;
             }
diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index d22266d951f..6b3ddf9da32 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -294,7 +294,8 @@ namespace ts {
                 }
                 target.flags |= source.flags;
                 if (source.valueDeclaration &&
-                    (!target.valueDeclaration || target.valueDeclaration.kind === SyntaxKind.ModuleDeclaration)) {
+                    (!target.valueDeclaration ||
+                     (target.valueDeclaration.kind === SyntaxKind.ModuleDeclaration && source.valueDeclaration.kind !== SyntaxKind.ModuleDeclaration))) {
                     // other kinds of value declarations take precedence over modules
                     target.valueDeclaration = source.valueDeclaration;
                 }