diff --git a/src/compiler/transformers/declarations/diagnostics.ts b/src/compiler/transformers/declarations/diagnostics.ts
index 94d6994f8d2..f07c76e6c73 100644
--- a/src/compiler/transformers/declarations/diagnostics.ts
+++ b/src/compiler/transformers/declarations/diagnostics.ts
@@ -410,6 +410,7 @@ namespace ts {
                     }
                     break;
 
+                case SyntaxKind.FunctionType:
                 case SyntaxKind.FunctionDeclaration:
                     diagnosticMessage = Diagnostics.Type_parameter_0_of_exported_function_has_or_is_using_private_name_1;
                     break;
diff --git a/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.errors.txt b/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.errors.txt
new file mode 100644
index 00000000000..9d626f960b4
--- /dev/null
+++ b/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.errors.txt
@@ -0,0 +1,13 @@
+tests/cases/compiler/declarationEmitLambdaWithMissingTypeParameterNoCrash.ts(2,27): error TS2304: Cannot find name 'T2'.
+tests/cases/compiler/declarationEmitLambdaWithMissingTypeParameterNoCrash.ts(2,27): error TS4016: Type parameter 'T1' of exported function has or is using private name 'T2'.
+
+
+==== tests/cases/compiler/declarationEmitLambdaWithMissingTypeParameterNoCrash.ts (2 errors) ====
+    export interface Foo {
+        preFetch: <T1 extends T2> (c: T1) => void; // Type T2 is not defined
+                              ~~
+!!! error TS2304: Cannot find name 'T2'.
+                              ~~
+!!! error TS4016: Type parameter 'T1' of exported function has or is using private name 'T2'.
+    }
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.js b/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.js
new file mode 100644
index 00000000000..b580f5a8968
--- /dev/null
+++ b/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.js
@@ -0,0 +1,9 @@
+//// [declarationEmitLambdaWithMissingTypeParameterNoCrash.ts]
+export interface Foo {
+    preFetch: <T1 extends T2> (c: T1) => void; // Type T2 is not defined
+}
+
+
+//// [declarationEmitLambdaWithMissingTypeParameterNoCrash.js]
+"use strict";
+exports.__esModule = true;
diff --git a/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.symbols b/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.symbols
new file mode 100644
index 00000000000..44f9fdc6bc0
--- /dev/null
+++ b/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.symbols
@@ -0,0 +1,11 @@
+=== tests/cases/compiler/declarationEmitLambdaWithMissingTypeParameterNoCrash.ts ===
+export interface Foo {
+>Foo : Symbol(Foo, Decl(declarationEmitLambdaWithMissingTypeParameterNoCrash.ts, 0, 0))
+
+    preFetch: <T1 extends T2> (c: T1) => void; // Type T2 is not defined
+>preFetch : Symbol(Foo.preFetch, Decl(declarationEmitLambdaWithMissingTypeParameterNoCrash.ts, 0, 22))
+>T1 : Symbol(T1, Decl(declarationEmitLambdaWithMissingTypeParameterNoCrash.ts, 1, 15))
+>c : Symbol(c, Decl(declarationEmitLambdaWithMissingTypeParameterNoCrash.ts, 1, 31))
+>T1 : Symbol(T1, Decl(declarationEmitLambdaWithMissingTypeParameterNoCrash.ts, 1, 15))
+}
+
diff --git a/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.types b/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.types
new file mode 100644
index 00000000000..56f32fc5a13
--- /dev/null
+++ b/tests/baselines/reference/declarationEmitLambdaWithMissingTypeParameterNoCrash.types
@@ -0,0 +1,7 @@
+=== tests/cases/compiler/declarationEmitLambdaWithMissingTypeParameterNoCrash.ts ===
+export interface Foo {
+    preFetch: <T1 extends T2> (c: T1) => void; // Type T2 is not defined
+>preFetch : <T1 extends any>(c: T1) => void
+>c : T1
+}
+
diff --git a/tests/cases/compiler/declarationEmitLambdaWithMissingTypeParameterNoCrash.ts b/tests/cases/compiler/declarationEmitLambdaWithMissingTypeParameterNoCrash.ts
new file mode 100644
index 00000000000..d2a7112ceb8
--- /dev/null
+++ b/tests/cases/compiler/declarationEmitLambdaWithMissingTypeParameterNoCrash.ts
@@ -0,0 +1,4 @@
+// @declaration: true
+export interface Foo {
+    preFetch: <T1 extends T2> (c: T1) => void; // Type T2 is not defined
+}