diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 47f4a44db92a2..2541be0d79e1c 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -435,53 +435,60 @@ module ts {
                     return undefined;
                 }
                 if (result.flags & SymbolFlags.BlockScopedVariable) {
-                    // Block-scoped variables cannot be used before their definition
-                    var declaration = forEach(result.declarations, d => isBlockOrCatchScoped(d) ? d : undefined);
+                    checkResolvedBlockScopedVariable(result, errorLocation);
+                }
+            }
+            return result;
+        }
+
+        function checkResolvedBlockScopedVariable(result: Symbol, errorLocation: Node): void {
+            Debug.assert((result.flags & SymbolFlags.BlockScopedVariable) !== 0)
+            // Block-scoped variables cannot be used before their definition
+            var declaration = forEach(result.declarations, d => isBlockOrCatchScoped(d) ? d : undefined);
 
-                    Debug.assert(declaration !== undefined, "Block-scoped variable declaration is undefined");
+            Debug.assert(declaration !== undefined, "Block-scoped variable declaration is undefined");
                     
-                    // first check if usage is lexically located after the declaration
-                    var isUsedBeforeDeclaration = !isDefinedBefore(declaration, errorLocation);
-                    if (!isUsedBeforeDeclaration) {
-                        // lexical check succedded however code still can be illegal.
-                        // - block scoped variables cannot be used in its initializers
-                        //   let x = x; // illegal but usage is lexically after definition
-                        // - in ForIn/ForOf statements variable cannot be contained in expression part
-                        //   for (let x in x)
-                        //   for (let x of x)
+            // first check if usage is lexically located after the declaration
+            var isUsedBeforeDeclaration = !isDefinedBefore(declaration, errorLocation);
+            if (!isUsedBeforeDeclaration) {
+                // lexical check succeeded however code still can be illegal.
+                // - block scoped variables cannot be used in its initializers
+                //   let x = x; // illegal but usage is lexically after definition
+                // - in ForIn/ForOf statements variable cannot be contained in expression part
+                //   for (let x in x)
+                //   for (let x of x)
 
-                        // climb up to the variable declaration skipping binding patterns
-                        var variableDeclaration = <VariableDeclaration>getAncestor(declaration, SyntaxKind.VariableDeclaration);
-                        var container = getEnclosingBlockScopeContainer(variableDeclaration);
+                // climb up to the variable declaration skipping binding patterns
+                var variableDeclaration = <VariableDeclaration>getAncestor(declaration, SyntaxKind.VariableDeclaration);
+                var container = getEnclosingBlockScopeContainer(variableDeclaration);
 
-                        if (variableDeclaration.parent.parent.kind === SyntaxKind.VariableStatement ||
-                            variableDeclaration.parent.parent.kind === SyntaxKind.ForStatement) {
-                            // variable statement/for statement case, use site should not be inside initializer
-                            isUsedBeforeDeclaration = isChildNode(errorLocation, variableDeclaration.initializer, container);
-                        }
-                        else if (variableDeclaration.parent.parent.kind === SyntaxKind.ForOfStatement || 
-                            variableDeclaration.parent.parent.kind === SyntaxKind.ForInStatement) {
-                                // ForIn/ForOf case - use site should not be used in expression part
-                            isUsedBeforeDeclaration = isChildNode(errorLocation, (<ForInStatement>variableDeclaration.parent.parent).expression, container);
-                        }
-                    }
-                    if (isUsedBeforeDeclaration) {
-                        error(errorLocation, Diagnostics.Block_scoped_variable_0_used_before_its_declaration, declarationNameToString(declaration.name));
-                    }
+                if (variableDeclaration.parent.parent.kind === SyntaxKind.VariableStatement ||
+                    variableDeclaration.parent.parent.kind === SyntaxKind.ForStatement) {
+                    // variable statement/for statement case, 
+                    // use site should not be inside variable declaration (initializer of declaration or binding element)
+                    isUsedBeforeDeclaration = isDescendentOf(errorLocation, variableDeclaration, container);
+                }
+                else if (variableDeclaration.parent.parent.kind === SyntaxKind.ForOfStatement ||
+                    variableDeclaration.parent.parent.kind === SyntaxKind.ForInStatement) {
+                    // ForIn/ForOf case - use site should not be used in expression part
+                    var expression = (<ForInStatement>variableDeclaration.parent.parent).expression;
+                    isUsedBeforeDeclaration = isDescendentOf(errorLocation, expression, container);
                 }
             }
-            return result;
+            if (isUsedBeforeDeclaration) {
+                error(errorLocation, Diagnostics.Block_scoped_variable_0_used_before_its_declaration, declarationNameToString(declaration.name));
+            }
         }
 
         /* Starting from 'initial' node walk up the parent chain until 'stopAt' node is reached.
          * If at any point current node is equal to 'parent' node - return true.
-         * Return false if 'stopAt' node is reached.
+         * Return false if 'stopAt' node is reached or isFunctionLike(current) === true.
          */
-        function isChildNode(initial: Node, parent: Node, stopAt: Node): boolean {
+        function isDescendentOf(initial: Node, parent: Node, stopAt: Node): boolean {
             if (!parent) {
                 return false;
             }
-            for (var current = initial; current && current !== stopAt; current = current.parent) {
+            for (var current = initial; current && current !== stopAt && !isFunctionLike(current); current = current.parent) {
                 if (current === parent) {
                     return true;
                 }
diff --git a/tests/baselines/reference/recursiveLetConst.errors.txt b/tests/baselines/reference/recursiveLetConst.errors.txt
index 99a904fe761b3..b02d0819a3f46 100644
--- a/tests/baselines/reference/recursiveLetConst.errors.txt
+++ b/tests/baselines/reference/recursiveLetConst.errors.txt
@@ -7,9 +7,10 @@ tests/cases/compiler/recursiveLetConst.ts(7,16): error TS2448: Block-scoped vari
 tests/cases/compiler/recursiveLetConst.ts(8,15): error TS2448: Block-scoped variable 'v' used before its declaration.
 tests/cases/compiler/recursiveLetConst.ts(9,15): error TS2448: Block-scoped variable 'v' used before its declaration.
 tests/cases/compiler/recursiveLetConst.ts(10,17): error TS2448: Block-scoped variable 'v' used before its declaration.
+tests/cases/compiler/recursiveLetConst.ts(11,11): error TS2448: Block-scoped variable 'x2' used before its declaration.
 
 
-==== tests/cases/compiler/recursiveLetConst.ts (9 errors) ====
+==== tests/cases/compiler/recursiveLetConst.ts (10 errors) ====
     'use strict'
     let x = x + 1;
             ~
@@ -37,4 +38,10 @@ tests/cases/compiler/recursiveLetConst.ts(10,17): error TS2448: Block-scoped var
 !!! error TS2448: Block-scoped variable 'v' used before its declaration.
     for (let [v] of v) { }
                     ~
-!!! error TS2448: Block-scoped variable 'v' used before its declaration.
\ No newline at end of file
+!!! error TS2448: Block-scoped variable 'v' used before its declaration.
+    let [x2 = x2] = []
+              ~~
+!!! error TS2448: Block-scoped variable 'x2' used before its declaration.
+    let z0 = () => z0;
+    let z1 = function () { return z1; }
+    let z2 = { f() { return z2;}}
\ No newline at end of file
diff --git a/tests/baselines/reference/recursiveLetConst.js b/tests/baselines/reference/recursiveLetConst.js
index f34d85d86a9a3..7d9aea3a754d7 100644
--- a/tests/baselines/reference/recursiveLetConst.js
+++ b/tests/baselines/reference/recursiveLetConst.js
@@ -8,7 +8,11 @@ for (let v = v; ; ) { }
 for (let [v] = v; ;) { }
 for (let v in v) { }
 for (let v of v) { }
-for (let [v] of v) { }
+for (let [v] of v) { }
+let [x2 = x2] = []
+let z0 = () => z0;
+let z1 = function () { return z1; }
+let z2 = { f() { return z2;}}
 
 //// [recursiveLetConst.js]
 'use strict';
@@ -26,3 +30,13 @@ for (let v of v) {
 }
 for (let [v] of v) {
 }
+let [x2 = x2] = [];
+let z0 = () => z0;
+let z1 = function () {
+    return z1;
+};
+let z2 = {
+    f() {
+        return z2;
+    }
+};
diff --git a/tests/cases/compiler/recursiveLetConst.ts b/tests/cases/compiler/recursiveLetConst.ts
index c80aa6ef63853..9e00ae22e9468 100644
--- a/tests/cases/compiler/recursiveLetConst.ts
+++ b/tests/cases/compiler/recursiveLetConst.ts
@@ -8,4 +8,8 @@ for (let v = v; ; ) { }
 for (let [v] = v; ;) { }
 for (let v in v) { }
 for (let v of v) { }
-for (let [v] of v) { }
\ No newline at end of file
+for (let [v] of v) { }
+let [x2 = x2] = []
+let z0 = () => z0;
+let z1 = function () { return z1; }
+let z2 = { f() { return z2;}}
\ No newline at end of file