diff --git a/src/renderers/shared/fiber/ReactFiberCommitWork.js b/src/renderers/shared/fiber/ReactFiberCommitWork.js
index d859003383..beb773a2e7 100644
--- a/src/renderers/shared/fiber/ReactFiberCommitWork.js
+++ b/src/renderers/shared/fiber/ReactFiberCommitWork.js
@@ -32,12 +32,16 @@ module.exports = function<T, P, I, C>(config : HostConfig<T, P, I, C>) {
   function commitWork(current : ?Fiber, finishedWork : Fiber) : void {
     switch (finishedWork.tag) {
       case ClassComponent: {
+        // Clear updates from current fiber. This must go before the callbacks
+        // are reset, in case an update is triggered from inside a callback. Is
+        // this safe? Relies on the assumption that work is only committed if
+        // the update queue is empty.
+        if (finishedWork.alternate) {
+          finishedWork.alternate.updateQueue = null;
+        }
         if (finishedWork.callbackList) {
           const { callbackList } = finishedWork;
           finishedWork.callbackList = null;
-          if (finishedWork.alternate) {
-            finishedWork.alternate.callbackList = null;
-          }
           callCallbacks(callbackList, finishedWork.stateNode);
         }
         // TODO: Fire componentDidMount/componentDidUpdate, update refs
diff --git a/src/renderers/shared/fiber/ReactFiberCompleteWork.js b/src/renderers/shared/fiber/ReactFiberCompleteWork.js
index 6d6f9598c4..d4687f4574 100644
--- a/src/renderers/shared/fiber/ReactFiberCompleteWork.js
+++ b/src/renderers/shared/fiber/ReactFiberCompleteWork.js
@@ -132,14 +132,14 @@ module.exports = function<T, P, I, C>(config : HostConfig<T, P, I, C>) {
         transferOutput(workInProgress.child, workInProgress);
         // Don't use the state queue to compute the memoized state. We already
         // merged it and assigned it to the instance. Transfer it from there.
-        const state = workInProgress.stateNode.state;
+        // Also need to transfer the props, because pendingProps will be null
+        // in the case of an update
+        const { state, props } = workInProgress.stateNode;
         workInProgress.memoizedState = state;
+        workInProgress.memoizedProps = props;
         // Transfer update queue to callbackList field so callbacks can be
         // called during commit phase.
         workInProgress.callbackList = workInProgress.updateQueue;
-        if (current) {
-          current.callbackList = workInProgress.callbackList;
-        }
         markForPostEffect(workInProgress);
         return null;
       case HostContainer:
diff --git a/src/renderers/shared/fiber/ReactFiberScheduler.js b/src/renderers/shared/fiber/ReactFiberScheduler.js
index 122a64fcd5..874c24928c 100644
--- a/src/renderers/shared/fiber/ReactFiberScheduler.js
+++ b/src/renderers/shared/fiber/ReactFiberScheduler.js
@@ -144,9 +144,6 @@ module.exports = function<T, P, I, C>(config : HostConfig<T, P, I, C>) {
       // to the system not to redo any work here.
       workInProgress.pendingProps = null;
       workInProgress.updateQueue = null;
-      if (current) {
-        current.updateQueue = null;
-      }
 
       const returnFiber = workInProgress.return;
 
diff --git a/src/renderers/shared/fiber/__tests__/ReactIncremental-test.js b/src/renderers/shared/fiber/__tests__/ReactIncremental-test.js
index 5213acfa48..c543de4549 100644
--- a/src/renderers/shared/fiber/__tests__/ReactIncremental-test.js
+++ b/src/renderers/shared/fiber/__tests__/ReactIncremental-test.js
@@ -654,6 +654,44 @@ describe('ReactIncremental', () => {
     expect(instance.state.num).toEqual(6);
   });
 
+  it('can call setState inside update callback', () => {
+    let instance;
+    class Bar extends React.Component {
+      constructor() {
+        super();
+        this.state = { num: 1 };
+        instance = this;
+      }
+      render() {
+        return <div>{this.props.children}</div>;
+      }
+    }
+
+    function Foo({ multiplier }) {
+      return (
+        <div>
+          <Bar multiplier={multiplier} />
+        </div>
+      );
+    }
+
+    function updater(state, props) {
+      return { num: state.num * props.multiplier };
+    }
+
+    function callback() {
+      this.setState({ called: true });
+    }
+
+    ReactNoop.render(<Foo multiplier={2} />);
+    ReactNoop.flush();
+    instance.setState(updater);
+    instance.setState(updater, callback);
+    ReactNoop.flush();
+    expect(instance.state.num).toEqual(4);
+    expect(instance.state.called).toEqual(true);
+  });
+
   it('can replaceState', () => {
     let instance;
     const Bar = React.createClass({