diff --git a/src/compiler/parser.ts b/src/compiler/parser.ts
index 8a6743090f9..ffcd1b1255e 100644
--- a/src/compiler/parser.ts
+++ b/src/compiler/parser.ts
@@ -5986,6 +5986,9 @@ namespace ts {
                     case SyntaxKind.FunctionKeyword:
                     case SyntaxKind.ClassKeyword:
                     case SyntaxKind.EnumKeyword:
+                    // Include 'default' for error recovery.
+                    // falls through
+                    case SyntaxKind.DefaultKeyword:
                         return true;
 
                     // 'declare', 'module', 'namespace', 'interface'* and 'type' are all legal JavaScript identifiers;
@@ -6084,9 +6087,10 @@ namespace ts {
                 case SyntaxKind.ThrowKeyword:
                 case SyntaxKind.TryKeyword:
                 case SyntaxKind.DebuggerKeyword:
-                // 'catch' and 'finally' do not actually indicate that the code is part of a statement,
+                // 'default', 'catch' and 'finally' do not actually indicate that the code is part of a statement,
                 // however, we say they are here so that we may gracefully parse them and error later.
                 // falls through
+                case SyntaxKind.DefaultKeyword:
                 case SyntaxKind.CatchKeyword:
                 case SyntaxKind.FinallyKeyword:
                     return true;
@@ -6197,6 +6201,9 @@ namespace ts {
                 case SyntaxKind.StaticKeyword:
                 case SyntaxKind.ReadonlyKeyword:
                 case SyntaxKind.GlobalKeyword:
+                // Include 'default' for error recovery.
+                // falls through
+                case SyntaxKind.DefaultKeyword:
                     if (isStartOfDeclaration()) {
                         return parseDeclaration();
                     }
diff --git a/tests/baselines/reference/defaultKeywordWithoutExport2.errors.txt b/tests/baselines/reference/defaultKeywordWithoutExport2.errors.txt
index 2ba3b55eb26..237cf648a1a 100644
--- a/tests/baselines/reference/defaultKeywordWithoutExport2.errors.txt
+++ b/tests/baselines/reference/defaultKeywordWithoutExport2.errors.txt
@@ -1,12 +1,9 @@
-tests/cases/compiler/defaultKeywordWithoutExport2.ts(1,1): error TS1128: Declaration or statement expected.
-tests/cases/compiler/defaultKeywordWithoutExport2.ts(1,18): error TS1003: Identifier expected.
+tests/cases/compiler/defaultKeywordWithoutExport2.ts(1,1): error TS1029: 'export' modifier must precede 'default' modifier.
 
 
-==== tests/cases/compiler/defaultKeywordWithoutExport2.ts (2 errors) ====
+==== tests/cases/compiler/defaultKeywordWithoutExport2.ts (1 errors) ====
     default function () {
     ~~~~~~~
-!!! error TS1128: Declaration or statement expected.
-                     ~
-!!! error TS1003: Identifier expected.
+!!! error TS1029: 'export' modifier must precede 'default' modifier.
     
     }
\ No newline at end of file
diff --git a/tests/baselines/reference/defaultKeywordWithoutExport2.js b/tests/baselines/reference/defaultKeywordWithoutExport2.js
index 0f5dfe5d2a7..bc0315744b9 100644
--- a/tests/baselines/reference/defaultKeywordWithoutExport2.js
+++ b/tests/baselines/reference/defaultKeywordWithoutExport2.js
@@ -4,5 +4,5 @@ default function () {
 }
 
 //// [defaultKeywordWithoutExport2.js]
-function () {
+default function () {
 }
diff --git a/tests/baselines/reference/defaultKeywordWithoutExport2.symbols b/tests/baselines/reference/defaultKeywordWithoutExport2.symbols
index fb8a0ec6ce7..b4470abfe26 100644
--- a/tests/baselines/reference/defaultKeywordWithoutExport2.symbols
+++ b/tests/baselines/reference/defaultKeywordWithoutExport2.symbols
@@ -1,5 +1,5 @@
 === tests/cases/compiler/defaultKeywordWithoutExport2.ts ===
 default function () {
-> : Symbol((Missing), Decl(defaultKeywordWithoutExport2.ts, 0, 7))
-
-}
+No type information for this code.
+No type information for this code.}
+No type information for this code.
\ No newline at end of file
diff --git a/tests/baselines/reference/defaultKeywordWithoutExport2.types b/tests/baselines/reference/defaultKeywordWithoutExport2.types
index 3272127383e..b4470abfe26 100644
--- a/tests/baselines/reference/defaultKeywordWithoutExport2.types
+++ b/tests/baselines/reference/defaultKeywordWithoutExport2.types
@@ -1,5 +1,5 @@
 === tests/cases/compiler/defaultKeywordWithoutExport2.ts ===
 default function () {
-> : () => void
-
-}
+No type information for this code.
+No type information for this code.}
+No type information for this code.
\ No newline at end of file