diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 889b387d4f4..b0c0305670e 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -4813,17 +4813,25 @@ module ts {
             return undefined;
         }
 
-        // In a typed function call, an argument expression is contextually typed by the type of the corresponding parameter.
-        function getContextualTypeForArgument(node: Expression): Type {
-            var callExpression = <CallExpression>node.parent;
-            var argIndex = indexOf(callExpression.arguments, node);
+        // In a typed function call, an argument or substitution expression is contextually typed by the type of the corresponding parameter.
+        function getContextualTypeForArgument(callTarget: CallLikeExpression, arg: Expression): Type {
+            var args = getEffectiveCallArguments(callTarget);
+            var argIndex = indexOf(args, arg);
             if (argIndex >= 0) {
-                var signature = getResolvedSignature(callExpression);
+                var signature = getResolvedSignature(callTarget);
                 return getTypeAtPosition(signature, argIndex);
             }
             return undefined;
         }
 
+        function getContextualTypeForSubstitutionExpression(template: TemplateExpression, substitutionExpression: Expression) {
+            if (template.parent.kind === SyntaxKind.TaggedTemplateExpression) {
+                return getContextualTypeForArgument(<TaggedTemplateExpression>template.parent, substitutionExpression);
+            }
+
+            return undefined;
+        }
+
         function getContextualTypeForBinaryOperand(node: Expression): Type {
             var binaryExpression = <BinaryExpression>node.parent;
             var operator = binaryExpression.operator;
@@ -4959,7 +4967,7 @@ module ts {
                     return getContextualTypeForReturnExpression(node);
                 case SyntaxKind.CallExpression:
                 case SyntaxKind.NewExpression:
-                    return getContextualTypeForArgument(node);
+                    return getContextualTypeForArgument(<CallExpression>parent, node);
                 case SyntaxKind.TypeAssertionExpression:
                     return getTypeFromTypeNode((<TypeAssertion>parent).type);
                 case SyntaxKind.BinaryExpression:
@@ -4970,6 +4978,9 @@ module ts {
                     return getContextualTypeForElementExpression(node);
                 case SyntaxKind.ConditionalExpression:
                     return getContextualTypeForConditionalOperand(node);
+                case SyntaxKind.TemplateSpan:
+                    Debug.assert(parent.parent.kind === SyntaxKind.TemplateExpression);
+                    return getContextualTypeForSubstitutionExpression(<TemplateExpression>parent.parent, node);
             }
             return undefined;
         }
@@ -5571,7 +5582,7 @@ module ts {
         }
 
         /**
-         * Returns the effective arguments for an expression that works like a function invokation.
+         * Returns the effective arguments for an expression that works like a function invocation.
          *
          * If 'node' is a CallExpression or a NewExpression, then its argument list is returned.
          * If 'node' is a TaggedTemplateExpression, a new argument list is constructed from the substitution
@@ -8636,6 +8647,8 @@ module ts {
                 case SyntaxKind.CallExpression:
                 case SyntaxKind.NewExpression:
                 case SyntaxKind.TaggedTemplateExpression:
+                case SyntaxKind.TemplateExpression:
+                case SyntaxKind.TemplateSpan:
                 case SyntaxKind.TypeAssertionExpression:
                 case SyntaxKind.ParenthesizedExpression:
                 case SyntaxKind.TypeOfExpression:
diff --git a/tests/baselines/reference/taggedTemplateContextualTyping1.js b/tests/baselines/reference/taggedTemplateContextualTyping1.js
new file mode 100644
index 00000000000..1d8b79e4c32
--- /dev/null
+++ b/tests/baselines/reference/taggedTemplateContextualTyping1.js
@@ -0,0 +1,52 @@
+//// [taggedTemplateContextualTyping1.ts]
+
+type FuncType = (x: <T>(p: T) => T) => typeof x;
+
+function tempTag1<T>(templateStrs: TemplateStringsArray, f: FuncType, x: T): T;
+function tempTag1<T>(templateStrs: TemplateStringsArray, f: FuncType, h: FuncType, x: T): T;
+function tempTag1<T>(...rest: any[]): T {
+    return undefined;
+}
+
+// If contextual typing takes place, these functions should work.
+// Otherwise, the arrow functions' parameters will be typed as 'any',
+// and it is an error to invoke an any-typed value with type arguments,
+// so this test will error.
+tempTag1 `${ x => { x<number>(undefined); return x; }                   }${ y => { y<number>(undefined); return y; }                  }${ 10 }`;
+tempTag1 `${ x => { x<number>(undefined); return x; }                   }${ (y: <T>(p: T) => T) => { y<number>(undefined); return y } }${ undefined }`;
+tempTag1 `${ (x: <T>(p: T) => T) => { x<number>(undefined); return x; } }${ y => { y<number>(undefined); return y; }                  }${ undefined }`;
+
+
+//// [taggedTemplateContextualTyping1.js]
+function tempTag1() {
+    var rest = [];
+    for (var _i = 0; _i < arguments.length; _i++) {
+        rest[_i - 0] = arguments[_i];
+    }
+    return undefined;
+}
+// If contextual typing takes place, these functions should work.
+// Otherwise, the arrow functions' parameters will be typed as 'any',
+// and it is an error to invoke an any-typed value with type arguments,
+// so this test will error.
+tempTag1 `${function (x) {
+    x(undefined);
+    return x;
+}}${function (y) {
+    y(undefined);
+    return y;
+}}${10}`;
+tempTag1 `${function (x) {
+    x(undefined);
+    return x;
+}}${function (y) {
+    y(undefined);
+    return y;
+}}${undefined}`;
+tempTag1 `${function (x) {
+    x(undefined);
+    return x;
+}}${function (y) {
+    y(undefined);
+    return y;
+}}${undefined}`;
diff --git a/tests/baselines/reference/taggedTemplateContextualTyping1.types b/tests/baselines/reference/taggedTemplateContextualTyping1.types
new file mode 100644
index 00000000000..a87d5eaa7a4
--- /dev/null
+++ b/tests/baselines/reference/taggedTemplateContextualTyping1.types
@@ -0,0 +1,104 @@
+=== tests/cases/conformance/expressions/contextualTyping/taggedTemplateContextualTyping1.ts ===
+
+type FuncType = (x: <T>(p: T) => T) => typeof x;
+>FuncType : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : <T>(p: T) => T
+>T : T
+>p : T
+>T : T
+>T : T
+>x : <T>(p: T) => T
+
+function tempTag1<T>(templateStrs: TemplateStringsArray, f: FuncType, x: T): T;
+>tempTag1 : { <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, h: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; }
+>T : T
+>templateStrs : TemplateStringsArray
+>TemplateStringsArray : TemplateStringsArray
+>f : (x: <T>(p: T) => T) => <T>(p: T) => T
+>FuncType : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : T
+>T : T
+>T : T
+
+function tempTag1<T>(templateStrs: TemplateStringsArray, f: FuncType, h: FuncType, x: T): T;
+>tempTag1 : { <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, h: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; }
+>T : T
+>templateStrs : TemplateStringsArray
+>TemplateStringsArray : TemplateStringsArray
+>f : (x: <T>(p: T) => T) => <T>(p: T) => T
+>FuncType : (x: <T>(p: T) => T) => <T>(p: T) => T
+>h : (x: <T>(p: T) => T) => <T>(p: T) => T
+>FuncType : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : T
+>T : T
+>T : T
+
+function tempTag1<T>(...rest: any[]): T {
+>tempTag1 : { <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, h: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; }
+>T : T
+>rest : any[]
+>T : T
+
+    return undefined;
+>undefined : undefined
+}
+
+// If contextual typing takes place, these functions should work.
+// Otherwise, the arrow functions' parameters will be typed as 'any',
+// and it is an error to invoke an any-typed value with type arguments,
+// so this test will error.
+tempTag1 `${ x => { x<number>(undefined); return x; }                   }${ y => { y<number>(undefined); return y; }                  }${ 10 }`;
+>tempTag1 : { <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, h: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; }
+>x => { x<number>(undefined); return x; } : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : <T>(p: T) => T
+>x<number>(undefined) : number
+>x : <T>(p: T) => T
+>undefined : undefined
+>x : <T>(p: T) => T
+>y => { y<number>(undefined); return y; } : (y: <T>(p: T) => T) => <T>(p: T) => T
+>y : <T>(p: T) => T
+>y<number>(undefined) : number
+>y : <T>(p: T) => T
+>undefined : undefined
+>y : <T>(p: T) => T
+
+tempTag1 `${ x => { x<number>(undefined); return x; }                   }${ (y: <T>(p: T) => T) => { y<number>(undefined); return y } }${ undefined }`;
+>tempTag1 : { <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, h: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; }
+>x => { x<number>(undefined); return x; } : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : <T>(p: T) => T
+>x<number>(undefined) : number
+>x : <T>(p: T) => T
+>undefined : undefined
+>x : <T>(p: T) => T
+>(y: <T>(p: T) => T) => { y<number>(undefined); return y } : (y: <T>(p: T) => T) => <T>(p: T) => T
+>y : <T>(p: T) => T
+>T : T
+>p : T
+>T : T
+>T : T
+>y<number>(undefined) : number
+>y : <T>(p: T) => T
+>undefined : undefined
+>y : <T>(p: T) => T
+>undefined : undefined
+
+tempTag1 `${ (x: <T>(p: T) => T) => { x<number>(undefined); return x; } }${ y => { y<number>(undefined); return y; }                  }${ undefined }`;
+>tempTag1 : { <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; <T>(templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, h: (x: <T>(p: T) => T) => <T>(p: T) => T, x: T): T; }
+>(x: <T>(p: T) => T) => { x<number>(undefined); return x; } : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : <T>(p: T) => T
+>T : T
+>p : T
+>T : T
+>T : T
+>x<number>(undefined) : number
+>x : <T>(p: T) => T
+>undefined : undefined
+>x : <T>(p: T) => T
+>y => { y<number>(undefined); return y; } : (y: <T>(p: T) => T) => <T>(p: T) => T
+>y : <T>(p: T) => T
+>y<number>(undefined) : number
+>y : <T>(p: T) => T
+>undefined : undefined
+>y : <T>(p: T) => T
+>undefined : undefined
+
diff --git a/tests/baselines/reference/taggedTemplateContextualTyping2.js b/tests/baselines/reference/taggedTemplateContextualTyping2.js
new file mode 100644
index 00000000000..df026399c10
--- /dev/null
+++ b/tests/baselines/reference/taggedTemplateContextualTyping2.js
@@ -0,0 +1,46 @@
+//// [taggedTemplateContextualTyping2.ts]
+
+type FuncType1 = (x: <T>(p: T) => T) => typeof x;
+type FuncType2 = (x: <S, T>(p: T) => T) => typeof x;
+
+function tempTag2(templateStrs: TemplateStringsArray, f: FuncType1, x: number): number;
+function tempTag2(templateStrs: TemplateStringsArray, f: FuncType2, h: FuncType2, x: string): string;
+function tempTag2(...rest: any[]): any {
+    return undefined;
+}
+
+// If contextual typing takes place, these functions should work.
+// Otherwise, the arrow functions' parameters will be typed as 'any',
+// and it is an error to invoke an any-typed value with type arguments,
+// so this test will error.
+tempTag2 `${ x => { x<number>(undefined); return x; }         }${ 0 }`;
+tempTag2 `${ x => { x<number, string>(undefined); return x; } }${ y => { y<string, number>(null); return y; } }${ "hello" }`;
+tempTag2 `${ x => { x<number, string>(undefined); return x; } }${ undefined }${ "hello" }`;
+
+//// [taggedTemplateContextualTyping2.js]
+function tempTag2() {
+    var rest = [];
+    for (var _i = 0; _i < arguments.length; _i++) {
+        rest[_i - 0] = arguments[_i];
+    }
+    return undefined;
+}
+// If contextual typing takes place, these functions should work.
+// Otherwise, the arrow functions' parameters will be typed as 'any',
+// and it is an error to invoke an any-typed value with type arguments,
+// so this test will error.
+tempTag2 `${function (x) {
+    x(undefined);
+    return x;
+}}${0}`;
+tempTag2 `${function (x) {
+    x(undefined);
+    return x;
+}}${function (y) {
+    y(null);
+    return y;
+}}${"hello"}`;
+tempTag2 `${function (x) {
+    x(undefined);
+    return x;
+}}${undefined}${"hello"}`;
diff --git a/tests/baselines/reference/taggedTemplateContextualTyping2.types b/tests/baselines/reference/taggedTemplateContextualTyping2.types
new file mode 100644
index 00000000000..9ca7386dc34
--- /dev/null
+++ b/tests/baselines/reference/taggedTemplateContextualTyping2.types
@@ -0,0 +1,84 @@
+=== tests/cases/conformance/expressions/contextualTyping/taggedTemplateContextualTyping2.ts ===
+
+type FuncType1 = (x: <T>(p: T) => T) => typeof x;
+>FuncType1 : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : <T>(p: T) => T
+>T : T
+>p : T
+>T : T
+>T : T
+>x : <T>(p: T) => T
+
+type FuncType2 = (x: <S, T>(p: T) => T) => typeof x;
+>FuncType2 : (x: <S, T>(p: T) => T) => <S, T>(p: T) => T
+>x : <S, T>(p: T) => T
+>S : S
+>T : T
+>p : T
+>T : T
+>T : T
+>x : <S, T>(p: T) => T
+
+function tempTag2(templateStrs: TemplateStringsArray, f: FuncType1, x: number): number;
+>tempTag2 : { (templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: number): number; (templateStrs: TemplateStringsArray, f: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, h: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, x: string): string; }
+>templateStrs : TemplateStringsArray
+>TemplateStringsArray : TemplateStringsArray
+>f : (x: <T>(p: T) => T) => <T>(p: T) => T
+>FuncType1 : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : number
+
+function tempTag2(templateStrs: TemplateStringsArray, f: FuncType2, h: FuncType2, x: string): string;
+>tempTag2 : { (templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: number): number; (templateStrs: TemplateStringsArray, f: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, h: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, x: string): string; }
+>templateStrs : TemplateStringsArray
+>TemplateStringsArray : TemplateStringsArray
+>f : (x: <S, T>(p: T) => T) => <S, T>(p: T) => T
+>FuncType2 : (x: <S, T>(p: T) => T) => <S, T>(p: T) => T
+>h : (x: <S, T>(p: T) => T) => <S, T>(p: T) => T
+>FuncType2 : (x: <S, T>(p: T) => T) => <S, T>(p: T) => T
+>x : string
+
+function tempTag2(...rest: any[]): any {
+>tempTag2 : { (templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: number): number; (templateStrs: TemplateStringsArray, f: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, h: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, x: string): string; }
+>rest : any[]
+
+    return undefined;
+>undefined : undefined
+}
+
+// If contextual typing takes place, these functions should work.
+// Otherwise, the arrow functions' parameters will be typed as 'any',
+// and it is an error to invoke an any-typed value with type arguments,
+// so this test will error.
+tempTag2 `${ x => { x<number>(undefined); return x; }         }${ 0 }`;
+>tempTag2 : { (templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: number): number; (templateStrs: TemplateStringsArray, f: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, h: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, x: string): string; }
+>x => { x<number>(undefined); return x; } : (x: <T>(p: T) => T) => <T>(p: T) => T
+>x : <T>(p: T) => T
+>x<number>(undefined) : number
+>x : <T>(p: T) => T
+>undefined : undefined
+>x : <T>(p: T) => T
+
+tempTag2 `${ x => { x<number, string>(undefined); return x; } }${ y => { y<string, number>(null); return y; } }${ "hello" }`;
+>tempTag2 : { (templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: number): number; (templateStrs: TemplateStringsArray, f: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, h: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, x: string): string; }
+>x => { x<number, string>(undefined); return x; } : (x: <S, T>(p: T) => T) => <S, T>(p: T) => T
+>x : <S, T>(p: T) => T
+>x<number, string>(undefined) : string
+>x : <S, T>(p: T) => T
+>undefined : undefined
+>x : <S, T>(p: T) => T
+>y => { y<string, number>(null); return y; } : (y: <S, T>(p: T) => T) => <S, T>(p: T) => T
+>y : <S, T>(p: T) => T
+>y<string, number>(null) : number
+>y : <S, T>(p: T) => T
+>y : <S, T>(p: T) => T
+
+tempTag2 `${ x => { x<number, string>(undefined); return x; } }${ undefined }${ "hello" }`;
+>tempTag2 : { (templateStrs: TemplateStringsArray, f: (x: <T>(p: T) => T) => <T>(p: T) => T, x: number): number; (templateStrs: TemplateStringsArray, f: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, h: (x: <S, T>(p: T) => T) => <S, T>(p: T) => T, x: string): string; }
+>x => { x<number, string>(undefined); return x; } : (x: <S, T>(p: T) => T) => <S, T>(p: T) => T
+>x : <S, T>(p: T) => T
+>x<number, string>(undefined) : string
+>x : <S, T>(p: T) => T
+>undefined : undefined
+>x : <S, T>(p: T) => T
+>undefined : undefined
+
diff --git a/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
new file mode 100644
index 00000000000..b38a70ca18b
--- /dev/null
+++ b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
@@ -0,0 +1,15 @@
+tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts(6,5): error TS1159: Tagged templates are only available when targeting ECMAScript 6 and higher.
+tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts(6,31): error TS2322: Type 'string' is not assignable to type 'number'.
+
+
+==== tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts (2 errors) ====
+    
+    
+    function foo(...rest: any[]) {
+    }
+    
+    foo `${function (x: number) { x = "bad"; } }`;
+        ~~~
+!!! error TS1159: Tagged templates are only available when targeting ECMAScript 6 and higher.
+                                  ~
+!!! error TS2322: Type 'string' is not assignable to type 'number'.
\ No newline at end of file
diff --git a/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt
new file mode 100644
index 00000000000..6b0f4b642ff
--- /dev/null
+++ b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt
@@ -0,0 +1,11 @@
+tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts(5,31): error TS2322: Type 'string' is not assignable to type 'number'.
+
+
+==== tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts (1 errors) ====
+    
+    function foo(...rest: any[]) {
+    }
+    
+    foo `${function (x: number) { x = "bad"; } }`;
+                                  ~
+!!! error TS2322: Type 'string' is not assignable to type 'number'.
\ No newline at end of file
diff --git a/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.js b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.js
new file mode 100644
index 00000000000..a1d3479f5c2
--- /dev/null
+++ b/tests/baselines/reference/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.js
@@ -0,0 +1,17 @@
+//// [taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts]
+
+function foo(...rest: any[]) {
+}
+
+foo `${function (x: number) { x = "bad"; } }`;
+
+//// [taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.js]
+function foo() {
+    var rest = [];
+    for (var _i = 0; _i < arguments.length; _i++) {
+        rest[_i - 0] = arguments[_i];
+    }
+}
+foo `${function (x) {
+    x = "bad";
+}}`;
diff --git a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
new file mode 100644
index 00000000000..7204f32dba2
--- /dev/null
+++ b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.errors.txt
@@ -0,0 +1,9 @@
+tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts(3,27): error TS2322: Type 'string' is not assignable to type 'number'.
+
+
+==== tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts (1 errors) ====
+    
+    
+    `${function (x: number) { x = "bad"; } }`;
+                              ~
+!!! error TS2322: Type 'string' is not assignable to type 'number'.
\ No newline at end of file
diff --git a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.js b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.js
new file mode 100644
index 00000000000..ef113312060
--- /dev/null
+++ b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.js
@@ -0,0 +1,9 @@
+//// [templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts]
+
+
+`${function (x: number) { x = "bad"; } }`;
+
+//// [templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.js]
+"" + function (x) {
+    x = "bad";
+};
diff --git a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt
new file mode 100644
index 00000000000..9fece57ef5e
--- /dev/null
+++ b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.errors.txt
@@ -0,0 +1,8 @@
+tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts(2,27): error TS2322: Type 'string' is not assignable to type 'number'.
+
+
+==== tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts (1 errors) ====
+    
+    `${function (x: number) { x = "bad"; } }`;
+                              ~
+!!! error TS2322: Type 'string' is not assignable to type 'number'.
\ No newline at end of file
diff --git a/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.js b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.js
new file mode 100644
index 00000000000..9ce47348dc1
--- /dev/null
+++ b/tests/baselines/reference/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.js
@@ -0,0 +1,8 @@
+//// [templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts]
+
+`${function (x: number) { x = "bad"; } }`;
+
+//// [templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.js]
+`${function (x) {
+    x = "bad";
+}}`;
diff --git a/tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts b/tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts
new file mode 100644
index 00000000000..210f3eebbd7
--- /dev/null
+++ b/tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts
@@ -0,0 +1,6 @@
+
+
+function foo(...rest: any[]) {
+}
+
+foo `${function (x: number) { x = "bad"; } }`;
\ No newline at end of file
diff --git a/tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts b/tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts
new file mode 100644
index 00000000000..0a51fea491f
--- /dev/null
+++ b/tests/cases/conformance/es6/templates/taggedTemplateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts
@@ -0,0 +1,6 @@
+//@target: es6
+
+function foo(...rest: any[]) {
+}
+
+foo `${function (x: number) { x = "bad"; } }`;
\ No newline at end of file
diff --git a/tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts b/tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts
new file mode 100644
index 00000000000..26995f21e58
--- /dev/null
+++ b/tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpression.ts
@@ -0,0 +1,3 @@
+
+
+`${function (x: number) { x = "bad"; } }`;
\ No newline at end of file
diff --git a/tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts b/tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts
new file mode 100644
index 00000000000..4803285a24a
--- /dev/null
+++ b/tests/cases/conformance/es6/templates/templateStringsWithTypeErrorInFunctionExpressionsInSubstitutionExpressionES6.ts
@@ -0,0 +1,3 @@
+//@target: es6
+
+`${function (x: number) { x = "bad"; } }`;
\ No newline at end of file
diff --git a/tests/cases/conformance/expressions/contextualTyping/taggedTemplateContextualTyping1.ts b/tests/cases/conformance/expressions/contextualTyping/taggedTemplateContextualTyping1.ts
new file mode 100644
index 00000000000..c15d911ee52
--- /dev/null
+++ b/tests/cases/conformance/expressions/contextualTyping/taggedTemplateContextualTyping1.ts
@@ -0,0 +1,17 @@
+// @target: ES6
+
+type FuncType = (x: <T>(p: T) => T) => typeof x;
+
+function tempTag1<T>(templateStrs: TemplateStringsArray, f: FuncType, x: T): T;
+function tempTag1<T>(templateStrs: TemplateStringsArray, f: FuncType, h: FuncType, x: T): T;
+function tempTag1<T>(...rest: any[]): T {
+    return undefined;
+}
+
+// If contextual typing takes place, these functions should work.
+// Otherwise, the arrow functions' parameters will be typed as 'any',
+// and it is an error to invoke an any-typed value with type arguments,
+// so this test will error.
+tempTag1 `${ x => { x<number>(undefined); return x; }                   }${ y => { y<number>(undefined); return y; }                  }${ 10 }`;
+tempTag1 `${ x => { x<number>(undefined); return x; }                   }${ (y: <T>(p: T) => T) => { y<number>(undefined); return y } }${ undefined }`;
+tempTag1 `${ (x: <T>(p: T) => T) => { x<number>(undefined); return x; } }${ y => { y<number>(undefined); return y; }                  }${ undefined }`;
diff --git a/tests/cases/conformance/expressions/contextualTyping/taggedTemplateContextualTyping2.ts b/tests/cases/conformance/expressions/contextualTyping/taggedTemplateContextualTyping2.ts
new file mode 100644
index 00000000000..24fcf4a04df
--- /dev/null
+++ b/tests/cases/conformance/expressions/contextualTyping/taggedTemplateContextualTyping2.ts
@@ -0,0 +1,18 @@
+// @target: ES6
+
+type FuncType1 = (x: <T>(p: T) => T) => typeof x;
+type FuncType2 = (x: <S, T>(p: T) => T) => typeof x;
+
+function tempTag2(templateStrs: TemplateStringsArray, f: FuncType1, x: number): number;
+function tempTag2(templateStrs: TemplateStringsArray, f: FuncType2, h: FuncType2, x: string): string;
+function tempTag2(...rest: any[]): any {
+    return undefined;
+}
+
+// If contextual typing takes place, these functions should work.
+// Otherwise, the arrow functions' parameters will be typed as 'any',
+// and it is an error to invoke an any-typed value with type arguments,
+// so this test will error.
+tempTag2 `${ x => { x<number>(undefined); return x; }         }${ 0 }`;
+tempTag2 `${ x => { x<number, string>(undefined); return x; } }${ y => { y<string, number>(null); return y; } }${ "hello" }`;
+tempTag2 `${ x => { x<number, string>(undefined); return x; } }${ undefined }${ "hello" }`;
\ No newline at end of file
diff --git a/tests/cases/fourslash/quickInfoForContextuallyTypedFunctionInTaggedTemplateExpression1.ts b/tests/cases/fourslash/quickInfoForContextuallyTypedFunctionInTaggedTemplateExpression1.ts
new file mode 100644
index 00000000000..ce6b454843a
--- /dev/null
+++ b/tests/cases/fourslash/quickInfoForContextuallyTypedFunctionInTaggedTemplateExpression1.ts
@@ -0,0 +1,19 @@
+/// <reference path="fourslash.ts" />
+
+////function tempTag1<T>(templateStrs: TemplateStringsArray, f: (x: T) => T, x: T): T;
+////function tempTag1<T>(templateStrs: TemplateStringsArray, f: (x: T) => T, h: (y: T) => T, x: T): T;
+////function tempTag1<T>(...rest: any[]): T {
+////    return undefined;
+////}
+////
+////tempTag1 `${ x => /*0*/x }${ 10 }`;
+////tempTag1 `${ x => /*1*/x }${ x => /*2*/x }${ 10 }`;
+////tempTag1 `${ x => /*3*/x }${ (x: number) => /*4*/x }${ undefined }`;
+////tempTag1 `${ (x: number) => /*5*/x }${ x => /*6*/x }${ undefined }`;
+
+var markers = test.markers();
+
+markers.forEach(marker => {
+    goTo.position(marker.position);
+    verify.quickInfoIs("(parameter) x: number");
+});
\ No newline at end of file
diff --git a/tests/cases/fourslash/quickInfoForContextuallyTypedFunctionInTaggedTemplateExpression2.ts b/tests/cases/fourslash/quickInfoForContextuallyTypedFunctionInTaggedTemplateExpression2.ts
new file mode 100644
index 00000000000..d878d601416
--- /dev/null
+++ b/tests/cases/fourslash/quickInfoForContextuallyTypedFunctionInTaggedTemplateExpression2.ts
@@ -0,0 +1,31 @@
+/// <reference path="fourslash.ts" />
+
+////function tempTag2(templateStrs: TemplateStringsArray, f: (x: number) => number, x: number): number;
+////function tempTag2(templateStrs: TemplateStringsArray, f: (x: string) => string, h: (y: string) => string, x: string): string;
+////function tempTag2(...rest: any[]): any {
+////    return undefined;
+////}
+////
+////tempTag2 `${ x => /*0*/x }${ 0 }`;
+////tempTag2 `${ /*1*/x => /*2*/x }${ undefined }`;
+////tempTag2 `${ x => /*3*/x }${ x => /*4*/x }${ "hello" }`;
+////tempTag2 `${ x => /*5*/x }${ undefined }${ "hello" }`;
+
+// The first group of parameters, [0, 2], should all be contextually typed as 'number'.
+// The second group, [3, 5], should be typed as 'string'.
+var numTypedVariableCount = 3;
+var strTypedVariableCount = 3;
+
+if (numTypedVariableCount + strTypedVariableCount !== test.markers().length) {
+    throw "Unexpected number of markers in file.";
+}
+
+for (var i = 0; i < numTypedVariableCount; i++) {
+    goTo.marker("" + i);
+    verify.quickInfoIs("(parameter) x: number");
+}
+
+for (var i = 0; i < strTypedVariableCount; i++) {
+    goTo.marker("" + (i + numTypedVariableCount));
+    verify.quickInfoIs("(parameter) x: string");
+}
\ No newline at end of file