diff --git a/src/compiler/binder.ts b/src/compiler/binder.ts
index 447a7625d38..c0466e7871a 100644
--- a/src/compiler/binder.ts
+++ b/src/compiler/binder.ts
@@ -490,8 +490,8 @@ namespace ts {
                 const saveReturnTarget = currentReturnTarget;
                 const saveActiveLabels = activeLabels;
                 const saveHasExplicitReturn = hasExplicitReturn;
-                const isIIFE = containerFlags & ContainerFlags.IsFunctionExpression && !!getImmediatelyInvokedFunctionExpression(node);
-                // An IIFE is considered part of the containing control flow. Return statements behave
+                const isIIFE = containerFlags & ContainerFlags.IsFunctionExpression && !hasModifier(node, ModifierFlags.Async) && !!getImmediatelyInvokedFunctionExpression(node);
+                // A non-async IIFE is considered part of the containing control flow. Return statements behave
                 // similarly to break statements that exit to a label just past the statement body.
                 if (isIIFE) {
                     currentReturnTarget = createBranchLabel();
diff --git a/tests/baselines/reference/asyncIIFE.js b/tests/baselines/reference/asyncIIFE.js
new file mode 100644
index 00000000000..79779af62f3
--- /dev/null
+++ b/tests/baselines/reference/asyncIIFE.js
@@ -0,0 +1,28 @@
+//// [asyncIIFE.ts]
+
+function f1() {
+    (async () => {
+        await 10
+        throw new Error();
+    })();
+
+    var x = 1;
+}
+
+
+//// [asyncIIFE.js]
+var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
+    return new (P || (P = Promise))(function (resolve, reject) {
+        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
+        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
+        function step(result) { result.done ? resolve(result.value) : new P(function (resolve) { resolve(result.value); }).then(fulfilled, rejected); }
+        step((generator = generator.apply(thisArg, _arguments)).next());
+    });
+};
+function f1() {
+    (() => __awaiter(this, void 0, void 0, function* () {
+        yield 10;
+        throw new Error();
+    }))();
+    var x = 1;
+}
diff --git a/tests/baselines/reference/asyncIIFE.symbols b/tests/baselines/reference/asyncIIFE.symbols
new file mode 100644
index 00000000000..92eb054bff0
--- /dev/null
+++ b/tests/baselines/reference/asyncIIFE.symbols
@@ -0,0 +1,16 @@
+=== tests/cases/compiler/asyncIIFE.ts ===
+
+function f1() {
+>f1 : Symbol(f1, Decl(asyncIIFE.ts, 0, 0))
+
+    (async () => {
+        await 10
+        throw new Error();
+>Error : Symbol(Error, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
+
+    })();
+
+    var x = 1;
+>x : Symbol(x, Decl(asyncIIFE.ts, 7, 7))
+}
+
diff --git a/tests/baselines/reference/asyncIIFE.types b/tests/baselines/reference/asyncIIFE.types
new file mode 100644
index 00000000000..e49ab96681f
--- /dev/null
+++ b/tests/baselines/reference/asyncIIFE.types
@@ -0,0 +1,25 @@
+=== tests/cases/compiler/asyncIIFE.ts ===
+
+function f1() {
+>f1 : () => void
+
+    (async () => {
+>(async () => {        await 10        throw new Error();    })() : Promise<never>
+>(async () => {        await 10        throw new Error();    }) : () => Promise<never>
+>async () => {        await 10        throw new Error();    } : () => Promise<never>
+
+        await 10
+>await 10 : 10
+>10 : 10
+
+        throw new Error();
+>new Error() : Error
+>Error : ErrorConstructor
+
+    })();
+
+    var x = 1;
+>x : number
+>1 : 1
+}
+
diff --git a/tests/cases/compiler/asyncIIFE.ts b/tests/cases/compiler/asyncIIFE.ts
new file mode 100644
index 00000000000..904476d855c
--- /dev/null
+++ b/tests/cases/compiler/asyncIIFE.ts
@@ -0,0 +1,10 @@
+// @target: ES6
+
+function f1() {
+    (async () => {
+        await 10
+        throw new Error();
+    })();
+
+    var x = 1;
+}