diff --git a/src/testRunner/tsconfig.json b/src/testRunner/tsconfig.json
index 5f8b3e87ec9..76bda690009 100644
--- a/src/testRunner/tsconfig.json
+++ b/src/testRunner/tsconfig.json
@@ -109,6 +109,7 @@
         "unittests/tsbuild/transitiveReferences.ts",
         "unittests/tsbuild/watchEnvironment.ts",
         "unittests/tsbuild/watchMode.ts",
+        "unittests/tsc/declarationEmit.ts",
         "unittests/tscWatch/consoleClearing.ts",
         "unittests/tscWatch/emit.ts",
         "unittests/tscWatch/emitAndErrorUpdates.ts",
diff --git a/src/testRunner/unittests/tsc/declarationEmit.ts b/src/testRunner/unittests/tsc/declarationEmit.ts
new file mode 100644
index 00000000000..4ec2819a734
--- /dev/null
+++ b/src/testRunner/unittests/tsc/declarationEmit.ts
@@ -0,0 +1,73 @@
+namespace ts {
+    describe("unittests:: tsc:: declarationEmit::", () => {
+        verifyTsc({
+            scenario: "declarationEmit",
+            subScenario: "when same version is referenced through source and another symlinked package",
+            fs: () => {
+                const fsaPackageJson = utils.dedent`
+                    {
+                        "name": "typescript-fsa",
+                        "version": "3.0.0-beta-2"
+                    }`;
+                const fsaIndex = utils.dedent`
+                    export interface Action<Payload> {
+                        type: string;
+                        payload: Payload;
+                    }
+                    export declare type ActionCreator<Payload> = {
+                        type: string;
+                        (payload: Payload): Action<Payload>;
+                    }
+                    export interface ActionCreatorFactory {
+                        <Payload = void>(type: string): ActionCreator<Payload>;
+                    }
+                    export declare function actionCreatorFactory(prefix?: string | null): ActionCreatorFactory;
+                    export default actionCreatorFactory;`;
+                return loadProjectFromFiles({
+                    "/plugin-two/index.d.ts": utils.dedent`
+                        declare const _default: {
+                            features: {
+                                featureOne: {
+                                    actions: {
+                                        featureOne: {
+                                            (payload: {
+                                                name: string;
+                                                order: number;
+                                            }, meta?: {
+                                                [key: string]: any;
+                                            }): import("typescript-fsa").Action<{
+                                                name: string;
+                                                order: number;
+                                            }>;
+                                        };
+                                    };
+                                    path: string;
+                                };
+                            };
+                        };
+                        export default _default;`,
+                    "/plugin-two/node_modules/typescript-fsa/package.json": fsaPackageJson,
+                    "/plugin-two/node_modules/typescript-fsa/index.d.ts": fsaIndex,
+                    "/plugin-one/tsconfig.json": utils.dedent`
+                        {
+                            "compilerOptions": {
+                                "target": "es5",
+                                "declaration": true,
+                            },
+                        }`,
+                    "/plugin-one/index.ts": utils.dedent`
+                        import pluginTwo from "plugin-two"; // include this to add reference to symlink`,
+                    "/plugin-one/action.ts": utils.dedent`
+                        import { actionCreatorFactory } from "typescript-fsa"; // Include version of shared lib
+                        const action = actionCreatorFactory("somekey");
+                        const featureOne = action<{ route: string }>("feature-one");
+                        export const actions = { featureOne };`,
+                    "/plugin-one/node_modules/typescript-fsa/package.json": fsaPackageJson,
+                    "/plugin-one/node_modules/typescript-fsa/index.d.ts": fsaIndex,
+                    "/plugin-one/node_modules/plugin-two": new vfs.Symlink("/plugin-two"),
+                });
+            },
+            commandLineArgs: ["-p", "plugin-one"]
+        });
+    });
+}
diff --git a/tests/baselines/reference/tsc/declarationEmit/initial-build/when-same-version-is-referenced-through-source-and-another-symlinked-package.js b/tests/baselines/reference/tsc/declarationEmit/initial-build/when-same-version-is-referenced-through-source-and-another-symlinked-package.js
new file mode 100644
index 00000000000..c7ccb8014c3
--- /dev/null
+++ b/tests/baselines/reference/tsc/declarationEmit/initial-build/when-same-version-is-referenced-through-source-and-another-symlinked-package.js
@@ -0,0 +1,24 @@
+//// [/lib/initial-buildOutput.txt]
+/lib/tsc -p plugin-one
+plugin-one/action.ts(4,14): error TS2742: The inferred type of 'actions' cannot be named without a reference to 'plugin-two/node_modules/typescript-fsa'. This is likely not portable. A type annotation is necessary.
+exitCode:: 1
+
+
+//// [/plugin-one/action.js]
+"use strict";
+Object.defineProperty(exports, "__esModule", { value: true });
+var typescript_fsa_1 = require("typescript-fsa"); // Include version of shared lib
+var action = typescript_fsa_1.actionCreatorFactory("somekey");
+var featureOne = action("feature-one");
+exports.actions = { featureOne: featureOne };
+
+
+//// [/plugin-one/index.d.ts]
+export {};
+
+
+//// [/plugin-one/index.js]
+"use strict";
+Object.defineProperty(exports, "__esModule", { value: true });
+
+