diff --git a/src/compiler/parser.ts b/src/compiler/parser.ts
index e57a3fa98f390..ffe5f079c8c78 100644
--- a/src/compiler/parser.ts
+++ b/src/compiler/parser.ts
@@ -4463,7 +4463,7 @@ namespace ts {
             // it out, but don't allow any ambiguity, and return 'undefined' if this could be an
             // expression instead.
             return triState === Tristate.True ?
-                parseParenthesizedArrowFunctionExpression(/*allowAmbiguity*/ true, /*disallowReturnTypeInArrowFunction*/ false) :
+                parseParenthesizedArrowFunctionExpression(/*allowAmbiguity*/ true, disallowReturnTypeInArrowFunction) :
                 tryParse(() => parsePossibleParenthesizedArrowFunctionExpression(disallowReturnTypeInArrowFunction));
         }
 
@@ -4702,13 +4702,8 @@ namespace ts {
             // This is a valid arrow function with "z" as the return type.
             //
             // But, if we're in the true side of a conditional expression, this colon
-            // terminates the expression, so we cannot allow a return type if we aren't
+            // terminates the expression, so we cannot allow a return type, even if we aren't
             // certain whether or not the preceding text was parsed as a parameter list.
-            //
-            // For example,
-            //     a() ? (b: number, c?: string): void => d() : e
-            // is determined by isParenthesizedArrowFunctionExpression to unambiguously
-            // be an arrow expression, so we allow a return type.
             if (disallowReturnTypeInArrowFunction && token() === SyntaxKind.ColonToken) {
                 return undefined;
             }
diff --git a/tests/baselines/reference/parserArrowFunctionExpression13.errors.txt b/tests/baselines/reference/parserArrowFunctionExpression13.errors.txt
index d0ea1c7d179ab..8e4df9842c146 100644
--- a/tests/baselines/reference/parserArrowFunctionExpression13.errors.txt
+++ b/tests/baselines/reference/parserArrowFunctionExpression13.errors.txt
@@ -1,11 +1,14 @@
 tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression13.ts(1,1): error TS2304: Cannot find name 'a'.
 tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression13.ts(1,11): error TS2304: Cannot find name 'a'.
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression13.ts(1,19): error TS1109: Expression expected.
 
 
-==== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression13.ts (2 errors) ====
+==== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression13.ts (3 errors) ====
     a ? () => a() : (): any => null;
     ~
 !!! error TS2304: Cannot find name 'a'.
               ~
 !!! error TS2304: Cannot find name 'a'.
+                      ~
+!!! error TS1109: Expression expected.
     
\ No newline at end of file
diff --git a/tests/baselines/reference/parserArrowFunctionExpression13.js b/tests/baselines/reference/parserArrowFunctionExpression13.js
index d208d9ba90a1f..5bc8a18e946c6 100644
--- a/tests/baselines/reference/parserArrowFunctionExpression13.js
+++ b/tests/baselines/reference/parserArrowFunctionExpression13.js
@@ -3,4 +3,5 @@ a ? () => a() : (): any => null;
 
 
 //// [parserArrowFunctionExpression13.js]
-a ? function () { return a(); } : function () { return null; };
+a ? function () { return a(); } : ;
+(function (any) { return null; });
diff --git a/tests/baselines/reference/parserArrowFunctionExpression13.symbols b/tests/baselines/reference/parserArrowFunctionExpression13.symbols
index 643cfcf1a2b78..81ab28ab8cc51 100644
--- a/tests/baselines/reference/parserArrowFunctionExpression13.symbols
+++ b/tests/baselines/reference/parserArrowFunctionExpression13.symbols
@@ -1,4 +1,4 @@
 === tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression13.ts ===
 a ? () => a() : (): any => null;
-No type information for this code.
-No type information for this code.
\ No newline at end of file
+>any : Symbol(any, Decl(parserArrowFunctionExpression13.ts, 0, 19))
+
diff --git a/tests/baselines/reference/parserArrowFunctionExpression13.types b/tests/baselines/reference/parserArrowFunctionExpression13.types
index 9341e27b0c30d..6eaa57cd45d59 100644
--- a/tests/baselines/reference/parserArrowFunctionExpression13.types
+++ b/tests/baselines/reference/parserArrowFunctionExpression13.types
@@ -1,10 +1,12 @@
 === tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression13.ts ===
 a ? () => a() : (): any => null;
->a ? () => a() : (): any => null : () => any
+>a ? () => a() : () : any
 >a : any
 >() => a() : () => any
 >a() : any
 >a : any
->(): any => null : () => any
+> : any
+>any => null : (any: any) => any
+>any : any
 >null : null
 
diff --git a/tests/baselines/reference/parserArrowFunctionExpression14.errors.txt b/tests/baselines/reference/parserArrowFunctionExpression14.errors.txt
index b37e09d92ff3a..c19776f77a046 100644
--- a/tests/baselines/reference/parserArrowFunctionExpression14.errors.txt
+++ b/tests/baselines/reference/parserArrowFunctionExpression14.errors.txt
@@ -1,14 +1,23 @@
 tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts(1,1): error TS2304: Cannot find name 'a'.
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts(1,30): error TS1109: Expression expected.
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts(1,37): error TS1109: Expression expected.
 tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts(1,40): error TS2304: Cannot find name 'd'.
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts(1,44): error TS1005: ';' expected.
 tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts(1,46): error TS2304: Cannot find name 'e'.
 
 
-==== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts (3 errors) ====
+==== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts (6 errors) ====
     a() ? (b: number, c?: string): void => d() : e;
     ~
 !!! error TS2304: Cannot find name 'a'.
+                                 ~
+!!! error TS1109: Expression expected.
+                                        ~~
+!!! error TS1109: Expression expected.
                                            ~
 !!! error TS2304: Cannot find name 'd'.
+                                               ~
+!!! error TS1005: ';' expected.
                                                  ~
 !!! error TS2304: Cannot find name 'e'.
     
\ No newline at end of file
diff --git a/tests/baselines/reference/parserArrowFunctionExpression14.js b/tests/baselines/reference/parserArrowFunctionExpression14.js
index 2dcaae91f3506..7941718ae24a8 100644
--- a/tests/baselines/reference/parserArrowFunctionExpression14.js
+++ b/tests/baselines/reference/parserArrowFunctionExpression14.js
@@ -3,4 +3,6 @@ a() ? (b: number, c?: string): void => d() : e;
 
 
 //// [parserArrowFunctionExpression14.js]
-a() ? function (b, c) { return d(); } : e;
+a() ?  : void ;
+d();
+e;
diff --git a/tests/baselines/reference/parserArrowFunctionExpression14.symbols b/tests/baselines/reference/parserArrowFunctionExpression14.symbols
index 95584e9f223be..75c6d5ff8b7ff 100644
--- a/tests/baselines/reference/parserArrowFunctionExpression14.symbols
+++ b/tests/baselines/reference/parserArrowFunctionExpression14.symbols
@@ -1,5 +1,4 @@
 === tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts ===
 a() ? (b: number, c?: string): void => d() : e;
->b : Symbol(b, Decl(parserArrowFunctionExpression14.ts, 0, 7))
->c : Symbol(c, Decl(parserArrowFunctionExpression14.ts, 0, 17))
-
+No type information for this code.
+No type information for this code.
\ No newline at end of file
diff --git a/tests/baselines/reference/parserArrowFunctionExpression14.types b/tests/baselines/reference/parserArrowFunctionExpression14.types
index 1c6d22bb83dc0..4102193f96787 100644
--- a/tests/baselines/reference/parserArrowFunctionExpression14.types
+++ b/tests/baselines/reference/parserArrowFunctionExpression14.types
@@ -1,11 +1,11 @@
 === tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression14.ts ===
 a() ? (b: number, c?: string): void => d() : e;
->a() ? (b: number, c?: string): void => d() : e : any
+>a() ? (b: number, c?: string): void : any
 >a() : any
 >a : any
->(b: number, c?: string): void => d() : (b: number, c?: string) => void
->b : number
->c : string
+> : any
+>void : undefined
+> : any
 >d() : any
 >d : any
 >e : any
diff --git a/tests/baselines/reference/parserArrowFunctionExpression15.errors.txt b/tests/baselines/reference/parserArrowFunctionExpression15.errors.txt
new file mode 100644
index 0000000000000..60def8ca15fa6
--- /dev/null
+++ b/tests/baselines/reference/parserArrowFunctionExpression15.errors.txt
@@ -0,0 +1,14 @@
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts(1,10): error TS2304: Cannot find name 'param'.
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts(1,28): error TS2304: Cannot find name 'param'.
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts(1,34): error TS1005: ';' expected.
+
+
+==== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts (3 errors) ====
+    false ? (param): string => param : null
+             ~~~~~
+!!! error TS2304: Cannot find name 'param'.
+                               ~~~~~
+!!! error TS2304: Cannot find name 'param'.
+                                     ~
+!!! error TS1005: ';' expected.
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/parserArrowFunctionExpression15.js b/tests/baselines/reference/parserArrowFunctionExpression15.js
new file mode 100644
index 0000000000000..047b09c6ddec0
--- /dev/null
+++ b/tests/baselines/reference/parserArrowFunctionExpression15.js
@@ -0,0 +1,7 @@
+//// [parserArrowFunctionExpression15.ts]
+false ? (param): string => param : null
+
+
+//// [parserArrowFunctionExpression15.js]
+false ? (param) : function (string) { return param; };
+null;
diff --git a/tests/baselines/reference/parserArrowFunctionExpression15.symbols b/tests/baselines/reference/parserArrowFunctionExpression15.symbols
new file mode 100644
index 0000000000000..7750b8d43be97
--- /dev/null
+++ b/tests/baselines/reference/parserArrowFunctionExpression15.symbols
@@ -0,0 +1,4 @@
+=== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts ===
+false ? (param): string => param : null
+>string : Symbol(string, Decl(parserArrowFunctionExpression15.ts, 0, 16))
+
diff --git a/tests/baselines/reference/parserArrowFunctionExpression15.types b/tests/baselines/reference/parserArrowFunctionExpression15.types
new file mode 100644
index 0000000000000..ec808c729eece
--- /dev/null
+++ b/tests/baselines/reference/parserArrowFunctionExpression15.types
@@ -0,0 +1,11 @@
+=== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts ===
+false ? (param): string => param : null
+>false ? (param): string => param : any
+>false : false
+>(param) : any
+>param : any
+>string => param : (string: any) => any
+>string : any
+>param : any
+>null : null
+
diff --git a/tests/baselines/reference/parserArrowFunctionExpression16.errors.txt b/tests/baselines/reference/parserArrowFunctionExpression16.errors.txt
new file mode 100644
index 0000000000000..740144391e298
--- /dev/null
+++ b/tests/baselines/reference/parserArrowFunctionExpression16.errors.txt
@@ -0,0 +1,14 @@
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts(1,17): error TS2304: Cannot find name 'param'.
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts(1,35): error TS2304: Cannot find name 'param'.
+tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts(1,48): error TS1005: ';' expected.
+
+
+==== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts (3 errors) ====
+    true ? false ? (param): string => param : null : null
+                    ~~~~~
+!!! error TS2304: Cannot find name 'param'.
+                                      ~~~~~
+!!! error TS2304: Cannot find name 'param'.
+                                                   ~
+!!! error TS1005: ';' expected.
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/parserArrowFunctionExpression16.js b/tests/baselines/reference/parserArrowFunctionExpression16.js
new file mode 100644
index 0000000000000..a2b2fff3aad85
--- /dev/null
+++ b/tests/baselines/reference/parserArrowFunctionExpression16.js
@@ -0,0 +1,7 @@
+//// [parserArrowFunctionExpression16.ts]
+true ? false ? (param): string => param : null : null
+
+
+//// [parserArrowFunctionExpression16.js]
+true ? false ? (param) : function (string) { return param; } : null;
+null;
diff --git a/tests/baselines/reference/parserArrowFunctionExpression16.symbols b/tests/baselines/reference/parserArrowFunctionExpression16.symbols
new file mode 100644
index 0000000000000..684b74408ccd5
--- /dev/null
+++ b/tests/baselines/reference/parserArrowFunctionExpression16.symbols
@@ -0,0 +1,4 @@
+=== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts ===
+true ? false ? (param): string => param : null : null
+>string : Symbol(string, Decl(parserArrowFunctionExpression16.ts, 0, 23))
+
diff --git a/tests/baselines/reference/parserArrowFunctionExpression16.types b/tests/baselines/reference/parserArrowFunctionExpression16.types
new file mode 100644
index 0000000000000..dbe5cc2e81733
--- /dev/null
+++ b/tests/baselines/reference/parserArrowFunctionExpression16.types
@@ -0,0 +1,14 @@
+=== tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts ===
+true ? false ? (param): string => param : null : null
+>true ? false ? (param): string => param : null : any
+>true : true
+>false ? (param): string => param : any
+>false : false
+>(param) : any
+>param : any
+>string => param : (string: any) => any
+>string : any
+>param : any
+>null : null
+>null : null
+
diff --git a/tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts b/tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts
new file mode 100644
index 0000000000000..3348d24bfebe4
--- /dev/null
+++ b/tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression15.ts
@@ -0,0 +1 @@
+false ? (param): string => param : null
diff --git a/tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts b/tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts
new file mode 100644
index 0000000000000..9a19bfdb6cfc1
--- /dev/null
+++ b/tests/cases/conformance/parser/ecmascript5/ArrowFunctionExpressions/parserArrowFunctionExpression16.ts
@@ -0,0 +1 @@
+true ? false ? (param): string => param : null : null