diff --git a/src/compiler/transformers/ts.ts b/src/compiler/transformers/ts.ts
index 925869da3857f..b7d13af273300 100644
--- a/src/compiler/transformers/ts.ts
+++ b/src/compiler/transformers/ts.ts
@@ -457,7 +457,11 @@ namespace ts {
             currentSourceFile = node;
 
             // ensure "use strict" is emitted in all scenarios in alwaysStrict mode
-            if (compilerOptions.alwaysStrict) {
+            // There is no need to emit "use strict" in the following cases:
+            //      1. The file is an external module and target is es2015 or higher
+            //      or 2. The file is an external module and module-kind is es6 or es2015 as such value is not allowed when targeting es5 or lower
+            if (compilerOptions.alwaysStrict &&
+                !(isExternalModule(node) && (compilerOptions.target >= ScriptTarget.ES2015 || compilerOptions.module === ModuleKind.ES2015))) {
                 node = ensureUseStrict(node);
             }
 
diff --git a/tests/baselines/reference/alwaysStrictModule3.js b/tests/baselines/reference/alwaysStrictModule3.js
new file mode 100644
index 0000000000000..894bad25143d9
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule3.js
@@ -0,0 +1,8 @@
+//// [alwaysStrictModule3.ts]
+
+// module ES2015
+export const a = 1;
+
+//// [alwaysStrictModule3.js]
+// module ES2015
+export var a = 1;
diff --git a/tests/baselines/reference/alwaysStrictModule3.symbols b/tests/baselines/reference/alwaysStrictModule3.symbols
new file mode 100644
index 0000000000000..6f053673f0e40
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule3.symbols
@@ -0,0 +1,6 @@
+=== tests/cases/compiler/alwaysStrictModule3.ts ===
+
+// module ES2015
+export const a = 1;
+>a : Symbol(a, Decl(alwaysStrictModule3.ts, 2, 12))
+
diff --git a/tests/baselines/reference/alwaysStrictModule3.types b/tests/baselines/reference/alwaysStrictModule3.types
new file mode 100644
index 0000000000000..75b11206a4f7a
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule3.types
@@ -0,0 +1,7 @@
+=== tests/cases/compiler/alwaysStrictModule3.ts ===
+
+// module ES2015
+export const a = 1;
+>a : 1
+>1 : 1
+
diff --git a/tests/baselines/reference/alwaysStrictModule4.js b/tests/baselines/reference/alwaysStrictModule4.js
new file mode 100644
index 0000000000000..1444f351bbd43
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule4.js
@@ -0,0 +1,9 @@
+//// [alwaysStrictModule4.ts]
+
+// Module commonjs
+export const a = 1
+
+//// [alwaysStrictModule4.js]
+"use strict";
+// Module commonjs
+exports.a = 1;
diff --git a/tests/baselines/reference/alwaysStrictModule4.symbols b/tests/baselines/reference/alwaysStrictModule4.symbols
new file mode 100644
index 0000000000000..4b8a968ae165d
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule4.symbols
@@ -0,0 +1,6 @@
+=== tests/cases/compiler/alwaysStrictModule4.ts ===
+
+// Module commonjs
+export const a = 1
+>a : Symbol(a, Decl(alwaysStrictModule4.ts, 2, 12))
+
diff --git a/tests/baselines/reference/alwaysStrictModule4.types b/tests/baselines/reference/alwaysStrictModule4.types
new file mode 100644
index 0000000000000..fff87967605c9
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule4.types
@@ -0,0 +1,7 @@
+=== tests/cases/compiler/alwaysStrictModule4.ts ===
+
+// Module commonjs
+export const a = 1
+>a : 1
+>1 : 1
+
diff --git a/tests/baselines/reference/alwaysStrictModule5.js b/tests/baselines/reference/alwaysStrictModule5.js
new file mode 100644
index 0000000000000..74b9d72263c4c
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule5.js
@@ -0,0 +1,8 @@
+//// [alwaysStrictModule5.ts]
+
+// Targeting ES6
+export const a = 1; 
+
+//// [alwaysStrictModule5.js]
+// Targeting ES6
+export const a = 1;
diff --git a/tests/baselines/reference/alwaysStrictModule5.symbols b/tests/baselines/reference/alwaysStrictModule5.symbols
new file mode 100644
index 0000000000000..903bf3c5c9893
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule5.symbols
@@ -0,0 +1,6 @@
+=== tests/cases/compiler/alwaysStrictModule5.ts ===
+
+// Targeting ES6
+export const a = 1; 
+>a : Symbol(a, Decl(alwaysStrictModule5.ts, 2, 12))
+
diff --git a/tests/baselines/reference/alwaysStrictModule5.types b/tests/baselines/reference/alwaysStrictModule5.types
new file mode 100644
index 0000000000000..2bfa329ad7e8d
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule5.types
@@ -0,0 +1,7 @@
+=== tests/cases/compiler/alwaysStrictModule5.ts ===
+
+// Targeting ES6
+export const a = 1; 
+>a : 1
+>1 : 1
+
diff --git a/tests/baselines/reference/alwaysStrictModule6.js b/tests/baselines/reference/alwaysStrictModule6.js
new file mode 100644
index 0000000000000..9a60392616977
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule6.js
@@ -0,0 +1,9 @@
+//// [alwaysStrictModule6.ts]
+
+// Targeting ES5
+export const a = 1; 
+
+//// [alwaysStrictModule6.js]
+"use strict";
+// Targeting ES5
+exports.a = 1;
diff --git a/tests/baselines/reference/alwaysStrictModule6.symbols b/tests/baselines/reference/alwaysStrictModule6.symbols
new file mode 100644
index 0000000000000..59a70f3e5b5fe
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule6.symbols
@@ -0,0 +1,6 @@
+=== tests/cases/compiler/alwaysStrictModule6.ts ===
+
+// Targeting ES5
+export const a = 1; 
+>a : Symbol(a, Decl(alwaysStrictModule6.ts, 2, 12))
+
diff --git a/tests/baselines/reference/alwaysStrictModule6.types b/tests/baselines/reference/alwaysStrictModule6.types
new file mode 100644
index 0000000000000..0970380911eb3
--- /dev/null
+++ b/tests/baselines/reference/alwaysStrictModule6.types
@@ -0,0 +1,7 @@
+=== tests/cases/compiler/alwaysStrictModule6.ts ===
+
+// Targeting ES5
+export const a = 1; 
+>a : 1
+>1 : 1
+
diff --git a/tests/cases/compiler/alwaysStrictModule3.ts b/tests/cases/compiler/alwaysStrictModule3.ts
new file mode 100644
index 0000000000000..adb93cede3616
--- /dev/null
+++ b/tests/cases/compiler/alwaysStrictModule3.ts
@@ -0,0 +1,5 @@
+// @alwaysStrict: true
+// @module: es2015
+
+// module ES2015
+export const a = 1;
\ No newline at end of file
diff --git a/tests/cases/compiler/alwaysStrictModule4.ts b/tests/cases/compiler/alwaysStrictModule4.ts
new file mode 100644
index 0000000000000..f731e6dd734a0
--- /dev/null
+++ b/tests/cases/compiler/alwaysStrictModule4.ts
@@ -0,0 +1,5 @@
+// @alwaysStrict: true
+// @module: commonjs
+
+// Module commonjs
+export const a = 1
\ No newline at end of file
diff --git a/tests/cases/compiler/alwaysStrictModule5.ts b/tests/cases/compiler/alwaysStrictModule5.ts
new file mode 100644
index 0000000000000..d1ac528837085
--- /dev/null
+++ b/tests/cases/compiler/alwaysStrictModule5.ts
@@ -0,0 +1,5 @@
+// @alwaysStrict: true
+// @target: es6
+
+// Targeting ES6
+export const a = 1; 
\ No newline at end of file
diff --git a/tests/cases/compiler/alwaysStrictModule6.ts b/tests/cases/compiler/alwaysStrictModule6.ts
new file mode 100644
index 0000000000000..064ece1a4e1a9
--- /dev/null
+++ b/tests/cases/compiler/alwaysStrictModule6.ts
@@ -0,0 +1,5 @@
+// @alwaysStrict: true
+// @target: es5
+
+// Targeting ES5
+export const a = 1; 
\ No newline at end of file