diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index a6973bb273b6a..d5e5b5c67e4ad 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -3788,7 +3788,7 @@ module ts {
         }
 
         function combineTypeMappers(mapper1: TypeMapper, mapper2: TypeMapper): TypeMapper {
-            return t => mapper2(mapper1(t));
+            return t => instantiateType(mapper1(t), mapper2);
         }
 
         function instantiateTypeParameter(typeParameter: TypeParameter, mapper: TypeMapper): TypeParameter {
@@ -3859,7 +3859,7 @@ module ts {
         function instantiateType(type: Type, mapper: TypeMapper): Type {
             if (mapper !== identityMapper) {
                 if (type.flags & TypeFlags.TypeParameter) {
-                    return mapper(type);
+                    return mapper(<TypeParameter>type);
                 }
                 if (type.flags & TypeFlags.Anonymous) {
                     return type.symbol && type.symbol.flags & (SymbolFlags.Function | SymbolFlags.Method | SymbolFlags.TypeLiteral | SymbolFlags.ObjectLiteral) ?
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 078f3d060a61b..9191a6999bf50 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -1577,7 +1577,7 @@ module ts {
 
     /* @internal */
     export interface TypeMapper {
-        (t: Type): Type;
+        (t: TypeParameter): Type;
     }
 
     /* @internal */
diff --git a/tests/baselines/reference/baseTypeWrappingInstantiationChain.js b/tests/baselines/reference/baseTypeWrappingInstantiationChain.js
new file mode 100644
index 0000000000000..97180f421335c
--- /dev/null
+++ b/tests/baselines/reference/baseTypeWrappingInstantiationChain.js
@@ -0,0 +1,72 @@
+//// [baseTypeWrappingInstantiationChain.ts]
+class C<T1> extends CBase<T1> {
+    public works() {
+        new CBaseBase<Wrapper<T1>>(this);
+    }
+    public alsoWorks() {
+        new CBase<T1>(this); // Should not error, parameter is of type Parameter<Wrapper<T1>>
+    }
+
+    public method(t: Wrapper<T1>) { }
+}
+
+class CBase<T2> extends CBaseBase<Wrapper<T2>> {
+
+}
+
+class CBaseBase<T3> {
+    constructor(x: Parameter<T3>) { }
+}
+
+class Parameter<T4> {
+    method(t: T4) { }
+}
+
+class Wrapper<T5> {
+    property: T5;
+}
+
+//// [baseTypeWrappingInstantiationChain.js]
+var __extends = this.__extends || function (d, b) {
+    for (var p in b) if (b.hasOwnProperty(p)) d[p] = b[p];
+    function __() { this.constructor = d; }
+    __.prototype = b.prototype;
+    d.prototype = new __();
+};
+var C = (function (_super) {
+    __extends(C, _super);
+    function C() {
+        _super.apply(this, arguments);
+    }
+    C.prototype.works = function () {
+        new CBaseBase(this);
+    };
+    C.prototype.alsoWorks = function () {
+        new CBase(this); // Should not error, parameter is of type Parameter<Wrapper<T1>>
+    };
+    C.prototype.method = function (t) { };
+    return C;
+})(CBase);
+var CBase = (function (_super) {
+    __extends(CBase, _super);
+    function CBase() {
+        _super.apply(this, arguments);
+    }
+    return CBase;
+})(CBaseBase);
+var CBaseBase = (function () {
+    function CBaseBase(x) {
+    }
+    return CBaseBase;
+})();
+var Parameter = (function () {
+    function Parameter() {
+    }
+    Parameter.prototype.method = function (t) { };
+    return Parameter;
+})();
+var Wrapper = (function () {
+    function Wrapper() {
+    }
+    return Wrapper;
+})();
diff --git a/tests/baselines/reference/baseTypeWrappingInstantiationChain.symbols b/tests/baselines/reference/baseTypeWrappingInstantiationChain.symbols
new file mode 100644
index 0000000000000..1e8ab089b900f
--- /dev/null
+++ b/tests/baselines/reference/baseTypeWrappingInstantiationChain.symbols
@@ -0,0 +1,69 @@
+=== tests/cases/compiler/baseTypeWrappingInstantiationChain.ts ===
+class C<T1> extends CBase<T1> {
+>C : Symbol(C, Decl(baseTypeWrappingInstantiationChain.ts, 0, 0))
+>T1 : Symbol(T1, Decl(baseTypeWrappingInstantiationChain.ts, 0, 8))
+>CBase : Symbol(CBase, Decl(baseTypeWrappingInstantiationChain.ts, 9, 1))
+>T1 : Symbol(T1, Decl(baseTypeWrappingInstantiationChain.ts, 0, 8))
+
+    public works() {
+>works : Symbol(works, Decl(baseTypeWrappingInstantiationChain.ts, 0, 31))
+
+        new CBaseBase<Wrapper<T1>>(this);
+>CBaseBase : Symbol(CBaseBase, Decl(baseTypeWrappingInstantiationChain.ts, 13, 1))
+>Wrapper : Symbol(Wrapper, Decl(baseTypeWrappingInstantiationChain.ts, 21, 1))
+>T1 : Symbol(T1, Decl(baseTypeWrappingInstantiationChain.ts, 0, 8))
+>this : Symbol(C, Decl(baseTypeWrappingInstantiationChain.ts, 0, 0))
+    }
+    public alsoWorks() {
+>alsoWorks : Symbol(alsoWorks, Decl(baseTypeWrappingInstantiationChain.ts, 3, 5))
+
+        new CBase<T1>(this); // Should not error, parameter is of type Parameter<Wrapper<T1>>
+>CBase : Symbol(CBase, Decl(baseTypeWrappingInstantiationChain.ts, 9, 1))
+>T1 : Symbol(T1, Decl(baseTypeWrappingInstantiationChain.ts, 0, 8))
+>this : Symbol(C, Decl(baseTypeWrappingInstantiationChain.ts, 0, 0))
+    }
+
+    public method(t: Wrapper<T1>) { }
+>method : Symbol(method, Decl(baseTypeWrappingInstantiationChain.ts, 6, 5))
+>t : Symbol(t, Decl(baseTypeWrappingInstantiationChain.ts, 8, 18))
+>Wrapper : Symbol(Wrapper, Decl(baseTypeWrappingInstantiationChain.ts, 21, 1))
+>T1 : Symbol(T1, Decl(baseTypeWrappingInstantiationChain.ts, 0, 8))
+}
+
+class CBase<T2> extends CBaseBase<Wrapper<T2>> {
+>CBase : Symbol(CBase, Decl(baseTypeWrappingInstantiationChain.ts, 9, 1))
+>T2 : Symbol(T2, Decl(baseTypeWrappingInstantiationChain.ts, 11, 12))
+>CBaseBase : Symbol(CBaseBase, Decl(baseTypeWrappingInstantiationChain.ts, 13, 1))
+>Wrapper : Symbol(Wrapper, Decl(baseTypeWrappingInstantiationChain.ts, 21, 1))
+>T2 : Symbol(T2, Decl(baseTypeWrappingInstantiationChain.ts, 11, 12))
+
+}
+
+class CBaseBase<T3> {
+>CBaseBase : Symbol(CBaseBase, Decl(baseTypeWrappingInstantiationChain.ts, 13, 1))
+>T3 : Symbol(T3, Decl(baseTypeWrappingInstantiationChain.ts, 15, 16))
+
+    constructor(x: Parameter<T3>) { }
+>x : Symbol(x, Decl(baseTypeWrappingInstantiationChain.ts, 16, 16))
+>Parameter : Symbol(Parameter, Decl(baseTypeWrappingInstantiationChain.ts, 17, 1))
+>T3 : Symbol(T3, Decl(baseTypeWrappingInstantiationChain.ts, 15, 16))
+}
+
+class Parameter<T4> {
+>Parameter : Symbol(Parameter, Decl(baseTypeWrappingInstantiationChain.ts, 17, 1))
+>T4 : Symbol(T4, Decl(baseTypeWrappingInstantiationChain.ts, 19, 16))
+
+    method(t: T4) { }
+>method : Symbol(method, Decl(baseTypeWrappingInstantiationChain.ts, 19, 21))
+>t : Symbol(t, Decl(baseTypeWrappingInstantiationChain.ts, 20, 11))
+>T4 : Symbol(T4, Decl(baseTypeWrappingInstantiationChain.ts, 19, 16))
+}
+
+class Wrapper<T5> {
+>Wrapper : Symbol(Wrapper, Decl(baseTypeWrappingInstantiationChain.ts, 21, 1))
+>T5 : Symbol(T5, Decl(baseTypeWrappingInstantiationChain.ts, 23, 14))
+
+    property: T5;
+>property : Symbol(property, Decl(baseTypeWrappingInstantiationChain.ts, 23, 19))
+>T5 : Symbol(T5, Decl(baseTypeWrappingInstantiationChain.ts, 23, 14))
+}
diff --git a/tests/baselines/reference/baseTypeWrappingInstantiationChain.types b/tests/baselines/reference/baseTypeWrappingInstantiationChain.types
new file mode 100644
index 0000000000000..61919bad212c6
--- /dev/null
+++ b/tests/baselines/reference/baseTypeWrappingInstantiationChain.types
@@ -0,0 +1,71 @@
+=== tests/cases/compiler/baseTypeWrappingInstantiationChain.ts ===
+class C<T1> extends CBase<T1> {
+>C : C<T1>
+>T1 : T1
+>CBase : CBase<T2>
+>T1 : T1
+
+    public works() {
+>works : () => void
+
+        new CBaseBase<Wrapper<T1>>(this);
+>new CBaseBase<Wrapper<T1>>(this) : CBaseBase<Wrapper<T1>>
+>CBaseBase : typeof CBaseBase
+>Wrapper : Wrapper<T5>
+>T1 : T1
+>this : C<T1>
+    }
+    public alsoWorks() {
+>alsoWorks : () => void
+
+        new CBase<T1>(this); // Should not error, parameter is of type Parameter<Wrapper<T1>>
+>new CBase<T1>(this) : CBase<T1>
+>CBase : typeof CBase
+>T1 : T1
+>this : C<T1>
+    }
+
+    public method(t: Wrapper<T1>) { }
+>method : (t: Wrapper<T1>) => void
+>t : Wrapper<T1>
+>Wrapper : Wrapper<T5>
+>T1 : T1
+}
+
+class CBase<T2> extends CBaseBase<Wrapper<T2>> {
+>CBase : CBase<T2>
+>T2 : T2
+>CBaseBase : CBaseBase<T3>
+>Wrapper : Wrapper<T5>
+>T2 : T2
+
+}
+
+class CBaseBase<T3> {
+>CBaseBase : CBaseBase<T3>
+>T3 : T3
+
+    constructor(x: Parameter<T3>) { }
+>x : Parameter<T3>
+>Parameter : Parameter<T4>
+>T3 : T3
+}
+
+class Parameter<T4> {
+>Parameter : Parameter<T4>
+>T4 : T4
+
+    method(t: T4) { }
+>method : (t: T4) => void
+>t : T4
+>T4 : T4
+}
+
+class Wrapper<T5> {
+>Wrapper : Wrapper<T5>
+>T5 : T5
+
+    property: T5;
+>property : T5
+>T5 : T5
+}
diff --git a/tests/cases/compiler/baseTypeWrappingInstantiationChain.ts b/tests/cases/compiler/baseTypeWrappingInstantiationChain.ts
new file mode 100644
index 0000000000000..f630b908ec2bd
--- /dev/null
+++ b/tests/cases/compiler/baseTypeWrappingInstantiationChain.ts
@@ -0,0 +1,26 @@
+class C<T1> extends CBase<T1> {
+    public works() {
+        new CBaseBase<Wrapper<T1>>(this);
+    }
+    public alsoWorks() {
+        new CBase<T1>(this); // Should not error, parameter is of type Parameter<Wrapper<T1>>
+    }
+
+    public method(t: Wrapper<T1>) { }
+}
+
+class CBase<T2> extends CBaseBase<Wrapper<T2>> {
+
+}
+
+class CBaseBase<T3> {
+    constructor(x: Parameter<T3>) { }
+}
+
+class Parameter<T4> {
+    method(t: T4) { }
+}
+
+class Wrapper<T5> {
+    property: T5;
+}
\ No newline at end of file