diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 09672f5c09cf4..1a885485ec548 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -3663,6 +3663,7 @@ namespace ts {
                     const sig = typeParamCount ? getSignatureInstantiation(baseSig, typeArguments) : cloneSignature(baseSig);
                     sig.typeParameters = classType.localTypeParameters;
                     sig.resolvedReturnType = classType;
+                    sig.target = undefined;
                     result.push(sig);
                 }
             }
diff --git a/tests/baselines/reference/inferInstanceOfSubclass.js b/tests/baselines/reference/inferInstanceOfSubclass.js
new file mode 100644
index 0000000000000..c32f614c65cad
--- /dev/null
+++ b/tests/baselines/reference/inferInstanceOfSubclass.js
@@ -0,0 +1,49 @@
+//// [inferInstanceOfSubclass.ts]
+function create<T>(ctor: { new(): T }) {
+    return new ctor();
+}
+class C<U> { c: U }
+class D<V> extends C<V> { d: V }
+let d = create(D);
+
+class A { a: number }
+class B<T> extends A { b: T }
+let b = create(B);
+
+
+
+//// [inferInstanceOfSubclass.js]
+var __extends = (this && this.__extends) || function (d, b) {
+    for (var p in b) if (b.hasOwnProperty(p)) d[p] = b[p];
+    function __() { this.constructor = d; }
+    d.prototype = b === null ? Object.create(b) : (__.prototype = b.prototype, new __());
+};
+function create(ctor) {
+    return new ctor();
+}
+var C = (function () {
+    function C() {
+    }
+    return C;
+}());
+var D = (function (_super) {
+    __extends(D, _super);
+    function D() {
+        _super.apply(this, arguments);
+    }
+    return D;
+}(C));
+var d = create(D);
+var A = (function () {
+    function A() {
+    }
+    return A;
+}());
+var B = (function (_super) {
+    __extends(B, _super);
+    function B() {
+        _super.apply(this, arguments);
+    }
+    return B;
+}(A));
+var b = create(B);
diff --git a/tests/baselines/reference/inferInstanceOfSubclass.symbols b/tests/baselines/reference/inferInstanceOfSubclass.symbols
new file mode 100644
index 0000000000000..2a722851db71f
--- /dev/null
+++ b/tests/baselines/reference/inferInstanceOfSubclass.symbols
@@ -0,0 +1,46 @@
+=== tests/cases/compiler/inferInstanceOfSubclass.ts ===
+function create<T>(ctor: { new(): T }) {
+>create : Symbol(create, Decl(inferInstanceOfSubclass.ts, 0, 0))
+>T : Symbol(T, Decl(inferInstanceOfSubclass.ts, 0, 16))
+>ctor : Symbol(ctor, Decl(inferInstanceOfSubclass.ts, 0, 19))
+>T : Symbol(T, Decl(inferInstanceOfSubclass.ts, 0, 16))
+
+    return new ctor();
+>ctor : Symbol(ctor, Decl(inferInstanceOfSubclass.ts, 0, 19))
+}
+class C<U> { c: U }
+>C : Symbol(C, Decl(inferInstanceOfSubclass.ts, 2, 1))
+>U : Symbol(U, Decl(inferInstanceOfSubclass.ts, 3, 8))
+>c : Symbol(c, Decl(inferInstanceOfSubclass.ts, 3, 12))
+>U : Symbol(U, Decl(inferInstanceOfSubclass.ts, 3, 8))
+
+class D<V> extends C<V> { d: V }
+>D : Symbol(D, Decl(inferInstanceOfSubclass.ts, 3, 19))
+>V : Symbol(V, Decl(inferInstanceOfSubclass.ts, 4, 8))
+>C : Symbol(C, Decl(inferInstanceOfSubclass.ts, 2, 1))
+>V : Symbol(V, Decl(inferInstanceOfSubclass.ts, 4, 8))
+>d : Symbol(d, Decl(inferInstanceOfSubclass.ts, 4, 25))
+>V : Symbol(V, Decl(inferInstanceOfSubclass.ts, 4, 8))
+
+let d = create(D);
+>d : Symbol(d, Decl(inferInstanceOfSubclass.ts, 5, 3))
+>create : Symbol(create, Decl(inferInstanceOfSubclass.ts, 0, 0))
+>D : Symbol(D, Decl(inferInstanceOfSubclass.ts, 3, 19))
+
+class A { a: number }
+>A : Symbol(A, Decl(inferInstanceOfSubclass.ts, 5, 18))
+>a : Symbol(a, Decl(inferInstanceOfSubclass.ts, 7, 9))
+
+class B<T> extends A { b: T }
+>B : Symbol(B, Decl(inferInstanceOfSubclass.ts, 7, 21))
+>T : Symbol(T, Decl(inferInstanceOfSubclass.ts, 8, 8))
+>A : Symbol(A, Decl(inferInstanceOfSubclass.ts, 5, 18))
+>b : Symbol(b, Decl(inferInstanceOfSubclass.ts, 8, 22))
+>T : Symbol(T, Decl(inferInstanceOfSubclass.ts, 8, 8))
+
+let b = create(B);
+>b : Symbol(b, Decl(inferInstanceOfSubclass.ts, 9, 3))
+>create : Symbol(create, Decl(inferInstanceOfSubclass.ts, 0, 0))
+>B : Symbol(B, Decl(inferInstanceOfSubclass.ts, 7, 21))
+
+
diff --git a/tests/baselines/reference/inferInstanceOfSubclass.types b/tests/baselines/reference/inferInstanceOfSubclass.types
new file mode 100644
index 0000000000000..c0a2c78c8e3ff
--- /dev/null
+++ b/tests/baselines/reference/inferInstanceOfSubclass.types
@@ -0,0 +1,49 @@
+=== tests/cases/compiler/inferInstanceOfSubclass.ts ===
+function create<T>(ctor: { new(): T }) {
+>create : <T>(ctor: new () => T) => T
+>T : T
+>ctor : new () => T
+>T : T
+
+    return new ctor();
+>new ctor() : T
+>ctor : new () => T
+}
+class C<U> { c: U }
+>C : C<U>
+>U : U
+>c : U
+>U : U
+
+class D<V> extends C<V> { d: V }
+>D : D<V>
+>V : V
+>C : C<V>
+>V : V
+>d : V
+>V : V
+
+let d = create(D);
+>d : D<any>
+>create(D) : D<any>
+>create : <T>(ctor: new () => T) => T
+>D : typeof D
+
+class A { a: number }
+>A : A
+>a : number
+
+class B<T> extends A { b: T }
+>B : B<T>
+>T : T
+>A : A
+>b : T
+>T : T
+
+let b = create(B);
+>b : B<any>
+>create(B) : B<any>
+>create : <T>(ctor: new () => T) => T
+>B : typeof B
+
+
diff --git a/tests/cases/compiler/inferInstanceOfSubclass.ts b/tests/cases/compiler/inferInstanceOfSubclass.ts
new file mode 100644
index 0000000000000..3e60cb3a9f876
--- /dev/null
+++ b/tests/cases/compiler/inferInstanceOfSubclass.ts
@@ -0,0 +1,11 @@
+function create<T>(ctor: { new(): T }) {
+    return new ctor();
+}
+class C<U> { c: U }
+class D<V> extends C<V> { d: V }
+let d = create(D);
+
+class A { a: number }
+class B<T> extends A { b: T }
+let b = create(B);
+