diff --git a/CHANGELOG.md b/CHANGELOG.md
index e9d7639e04..79c368e4f8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -36,6 +36,10 @@
 - Remove deprecated pipe last (`|>`) syntax. https://github.com/rescript-lang/rescript/pull/7512
 - Improve error message for pipe (`->`) syntax. https://github.com/rescript-lang/rescript/pull/7520
 - Improve a few error messages around various subtyping issues. https://github.com/rescript-lang/rescript/pull/7404
+- In module declarations, accept the invalid syntax `M = {...}` and format it to `M : {...}`. https://github.com/rescript-lang/rescript/pull/7527
+
+#### :house: Internal
+
 - Refactor the ast for record expressions and patterns. https://github.com/rescript-lang/rescript/pull/7528
 
 # 12.0.0-alpha.13
diff --git a/compiler/syntax/src/res_core.ml b/compiler/syntax/src/res_core.ml
index d6a8051623..aebd7bc62d 100644
--- a/compiler/syntax/src/res_core.ml
+++ b/compiler/syntax/src/res_core.ml
@@ -6541,10 +6541,15 @@ and parse_module_declaration_or_alias ~attrs p =
     | Colon ->
       Parser.next p;
       parse_module_type p
-    | Equal ->
+    | Equal -> (
       Parser.next p;
-      let lident = parse_module_long_ident ~lowercase:false p in
-      Ast_helper.Mty.alias lident
+      match p.Parser.token with
+      | Lbrace ->
+        (* Parse `module M = {` as `module M : {` *)
+        parse_module_type p
+      | _ ->
+        let lident = parse_module_long_ident ~lowercase:false p in
+        Ast_helper.Mty.alias lident)
     | token ->
       Parser.err p (Diagnostics.unexpected token p.breadcrumbs);
       Recover.default_module_type ()
diff --git a/tests/syntax_tests/data/printer/signature/expected/module.resi.txt b/tests/syntax_tests/data/printer/signature/expected/module.resi.txt
index 6ea923c4d6..80ffd77f95 100644
--- a/tests/syntax_tests/data/printer/signature/expected/module.resi.txt
+++ b/tests/syntax_tests/data/printer/signature/expected/module.resi.txt
@@ -23,3 +23,8 @@ module LongNaaaaame: MyModule
 
 @attr
 module LinkedList: module type of List
+
+// turn `=` into `:`
+module M: {
+  let x: int
+}
diff --git a/tests/syntax_tests/data/printer/signature/module.resi b/tests/syntax_tests/data/printer/signature/module.resi
index 453f3f85ab..5007d5fbed 100644
--- a/tests/syntax_tests/data/printer/signature/module.resi
+++ b/tests/syntax_tests/data/printer/signature/module.resi
@@ -24,3 +24,6 @@ module LongNaaaaame: MyModule
 
 @attr
 module LinkedList: module type of List
+
+// turn `=` into `:`
+module M = { let x: int }
\ No newline at end of file