diff --git a/src/compiler/diagnosticMessages.json b/src/compiler/diagnosticMessages.json
index f211d7aeb20fc..ab1e983818df6 100644
--- a/src/compiler/diagnosticMessages.json
+++ b/src/compiler/diagnosticMessages.json
@@ -4433,6 +4433,10 @@
         "category": "Message",
         "code": 6107
     },
+    "'resolveFromOutDir' option is set, using it to resolve relative module name '{0}'.": {
+        "category": "Message",
+        "code": 16107
+    },
     "Longest matching prefix for '{0}' is '{1}'.": {
         "category": "Message",
         "code": 6108
@@ -4441,6 +4445,10 @@
         "category": "Message",
         "code": 6109
     },
+    "Loading '{0}' from the out dir '{1}', candidate location '{2}'.": {
+        "category": "Message",
+        "code": 16109
+    },
     "Trying other entries in 'rootDirs'.": {
         "category": "Message",
         "code": 6110
@@ -4449,6 +4457,10 @@
         "category": "Message",
         "code": 6111
     },
+    "Module resolution using 'outDir' has failed.": {
+        "category": "Message",
+        "code": 16111
+    },
     "Do not emit 'use strict' directives in module output.": {
         "category": "Message",
         "code": 6112
diff --git a/src/compiler/moduleNameResolver.ts b/src/compiler/moduleNameResolver.ts
index da2324cc74ecb..ac6681b7e7f77 100644
--- a/src/compiler/moduleNameResolver.ts
+++ b/src/compiler/moduleNameResolver.ts
@@ -1026,12 +1026,13 @@ namespace ts {
     type ResolutionKindSpecificLoader = (extensions: Extensions, candidate: string, onlyRecordFailures: boolean, state: ModuleResolutionState) => Resolved | undefined;
 
     /**
-     * Any module resolution kind can be augmented with optional settings: 'baseUrl', 'paths' and 'rootDirs' - they are used to
+     * Any module resolution kind can be augmented with optional settings: 'baseUrl', 'resolveFromOutDir', 'paths' and 'rootDirs' - they are used to
      * mitigate differences between design time structure of the project and its runtime counterpart so the same import name
      * can be resolved successfully by TypeScript compiler and runtime module loader.
      * If these settings are set then loading procedure will try to use them to resolve module name and it can of failure it will
      * fallback to standard resolution routine.
      *
+     * 'resolveFromOutDir': TODO document the semantics
      * - baseUrl - this setting controls how non-relative module names are resolved. If this setting is specified then non-relative
      * names will be resolved relative to baseUrl: i.e. if baseUrl is '/a/b' then candidate location to resolve module name 'c/d' will
      * be '/a/b/c/d'
@@ -1088,6 +1089,9 @@ namespace ts {
     function tryLoadModuleUsingOptionalResolutionSettings(extensions: Extensions, moduleName: string, containingDirectory: string, loader: ResolutionKindSpecificLoader,
         state: ModuleResolutionState): Resolved | undefined {
 
+        const resolvedFromOutDir = tryLoadModuleUsingOutDirIfEligible(extensions, moduleName, containingDirectory, loader, state);
+        if (resolvedFromOutDir) return resolvedFromOutDir;
+
         const resolved = tryLoadModuleUsingPathsIfEligible(extensions, moduleName, loader, state);
         if (resolved) return resolved.value;
 
@@ -1114,6 +1118,39 @@ namespace ts {
         }
     }
 
+    function tryLoadModuleUsingOutDirIfEligible(extensions: Extensions, moduleName: string, containingDirectory: string, loader: ResolutionKindSpecificLoader, state: ModuleResolutionState): Resolved | undefined {
+        const { resolveFromOutDir, outDir } = state.compilerOptions;
+        if (!resolveFromOutDir) {
+            // FIXME: wire the new option through
+            // return undefined
+        }
+        if (!outDir) {
+            return undefined;
+        }
+        if (state.traceEnabled) {
+            trace(state.host, Diagnostics.resolveFromOutDir_option_is_set_using_it_to_resolve_relative_module_name_0, moduleName);
+        }
+        
+        let normalizedPrefix = normalizePath(outDir);
+
+        let candidate = normalizePath(combinePaths(containingDirectory, moduleName));
+        const suffix = candidate.substr(normalizedPrefix.length);
+        candidate = combinePaths(normalizePath(outDir), suffix);
+        if (state.traceEnabled) {
+            trace(state.host, Diagnostics.Loading_0_from_the_out_dir_1_candidate_location_2, suffix, outDir, candidate);
+        }
+        
+        const resolvedFileName = loader(extensions, candidate, !directoryProbablyExists(containingDirectory, state.host), state);
+        if (resolvedFileName) {
+            return resolvedFileName;
+        }
+        
+        if (state.traceEnabled) {
+            trace(state.host, Diagnostics.Module_resolution_using_outDir_has_failed);
+        }
+        return undefined;
+    }
+
     function tryLoadModuleUsingRootDirs(extensions: Extensions, moduleName: string, containingDirectory: string, loader: ResolutionKindSpecificLoader,
         state: ModuleResolutionState): Resolved | undefined {
 
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 5ce2842fa8995..88ea91dcb95a6 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -6156,6 +6156,7 @@ namespace ts {
         project?: string;
         /* @internal */ pretty?: boolean;
         reactNamespace?: string;
+        resolveFromOutDir?: boolean;
         jsxFactory?: string;
         jsxFragmentFactory?: string;
         jsxImportSource?: string;