diff --git a/src/isomorphic/modern/class/__tests__/ReactPureComponent-test.js b/src/isomorphic/modern/class/__tests__/ReactPureComponent-test.js
index b0411626b9f66..6903a4e34bbd5 100644
--- a/src/isomorphic/modern/class/__tests__/ReactPureComponent-test.js
+++ b/src/isomorphic/modern/class/__tests__/ReactPureComponent-test.js
@@ -75,4 +75,113 @@ describe('ReactPureComponent', function() {
     expect(renders).toBe(2);
   });
 
+  it('does not update functional components inside pure components', function() {
+    // Multiple levels of host components and functional components; make sure
+    // purity propagates down. So we render:
+    //
+    // <Impure>
+    //   <Functional>
+    //     <Functional>
+    //       <Pure>
+    //         <Functional>
+    //           <Functional>
+    //
+    // with some host wrappers in between. The render code is a little
+    // convoluted because we want to make the props scalar-equal as long as
+    // `text` (threaded through the whole tree) is. The outer two Functional
+    // components should always rerender; the inner Functional components should
+    // only rerender if `text` changes to a different object.
+
+    var impureRenders = 0;
+    var pureRenders = 0;
+    var functionalRenders = 0;
+
+    var pureComponent;
+    class Impure extends React.Component {
+      render() {
+        impureRenders++;
+        return (
+          <div>
+            {/* These props will always be shallow-equal. */}
+            <Functional
+              depth={2}
+              thenRender="pureComponent"
+              text={this.props.text}
+            />
+          </div>
+        );
+      }
+    }
+    class Pure extends React.PureComponent {
+      render() {
+        pureComponent = this;
+        pureRenders++;
+        return (
+          <div>
+            <Functional
+              depth={2}
+              thenRender="text"
+              text={this.props.text}
+            />
+          </div>
+        );
+      }
+    }
+    function Functional(props) {
+      functionalRenders++;
+      if (props.depth <= 1) {
+        return (
+          <div>
+            {props.prefix}
+            {props.thenRender === 'pureComponent' ?
+              [props.text[0] + '/', <Pure key="pure" text={props.text} />] :
+              props.text[0]}
+          </div>
+        );
+      } else {
+        return (
+          <div>
+            <Functional
+              {...props}
+              depth={props.depth - 1}
+            />
+          </div>
+        );
+      }
+    }
+
+    var container = document.createElement('div');
+    var text;
+
+    text = ['porcini'];
+    ReactDOM.render(<Impure text={text} />, container);
+    expect(container.textContent).toBe('porcini/porcini');
+    expect(impureRenders).toBe(1);
+    expect(pureRenders).toBe(1);
+    expect(functionalRenders).toBe(4);
+
+    text = ['morel'];
+    ReactDOM.render(<Impure text={text} />, container);
+    expect(container.textContent).toBe('morel/morel');
+    expect(impureRenders).toBe(2);
+    expect(pureRenders).toBe(2);
+    expect(functionalRenders).toBe(8);
+
+    text[0] = 'portobello';
+    ReactDOM.render(<Impure text={text} />, container);
+    // Updates happen down and stop at the pure component
+    expect(container.textContent).toBe('portobello/morel');
+    expect(impureRenders).toBe(3);
+    expect(pureRenders).toBe(2);
+    expect(functionalRenders).toBe(10);
+
+    // Forcing the pure component to update makes it rerender, but its
+    // functional children still don't.
+    pureComponent.forceUpdate();
+    expect(container.textContent).toBe('portobello/morel');
+    expect(impureRenders).toBe(3);
+    expect(pureRenders).toBe(3);
+    expect(functionalRenders).toBe(10);
+  });
+
 });
diff --git a/src/renderers/dom/shared/ReactDOMComponent.js b/src/renderers/dom/shared/ReactDOMComponent.js
index 5885c1f6d0575..f8e9b6f4a228c 100644
--- a/src/renderers/dom/shared/ReactDOMComponent.js
+++ b/src/renderers/dom/shared/ReactDOMComponent.js
@@ -846,10 +846,16 @@ ReactDOMComponent.Mixin = {
    * @param {ReactReconcileTransaction|ReactServerRenderingTransaction} transaction
    * @param {object} context
    */
-  receiveComponent: function(nextElement, transaction, context) {
+  receiveComponent: function(nextElement, transaction, context, isParentPure) {
     var prevElement = this._currentElement;
     this._currentElement = nextElement;
-    this.updateComponent(transaction, prevElement, nextElement, context);
+    this.updateComponent(
+      transaction,
+      prevElement,
+      nextElement,
+      context,
+      isParentPure
+    );
   },
 
   /**
@@ -862,7 +868,13 @@ ReactDOMComponent.Mixin = {
    * @internal
    * @overridable
    */
-  updateComponent: function(transaction, prevElement, nextElement, context) {
+  updateComponent: function(
+    transaction,
+    prevElement,
+    nextElement,
+    context,
+    isParentPure
+  ) {
     var lastProps = prevElement.props;
     var nextProps = this._currentElement.props;
 
@@ -897,7 +909,8 @@ ReactDOMComponent.Mixin = {
       lastProps,
       nextProps,
       transaction,
-      context
+      context,
+      isParentPure
     );
 
     if (this._tag === 'select') {
@@ -1053,7 +1066,13 @@ ReactDOMComponent.Mixin = {
    * @param {ReactReconcileTransaction} transaction
    * @param {object} context
    */
-  _updateDOMChildren: function(lastProps, nextProps, transaction, context) {
+  _updateDOMChildren: function(
+    lastProps,
+    nextProps,
+    transaction,
+    context,
+    isParentPure
+  ) {
     var lastContent =
       CONTENT_TYPES[typeof lastProps.children] ? lastProps.children : null;
     var nextContent =
@@ -1075,7 +1094,7 @@ ReactDOMComponent.Mixin = {
     var lastHasContentOrHtml = lastContent != null || lastHtml != null;
     var nextHasContentOrHtml = nextContent != null || nextHtml != null;
     if (lastChildren != null && nextChildren == null) {
-      this.updateChildren(null, transaction, context);
+      this.updateChildren(null, transaction, context, isParentPure);
     } else if (lastHasContentOrHtml && !nextHasContentOrHtml) {
       this.updateTextContent('');
       if (__DEV__) {
@@ -1102,7 +1121,7 @@ ReactDOMComponent.Mixin = {
         setContentChildForInstrumentation.call(this, null);
       }
 
-      this.updateChildren(nextChildren, transaction, context);
+      this.updateChildren(nextChildren, transaction, context, isParentPure);
     }
   },
 
diff --git a/src/renderers/dom/shared/ReactDOMEmptyComponent.js b/src/renderers/dom/shared/ReactDOMEmptyComponent.js
index d77ea340582bd..29f17cd6c6599 100644
--- a/src/renderers/dom/shared/ReactDOMEmptyComponent.js
+++ b/src/renderers/dom/shared/ReactDOMEmptyComponent.js
@@ -52,7 +52,7 @@ Object.assign(ReactDOMEmptyComponent.prototype, {
       return '<!--' + nodeValue + '-->';
     }
   },
-  receiveComponent: function() {
+  receiveComponent: function(nextElement, transaction, context, isParentPure) {
   },
   getHostNode: function() {
     return ReactDOMComponentTree.getNodeFromInstance(this);
diff --git a/src/renderers/dom/shared/ReactDOMTextComponent.js b/src/renderers/dom/shared/ReactDOMTextComponent.js
index 95eacc9c2c06a..c9dc87c3c542d 100644
--- a/src/renderers/dom/shared/ReactDOMTextComponent.js
+++ b/src/renderers/dom/shared/ReactDOMTextComponent.js
@@ -127,7 +127,7 @@ Object.assign(ReactDOMTextComponent.prototype, {
    * @param {ReactReconcileTransaction} transaction
    * @internal
    */
-  receiveComponent: function(nextText, transaction) {
+  receiveComponent: function(nextText, transaction, context, isParentPure) {
     if (nextText !== this._currentElement) {
       this._currentElement = nextText;
       var nextStringText = '' + nextText;
diff --git a/src/renderers/native/ReactNativeBaseComponent.js b/src/renderers/native/ReactNativeBaseComponent.js
index 20dfaa542b311..d4ea7fe1a4ee6 100644
--- a/src/renderers/native/ReactNativeBaseComponent.js
+++ b/src/renderers/native/ReactNativeBaseComponent.js
@@ -97,7 +97,7 @@ ReactNativeBaseComponent.Mixin = {
    * @param {object} context
    * @internal
    */
-  receiveComponent: function(nextElement, transaction, context) {
+  receiveComponent: function(nextElement, transaction, context, isParentPure) {
     var prevElement = this._currentElement;
     this._currentElement = nextElement;
 
@@ -127,7 +127,12 @@ ReactNativeBaseComponent.Mixin = {
       prevElement.props,
       nextElement.props
     );
-    this.updateChildren(nextElement.props.children, transaction, context);
+    this.updateChildren(
+      nextElement.props.children,
+      transaction,
+      context,
+      isParentPure
+    );
   },
 
   /**
diff --git a/src/renderers/native/ReactNativeTextComponent.js b/src/renderers/native/ReactNativeTextComponent.js
index 2195923941c15..f2ee98eb5fbfe 100644
--- a/src/renderers/native/ReactNativeTextComponent.js
+++ b/src/renderers/native/ReactNativeTextComponent.js
@@ -59,7 +59,7 @@ Object.assign(ReactNativeTextComponent.prototype, {
     return this._rootNodeID;
   },
 
-  receiveComponent: function(nextText, transaction, context) {
+  receiveComponent: function(nextText, transaction, context, isParentPure) {
     if (nextText !== this._currentElement) {
       this._currentElement = nextText;
       var nextStringText = '' + nextText;
diff --git a/src/renderers/shared/stack/reconciler/ReactChildReconciler.js b/src/renderers/shared/stack/reconciler/ReactChildReconciler.js
index ee1ce8217a161..c58585d3296ed 100644
--- a/src/renderers/shared/stack/reconciler/ReactChildReconciler.js
+++ b/src/renderers/shared/stack/reconciler/ReactChildReconciler.js
@@ -95,7 +95,8 @@ var ReactChildReconciler = {
     nextChildren,
     removedNodes,
     transaction,
-    context) {
+    context,
+    isParentPure) {
     // We currently don't have a way to track moves here but if we use iterators
     // instead of for..in we can zip the iterators and check if an item has
     // moved.
@@ -116,7 +117,7 @@ var ReactChildReconciler = {
       if (prevChild != null &&
           shouldUpdateReactComponent(prevElement, nextElement)) {
         ReactReconciler.receiveComponent(
-          prevChild, nextElement, transaction, context
+          prevChild, nextElement, transaction, context, isParentPure
         );
         nextChildren[name] = prevChild;
       } else {
diff --git a/src/renderers/shared/stack/reconciler/ReactCompositeComponent.js b/src/renderers/shared/stack/reconciler/ReactCompositeComponent.js
index 28a2b60c5e212..79703918cc18b 100644
--- a/src/renderers/shared/stack/reconciler/ReactCompositeComponent.js
+++ b/src/renderers/shared/stack/reconciler/ReactCompositeComponent.js
@@ -694,7 +694,12 @@ var ReactCompositeComponentMixin = {
     );
   },
 
-  receiveComponent: function(nextElement, transaction, nextContext) {
+  receiveComponent: function(
+    nextElement,
+    transaction,
+    nextContext,
+    isParentPure
+  ) {
     var prevElement = this._currentElement;
     var prevContext = this._context;
 
@@ -705,7 +710,8 @@ var ReactCompositeComponentMixin = {
       prevElement,
       nextElement,
       prevContext,
-      nextContext
+      nextContext,
+      isParentPure
     );
   },
 
@@ -722,7 +728,10 @@ var ReactCompositeComponentMixin = {
         this,
         this._pendingElement,
         transaction,
-        this._context
+        this._context,
+        // Element updates are enqueued only at the top level, which we consider
+        // impure
+        false
       );
     } else if (this._pendingStateQueue !== null || this._pendingForceUpdate) {
       this.updateComponent(
@@ -730,7 +739,10 @@ var ReactCompositeComponentMixin = {
         this._currentElement,
         this._currentElement,
         this._context,
-        this._context
+        this._context,
+        // isParentPure here doesn't matter because state updates don't happen to
+        // functional components.
+        true
       );
     } else {
       this._updateBatchNumber = null;
@@ -757,7 +769,8 @@ var ReactCompositeComponentMixin = {
     prevParentElement,
     nextParentElement,
     prevUnmaskedContext,
-    nextUnmaskedContext
+    nextUnmaskedContext,
+    isParentPure
   ) {
     var inst = this._instance;
     var willReceive = false;
@@ -805,6 +818,9 @@ var ReactCompositeComponentMixin = {
     var nextState = this._processPendingState(nextProps, nextContext);
     var shouldUpdate = true;
 
+    var pureSelf =
+      this._compositeType === CompositeTypes.PureClass ||
+      isParentPure && this._compositeType === CompositeTypes.StatelessFunctional;
     if (!this._pendingForceUpdate) {
       if (inst.shouldComponentUpdate) {
         if (__DEV__) {
@@ -825,7 +841,7 @@ var ReactCompositeComponentMixin = {
           }
         }
       } else {
-        if (this._compositeType === CompositeTypes.PureClass) {
+        if (pureSelf) {
           shouldUpdate =
             inst.state !== nextState || !shallowEqual(prevProps, nextProps);
         }
@@ -851,7 +867,8 @@ var ReactCompositeComponentMixin = {
         nextState,
         nextContext,
         transaction,
-        nextUnmaskedContext
+        nextUnmaskedContext,
+        pureSelf
       );
     } else {
       // If it's determined that a component should not update, we still want
@@ -911,7 +928,8 @@ var ReactCompositeComponentMixin = {
     nextState,
     nextContext,
     transaction,
-    unmaskedContext
+    unmaskedContext,
+    pureSelf
   ) {
     var inst = this._instance;
 
@@ -951,7 +969,7 @@ var ReactCompositeComponentMixin = {
     inst.state = nextState;
     inst.context = nextContext;
 
-    this._updateRenderedComponent(transaction, unmaskedContext);
+    this._updateRenderedComponent(transaction, unmaskedContext, pureSelf);
 
     if (hasComponentDidUpdate) {
       if (__DEV__) {
@@ -974,7 +992,7 @@ var ReactCompositeComponentMixin = {
    * @param {ReactReconcileTransaction} transaction
    * @internal
    */
-  _updateRenderedComponent: function(transaction, context) {
+  _updateRenderedComponent: function(transaction, context, pureSelf) {
     var prevComponentInstance = this._renderedComponent;
     var prevRenderedElement = prevComponentInstance._currentElement;
     var nextRenderedElement = this._renderValidatedComponent();
@@ -983,7 +1001,8 @@ var ReactCompositeComponentMixin = {
         prevComponentInstance,
         nextRenderedElement,
         transaction,
-        this._processChildContext(context)
+        this._processChildContext(context),
+        pureSelf
       );
     } else {
       var oldHostNode = ReactReconciler.getHostNode(prevComponentInstance);
diff --git a/src/renderers/shared/stack/reconciler/ReactMultiChild.js b/src/renderers/shared/stack/reconciler/ReactMultiChild.js
index 96085235c78b1..8beb1602905e5 100644
--- a/src/renderers/shared/stack/reconciler/ReactMultiChild.js
+++ b/src/renderers/shared/stack/reconciler/ReactMultiChild.js
@@ -209,7 +209,8 @@ var ReactMultiChild = {
       nextNestedChildrenElements,
       removedNodes,
       transaction,
-      context
+      context,
+      isParentPure
     ) {
       var nextChildren;
       if (__DEV__) {
@@ -221,14 +222,24 @@ var ReactMultiChild = {
             ReactCurrentOwner.current = null;
           }
           ReactChildReconciler.updateChildren(
-            prevChildren, nextChildren, removedNodes, transaction, context
+            prevChildren,
+            nextChildren,
+            removedNodes,
+            transaction,
+            context,
+            isParentPure
           );
           return nextChildren;
         }
       }
       nextChildren = flattenChildren(nextNestedChildrenElements);
       ReactChildReconciler.updateChildren(
-        prevChildren, nextChildren, removedNodes, transaction, context
+        prevChildren,
+        nextChildren,
+        removedNodes,
+        transaction,
+        context,
+        isParentPure
       );
       return nextChildren;
     },
@@ -320,9 +331,19 @@ var ReactMultiChild = {
      * @param {ReactReconcileTransaction} transaction
      * @internal
      */
-    updateChildren: function(nextNestedChildrenElements, transaction, context) {
+    updateChildren: function(
+      nextNestedChildrenElements,
+      transaction,
+      context,
+      isParentPure
+    ) {
       // Hook used by React ART
-      this._updateChildren(nextNestedChildrenElements, transaction, context);
+      this._updateChildren(
+        nextNestedChildrenElements,
+        transaction,
+        context,
+        isParentPure
+      );
     },
 
     /**
@@ -331,7 +352,12 @@ var ReactMultiChild = {
      * @final
      * @protected
      */
-    _updateChildren: function(nextNestedChildrenElements, transaction, context) {
+    _updateChildren: function(
+      nextNestedChildrenElements,
+      transaction,
+      context,
+      isParentPure
+    ) {
       var prevChildren = this._renderedChildren;
       var removedNodes = {};
       var nextChildren = this._reconcilerUpdateChildren(
@@ -339,7 +365,8 @@ var ReactMultiChild = {
         nextNestedChildrenElements,
         removedNodes,
         transaction,
-        context
+        context,
+        isParentPure
       );
       if (!nextChildren && !prevChildren) {
         return;
diff --git a/src/renderers/shared/stack/reconciler/ReactReconciler.js b/src/renderers/shared/stack/reconciler/ReactReconciler.js
index f9e6473b7a77a..bbc74f37d3b01 100644
--- a/src/renderers/shared/stack/reconciler/ReactReconciler.js
+++ b/src/renderers/shared/stack/reconciler/ReactReconciler.js
@@ -128,7 +128,7 @@ var ReactReconciler = {
    * @internal
    */
   receiveComponent: function(
-    internalInstance, nextElement, transaction, context
+    internalInstance, nextElement, transaction, context, isParentPure
   ) {
     var prevElement = internalInstance._currentElement;
 
@@ -170,7 +170,12 @@ var ReactReconciler = {
       ReactRef.detachRefs(internalInstance, prevElement);
     }
 
-    internalInstance.receiveComponent(nextElement, transaction, context);
+    internalInstance.receiveComponent(
+      nextElement,
+      transaction,
+      context,
+      isParentPure
+    );
 
     if (refsChanged &&
         internalInstance._currentElement &&
diff --git a/src/renderers/shared/stack/reconciler/ReactSimpleEmptyComponent.js b/src/renderers/shared/stack/reconciler/ReactSimpleEmptyComponent.js
index 54fe5e0103d6e..b8a24167bde4b 100644
--- a/src/renderers/shared/stack/reconciler/ReactSimpleEmptyComponent.js
+++ b/src/renderers/shared/stack/reconciler/ReactSimpleEmptyComponent.js
@@ -33,7 +33,7 @@ Object.assign(ReactSimpleEmptyComponent.prototype, {
       context
     );
   },
-  receiveComponent: function() {
+  receiveComponent: function(nextElement, transaction, context, isParentPure) {
   },
   getHostNode: function() {
     return ReactReconciler.getHostNode(this._renderedComponent);
diff --git a/src/test/ReactTestUtils.js b/src/test/ReactTestUtils.js
index 093bfad0dd32d..3276f5824c9f3 100644
--- a/src/test/ReactTestUtils.js
+++ b/src/test/ReactTestUtils.js
@@ -391,7 +391,7 @@ NoopInternalComponent.prototype = {
   mountComponent: function() {
   },
 
-  receiveComponent: function(element) {
+  receiveComponent: function(element, transaction, context, isParentPure) {
     this._renderedOutput = element;
     this._currentElement = element;
   },
@@ -487,7 +487,8 @@ ReactShallowRenderer.prototype._render = function(element, transaction, context)
       this._instance,
       element,
       transaction,
-      context
+      context,
+      /* isParentPure: */ false
     );
   } else {
     var instance = new ShallowComponentWrapper(element);