diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 103200600b219..23a7cd2bde6c9 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -9526,6 +9526,17 @@ namespace ts {
             return type.flags & TypeFlags.IndexedAccess ? getSimplifiedIndexedAccessType(<IndexedAccessType>type) : type;
         }
 
+        function distributeIndexOverObjectType(objectType: Type, indexType: Type) {
+            // (T | U)[K] -> T[K] | U[K]
+            if (objectType.flags & TypeFlags.Union) {
+                return mapType(objectType, t => getSimplifiedType(getIndexedAccessType(t, indexType)));
+            }
+            // (T & U)[K] -> T[K] & U[K]
+            if (objectType.flags & TypeFlags.Intersection) {
+                return getIntersectionType(map((objectType as IntersectionType).types, t => getSimplifiedType(getIndexedAccessType(t, indexType))));
+            }
+        }
+
         // Transform an indexed access to a simpler form, if possible. Return the simpler form, or return
         // the type itself if no transformation is possible.
         function getSimplifiedIndexedAccessType(type: IndexedAccessType): Type {
@@ -9543,13 +9554,9 @@ namespace ts {
             }
             // Only do the inner distributions if the index can no longer be instantiated to cause index distribution again
             if (!(indexType.flags & TypeFlags.Instantiable)) {
-                // (T | U)[K] -> T[K] | U[K]
-                if (objectType.flags & TypeFlags.Union) {
-                    return type.simplified = mapType(objectType, t => getSimplifiedType(getIndexedAccessType(t, indexType)));
-                }
-                // (T & U)[K] -> T[K] & U[K]
-                if (objectType.flags & TypeFlags.Intersection) {
-                    return type.simplified = getIntersectionType(map((objectType as IntersectionType).types, t => getSimplifiedType(getIndexedAccessType(t, indexType))));
+                const simplified = distributeIndexOverObjectType(objectType, indexType);
+                if (simplified) {
+                    return type.simplified = simplified;
                 }
             }
             // So ultimately:
@@ -13833,10 +13840,17 @@ namespace ts {
                         // Infer to the simplified version of an indexed access, if possible, to (hopefully) expose more bare type parameters to the inference engine
                         const simplified = getSimplifiedType(target);
                         if (simplified !== target) {
-                            const key = source.id + "," + simplified.id;
-                            if (!visited || !visited.get(key)) {
-                                (visited || (visited = createMap<boolean>())).set(key, true);
-                                inferFromTypes(source, simplified);
+                            inferFromTypesOnce(source, simplified);
+                        }
+                        else if (target.flags & TypeFlags.IndexedAccess) {
+                            const indexType = getSimplifiedType((target as IndexedAccessType).indexType);
+                            // Generally simplifications of instantiable indexes are avoided to keep relationship checking correct, however if our target is an access, we can consider
+                            // that key of that access to be "instantiated", since we're looking to find the infernce goal in any way we can.
+                            if (indexType.flags & TypeFlags.Instantiable) {
+                                const simplified = distributeIndexOverObjectType(getSimplifiedType((target as IndexedAccessType).objectType), indexType);
+                                if (simplified && simplified !== target) {
+                                    inferFromTypesOnce(source, simplified);
+                                }
                             }
                         }
                     }
@@ -13959,6 +13973,14 @@ namespace ts {
                         }
                     }
                 }
+
+                function inferFromTypesOnce(source: Type, target: Type) {
+                    const key = source.id + "," + target.id;
+                    if (!visited || !visited.get(key)) {
+                        (visited || (visited = createMap<boolean>())).set(key, true);
+                        inferFromTypes(source, target);
+                    }
+                }
             }
 
             function inferFromContravariantTypes(source: Type, target: Type) {
diff --git a/tests/baselines/reference/checkJsxIntersectionElementPropsType.types b/tests/baselines/reference/checkJsxIntersectionElementPropsType.types
index 0e95dbed36166..187d0f274a409 100644
--- a/tests/baselines/reference/checkJsxIntersectionElementPropsType.types
+++ b/tests/baselines/reference/checkJsxIntersectionElementPropsType.types
@@ -20,8 +20,8 @@ class C<T> extends Component<{ x?: boolean; } & T> {}
 >x : boolean | undefined
 
 const y = new C({foobar: "example"});
->y : C<{ foobar: {}; }>
->new C({foobar: "example"}) : C<{ foobar: {}; }>
+>y : C<{ foobar: string; }>
+>new C({foobar: "example"}) : C<{ foobar: string; }>
 >C : typeof C
 >{foobar: "example"} : { foobar: string; }
 >foobar : string
diff --git a/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.js b/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.js
new file mode 100644
index 0000000000000..2b63a442da772
--- /dev/null
+++ b/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.js
@@ -0,0 +1,38 @@
+//// [tsxReactPropsInferenceSucceedsOnIntersections.tsx]
+/// <reference path="/.lib/react16.d.ts" />
+
+import React from "react";
+
+export type ButtonProps<T = {}> = React.ButtonHTMLAttributes<HTMLButtonElement> & {
+    outline?: boolean;
+} & T;
+
+declare class Button<T = {}> extends React.Component<ButtonProps<T>> { }
+
+interface CustomButtonProps extends ButtonProps {
+    customProp: string;
+}
+
+const CustomButton: React.SFC<CustomButtonProps> = props => <Button {...props} />;
+
+
+//// [tsxReactPropsInferenceSucceedsOnIntersections.js]
+"use strict";
+/// <reference path="react16.d.ts" />
+var __assign = (this && this.__assign) || function () {
+    __assign = Object.assign || function(t) {
+        for (var s, i = 1, n = arguments.length; i < n; i++) {
+            s = arguments[i];
+            for (var p in s) if (Object.prototype.hasOwnProperty.call(s, p))
+                t[p] = s[p];
+        }
+        return t;
+    };
+    return __assign.apply(this, arguments);
+};
+var __importDefault = (this && this.__importDefault) || function (mod) {
+    return (mod && mod.__esModule) ? mod : { "default": mod };
+};
+exports.__esModule = true;
+var react_1 = __importDefault(require("react"));
+var CustomButton = function (props) { return react_1["default"].createElement(Button, __assign({}, props)); };
diff --git a/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.symbols b/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.symbols
new file mode 100644
index 0000000000000..53ab08fd3e03c
--- /dev/null
+++ b/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.symbols
@@ -0,0 +1,45 @@
+=== tests/cases/compiler/tsxReactPropsInferenceSucceedsOnIntersections.tsx ===
+/// <reference path="react16.d.ts" />
+
+import React from "react";
+>React : Symbol(React, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 2, 6))
+
+export type ButtonProps<T = {}> = React.ButtonHTMLAttributes<HTMLButtonElement> & {
+>ButtonProps : Symbol(ButtonProps, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 2, 26))
+>T : Symbol(T, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 4, 24))
+>React : Symbol(React, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 2, 6))
+>ButtonHTMLAttributes : Symbol(React.ButtonHTMLAttributes, Decl(react16.d.ts, 1437, 9))
+>HTMLButtonElement : Symbol(HTMLButtonElement, Decl(lib.dom.d.ts, --, --), Decl(lib.dom.d.ts, --, --))
+
+    outline?: boolean;
+>outline : Symbol(outline, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 4, 83))
+
+} & T;
+>T : Symbol(T, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 4, 24))
+
+declare class Button<T = {}> extends React.Component<ButtonProps<T>> { }
+>Button : Symbol(Button, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 6, 6))
+>T : Symbol(T, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 8, 21))
+>React.Component : Symbol(React.Component, Decl(react16.d.ts, 345, 54), Decl(react16.d.ts, 349, 94))
+>React : Symbol(React, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 2, 6))
+>Component : Symbol(React.Component, Decl(react16.d.ts, 345, 54), Decl(react16.d.ts, 349, 94))
+>ButtonProps : Symbol(ButtonProps, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 2, 26))
+>T : Symbol(T, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 8, 21))
+
+interface CustomButtonProps extends ButtonProps {
+>CustomButtonProps : Symbol(CustomButtonProps, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 8, 72))
+>ButtonProps : Symbol(ButtonProps, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 2, 26))
+
+    customProp: string;
+>customProp : Symbol(CustomButtonProps.customProp, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 10, 49))
+}
+
+const CustomButton: React.SFC<CustomButtonProps> = props => <Button {...props} />;
+>CustomButton : Symbol(CustomButton, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 14, 5))
+>React : Symbol(React, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 2, 6))
+>SFC : Symbol(React.SFC, Decl(react16.d.ts, 400, 9))
+>CustomButtonProps : Symbol(CustomButtonProps, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 8, 72))
+>props : Symbol(props, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 14, 50))
+>Button : Symbol(Button, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 6, 6))
+>props : Symbol(props, Decl(tsxReactPropsInferenceSucceedsOnIntersections.tsx, 14, 50))
+
diff --git a/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.types b/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.types
new file mode 100644
index 0000000000000..16b5cd1363673
--- /dev/null
+++ b/tests/baselines/reference/tsxReactPropsInferenceSucceedsOnIntersections.types
@@ -0,0 +1,35 @@
+=== tests/cases/compiler/tsxReactPropsInferenceSucceedsOnIntersections.tsx ===
+/// <reference path="react16.d.ts" />
+
+import React from "react";
+>React : typeof React
+
+export type ButtonProps<T = {}> = React.ButtonHTMLAttributes<HTMLButtonElement> & {
+>ButtonProps : ButtonProps<T>
+>React : any
+
+    outline?: boolean;
+>outline : boolean | undefined
+
+} & T;
+
+declare class Button<T = {}> extends React.Component<ButtonProps<T>> { }
+>Button : Button<T>
+>React.Component : React.Component<ButtonProps<T>, {}, any>
+>React : typeof React
+>Component : typeof React.Component
+
+interface CustomButtonProps extends ButtonProps {
+    customProp: string;
+>customProp : string
+}
+
+const CustomButton: React.SFC<CustomButtonProps> = props => <Button {...props} />;
+>CustomButton : React.StatelessComponent<CustomButtonProps>
+>React : any
+>props => <Button {...props} /> : (props: CustomButtonProps & { children?: React.ReactNode; }) => JSX.Element
+>props : CustomButtonProps & { children?: React.ReactNode; }
+><Button {...props} /> : JSX.Element
+>Button : typeof Button
+>props : CustomButtonProps & { children?: React.ReactNode; }
+
diff --git a/tests/cases/compiler/tsxReactPropsInferenceSucceedsOnIntersections.tsx b/tests/cases/compiler/tsxReactPropsInferenceSucceedsOnIntersections.tsx
new file mode 100644
index 0000000000000..afefc85206b87
--- /dev/null
+++ b/tests/cases/compiler/tsxReactPropsInferenceSucceedsOnIntersections.tsx
@@ -0,0 +1,18 @@
+// @jsx: react
+// @esModuleInterop: true
+// @strictNullChecks: true
+/// <reference path="/.lib/react16.d.ts" />
+
+import React from "react";
+
+export type ButtonProps<T = {}> = React.ButtonHTMLAttributes<HTMLButtonElement> & {
+    outline?: boolean;
+} & T;
+
+declare class Button<T = {}> extends React.Component<ButtonProps<T>> { }
+
+interface CustomButtonProps extends ButtonProps {
+    customProp: string;
+}
+
+const CustomButton: React.SFC<CustomButtonProps> = props => <Button {...props} />;