diff --git a/lib/tsserverlibrary.d.ts b/lib/tsserverlibrary.d.ts
index 63580ce8dcd7f..4e51438f41145 100644
--- a/lib/tsserverlibrary.d.ts
+++ b/lib/tsserverlibrary.d.ts
@@ -1,18 +1,18 @@
-/*! *****************************************************************************
-Copyright (c) Microsoft Corporation. All rights reserved. 
-Licensed under the Apache License, Version 2.0 (the "License"); you may not use
-this file except in compliance with the License. You may obtain a copy of the
-License at http://www.apache.org/licenses/LICENSE-2.0  
- 
-THIS CODE IS PROVIDED ON AN *AS IS* BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
-KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED
-WARRANTIES OR CONDITIONS OF TITLE, FITNESS FOR A PARTICULAR PURPOSE, 
-MERCHANTABLITY OR NON-INFRINGEMENT. 
- 
-See the Apache Version 2.0 License for specific language governing permissions
-and limitations under the License.
-***************************************************************************** */
-
+/*! *****************************************************************************
+Copyright (c) Microsoft Corporation. All rights reserved. 
+Licensed under the Apache License, Version 2.0 (the "License"); you may not use
+this file except in compliance with the License. You may obtain a copy of the
+License at http://www.apache.org/licenses/LICENSE-2.0  
+ 
+THIS CODE IS PROVIDED ON AN *AS IS* BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED
+WARRANTIES OR CONDITIONS OF TITLE, FITNESS FOR A PARTICULAR PURPOSE, 
+MERCHANTABLITY OR NON-INFRINGEMENT. 
+ 
+See the Apache Version 2.0 License for specific language governing permissions
+and limitations under the License.
+***************************************************************************** */
+
 /// <reference path="../../src/server/types.d.ts" />
 /// <reference types="node" />
 declare namespace ts {
@@ -3509,6 +3509,7 @@ declare namespace ts.server.protocol {
         type None = "None";
         type Preserve = "Preserve";
         type React = "React";
+        type Local = "Local";
     }
     type JsxEmit = JsxEmit.None | JsxEmit.Preserve | JsxEmit.React;
     namespace ModuleKind {
diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 0f2c642124afc..24fd7550ecfcd 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -11346,6 +11346,23 @@ namespace ts {
                 }
             }
 
+            // if JSX mode is local, check that createElement is in scope
+            if (compilerOptions.jsx === JsxEmit.Local) {
+                const createElementRefError = Diagnostics.Cannot_find_name_0;
+                const createElementFnName = "createElement";
+                const createElementSym = resolveName(node.tagName, createElementFnName, SymbolFlags.Value, createElementRefError, createElementFnName);
+                if (createElementSym) {
+                    // Mark local symbol as referenced here because it might not have been marked
+                    // if jsx emit was not simple as there wont be error being emitted
+                    createElementSym.isReferenced = true;
+
+                    // If createElement symbol is alias, mark it as refereced
+                    if (createElementSym.flags & SymbolFlags.Alias && !isConstEnumOrConstEnumOnlyModule(resolveAlias(createElementSym))) {
+                        markAliasSymbolAsReferenced(createElementSym);
+                    }
+                }
+            }
+
             const targetAttributesType = getJsxElementAttributesType(node);
 
             const nameTable = createMap<boolean>();
diff --git a/src/compiler/commandLineParser.ts b/src/compiler/commandLineParser.ts
index 50399fd5c38e7..63d2c47349faa 100644
--- a/src/compiler/commandLineParser.ts
+++ b/src/compiler/commandLineParser.ts
@@ -67,7 +67,8 @@ namespace ts {
             name: "jsx",
             type: createMap({
                 "preserve": JsxEmit.Preserve,
-                "react": JsxEmit.React
+                "react": JsxEmit.React,
+                "local": JsxEmit.Local
             }),
             paramType: Diagnostics.KIND,
             description: Diagnostics.Specify_JSX_code_generation_Colon_preserve_or_react,
diff --git a/src/compiler/factory.ts b/src/compiler/factory.ts
index c557e3514a5de..759cad69c9e21 100644
--- a/src/compiler/factory.ts
+++ b/src/compiler/factory.ts
@@ -1628,7 +1628,19 @@ namespace ts {
         return react;
     }
 
-    export function createReactCreateElement(reactNamespace: string, tagName: Expression, props: Expression, children: Expression[], parentElement: JsxOpeningLikeElement, location: TextRange): LeftHandSideExpression {
+    function createSynthCreateElement(parent: JsxOpeningLikeElement) {
+        // To ensure the emit resolver can properly resolve the namespace, we need to
+        // treat this identifier as if it were a source tree node by clearing the `Synthesized`
+        // flag and setting a parent node.
+        const react = createIdentifier("createElement");
+        react.flags &= ~NodeFlags.Synthesized;
+        // Set the parent that is in parse tree 
+        // this makes sure that parent chain is intact for checker to traverse complete scope tree
+        react.parent = getParseTreeNode(parent);
+        return react;
+    }
+
+    export function createReactCreateElement(reactNamespace: string, tagName: Expression, props: Expression, children: Expression[], parentElement: JsxOpeningLikeElement, location: TextRange, jsxEmit: JsxEmit): LeftHandSideExpression {
         const argumentsList = [tagName];
         if (props) {
             argumentsList.push(props);
@@ -1650,12 +1662,20 @@ namespace ts {
             }
         }
 
+        if (jsxEmit === JsxEmit.Local) {
+            return createCall(
+                createSynthCreateElement(parentElement),
+                /*typeArguments*/ undefined,
+                argumentsList,
+                location);
+        }
+
         return createCall(
             createPropertyAccess(
                 createReactNamespace(reactNamespace, parentElement),
                 "createElement"
             ),
-            /*typeArguments*/ undefined,
+                /*typeArguments*/ undefined,
             argumentsList,
             location
         );
diff --git a/src/compiler/transformer.ts b/src/compiler/transformer.ts
index ee9c081e6ebd8..0809affebff67 100644
--- a/src/compiler/transformer.ts
+++ b/src/compiler/transformer.ts
@@ -112,7 +112,7 @@ namespace ts {
 
         transformers.push(transformTypeScript);
 
-        if (jsx === JsxEmit.React) {
+        if (jsx === JsxEmit.React || jsx === JsxEmit.Local) {
             transformers.push(transformJsx);
         }
 
diff --git a/src/compiler/transformers/jsx.ts b/src/compiler/transformers/jsx.ts
index 95a4016bb0aeb..2cc7af2524589 100644
--- a/src/compiler/transformers/jsx.ts
+++ b/src/compiler/transformers/jsx.ts
@@ -112,14 +112,15 @@ namespace ts {
                 objectProperties = singleOrUndefined(segments)
                     || createAssignHelper(currentSourceFile.externalHelpersModuleName, segments);
             }
-
+     
             const element = createReactCreateElement(
                 compilerOptions.reactNamespace,
                 tagName,
                 objectProperties,
                 filter(map(children, transformJsxChildToExpression), isDefined),
                 node,
-                location
+                location,
+                compilerOptions.jsx
             );
 
             if (isChild) {
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 5536a818df536..00d06675eb238 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -3131,7 +3131,8 @@ namespace ts {
     export const enum JsxEmit {
         None = 0,
         Preserve = 1,
-        React = 2
+        React = 2,
+        Local = 3
     }
 
     export const enum NewLineKind {