diff --git a/src/Compilers/CSharp/Portable/Parser/LanguageParser.cs b/src/Compilers/CSharp/Portable/Parser/LanguageParser.cs
index 548481b648ec77aaf0beeb7bbaf048d5c005a72e..d472ce859957017ce3aa49373aa844e1ccf76e8c 100644
--- a/src/Compilers/CSharp/Portable/Parser/LanguageParser.cs
+++ b/src/Compilers/CSharp/Portable/Parser/LanguageParser.cs
@@ -1584,7 +1584,7 @@ private TypeDeclarationSyntax ParseClassOrStructOrInterfaceDeclaration(SyntaxLis
             var saveTerm = _termState;
             _termState |= TerminatorState.IsPossibleAggregateClauseStartOrStop;
             var name = this.ParseIdentifierToken();
-            var typeParameters = this.ParseTypeParameterList(allowVariance: classOrStructOrInterface.Kind == SyntaxKind.InterfaceKeyword);
+            var typeParameters = this.ParseTypeParameterList();
 
             _termState = saveTerm;
             bool hasTypeParams = typeParameters != null;
@@ -4985,7 +4985,7 @@ private bool IsLocalFunctionAfterIdentifier()
 
             try
             {
-                var typeParameterListOpt = this.ParseTypeParameterList(allowVariance: false);
+                var typeParameterListOpt = this.ParseTypeParameterList();
                 var paramList = ParseParenthesizedParameterList(
                     allowThisKeyword: true, allowDefaults: true, allowAttributes: true);
 
@@ -5078,7 +5078,7 @@ private DelegateDeclarationSyntax ParseDelegateDeclaration(SyntaxListBuilder<Att
             var saveTerm = _termState;
             _termState |= TerminatorState.IsEndOfMethodSignature;
             var name = this.ParseIdentifierToken();
-            var typeParameters = this.ParseTypeParameterList(allowVariance: true);
+            var typeParameters = this.ParseTypeParameterList();
             var parameterList = this.ParseParenthesizedParameterList(allowThisKeyword: false, allowDefaults: true, allowAttributes: true);
             var constraints = default(SyntaxListBuilder<TypeParameterConstraintClauseSyntax>);
             try
@@ -5111,7 +5111,7 @@ private EnumDeclarationSyntax ParseEnumDeclaration(SyntaxListBuilder<AttributeLi
             var name = this.ParseIdentifierToken();
 
             // check to see if the user tried to create a generic enum.
-            var typeParameters = this.ParseTypeParameterList(allowVariance: true);
+            var typeParameters = this.ParseTypeParameterList();
 
             if (typeParameters != null)
             {
@@ -5404,7 +5404,7 @@ private bool IsCurrentTokenPartialKeywordOfPartialMethodOrType()
             return false;
         }
 
-        private TypeParameterListSyntax ParseTypeParameterList(bool allowVariance)
+        private TypeParameterListSyntax ParseTypeParameterList()
         {
             if (this.CurrentToken.Kind != SyntaxKind.LessThanToken)
             {
@@ -5420,7 +5420,7 @@ private TypeParameterListSyntax ParseTypeParameterList(bool allowVariance)
                 open = CheckFeatureAvailability(open, MessageID.IDS_FeatureGenerics);
 
                 // first parameter
-                parameters.Add(this.ParseTypeParameter(allowVariance));
+                parameters.Add(this.ParseTypeParameter());
 
                 // remaining parameter & commas
                 while (true)
@@ -5432,7 +5432,7 @@ private TypeParameterListSyntax ParseTypeParameterList(bool allowVariance)
                     else if (this.CurrentToken.Kind == SyntaxKind.CommaToken)
                     {
                         parameters.AddSeparator(this.EatToken(SyntaxKind.CommaToken));
-                        parameters.Add(this.ParseTypeParameter(allowVariance));
+                        parameters.Add(this.ParseTypeParameter());
                     }
                     else if (this.SkipBadTypeParameterListTokens(parameters, SyntaxKind.CommaToken) == PostSkipAction.Abort)
                     {
@@ -5460,7 +5460,7 @@ private PostSkipAction SkipBadTypeParameterListTokens(SeparatedSyntaxListBuilder
                 expected);
         }
 
-        private TypeParameterSyntax ParseTypeParameter(bool allowVariance)
+        private TypeParameterSyntax ParseTypeParameter()
         {
             if (this.IsPossibleTypeParameterConstraintClauseStart())
             {
@@ -5482,18 +5482,10 @@ private TypeParameterSyntax ParseTypeParameter(bool allowVariance)
                 }
 
                 SyntaxToken varianceToken = null;
-                if (this.CurrentToken.Kind == SyntaxKind.InKeyword || this.CurrentToken.Kind == SyntaxKind.OutKeyword)
+                if (this.CurrentToken.Kind == SyntaxKind.InKeyword ||
+                    this.CurrentToken.Kind == SyntaxKind.OutKeyword)
                 {
-                    // Again, we always recognize the variance syntax, but give an error if
-                    // it is not appropriate. 
-
-                    varianceToken = this.EatToken();
-                    varianceToken = CheckFeatureAvailability(varianceToken, MessageID.IDS_FeatureTypeVariance);
-
-                    if (!allowVariance)
-                    {
-                        varianceToken = this.AddError(varianceToken, ErrorCode.ERR_IllegalVarianceSyntax);
-                    }
+                    varianceToken = CheckFeatureAvailability(this.EatToken(), MessageID.IDS_FeatureTypeVariance);
                 }
 
                 return _syntaxFactory.TypeParameter(attrs, varianceToken, this.ParseIdentifierToken());
@@ -5877,7 +5869,7 @@ private bool IsOpenName()
                         beforeIdentifierPoint = GetResetPoint();
                         beforeIdentifierPointSet = true;
                         identifierOrThisOpt = this.EatToken();
-                        typeParameterListOpt = this.ParseTypeParameterList(allowVariance: false);
+                        typeParameterListOpt = this.ParseTypeParameterList();
                         break;
                     }
 
@@ -5911,7 +5903,7 @@ private bool IsOpenName()
                         }
 
                         identifierOrThisOpt = this.ParseIdentifierToken();
-                        typeParameterListOpt = this.ParseTypeParameterList(allowVariance: false);
+                        typeParameterListOpt = this.ParseTypeParameterList();
                         break;
                     }
                     else
@@ -8848,7 +8840,7 @@ private static bool IsAccessibilityModifier(SyntaxKind kind)
                 _pool.Free(badBuilder);
             }
 
-            TypeParameterListSyntax typeParameterListOpt = this.ParseTypeParameterList(allowVariance: false);
+            TypeParameterListSyntax typeParameterListOpt = this.ParseTypeParameterList();
             // "await f<T>()" still makes sense, so don't force accept a local function if there's a type parameter list.
             ParameterListSyntax paramList = this.ParseParenthesizedParameterList(allowThisKeyword: true, allowDefaults: true, allowAttributes: true);
             // "await x()" is ambiguous (see note at start of this method), but we assume "await x(await y)" is meant to be a function if it's in a non-async context.
diff --git a/src/Compilers/CSharp/Portable/Symbols/Source/SourceMemberMethodSymbol.cs b/src/Compilers/CSharp/Portable/Symbols/Source/SourceMemberMethodSymbol.cs
index 3deb8c961e8e91ac8a73d51d334bda52f59ebe8c..ff20712ca744cdd42a20c79f4632018ba24a7751 100644
--- a/src/Compilers/CSharp/Portable/Symbols/Source/SourceMemberMethodSymbol.cs
+++ b/src/Compilers/CSharp/Portable/Symbols/Source/SourceMemberMethodSymbol.cs
@@ -803,6 +803,11 @@ private ImmutableArray<TypeParameterSymbol> MakeTypeParameters(MethodDeclaration
             for (int ordinal = 0; ordinal < typeParameters.Count; ordinal++)
             {
                 var parameter = typeParameters[ordinal];
+                if (parameter.VarianceKeyword.Kind() != SyntaxKind.None)
+                {
+                    diagnostics.Add(ErrorCode.ERR_IllegalVarianceSyntax, parameter.VarianceKeyword.GetLocation());
+                }
+
                 var identifier = parameter.Identifier;
                 var location = identifier.GetLocation();
                 var name = identifier.ValueText;
diff --git a/src/Compilers/CSharp/Portable/Symbols/Source/SourceNamedTypeSymbol.cs b/src/Compilers/CSharp/Portable/Symbols/Source/SourceNamedTypeSymbol.cs
index 0b6ef3ad0036a7400ea8320e24be72b861ac1c85..2be26cd359a9774875d7f2e8f7fdfe1210cfac8f 100644
--- a/src/Compilers/CSharp/Portable/Symbols/Source/SourceNamedTypeSymbol.cs
+++ b/src/Compilers/CSharp/Portable/Symbols/Source/SourceNamedTypeSymbol.cs
@@ -132,7 +132,8 @@ private ImmutableArray<TypeParameterSymbol> MakeTypeParameters(DiagnosticBag dia
                 var syntaxTree = syntaxRef.SyntaxTree;
 
                 TypeParameterListSyntax tpl;
-                switch (typeDecl.Kind())
+                SyntaxKind typeKind = typeDecl.Kind();
+                switch (typeKind)
                 {
                     case SyntaxKind.ClassDeclaration:
                     case SyntaxKind.StructDeclaration:
@@ -150,11 +151,18 @@ private ImmutableArray<TypeParameterSymbol> MakeTypeParameters(DiagnosticBag dia
                         throw ExceptionUtilities.UnexpectedValue(typeDecl.Kind());
                 }
 
+                bool isInterfaceOrDelegate = typeKind == SyntaxKind.InterfaceDeclaration || typeKind == SyntaxKind.DelegateDeclaration;
                 var parameterBuilder = new List<TypeParameterBuilder>();
                 parameterBuilders1.Add(parameterBuilder);
                 int i = 0;
                 foreach (var tp in tpl.Parameters)
                 {
+                    if (tp.VarianceKeyword.Kind() != SyntaxKind.None &&
+                        !isInterfaceOrDelegate)
+                    {
+                        diagnostics.Add(ErrorCode.ERR_IllegalVarianceSyntax, tp.VarianceKeyword.GetLocation());
+                    }
+
                     var name = typeParameterNames[i];
                     var location = new SourceLocation(tp.Identifier);
                     var varianceKind = typeParameterVarianceKeywords[i];
diff --git a/src/Compilers/CSharp/Test/Syntax/Parsing/ParserErrorMessageTests.cs b/src/Compilers/CSharp/Test/Syntax/Parsing/ParserErrorMessageTests.cs
index 8d22d6ed55f1e22d6f93a2301d7d0c9c3ca698cf..ab9987fcbaa86febadf8f20746ad1b4f14cc9168 100644
--- a/src/Compilers/CSharp/Test/Syntax/Parsing/ParserErrorMessageTests.cs
+++ b/src/Compilers/CSharp/Test/Syntax/Parsing/ParserErrorMessageTests.cs
@@ -4138,26 +4138,34 @@ struct S<out U> { }
     delegate void D<in U>();
     class B<out U> { }
 }";
-
-            ParseAndValidate(test,
-                // (3,12): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
-                Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "in").WithLocation(3, 12),
-                // (4,12): error CS7002: Unexpected use of a generic name
-                Diagnostic(ErrorCode.ERR_UnexpectedGenericName, "this").WithLocation(4, 12),
-                // (4,17): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
-                Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(4, 17),
+            CreateCompilationWithMscorlib(test).GetDeclarationDiagnostics().Verify(
                 // (6,10): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
+                // struct S<out T>
                 Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(6, 10),
                 // (8,12): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
+                //     void M<out U>();
                 Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(8, 12),
+                // (3,12): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
+                //     void M<in U>();
+                Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "in").WithLocation(3, 12),
+                // (8,10): error CS0501: 'S<T>.M<U>()' must declare a body because it is not marked abstract, extern, or partial
+                //     void M<out U>();
+                Diagnostic(ErrorCode.ERR_ConcreteMissingBody, "M").WithArguments("S<T>.M<U>()").WithLocation(8, 10),
                 // (11,9): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
+                // class A<out T>
                 Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(11, 9),
-                // (13, 12): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
+                // (13,12): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
+                //     void M<out U>();
                 Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(13, 12),
-                // (15, 14): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
-                Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(15, 14),
+                // (13,10): error CS0501: 'A<T>.M<U>()' must declare a body because it is not marked abstract, extern, or partial
+                //     void M<out U>();
+                Diagnostic(ErrorCode.ERR_ConcreteMissingBody, "M").WithArguments("A<T>.M<U>()").WithLocation(13, 10),
                 // (17,13): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
-                Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(17, 13));
+                //     class B<out U> { }
+                Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(17, 13),
+                // (15,14): error CS1960: Invalid variance modifier. Only interface and delegate type parameters can be specified as variant.
+                //     struct S<out U> { }
+                Diagnostic(ErrorCode.ERR_IllegalVarianceSyntax, "out").WithLocation(15, 14));
         }
 
         [Fact]