diff --git a/src/Compilers/CSharp/Portable/Binder/Binder.WithQueryLambdaParametersBinder.cs b/src/Compilers/CSharp/Portable/Binder/Binder.WithQueryLambdaParametersBinder.cs
index 45327918bd41e34093538557ad3bc7b11f011791..ff049ee8b93ece76b3a9f24a07f3c0c2289e40ff 100644
--- a/src/Compilers/CSharp/Portable/Binder/Binder.WithQueryLambdaParametersBinder.cs
+++ b/src/Compilers/CSharp/Portable/Binder/Binder.WithQueryLambdaParametersBinder.cs
@@ -72,10 +72,12 @@ private BoundExpression SelectField(SimpleNameSyntax node, BoundExpression recei
                 {
                     // We only construct transparent query variables using anonymous types, so if we're trying to navigate through
                     // some other type, we must have some query API where the types don't match up as expected.
-                    // We should report this as an error of some sort.
-                    // TODO: DevDiv #737822 - reword error message and add test.
                     var info = new CSDiagnosticInfo(ErrorCode.ERR_UnsupportedTransparentIdentifierAccess, name, receiver.ExpressionSymbol ?? receiverType);
-                    Error(diagnostics, info, node);
+                    if (receiver.Type?.IsErrorType() != true)
+                    {
+                        Error(diagnostics, info, node);
+                    }
+
                     return new BoundBadExpression(
                         node,
                         LookupResultKind.Empty,
diff --git a/src/Compilers/CSharp/Portable/Binder/Binder_Invocation.cs b/src/Compilers/CSharp/Portable/Binder/Binder_Invocation.cs
index 2705b1077a1963842464f69943ecaf2ee72223d6..299ebc62543fe50113497927450278127489f123 100644
--- a/src/Compilers/CSharp/Portable/Binder/Binder_Invocation.cs
+++ b/src/Compilers/CSharp/Portable/Binder/Binder_Invocation.cs
@@ -713,11 +713,23 @@ private static void CheckRestrictedTypeReceiver(BoundExpression expression, Comp
 
             if (!result.Succeeded)
             {
-                // If the arguments had an error reported about them then suppress further error
-                // reporting for overload resolution. 
-
-                if (!analyzedArguments.HasErrors)
+                if (analyzedArguments.HasErrors)
+                {
+                    // Errors for arguments have already been reported, except for unbound lambdas.
+                    // We report those now.
+                    foreach (var argument in analyzedArguments.Arguments)
+                    {
+                        var unboundLambda = argument as UnboundLambda;
+                        if (unboundLambda != null)
+                        {
+                            var boundWithErrors = unboundLambda.BindForErrorRecovery();
+                            diagnostics.AddRange(boundWithErrors.Diagnostics);
+                        }
+                    }
+                }
+                else
                 {
+                    // Since there were no argument errors to report, we report an error on the invocation itself.
                     string name = (object)delegateTypeOpt == null ? methodName : null;
                     result.ReportDiagnostics(this, GetLocationForOverloadResolutionDiagnostic(node, expression), diagnostics, name,
                         methodGroup.Receiver, analyzedArguments, methodGroup.Methods.ToImmutable(),
diff --git a/src/Compilers/CSharp/Test/Semantic/Semantics/LambdaTests.cs b/src/Compilers/CSharp/Test/Semantic/Semantics/LambdaTests.cs
index be9d12110146f24ffb084f398b4b42085c1d95df..69edbb35936bc9027d96348a5b0203821428f32b 100644
--- a/src/Compilers/CSharp/Test/Semantic/Semantics/LambdaTests.cs
+++ b/src/Compilers/CSharp/Test/Semantic/Semantics/LambdaTests.cs
@@ -1465,5 +1465,99 @@ static void Main(string[] args)
 
             CompileAndVerify(compilation);
         }
+
+        [Fact]
+        [WorkItem(1867, "https://github.com/dotnet/roslyn/issues/1867")]
+        public void TestLambdaWithError01()
+        {
+            var source =
+@"using System.Linq;
+class C { C() { string.Empty.Select(() => { new Unbound1 }); } }";
+            CreateCompilationWithMscorlibAndSystemCore(source).VerifyDiagnostics(
+    // (2,58): error CS1526: A new expression requires (), [], or {} after type
+    // class C { C() { string.Empty.Select(() => { new Unbound1 }); } }
+    Diagnostic(ErrorCode.ERR_BadNewExpr, "}").WithLocation(2, 58),
+    // (2,58): error CS1002: ; expected
+    // class C { C() { string.Empty.Select(() => { new Unbound1 }); } }
+    Diagnostic(ErrorCode.ERR_SemicolonExpected, "}").WithLocation(2, 58),
+    // (2,49): error CS0246: The type or namespace name 'Unbound1' could not be found (are you missing a using directive or an assembly reference?)
+    // class C { C() { string.Empty.Select(() => { new Unbound1 }); } }
+    Diagnostic(ErrorCode.ERR_SingleTypeNameNotFound, "Unbound1").WithArguments("Unbound1").WithLocation(2, 49)
+                );
+        }
+
+        [Fact]
+        [WorkItem(1867, "https://github.com/dotnet/roslyn/issues/1867")]
+        public void TestLambdaWithError02()
+        {
+            var source =
+@"using System.Linq;
+class C { C() { string.Empty.Select(() => { new Unbound1 ( ) }); } }";
+            CreateCompilationWithMscorlibAndSystemCore(source).VerifyDiagnostics(
+    // (2,62): error CS1002: ; expected
+    // class C { C() { string.Empty.Select(() => { new Unbound1 ( ) }); } }
+    Diagnostic(ErrorCode.ERR_SemicolonExpected, "}").WithLocation(2, 62),
+    // (2,49): error CS0246: The type or namespace name 'Unbound1' could not be found (are you missing a using directive or an assembly reference?)
+    // class C { C() { string.Empty.Select(() => { new Unbound1 ( ) }); } }
+    Diagnostic(ErrorCode.ERR_SingleTypeNameNotFound, "Unbound1").WithArguments("Unbound1").WithLocation(2, 49)
+                );
+        }
+
+        [Fact]
+        [WorkItem(1867, "https://github.com/dotnet/roslyn/issues/1867")]
+        public void TestLambdaWithError03()
+        {
+            var source =
+@"using System.Linq;
+class C { C() { string.Empty.Select(x => Unbound1, Unbound2 Unbound2); } }";
+            CreateCompilationWithMscorlibAndSystemCore(source).VerifyDiagnostics(
+    // (2,61): error CS1003: Syntax error, ',' expected
+    // class C { C() { string.Empty.Select(x => Unbound1, Unbound2 Unbound2); } }
+    Diagnostic(ErrorCode.ERR_SyntaxError, "Unbound2").WithArguments(",", "").WithLocation(2, 61),
+    // (2,52): error CS0103: The name 'Unbound2' does not exist in the current context
+    // class C { C() { string.Empty.Select(x => Unbound1, Unbound2 Unbound2); } }
+    Diagnostic(ErrorCode.ERR_NameNotInContext, "Unbound2").WithArguments("Unbound2").WithLocation(2, 52),
+    // (2,61): error CS0103: The name 'Unbound2' does not exist in the current context
+    // class C { C() { string.Empty.Select(x => Unbound1, Unbound2 Unbound2); } }
+    Diagnostic(ErrorCode.ERR_NameNotInContext, "Unbound2").WithArguments("Unbound2").WithLocation(2, 61),
+    // (2,42): error CS0103: The name 'Unbound1' does not exist in the current context
+    // class C { C() { string.Empty.Select(x => Unbound1, Unbound2 Unbound2); } }
+    Diagnostic(ErrorCode.ERR_NameNotInContext, "Unbound1").WithArguments("Unbound1").WithLocation(2, 42)
+                );
+        }
+
+        [Fact]
+        [WorkItem(1867, "https://github.com/dotnet/roslyn/issues/1867")]
+        public void TestLambdaWithError04()
+        {
+            var source =
+@"using System.Linq;
+class C { C() { string.Empty.Select(x => Unbound1, Unbound2); } }";
+            CreateCompilationWithMscorlibAndSystemCore(source).VerifyDiagnostics(
+    // (2,52): error CS0103: The name 'Unbound2' does not exist in the current context
+    // class C { C() { string.Empty.Select(x => Unbound1, Unbound2); } }
+    Diagnostic(ErrorCode.ERR_NameNotInContext, "Unbound2").WithArguments("Unbound2").WithLocation(2, 52),
+    // (2,42): error CS0103: The name 'Unbound1' does not exist in the current context
+    // class C { C() { string.Empty.Select(x => Unbound1, Unbound2); } }
+    Diagnostic(ErrorCode.ERR_NameNotInContext, "Unbound1").WithArguments("Unbound1").WithLocation(2, 42)
+                );
+        }
+
+        [Fact]
+        [WorkItem(1867, "https://github.com/dotnet/roslyn/issues/1867")]
+        public void TestLambdaWithError05()
+        {
+            var source =
+@"using System.Linq;
+class C { C() { Unbound2.Select(x => Unbound1); } }";
+            CreateCompilationWithMscorlibAndSystemCore(source).VerifyDiagnostics(
+    // (2,17): error CS0103: The name 'Unbound2' does not exist in the current context
+    // class C { C() { Unbound2.Select(x => Unbound1); } }
+    Diagnostic(ErrorCode.ERR_NameNotInContext, "Unbound2").WithArguments("Unbound2").WithLocation(2, 17),
+    // (2,38): error CS0103: The name 'Unbound1' does not exist in the current context
+    // class C { C() { Unbound2.Select(x => Unbound1); } }
+    Diagnostic(ErrorCode.ERR_NameNotInContext, "Unbound1").WithArguments("Unbound1").WithLocation(2, 38)
+                );
+        }
     }
 }