diff --git a/src/services/services.ts b/src/services/services.ts
index a35c12139562b..11a84a42635e2 100644
--- a/src/services/services.ts
+++ b/src/services/services.ts
@@ -504,27 +504,47 @@ module ts {
             if (!this.namedDeclarations) {
                 var sourceFile = this;
                 var namedDeclarations: Declaration[] = [];
-                var isExternalModule = ts.isExternalModule(sourceFile);
 
-                forEachChild(sourceFile, function visit(node: Node): boolean {
+                forEachChild(sourceFile, function visit(node: Node): void {
                     switch (node.kind) {
+                        case SyntaxKind.FunctionDeclaration:
+                        case SyntaxKind.Method:
+                            var functionDeclaration = <FunctionDeclaration>node;
+
+                            if (functionDeclaration.name && functionDeclaration.name.kind !== SyntaxKind.Missing) {
+                                var lastDeclaration = namedDeclarations.length > 0 ?
+                                    namedDeclarations[namedDeclarations.length - 1] :
+                                    undefined;
+
+                                // Check whether this declaration belongs to an "overload group".
+                                if (lastDeclaration && functionDeclaration.symbol === lastDeclaration.symbol) {
+                                    // Overwrite the last declaration if it was an overload
+                                    // and this one is an implementation.
+                                    if (functionDeclaration.body && !(<FunctionDeclaration>lastDeclaration).body) {
+                                        namedDeclarations[namedDeclarations.length - 1] = functionDeclaration;
+                                    }
+                                }
+                                else {
+                                    namedDeclarations.push(node);
+                                }
+
+                                forEachChild(node, visit);
+                            }
+                            break;
+
                         case SyntaxKind.ClassDeclaration:
                         case SyntaxKind.InterfaceDeclaration:
                         case SyntaxKind.EnumDeclaration:
                         case SyntaxKind.ModuleDeclaration:
                         case SyntaxKind.ImportDeclaration:
-                        case SyntaxKind.Method:
-                        case SyntaxKind.FunctionDeclaration:
-                        case SyntaxKind.Constructor:
                         case SyntaxKind.GetAccessor:
                         case SyntaxKind.SetAccessor:
                         case SyntaxKind.TypeLiteral:
                             if ((<Declaration>node).name) {
                                 namedDeclarations.push(<Declaration>node);
                             }
-                            forEachChild(node, visit);
-                            break;
-
+                            // fall through
+                        case SyntaxKind.Constructor:
                         case SyntaxKind.VariableStatement:
                         case SyntaxKind.ModuleBlock:
                         case SyntaxKind.FunctionBlock:
@@ -532,19 +552,17 @@ module ts {
                             break;
 
                         case SyntaxKind.Parameter:
+                            // Only consider properties defined as constructor parameters
                             if (!(node.flags & NodeFlags.AccessibilityModifier)) {
-                                // Only consider properties defined as constructor parameters
                                 break;
                             }
+                            // fall through
                         case SyntaxKind.VariableDeclaration:
                         case SyntaxKind.EnumMember:
                         case SyntaxKind.Property:
                             namedDeclarations.push(<Declaration>node);
                             break;
                     }
-
-                    // do not go any deeper
-                    return undefined;
                 });
 
                 this.namedDeclarations = namedDeclarations;
diff --git a/tests/cases/fourslash/navigationItemsOverloads1.ts b/tests/cases/fourslash/navigationItemsOverloads1.ts
new file mode 100644
index 0000000000000..5f1981fe917d3
--- /dev/null
+++ b/tests/cases/fourslash/navigationItemsOverloads1.ts
@@ -0,0 +1,30 @@
+/// <reference path="fourslash.ts"/>
+
+////function overload(a: string): boolean;
+////function overload(b: boolean): boolean;
+////function overload(b: number): boolean;
+////function overload(f: typeof overload): boolean;
+////function overload(x: any, b = (function overload() { return false })): boolean {
+////    throw overload;
+////}
+////
+////interface I {
+////    interfaceMethodSignature(a: string): boolean;
+////    interfaceMethodSignature(b: boolean): boolean;
+////    interfaceMethodSignature(b: number): boolean;
+////    interfaceMethodSignature(f: I): boolean;
+////}
+////
+////class C {
+////    methodOverload(a: string): boolean;
+////    methodOverload(b: boolean): boolean;
+////    methodOverload(b: number): boolean;
+////    methodOverload(f: I): boolean;
+////    methodOverload(x: any, b = (function overload() { return false })): boolean {
+////        throw C;
+////    }
+////}
+
+verify.navigationItemsListCount(1, "overload", "exact");
+verify.navigationItemsListCount(1, "interfaceMethodSignature", "exact");
+verify.navigationItemsListCount(1, "methodOverload", "exact");
diff --git a/tests/cases/fourslash/navigationItemsOverloads2.ts b/tests/cases/fourslash/navigationItemsOverloads2.ts
new file mode 100644
index 0000000000000..c5824b639bcb3
--- /dev/null
+++ b/tests/cases/fourslash/navigationItemsOverloads2.ts
@@ -0,0 +1,12 @@
+/// <reference path="fourslash.ts"/>
+
+////interface I {
+////    interfaceMethodSignature(a: string): boolean;
+////    interfaceMethodSignature(b: number): boolean;
+////    interfaceMethodSignature(f: I): boolean;
+////}
+////interface I {
+////    interfaceMethodSignature(b: boolean): boolean;
+////}
+
+verify.navigationItemsListCount(2, "interfaceMethodSignature", "exact");
diff --git a/tests/cases/fourslash/navigationItemsOverloadsBroken1.ts b/tests/cases/fourslash/navigationItemsOverloadsBroken1.ts
new file mode 100644
index 0000000000000..7b8ebc9181fc7
--- /dev/null
+++ b/tests/cases/fourslash/navigationItemsOverloadsBroken1.ts
@@ -0,0 +1,29 @@
+/// <reference path="fourslash.ts"/>
+
+////function overload1(a: string): boolean;
+////function overload1(b: boolean): boolean;
+////function overload1(b: number): boolean;
+////
+////var heyImNotInterruptingAnythingAmI = '?';
+////
+////function overload1(f: typeof overload): boolean;
+////function overload1(x: any, b = (function overload() { return false })): boolean {
+////    throw overload;
+////}
+
+////function overload2(a: string): boolean;
+////function overload2(b: boolean): boolean;
+////function overload2(b: number): boolean;
+////
+////function iJustRuinEverything(x: any, b = (function overload() { return false })): boolean {
+////    throw overload;
+////}
+////
+////function overload2(f: typeof overload): boolean;
+////function overload2(x: any, b = (function overload() { return false })): boolean {
+////    throw overload;
+////}
+
+verify.navigationItemsListCount(2, "overload1", "exact");
+verify.navigationItemsListCount(2, "overload2", "exact");
+verify.navigationItemsListCount(4, "overload", "prefix");
\ No newline at end of file
diff --git a/tests/cases/fourslash/navigationItemsOverloadsBroken2.ts b/tests/cases/fourslash/navigationItemsOverloadsBroken2.ts
new file mode 100644
index 0000000000000..c1f6ccae2f5f1
--- /dev/null
+++ b/tests/cases/fourslash/navigationItemsOverloadsBroken2.ts
@@ -0,0 +1,23 @@
+/// <reference path="fourslash.ts"/>
+
+////function overload1(a: string): boolean;
+////function overload1(b: boolean): boolean;
+////function overload1(x: any, b = (function overload() { return false })): boolean {
+////    throw overload1;
+////}
+////function overload1(b: number): boolean;
+////function overload1(f: typeof overload): boolean;
+
+////function overload2(a: string): boolean;
+////function overload2(b: boolean): boolean;
+////function overload2(x: any, b = (function overload() { return false })): boolean {
+////    function overload2(): boolean;
+////    function overload2(x: any): boolean;
+////    throw overload2;
+////}
+////function overload2(b: number): boolean;
+////function overload2(f: typeof overload): boolean;
+
+verify.navigationItemsListCount(1, "overload1", "exact");
+verify.navigationItemsListCount(3, "overload2", "exact");
+verify.navigationItemsListCount(4, "overload", "prefix");
\ No newline at end of file