diff --git a/lib/Parser/Parse.cpp b/lib/Parser/Parse.cpp
index e140e5e841a..8c6f1f0c0de 100644
--- a/lib/Parser/Parse.cpp
+++ b/lib/Parser/Parse.cpp
@@ -2021,14 +2021,27 @@ void Parser::EnsureStackAvailable()
 
 void Parser::ThrowNewTargetSyntaxErrForGlobalScope()
 {
-    //TODO: (falotfi) we need reliably distinguish eval in global scope vs in a function
-    // The rule for this syntax error is any time new.target is called at global scope
-    // we are excluding new.target in eval at global scope for now.
-    if(GetCurrentNonLambdaFunctionNode() == nullptr && (this->m_grfscr & fscrEvalCode) == 0)
+    if (GetCurrentNonLambdaFunctionNode() != nullptr)
     {
-        Error(ERRInvalidNewTarget);
+        return;
     }
-}
+
+    if ((this->m_grfscr & fscrEval) != 0)
+    {
+        Js::JavascriptFunction * caller = nullptr;
+        if (Js::JavascriptStackWalker::GetCaller(&caller, m_scriptContext))
+        {
+            Js::FunctionBody * callerBody = caller->GetFunctionBody();
+            Assert(callerBody);
+            if (!callerBody->GetIsGlobalFunc() && !(callerBody->IsLambda() && callerBody->GetEnclosedByGlobalFunc()))
+            {
+                return;
+            }
+        }
+    }
+
+    Error(ERRInvalidNewTarget);
+ }
 
 template<bool buildAST>
 ParseNodePtr Parser::ParseMetaProperty(tokens metaParentKeyword, charcount_t ichMin, _Out_opt_ BOOL* pfCanAssign)
diff --git a/lib/Parser/ParserPch.h b/lib/Parser/ParserPch.h
index 7be700874d7..9aa31905dc2 100644
--- a/lib/Parser/ParserPch.h
+++ b/lib/Parser/ParserPch.h
@@ -24,3 +24,6 @@
 #include "ByteCode/Scope.h"
 #include "ByteCode/FuncInfo.h"
 #include "ByteCode/ScopeInfo.h"
+
+#include "Library/JavascriptFunction.h"
+#include "Language/JavascriptStackWalker.h"
diff --git a/lib/Parser/ptree.h b/lib/Parser/ptree.h
index f5167f9b584..61b965db47f 100644
--- a/lib/Parser/ptree.h
+++ b/lib/Parser/ptree.h
@@ -266,6 +266,11 @@ struct PnFnc
         return (fncFlags & flags) == flags;
     }
 
+    bool HasNoFlags(uint flags) const
+    {
+        return (fncFlags & flags) == 0;
+    }
+
 public:
     void ClearFlags()
     {
@@ -324,6 +329,7 @@ struct PnFnc
     bool HasWithStmt() const { return HasFlags(kFunctionHasWithStmt); }
     bool IsAccessor() const { return HasFlags(kFunctionIsAccessor); }
     bool IsAsync() const { return HasFlags(kFunctionIsAsync); }
+    bool IsConstructor() const { return HasNoFlags(kFunctionIsAsync|kFunctionIsLambda|kFunctionIsAccessor);  }
     bool IsClassConstructor() const { return HasFlags(kFunctionIsClassConstructor); }
     bool IsBaseClassConstructor() const { return HasFlags(kFunctionIsBaseClassConstructor); }
     bool IsClassMember() const { return HasFlags(kFunctionIsClassMember); }
diff --git a/lib/Runtime/Base/FunctionBody.h b/lib/Runtime/Base/FunctionBody.h
index 014931cdb8f..0c34eaed605 100644
--- a/lib/Runtime/Base/FunctionBody.h
+++ b/lib/Runtime/Base/FunctionBody.h
@@ -1604,6 +1604,9 @@ namespace Js
         void SetCapturesThis() { attributes = (Attributes)(attributes | Attributes::CapturesThis); }
         bool GetCapturesThis() { return (attributes & Attributes::CapturesThis) != 0; }
 
+        void SetEnclosedByGlobalFunc() { attributes = (Attributes)(attributes | Attributes::EnclosedByGlobalFunc ); }
+        bool GetEnclosedByGlobalFunc() { return (attributes & Attributes::EnclosedByGlobalFunc) != 0; }
+
         void BuildDeferredStubs(ParseNode *pnodeFnc);
         DeferredFunctionStub *GetDeferredStubs() const { return static_cast<DeferredFunctionStub *>(this->GetAuxPtr(AuxPointerType::DeferredStubs)); }
         void SetDeferredStubs(DeferredFunctionStub *stub) { this->SetAuxPtr(AuxPointerType::DeferredStubs, stub); }
diff --git a/lib/Runtime/Base/FunctionInfo.h b/lib/Runtime/Base/FunctionInfo.h
index f763e7541dd..b187c473200 100644
--- a/lib/Runtime/Base/FunctionInfo.h
+++ b/lib/Runtime/Base/FunctionInfo.h
@@ -37,6 +37,7 @@ namespace Js
             BuiltInInlinableAsLdFldInlinee = 0x08000,
             Async                          = 0x10000,
             Module                         = 0x20000, // The function is the function body wrapper for a module
+            EnclosedByGlobalFunc           = 0x40000,
         };
         FunctionInfo(JavascriptMethod entryPoint, Attributes attributes = None, LocalFunctionId functionId = Js::Constants::NoFunctionId, FunctionBody* functionBodyImpl = NULL);
 
diff --git a/lib/Runtime/ByteCode/ByteCodeEmitter.cpp b/lib/Runtime/ByteCode/ByteCodeEmitter.cpp
index d42659607ea..96d100f9f7a 100644
--- a/lib/Runtime/ByteCode/ByteCodeEmitter.cpp
+++ b/lib/Runtime/ByteCode/ByteCodeEmitter.cpp
@@ -2175,7 +2175,7 @@ void ByteCodeGenerator::LoadNewTargetObject(FuncInfo *funcInfo)
             EmitInternalScopedSlotLoad(funcInfo, scope, envIndex, slot, funcInfo->newTargetRegister);
         }
     }
-    else if (this->flags & fscrEval)
+    else if ((funcInfo->IsGlobalFunction() || funcInfo->IsLambda()) && (this->flags & fscrEval))
     {
         Js::RegSlot scopeLocation;
 
diff --git a/lib/Runtime/ByteCode/ByteCodeGenerator.cpp b/lib/Runtime/ByteCode/ByteCodeGenerator.cpp
index c535f1d012b..c8c26b24ea7 100644
--- a/lib/Runtime/ByteCode/ByteCodeGenerator.cpp
+++ b/lib/Runtime/ByteCode/ByteCodeGenerator.cpp
@@ -2477,10 +2477,17 @@ FuncInfo* PostVisitFunction(ParseNode* pnode, ByteCodeGenerator* byteCodeGenerat
 
     if (top->IsLambda())
     {
-        if (byteCodeGenerator->FindEnclosingNonLambda()->isThisLexicallyCaptured)
+        FuncInfo *enclosingNonLambda = byteCodeGenerator->FindEnclosingNonLambda();
+
+        if (enclosingNonLambda->isThisLexicallyCaptured)
         {
             top->byteCodeFunction->SetCapturesThis();
         }
+
+        if (enclosingNonLambda->IsGlobalFunction())
+        {
+            top->byteCodeFunction->SetEnclosedByGlobalFunc();
+        }
     }
 
     // If this is a named function expression and has deferred child, mark has non-local reference.
@@ -2882,7 +2889,7 @@ FuncInfo* PostVisitFunction(ParseNode* pnode, ByteCodeGenerator* byteCodeGenerat
         top->AssignSuperCtorRegister();
     }
 
-    if (top->IsClassConstructor())
+    if ((top->root->sxFnc.IsConstructor() && (top->isNewTargetLexicallyCaptured || top->GetCallsEval() || top->GetChildCallsEval())) || top->IsClassConstructor())
     {
         if (top->IsBaseClassConstructor())
         {
diff --git a/lib/Runtime/Debug/DiagObjectModel.cpp b/lib/Runtime/Debug/DiagObjectModel.cpp
index 37eb76bd977..2b90ce836bb 100644
--- a/lib/Runtime/Debug/DiagObjectModel.cpp
+++ b/lib/Runtime/Debug/DiagObjectModel.cpp
@@ -485,7 +485,7 @@ namespace Js
         *isConst = false;
 
 
-        if (!allowLexicalThis && propertyId == Js::PropertyIds::_lexicalThisSlotSymbol)
+        if (!allowLexicalThis && (propertyId == Js::PropertyIds::_lexicalThisSlotSymbol || propertyId == Js::PropertyIds::_lexicalNewTargetSymbol))
         {
             return false;
         }
diff --git a/lib/Runtime/Library/GlobalObject.cpp b/lib/Runtime/Library/GlobalObject.cpp
index e2f9d689dca..3505ae89852 100644
--- a/lib/Runtime/Library/GlobalObject.cpp
+++ b/lib/Runtime/Library/GlobalObject.cpp
@@ -599,10 +599,12 @@ namespace Js
         if (!scriptContext->IsInEvalMap(key, isIndirect, &pfuncScript))
         {
             uint32 grfscr = additionalGrfscr | fscrReturnExpression | fscrEval | fscrEvalCode | fscrGlobalCode;
+
             if (isLibraryCode)
             {
                 grfscr |= fscrIsLibraryCode;
             }
+
             pfuncScript = library->GetGlobalObject()->EvalHelper(scriptContext, argString->GetSz(), argString->GetLength(), moduleID,
                 grfscr, Constants::EvalCode, doRegisterDocument, isIndirect, strictMode);
             Assert(!pfuncScript->GetFunctionInfo()->IsGenerator());
@@ -887,7 +889,8 @@ namespace Js
 
             grfscr = grfscr | fscrDynamicCode;
 
-            hrParser = parser.ParseCesu8Source(&parseTree, utf8Source, cbSource, grfscr, &se, &sourceContextInfo->nextLocalFunctionId,
+            // fscrEval signifies direct eval in parser
+            hrParser = parser.ParseCesu8Source(&parseTree, utf8Source, cbSource, isIndirect ? grfscr & ~fscrEval : grfscr, &se, &sourceContextInfo->nextLocalFunctionId,
                 sourceContextInfo);
             sourceInfo->SetParseFlags(grfscr);
 
diff --git a/test/es6/ES6NewTarget.js b/test/es6/ES6NewTarget.js
index b59ccc913a2..3527b47f686 100644
--- a/test/es6/ES6NewTarget.js
+++ b/test/es6/ES6NewTarget.js
@@ -49,8 +49,6 @@ var tests = [
             assert.areEqual('something', obj.target, "The name 'target' can be used as an identifier");
         }
     },
-/*
-    // Blocked by 'ReferenceError: '<_lexicalNewTargetSymbol>' is undefined' bug
     {
         name: "new.target is not valid for assignment",
         body: function() {
@@ -58,7 +56,7 @@ var tests = [
             assert.throws(function() { eval("((new.target)) = 'something';"); }, ReferenceError, "new.target cannot be a lhs in an assignment expression - this is an early reference error", "Invalid left-hand side in assignment");
         }
     },
-*/
+
     {
         name: "Simple base class gets new.target correctly",
         body: function() {
@@ -273,8 +271,83 @@ var tests = [
             assert.isTrue((foo()).next().value == undefined, "Generator function has new.target set to undefined in the function body");
         }
     },
+    {
+        name: "new.target inside eval() in function",
+        body: function() {
+            function func() {
+               var g = ()=>eval('new.target;');
+               return g();
+            }
 
+            assert.areEqual(undefined, func(), "plain function call");
+            assert.areEqual(undefined, eval("func()"), "function call inside eval");
+            assert.areEqual(undefined, eval("eval('func()')"), "function call inside nested evals");
+            assert.areEqual(undefined, (()=>func())(), "function call inside arrow function");
+            assert.areEqual(undefined, (()=>(()=>func())())(), "function call inside nested arrow functions");
+            assert.areEqual(undefined, eval("(()=>func())()"), "function call inside arrow function inside eval");
+            assert.areEqual(undefined, (()=>eval("func()"))(), "function call inside eval inside arrow function");
+            assert.areEqual(undefined, eval("(()=>eval('func()'))()"), "function call inside eval inside arrow function inside eval");
+
+            assert.areEqual(func, new func(), "plain constructor call");
+            assert.areEqual(func, eval("new func()"), "constructor call inside eval");
+            assert.areEqual(func, eval("eval('new func()')"), "constructor call inside nested evals");
+            assert.areEqual(func, (()=>new func())(), "constructor call inside arrow function");
+            assert.areEqual(func, (()=>(()=>new func())())(), "constructor call inside nested arrow functions");
+            assert.areEqual(func, eval("(()=>new func())()"), "constructor call inside arrow function inside eval");
+            assert.areEqual(func, (()=>eval("new func()"))(), "constructor call inside eval inside arrow function");
+            assert.areEqual(func, eval("(()=>eval('new func()'))()"), "constructor call inside eval inside arrow function inside eval");
+        }
+    },
+    {
+        name: "new.target inside netsted eval, arrow function, and function defintion through eval",
+        body: function() {
+            eval("function func() {var f = ()=>{function g() {}; return eval('new.target')}; return f(); }" );
+
+            assert.areEqual(undefined, func(), "plain function call");
+            assert.areEqual(undefined, eval("func()"), "function call inside eval");
+            assert.areEqual(undefined, eval("eval('func()')"), "function call inside nested evals");
+            assert.areEqual(undefined, (()=>func())(), "function call inside arrow function");
+            assert.areEqual(undefined, (()=>(()=>func())())(), "function call inside nested arrow functions");
+            assert.areEqual(undefined, eval("(()=>func())()"), "function call inside arrow function inside eval");
+            assert.areEqual(undefined, (()=>eval("func()"))(), "function call inside eval inside arrow function");
+            assert.areEqual(undefined, eval("(()=>eval('func()'))()"), "function call inside eval inside arrow function inside eval");
+
+            assert.areEqual(func, new func(), "plain constructor call");
+            assert.areEqual(func, eval("new func()"), "constructor call inside eval");
+            assert.areEqual(func, eval("eval('new func()')"), "constructor call inside nested evals");
+            assert.areEqual(func, (()=>new func())(), "constructor call inside arrow function");
+            assert.areEqual(func, (()=>(()=>new func())())(), "constructor call inside nested arrow functions");
+            assert.areEqual(func, eval("(()=>new func())()"), "constructor call inside arrow function inside eval");
+            assert.areEqual(func, (()=>eval("new func()"))(), "constructor call inside eval inside arrow function");
+            assert.areEqual(func, eval("(()=>eval('new func()'))()"), "constructor call inside eval inside arrow function inside eval");
+        }
+    },
+    {
+        name: "direct and indirect eval with new.target",
+        body: function() {
+            function scriptThrows(func, errType, info, errMsg) {
+                try {
+                    func();
+                    throw Error("No exception thrown");
+                } catch (err) {
+                    assert.areEqual(errType.name + ':' + errMsg, err.name + ':' + err.message, info);
+               }
+            }
 
+            scriptThrows(()=>{ WScript.LoadScript("eval('new.target')", "samethread"); }, SyntaxError, "direct eval in global function", "Invalid use of the 'new.target' keyword");
+            scriptThrows(()=>{ WScript.LoadScript("(()=>eval('new.target'))();", "samethread"); }, SyntaxError, "direct eval in lambda in global function", "Invalid use of the 'new.target' keyword");
+            scriptThrows(()=>{ WScript.LoadScript("var f=()=>eval('new.target'); (function() { return f(); })();", "samethread"); }, SyntaxError, "direct eval in lambda in global function called by a function", "Invalid use of the 'new.target' keyword");
+            assert.doesNotThrow(()=>{ WScript.LoadScript("(function() { eval('new.target;') })()", "samethread"); }, "direct eval in function");
+            assert.doesNotThrow(()=>{ WScript.LoadScript("var f =(function() { return ()=>eval('new.target;') })(); f();", "samethread"); }, "direct eval in lambda defined in function and called by global function");
+
+            scriptThrows(()=>{ WScript.LoadScript("(0, eval)('new.target;')", "samethread"); }, SyntaxError, "indirect eval in global function", "Invalid use of the 'new.target' keyword");
+            scriptThrows(()=>{ WScript.LoadScript("(()=>(0, eval)('new.target'))();", "samethread"); }, SyntaxError, "indirect eval in lambda in global function", "Invalid use of the 'new.target' keyword");
+            scriptThrows(()=>{ WScript.LoadScript("var f=()=>(0, eval)('new.target'); (function() { return f(); })();", "samethread"); }, SyntaxError, "indirect eval in lambda in global function called by a function", "Invalid use of the 'new.target' keyword");
+            scriptThrows(()=>{ WScript.LoadScript("(function() { (0, eval)('new.target;') })()", "samethread")}, SyntaxError, "indirect eval in function", "Invalid use of the 'new.target' keyword");
+            scriptThrows(()=>{ WScript.LoadScript("var f =(function() { return ()=>(0, eval)('new.target;') })(); f();", "samethread"); }, SyntaxError, "indirect eval in lambda defined in function and called by global function", "Invalid use of the 'new.target' keyword");
+
+        }
+    },
 ];
 
 testRunner.runTests(tests, { verbose: WScript.Arguments[0] != "summary" });