diff --git a/packages/babel/src/transformation/file/index.js b/packages/babel/src/transformation/file/index.js
index 6505704cb3..1253224892 100644
--- a/packages/babel/src/transformation/file/index.js
+++ b/packages/babel/src/transformation/file/index.js
@@ -407,6 +407,30 @@ export default class File {
     return uid;
   }
 
+  addTemplateObject(helperName: string, strings: Array, raw: Array): Object {
+    // Generate a unique name based on the string literals so we dedupe
+    // identical strings used in the program.
+    var stringIds = raw.elements.map(function(string) {
+      return string.value;
+    });
+    var name = `${helperName}_${raw.elements.length}_${stringIds.join(",")}`;
+
+    var declar = this.declarations[name];
+    if (declar) return declar;
+
+    var uid = this.declarations[name] = this.scope.generateUidIdentifier("templateObject");
+
+    var helperId = this.addHelper(helperName);
+    var init = t.callExpression(helperId, [strings, raw]);
+    init._compact = true;
+    this.scope.push({
+      id: uid,
+      init: init,
+      _blockHoist: 1.9    // This ensures that we don't fail if not using function expression helpers
+    });
+    return uid;
+  }
+
   /**
    * [Please add a description.]
    */
diff --git a/packages/babel/src/transformation/transformers/es6/template-literals.js b/packages/babel/src/transformation/transformers/es6/template-literals.js
index 83f35c5e89..b561f64757 100644
--- a/packages/babel/src/transformation/transformers/es6/template-literals.js
+++ b/packages/babel/src/transformation/transformers/es6/template-literals.js
@@ -64,7 +64,9 @@ export var visitor = {
 
     var templateName = "tagged-template-literal";
     if (file.isLoose("es6.templateLiterals")) templateName += "-loose";
-    args.push(t.callExpression(file.addHelper(templateName), [strings, raw]));
+
+    var templateObject = file.addTemplateObject(templateName, strings, raw);
+    args.push(templateObject);
 
     args = args.concat(quasi.expressions);
 
diff --git a/packages/babel/src/traversal/scope/index.js b/packages/babel/src/traversal/scope/index.js
index 7ef81af584..0d577152b4 100644
--- a/packages/babel/src/traversal/scope/index.js
+++ b/packages/babel/src/traversal/scope/index.js
@@ -829,14 +829,15 @@ export default class Scope {
 
     var unique = opts.unique;
     var kind   = opts.kind || "var";
+    var blockHoist = opts._blockHoist == null ? 2 : opts._blockHoist;
 
-    var dataKey = `declaration:${kind}`;
+    var dataKey = `declaration:${kind}:${blockHoist}`;
     var declar  = !unique && path.getData(dataKey);
 
     if (!declar) {
       declar = t.variableDeclaration(kind, []);
       declar._generated = true;
-      declar._blockHoist = 2;
+      declar._blockHoist = blockHoist;
 
       this.hub.file.attachAuxiliaryComment(declar);
 
diff --git a/packages/babel/test/fixtures/transformation/es6.template-literals/tag-loose/actual.js b/packages/babel/test/fixtures/transformation/es6.template-literals/tag-loose/actual.js
index 7fe1864736..52419bb505 100644
--- a/packages/babel/test/fixtures/transformation/es6.template-literals/tag-loose/actual.js
+++ b/packages/babel/test/fixtures/transformation/es6.template-literals/tag-loose/actual.js
@@ -1 +1,3 @@
 var foo = bar`wow\na${ 42 }b ${_.foobar()}`;
+var bar = bar`wow\nab${ 42 } ${_.foobar()}`;
+var bar = bar`wow\naB${ 42 } ${_.baz()}`;
diff --git a/packages/babel/test/fixtures/transformation/es6.template-literals/tag-loose/expected.js b/packages/babel/test/fixtures/transformation/es6.template-literals/tag-loose/expected.js
index a2264017ba..9378680632 100644
--- a/packages/babel/test/fixtures/transformation/es6.template-literals/tag-loose/expected.js
+++ b/packages/babel/test/fixtures/transformation/es6.template-literals/tag-loose/expected.js
@@ -1,5 +1,11 @@
 "use strict";
 
+var _templateObject = _taggedTemplateLiteralLoose(["wow\na", "b ", ""], ["wow\\na", "b ", ""]),
+    _templateObject2 = _taggedTemplateLiteralLoose(["wow\nab", " ", ""], ["wow\\nab", " ", ""]),
+    _templateObject3 = _taggedTemplateLiteralLoose(["wow\naB", " ", ""], ["wow\\naB", " ", ""]);
+
 function _taggedTemplateLiteralLoose(strings, raw) { strings.raw = raw; return strings; }
 
-var foo = bar(_taggedTemplateLiteralLoose(["wow\na", "b ", ""], ["wow\\na", "b ", ""]), 42, _.foobar());
\ No newline at end of file
+var foo = bar(_templateObject, 42, _.foobar());
+var bar = bar(_templateObject2, 42, _.foobar());
+var bar = bar(_templateObject3, 42, _.baz());
\ No newline at end of file
diff --git a/packages/babel/test/fixtures/transformation/es6.template-literals/tag/expected.js b/packages/babel/test/fixtures/transformation/es6.template-literals/tag/expected.js
index db7bc65355..7749db566b 100644
--- a/packages/babel/test/fixtures/transformation/es6.template-literals/tag/expected.js
+++ b/packages/babel/test/fixtures/transformation/es6.template-literals/tag/expected.js
@@ -1,5 +1,7 @@
 "use strict";
 
+var _templateObject = _taggedTemplateLiteral(["wow\na", "b ", ""], ["wow\\na", "b ", ""]);
+
 function _taggedTemplateLiteral(strings, raw) { return Object.freeze(Object.defineProperties(strings, { raw: { value: Object.freeze(raw) } })); }
 
-var foo = bar(_taggedTemplateLiteral(["wow\na", "b ", ""], ["wow\\na", "b ", ""]), 42, _.foobar());
\ No newline at end of file
+var foo = bar(_templateObject, 42, _.foobar());