diff --git a/acorn.js b/acorn.js
index b89158e41e..ce23f3c453 100644
--- a/acorn.js
+++ b/acorn.js
@@ -3256,13 +3256,14 @@
     if (tokType === _braceL) {
       var tokStart1 = tokStart, tokStartLoc1 = tokStartLoc;
 
-      var origInXJSTag = inXJSTag;
-      inXJSTag = false;
+      var origInXJSTag = inXJSTag, origInXJSChildExpression = inXJSChildExpression;
+      inXJSTag = inXJSChildExpression = false;
 
       next();
       if (tokType !== _ellipsis) unexpected();
       var node = parseMaybeUnary();
 
+      inXJSChildExpression = origInXJSChildExpression;
       inXJSTag = origInXJSTag;
 
       expect(_braceR);
diff --git a/test/run.js b/test/run.js
index f7dbbe7c94..f394353d1e 100644
--- a/test/run.js
+++ b/test/run.js
@@ -50,7 +50,19 @@
       config: {
         parse: (typeof require === "undefined" ? window.acorn : require("../acorn.js")).parse
       }
-    }
+    }/*,
+    Loose: {
+      config: {
+        parse: (typeof require === "undefined" ? window.acorn : require("../acorn_loose")).parse_dammit,
+        loose: true,
+        filter: function (test) {
+          if (/`/.test(test.code)) return false; // FIXME remove this when the loose parse supports template strings
+          var opts = test.options || {};
+          if (opts.loose === false) return false;
+          return (opts.ecmaVersion || 5) <= 6;
+        }
+      }
+    }*/
   };
 
 function report(state, code, message) {
diff --git a/test/tests-jsx.js b/test/tests-jsx.js
index d7b58acb94..d0348a253e 100644
--- a/test/tests-jsx.js
+++ b/test/tests-jsx.js
@@ -3303,6 +3303,83 @@ var fbTestFixture = {
           }
         ]
       }
+    },
+
+    '<div>{<div {...test} />}</div>': {
+      type: 'Program',
+      start: 0,
+      end: 30,
+      body: [{
+        type: 'ExpressionStatement',
+        start: 0,
+        end: 30,
+        expression: {
+          type: 'XJSElement',
+          start: 0,
+          end: 30,
+          openingElement: {
+            type: 'XJSOpeningElement',
+            start: 0,
+            end: 5,
+            attributes: [],
+            name: {
+              type: 'XJSIdentifier',
+              start: 1,
+              end: 4,
+              name: 'div'
+            },
+            selfClosing: false
+          },
+          closingElement: {
+            type: 'XJSClosingElement',
+            start: 24,
+            end: 30,
+            name: {
+              type: 'XJSIdentifier',
+              start: 26,
+              end: 29,
+              name: 'div'
+            }
+          },
+          children: [{
+            type: 'XJSExpressionContainer',
+            start: 5,
+            end: 24,
+            expression: {
+              type: 'XJSElement',
+              start: 6,
+              end: 23,
+              openingElement: {
+                type: 'XJSOpeningElement',
+                start: 6,
+                end: 23,
+                attributes: [
+                  {
+                    type: 'XJSSpreadAttribute',
+                    start: 11,
+                    end: 20,
+                    argument: {
+                      type: 'Identifier',
+                      start: 15,
+                      end: 19,
+                      name: 'test'
+                    }
+                  }
+                ],
+                name: {
+                  type: 'XJSIdentifier',
+                  start: 7,
+                  end: 10,
+                  name: 'div'
+                },
+                selfClosing: true
+              },
+              closingElement: null,
+              children: []
+            }
+          }]
+        }
+      }]
     }
   }
 };