diff --git a/react/index.d.ts b/react/index.d.ts
index 8d5edbab51..dd2add0e0e 100644
--- a/react/index.d.ts
+++ b/react/index.d.ts
@@ -201,7 +201,7 @@ declare namespace React {
 
     type SFC<P> = StatelessComponent<P>;
     interface StatelessComponent<P> {
-        (props: P, context?: any): ReactElement<any>;
+        (props: P & { children?: ReactNode }, context?: any): ReactElement<any>;
         propTypes?: ValidationMap<P>;
         contextTypes?: ValidationMap<any>;
         defaultProps?: P;
diff --git a/react/react-tests.ts b/react/react-tests.ts
index 7cdecd9e86..ae9538b294 100644
--- a/react/react-tests.ts
+++ b/react/react-tests.ts
@@ -152,6 +152,10 @@ StatelessComponent2.defaultProps = {
     foo: 42
 };
 
+var StatelessComponent3: React.SFC<SCProps> =
+    // allows usage of props.children
+    props => React.DOM.div(null, props.foo, props.children);
+
 // React.createFactory
 var factory: React.CFactory<Props, ModernComponent> =
     React.createFactory(ModernComponent);
diff --git a/react/react-tsx-tests.tsx b/react/react-tsx-tests.tsx
index 3756659a53..f5437f751b 100644
--- a/react/react-tsx-tests.tsx
+++ b/react/react-tsx-tests.tsx
@@ -13,3 +13,13 @@ StatelessComponent.defaultProps = {
 };
 
 <StatelessComponent />;
+
+var StatelessComponent2: React.SFC<SCProps> = ({ foo, children }) => {
+    return <div>{ foo }{ children }</div>;
+};
+StatelessComponent2.displayName = "StatelessComponent4";
+StatelessComponent2.defaultProps = {
+    foo: 42
+};
+
+<StatelessComponent2>24</StatelessComponent2>;