diff --git a/mobservable-react/mobservable-react-tests.ts b/mobservable-react/mobservable-react-tests.ts
index 7bda00cf43..7b39dbb7fb 100644
--- a/mobservable-react/mobservable-react-tests.ts
+++ b/mobservable-react/mobservable-react-tests.ts
@@ -51,7 +51,10 @@ class TestComponent2 extends React.Component<{ test: string },{}> {
     }
 }
 {
-    let c4Factory = React.createFactory(reactiveComponent(TestComponent2));
+    // Does not work properly in typescript 1.6.2 without cast :'(
+    // Argument of type 'typeof TestComponent2 | void' is not assignable to parameter of type 'ComponentClass<{ test: string; }>'.
+    // Type 'void' is not assignable to type 'ComponentClass<{ test: string; }>'.
+    let c4Factory = React.createFactory(<React.ClassicComponentClass<{test:string}>><any> reactiveComponent(TestComponent2));
     React.render(c4Factory({
         test: "hello" 
     }) , null);
diff --git a/mobservable-react/mobservable-react.d.ts b/mobservable-react/mobservable-react.d.ts
index 34ecd78f8e..f42627a857 100644
--- a/mobservable-react/mobservable-react.d.ts
+++ b/mobservable-react/mobservable-react.d.ts
@@ -11,6 +11,6 @@ declare module "mobservable-react" {
      */
     export function reactiveComponent<P>(clazz: React.ClassicComponentClass<P>): React.ClassicComponentClass<P>;
     export function reactiveComponent<P>(clazz: React.ComponentClass<P>): React.ComponentClass<P>;
-    export function reactiveComponent<P>(clazz: React.ComponentClass<P>): void; // for decorator
+    export function reactiveComponent<TFunction extends React.ComponentClass<any>>(target: TFunction): TFunction | void; // decorator signature
     export function reactiveComponent<P>(renderFunction: (props: P) => React.ReactElement<any>): React.ClassicComponentClass<P>;
 }
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