diff --git a/src/libsyntax/ext/base.rs b/src/libsyntax/ext/base.rs
index 5082f64ccbb41..4f64b3f2e1d67 100644
--- a/src/libsyntax/ext/base.rs
+++ b/src/libsyntax/ext/base.rs
@@ -557,7 +557,9 @@ pub struct ExpansionData {
     pub depth: usize,
     pub backtrace: ExpnId,
     pub module: Rc<ModuleData>,
-    pub in_block: bool,
+
+    // True if non-inline modules without a `#[path]` are forbidden at the root of this expansion.
+    pub no_noninline_mod: bool,
 }
 
 /// One of these is made during expansion and incrementally updated as we go;
@@ -590,7 +592,7 @@ impl<'a> ExtCtxt<'a> {
                 depth: 0,
                 backtrace: NO_EXPANSION,
                 module: Rc::new(ModuleData { mod_path: Vec::new(), directory: PathBuf::new() }),
-                in_block: false,
+                no_noninline_mod: false,
             },
         }
     }
diff --git a/src/libsyntax/ext/expand.rs b/src/libsyntax/ext/expand.rs
index 36a33dcc5c570..b1d828d0e3e49 100644
--- a/src/libsyntax/ext/expand.rs
+++ b/src/libsyntax/ext/expand.rs
@@ -667,9 +667,9 @@ impl<'a, 'b> Folder for InvocationCollector<'a, 'b> {
     }
 
     fn fold_block(&mut self, block: P<Block>) -> P<Block> {
-        let orig_in_block = mem::replace(&mut self.cx.current_expansion.in_block, true);
+        let no_noninline_mod = mem::replace(&mut self.cx.current_expansion.no_noninline_mod, true);
         let result = noop_fold_block(block, self);
-        self.cx.current_expansion.in_block = orig_in_block;
+        self.cx.current_expansion.no_noninline_mod = no_noninline_mod;
         result
     }
 
@@ -708,6 +708,7 @@ impl<'a, 'b> Folder for InvocationCollector<'a, 'b> {
                     return noop_fold_item(item, self);
                 }
 
+                let orig_no_noninline_mod = self.cx.current_expansion.no_noninline_mod;
                 let mut module = (*self.cx.current_expansion.module).clone();
                 module.mod_path.push(item.ident);
 
@@ -717,11 +718,14 @@ impl<'a, 'b> Folder for InvocationCollector<'a, 'b> {
                 let inline_module = item.span.contains(inner) || inner == syntax_pos::DUMMY_SP;
 
                 if inline_module {
-                    module.directory.push(&*{
-                        ::attr::first_attr_value_str_by_name(&item.attrs, "path")
-                            .unwrap_or(item.ident.name.as_str())
-                    });
+                    if let Some(path) = attr::first_attr_value_str_by_name(&item.attrs, "path") {
+                        self.cx.current_expansion.no_noninline_mod = false;
+                        module.directory.push(&*path);
+                    } else {
+                        module.directory.push(&*item.ident.name.as_str());
+                    }
                 } else {
+                    self.cx.current_expansion.no_noninline_mod = false;
                     module.directory =
                         PathBuf::from(self.cx.parse_sess.codemap().span_to_filename(inner));
                     module.directory.pop();
@@ -731,6 +735,7 @@ impl<'a, 'b> Folder for InvocationCollector<'a, 'b> {
                     mem::replace(&mut self.cx.current_expansion.module, Rc::new(module));
                 let result = noop_fold_item(item, self);
                 self.cx.current_expansion.module = orig_module;
+                self.cx.current_expansion.no_noninline_mod = orig_no_noninline_mod;
                 return result;
             }
             // Ensure that test functions are accessible from the test harness.
diff --git a/src/libsyntax/ext/tt/macro_rules.rs b/src/libsyntax/ext/tt/macro_rules.rs
index 9f4c0b5eb808f..2e0c7ddb540f4 100644
--- a/src/libsyntax/ext/tt/macro_rules.rs
+++ b/src/libsyntax/ext/tt/macro_rules.rs
@@ -122,7 +122,7 @@ fn generic_extension<'cx>(cx: &'cx ExtCtxt,
                                            rhs);
                 let mut p = Parser::new(cx.parse_sess(), cx.cfg(), Box::new(trncbr));
                 p.directory = cx.current_expansion.module.directory.clone();
-                p.restrictions = match cx.current_expansion.in_block {
+                p.restrictions = match cx.current_expansion.no_noninline_mod {
                     true => Restrictions::NO_NONINLINE_MOD,
                     false => Restrictions::empty(),
                 };
diff --git a/src/libsyntax/parse/parser.rs b/src/libsyntax/parse/parser.rs
index d5ed1d157e47a..5476166932d32 100644
--- a/src/libsyntax/parse/parser.rs
+++ b/src/libsyntax/parse/parser.rs
@@ -5274,23 +5274,27 @@ impl<'a> Parser<'a> {
             }
         } else {
             let directory = self.directory.clone();
-            self.push_directory(id, &outer_attrs);
+            let restrictions = self.push_directory(id, &outer_attrs);
             self.expect(&token::OpenDelim(token::Brace))?;
             let mod_inner_lo = self.span.lo;
             let attrs = self.parse_inner_attributes()?;
-            let m = self.parse_mod_items(&token::CloseDelim(token::Brace), mod_inner_lo)?;
+            let m = self.with_res(restrictions, |this| {
+                this.parse_mod_items(&token::CloseDelim(token::Brace), mod_inner_lo)
+            })?;
             self.directory = directory;
             Ok((id, ItemKind::Mod(m), Some(attrs)))
         }
     }
 
-    fn push_directory(&mut self, id: Ident, attrs: &[Attribute]) {
-        let default_path = self.id_to_interned_str(id);
-        let file_path = match ::attr::first_attr_value_str_by_name(attrs, "path") {
-            Some(d) => d,
-            None => default_path,
-        };
-        self.directory.push(&*file_path)
+    fn push_directory(&mut self, id: Ident, attrs: &[Attribute]) -> Restrictions {
+        if let Some(path) = ::attr::first_attr_value_str_by_name(attrs, "path") {
+            self.directory.push(&*path);
+            self.restrictions - Restrictions::NO_NONINLINE_MOD
+        } else {
+            let default_path = self.id_to_interned_str(id);
+            self.directory.push(&*default_path);
+            self.restrictions
+        }
     }
 
     pub fn submod_path_from_attr(attrs: &[ast::Attribute], dir_path: &Path) -> Option<PathBuf> {
diff --git a/src/test/run-pass/mod_dir_path.rs b/src/test/run-pass/mod_dir_path.rs
index e0327a1dcd4ed..28dee15cfa043 100644
--- a/src/test/run-pass/mod_dir_path.rs
+++ b/src/test/run-pass/mod_dir_path.rs
@@ -17,4 +17,15 @@ mod mod_dir_simple {
 
 pub fn main() {
     assert_eq!(mod_dir_simple::syrup::foo(), 10);
+
+    #[path = "auxiliary"]
+    mod foo {
+        mod two_macros;
+    }
+
+    #[path = "auxiliary"]
+    mod bar {
+        macro_rules! m { () => { mod two_macros; } }
+        m!();
+    }
 }