diff --git a/docs/rules/no-inner-declarations.md b/docs/rules/no-inner-declarations.md
index 23fd9253b10..0592084bce1 100644
--- a/docs/rules/no-inner-declarations.md
+++ b/docs/rules/no-inner-declarations.md
@@ -81,6 +81,8 @@ function doSomethingElse() {
         function doAnotherThing() { }
     }
 }
+
+if (foo) function f(){}
 ```
 
 Examples of **correct** code for this rule with the default `"functions"` option:
@@ -102,6 +104,8 @@ var fn;
 if (test) {
     fn = function fnExpression() { };
 }
+
+if (foo) var a;
 ```
 
 ### both
@@ -120,6 +124,11 @@ function doAnotherThing() {
         var bar = 81;
     }
 }
+
+
+if (foo) var a;
+
+if (foo) function f(){}
 ```
 
 Examples of **correct** code for this rule with the `"both"` option:
diff --git a/lib/rules/no-inner-declarations.js b/lib/rules/no-inner-declarations.js
index e1c29e0a3b4..0768bc61149 100644
--- a/lib/rules/no-inner-declarations.js
+++ b/lib/rules/no-inner-declarations.js
@@ -5,10 +5,19 @@
 
 "use strict";
 
+//------------------------------------------------------------------------------
+// Requirements
+//------------------------------------------------------------------------------
+
+const astUtils = require("./utils/ast-utils");
+
 //------------------------------------------------------------------------------
 // Rule Definition
 //------------------------------------------------------------------------------
 
+const validParent = new Set(["Program", "ExportNamedDeclaration", "ExportDefaultDeclaration"]);
+const validBlockStatementParent = new Set(["FunctionDeclaration", "FunctionExpression", "ArrowFunctionExpression"]);
+
 module.exports = {
     meta: {
         type: "problem",
@@ -33,54 +42,37 @@ module.exports = {
 
     create(context) {
 
-        /**
-         * Find the nearest Program or Function ancestor node.
-         * @returns {Object} Ancestor's type and distance from node.
-         */
-        function nearestBody() {
-            const ancestors = context.getAncestors();
-            let ancestor = ancestors.pop(),
-                generation = 1;
-
-            while (ancestor && ["Program", "FunctionDeclaration",
-                "FunctionExpression", "ArrowFunctionExpression"
-            ].indexOf(ancestor.type) < 0) {
-                generation += 1;
-                ancestor = ancestors.pop();
-            }
-
-            return {
-
-                // Type of containing ancestor
-                type: ancestor.type,
-
-                // Separation between ancestor and node
-                distance: generation
-            };
-        }
-
         /**
          * Ensure that a given node is at a program or function body's root.
          * @param {ASTNode} node Declaration node to check.
          * @returns {void}
          */
         function check(node) {
-            const body = nearestBody(),
-                valid = ((body.type === "Program" && body.distance === 1) ||
-                    body.distance === 2);
-
-            if (!valid) {
-                context.report({
-                    node,
-                    messageId: "moveDeclToRoot",
-                    data: {
-                        type: (node.type === "FunctionDeclaration" ? "function" : "variable"),
-                        body: (body.type === "Program" ? "program" : "function body")
-                    }
-                });
+            const parent = node.parent;
+
+            if (
+                parent.type === "BlockStatement" && validBlockStatementParent.has(parent.parent.type)
+            ) {
+                return;
+            }
+
+            if (validParent.has(parent.type)) {
+                return;
             }
+
+            const upperFunction = astUtils.getUpperFunction(parent);
+
+            context.report({
+                node,
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: (node.type === "FunctionDeclaration" ? "function" : "variable"),
+                    body: (upperFunction === null ? "program" : "function body")
+                }
+            });
         }
 
+
         return {
 
             FunctionDeclaration: check,
diff --git a/tests/lib/rules/no-inner-declarations.js b/tests/lib/rules/no-inner-declarations.js
index d255824619e..a9f70fd3f5e 100644
--- a/tests/lib/rules/no-inner-declarations.js
+++ b/tests/lib/rules/no-inner-declarations.js
@@ -45,74 +45,233 @@ ruleTester.run("no-inner-declarations", rule, {
             code: "var x = {doSomething() {var foo;}}",
             options: ["both"],
             parserOptions: { ecmaVersion: 6 }
+        },
+        {
+            code: "export var foo;",
+            options: ["both"],
+            parserOptions: { sourceType: "module", ecmaVersion: 6 }
+        },
+        {
+            code: "export function bar() {}",
+            options: ["both"],
+            parserOptions: { sourceType: "module", ecmaVersion: 6 }
+        },
+        {
+            code: "export default function baz() {}",
+            options: ["both"],
+            parserOptions: { sourceType: "module", ecmaVersion: 6 }
+        },
+        {
+            code: "exports.foo = () => {}",
+            options: ["both"],
+            parserOptions: { ecmaVersion: 6 }
+        },
+        {
+            code: "exports.foo = function(){}",
+            options: ["both"]
+        },
+        {
+            code: "module.exports = function foo(){}",
+            options: ["both"]
         }
 
     ],
 
     // Examples of code that should trigger the rule
-    invalid: [{
-        code: "if (test) { function doSomething() { } }",
-        options: ["both"],
-        errors: [{
-            messageId: "moveDeclToRoot",
-            data: {
-                type: "function",
-                body: "program"
-            },
-            type: "FunctionDeclaration"
-        }]
-    }, {
-        code: "function doSomething() { do { function somethingElse() { } } while (test); }",
-        errors: [{
-            messageId: "moveDeclToRoot",
-            data: {
-                type: "function",
-                body: "function body"
-            },
-            type: "FunctionDeclaration"
-        }]
-    }, {
-        code: "(function() { if (test) { function doSomething() { } } }());",
-        errors: [{
-            messageId: "moveDeclToRoot",
-            data: {
-                type: "function",
-                body: "function body"
-            },
-            type: "FunctionDeclaration"
-        }]
-    }, {
-        code: "while (test) { var foo; }",
-        options: ["both"],
-        errors: [{
-            messageId: "moveDeclToRoot",
-            data: {
-                type: "variable",
-                body: "program"
-            },
-            type: "VariableDeclaration"
-        }]
-    }, {
-        code: "function doSomething() { if (test) { var foo = 42; } }",
-        options: ["both"],
-        errors: [{
-            messageId: "moveDeclToRoot",
-            data: {
-                type: "variable",
-                body: "function body"
-            },
-            type: "VariableDeclaration"
-        }]
-    }, {
-        code: "(function() { if (test) { var foo; } }());",
-        options: ["both"],
-        errors: [{
-            messageId: "moveDeclToRoot",
-            data: {
-                type: "variable",
-                body: "function body"
-            },
-            type: "VariableDeclaration"
-        }]
-    }]
+    invalid: [
+        {
+            code: "if (test) { function doSomething() { } }",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "function",
+                    body: "program"
+                },
+                type: "FunctionDeclaration"
+            }]
+        }, {
+            code: "if (foo) var a; ",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "program"
+                },
+                type: "VariableDeclaration"
+            }]
+        }, {
+            code: "if (foo) /* some comments */ var a; ",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "program"
+                },
+                type: "VariableDeclaration"
+            }]
+        }, {
+            code: "if (foo){ function f(){ if(bar){ var a; } } }",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "function",
+                    body: "program"
+                },
+                type: "FunctionDeclaration"
+            }, {
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "function body"
+                },
+                type: "VariableDeclaration"
+            }]
+        }, {
+            code: "if (foo) function f(){ if(bar) var a; } ",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "function",
+                    body: "program"
+                },
+                type: "FunctionDeclaration"
+            }, {
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "function body"
+                },
+                type: "VariableDeclaration"
+            }]
+        }, {
+            code: "if (foo) { var fn = function(){} } ",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "program"
+                },
+                type: "VariableDeclaration"
+            }]
+        },
+        {
+            code: "if (foo)  function f(){} ",
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "function",
+                    body: "program"
+                },
+                type: "FunctionDeclaration"
+            }]
+        },
+        {
+            code: "function bar() { if (foo) function f(){}; }",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "function",
+                    body: "function body"
+                },
+                type: "FunctionDeclaration"
+            }]
+        },
+        {
+            code: "function bar() { if (foo) var a; }",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "function body"
+                },
+                type: "VariableDeclaration"
+            }]
+        },
+        {
+            code: "if (foo){ var a; }",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "program"
+                },
+                type: "VariableDeclaration"
+            }]
+        }, {
+            code: "function doSomething() { do { function somethingElse() { } } while (test); }",
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "function",
+                    body: "function body"
+                },
+                type: "FunctionDeclaration"
+            }]
+        }, {
+            code: "(function() { if (test) { function doSomething() { } } }());",
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "function",
+                    body: "function body"
+                },
+                type: "FunctionDeclaration"
+            }]
+        }, {
+            code: "while (test) { var foo; }",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "program"
+                },
+                type: "VariableDeclaration"
+            }]
+        }, {
+            code: "function doSomething() { if (test) { var foo = 42; } }",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "function body"
+                },
+                type: "VariableDeclaration"
+            }]
+        }, {
+            code: "(function() { if (test) { var foo; } }());",
+            options: ["both"],
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "function body"
+                },
+                type: "VariableDeclaration"
+            }]
+        }, {
+            code: "const doSomething = () => { if (test) { var foo = 42; } }",
+            options: ["both"],
+            parserOptions: { ecmaVersion: 6 },
+            errors: [{
+                messageId: "moveDeclToRoot",
+                data: {
+                    type: "variable",
+                    body: "function body"
+                },
+                type: "VariableDeclaration"
+            }]
+        }
+
+    ]
 });