diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 480f7189fce31..2e9751bf24a1c 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -33791,7 +33791,20 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
             (isJsxElement(parent) && parent.openingElement === openingLikeElement || isJsxFragment(parent) && parent.openingFragment === openingLikeElement) &&
             getSemanticJsxChildren(parent.children).length > 0
         ) {
-            const childrenTypes: Type[] = checkJsxChildren(parent, checkMode);
+            // Compute contextual type for fragment children before checking them
+            let childrenContextualType: Type | undefined;
+            if (isJsxOpeningFragment(openingLikeElement) && jsxChildrenPropertyName && jsxChildrenPropertyName !== "") {
+                // For fragments, get the props type from the Fragment factory's signature
+                const fragmentType = getJSXFragmentType(openingLikeElement);
+                const signatures = getSignaturesOfType(fragmentType, SignatureKind.Call);
+                if (signatures.length > 0) {
+                    const contextualType = getTypeOfFirstParameterOfSignature(signatures[0]);
+                    childrenContextualType = contextualType && getTypeOfPropertyOfContextualType(contextualType, jsxChildrenPropertyName);
+                }
+            }
+
+            // Check children with contextual type (only for fragments)
+            const childrenTypes: Type[] = checkJsxChildren(parent, checkMode, childrenContextualType);
 
             if (!hasSpreadAnyType && jsxChildrenPropertyName && jsxChildrenPropertyName !== "") {
                 // Error if there is a attribute named "children" explicitly specified and children element.
@@ -33842,7 +33855,7 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
         return result;
     }
 
-    function checkJsxChildren(node: JsxElement | JsxFragment, checkMode?: CheckMode) {
+    function checkJsxChildren(node: JsxElement | JsxFragment, checkMode?: CheckMode, childrenContextualType?: Type) {
         const childrenTypes: Type[] = [];
         for (const child of node.children) {
             // In React, JSX text that contains only whitespaces will be ignored so we don't want to type-check that
@@ -33856,7 +33869,13 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
                 continue; // empty jsx expressions don't *really* count as present children
             }
             else {
-                childrenTypes.push(checkExpressionForMutableLocation(child, checkMode));
+                // If we have a contextual type for children, use it when checking child expressions
+                if (childrenContextualType && child.kind === SyntaxKind.JsxExpression && child.expression) {
+                    childrenTypes.push(checkExpressionForMutableLocationWithContextualType(child.expression, childrenContextualType));
+                }
+                else {
+                    childrenTypes.push(checkExpressionForMutableLocation(child, checkMode));
+                }
             }
         }
         return childrenTypes;
@@ -37418,15 +37437,19 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
         const jsxFragmentFactoryName = getJsxNamespace(node);
 
         // #38720/60122, allow null as jsxFragmentFactory
-        const shouldResolveFactoryReference = (compilerOptions.jsx === JsxEmit.React || compilerOptions.jsxFragmentFactory !== undefined) && jsxFragmentFactoryName !== "null";
+        const shouldResolveFactoryReference = (compilerOptions.jsx === JsxEmit.React || compilerOptions.jsx === JsxEmit.ReactJSX || compilerOptions.jsx === JsxEmit.ReactJSXDev || compilerOptions.jsxFragmentFactory !== undefined) && jsxFragmentFactoryName !== "null";
         if (!shouldResolveFactoryReference) return sourceFileLinks.jsxFragmentType = anyType;
 
         const shouldModuleRefErr = compilerOptions.jsx !== JsxEmit.Preserve && compilerOptions.jsx !== JsxEmit.ReactNative;
+        // When using react-jsx/react-jsxdev, the fragment comes from the jsx-runtime module as "Fragment" export
+        // Use "Fragment" in error message instead of the default "React" namespace
+        const isModernJsx = compilerOptions.jsx === JsxEmit.ReactJSX || compilerOptions.jsx === JsxEmit.ReactJSXDev;
+        const fragmentFactoryNameForError = isModernJsx ? ReactNames.Fragment : jsxFragmentFactoryName;
         const jsxFactoryRefErr = diagnostics ? Diagnostics.Using_JSX_fragments_requires_fragment_factory_0_to_be_in_scope_but_it_could_not_be_found : undefined;
         const jsxFactorySymbol = getJsxNamespaceContainerForImplicitImport(node) ??
             resolveName(
                 node,
-                jsxFragmentFactoryName,
+                fragmentFactoryNameForError,
                 shouldModuleRefErr ? SymbolFlags.Value : SymbolFlags.Value & ~SymbolFlags.Enum,
                 /*nameNotFoundMessage*/ jsxFactoryRefErr,
                 /*isUse*/ true,
diff --git a/tests/baselines/reference/jsxFragmentChildrenCheck.js b/tests/baselines/reference/jsxFragmentChildrenCheck.js
new file mode 100644
index 0000000000000..5beaff1ef55e8
--- /dev/null
+++ b/tests/baselines/reference/jsxFragmentChildrenCheck.js
@@ -0,0 +1,57 @@
+//// [tests/cases/compiler/jsxFragmentChildrenCheck.tsx] ////
+
+//// [index.d.ts]
+export const jsx: any;
+export const jsxs: any;
+
+type JsxElement =
+  | JsxElementArray
+  | undefined
+  | string
+  | ((arg: { foo: "bar" }) => void);
+interface JsxElementArray extends Array<JsxElement> {}
+
+interface FragmentProps {
+  children?: JsxElement;
+}
+
+export const Fragment: (props: FragmentProps) => any;
+
+declare global {
+  namespace JSX {
+    interface IntrinsicElements {
+      div: any;
+      span: any;
+    }
+  }
+}
+
+//// [index.tsx]
+import { Fragment } from "@test/jsx-runtime";
+
+// This should pass - using explicit Fragment
+<Fragment>
+  {"ok"}
+  {({ foo }) => "also ok"}
+</Fragment>;
+
+// This should also pass - using <> syntax should be equivalent
+<>
+  {"ok"}
+  {({ foo }) => "should also be ok"}
+</>;
+
+
+//// [index.js]
+import { jsxs as _jsxs, Fragment as _Fragment } from "@test/jsx-runtime";
+import { Fragment } from "@test/jsx-runtime";
+// This should pass - using explicit Fragment
+_jsxs(Fragment, { children: ["ok", function (_a) {
+            var foo = _a.foo;
+            return "also ok";
+        }] });
+// This should also pass - using <> syntax should be equivalent
+_jsxs(_Fragment, { children: ["ok", function (_a) {
+            var foo = _a.foo;
+            return "should also be ok";
+        }] });
diff --git a/tests/baselines/reference/jsxFragmentChildrenCheck.symbols b/tests/baselines/reference/jsxFragmentChildrenCheck.symbols
new file mode 100644
index 0000000000000..df5e6a1c145ae
--- /dev/null
+++ b/tests/baselines/reference/jsxFragmentChildrenCheck.symbols
@@ -0,0 +1,80 @@
+//// [tests/cases/compiler/jsxFragmentChildrenCheck.tsx] ////
+
+=== node_modules/@test/jsx-runtime/index.d.ts ===
+export const jsx: any;
+>jsx : Symbol(jsx, Decl(index.d.ts, 0, 12))
+
+export const jsxs: any;
+>jsxs : Symbol(jsxs, Decl(index.d.ts, 1, 12))
+
+type JsxElement =
+>JsxElement : Symbol(JsxElement, Decl(index.d.ts, 1, 23))
+
+  | JsxElementArray
+>JsxElementArray : Symbol(JsxElementArray, Decl(index.d.ts, 7, 36))
+
+  | undefined
+  | string
+  | ((arg: { foo: "bar" }) => void);
+>arg : Symbol(arg, Decl(index.d.ts, 7, 6))
+>foo : Symbol(foo, Decl(index.d.ts, 7, 12))
+
+interface JsxElementArray extends Array<JsxElement> {}
+>JsxElementArray : Symbol(JsxElementArray, Decl(index.d.ts, 7, 36))
+>Array : Symbol(Array, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --), Decl(lib.es2015.core.d.ts, --, --), Decl(lib.es2015.iterable.d.ts, --, --), Decl(lib.es2015.symbol.wellknown.d.ts, --, --))
+>JsxElement : Symbol(JsxElement, Decl(index.d.ts, 1, 23))
+
+interface FragmentProps {
+>FragmentProps : Symbol(FragmentProps, Decl(index.d.ts, 8, 54))
+
+  children?: JsxElement;
+>children : Symbol(FragmentProps.children, Decl(index.d.ts, 10, 25))
+>JsxElement : Symbol(JsxElement, Decl(index.d.ts, 1, 23))
+}
+
+export const Fragment: (props: FragmentProps) => any;
+>Fragment : Symbol(Fragment, Decl(index.d.ts, 14, 12))
+>props : Symbol(props, Decl(index.d.ts, 14, 24))
+>FragmentProps : Symbol(FragmentProps, Decl(index.d.ts, 8, 54))
+
+declare global {
+>global : Symbol(global, Decl(index.d.ts, 14, 53))
+
+  namespace JSX {
+>JSX : Symbol(JSX, Decl(index.d.ts, 16, 16))
+
+    interface IntrinsicElements {
+>IntrinsicElements : Symbol(IntrinsicElements, Decl(index.d.ts, 17, 17))
+
+      div: any;
+>div : Symbol(IntrinsicElements.div, Decl(index.d.ts, 18, 33))
+
+      span: any;
+>span : Symbol(IntrinsicElements.span, Decl(index.d.ts, 19, 15))
+    }
+  }
+}
+
+=== index.tsx ===
+import { Fragment } from "@test/jsx-runtime";
+>Fragment : Symbol(Fragment, Decl(index.tsx, 0, 8))
+
+// This should pass - using explicit Fragment
+<Fragment>
+>Fragment : Symbol(Fragment, Decl(index.tsx, 0, 8))
+
+  {"ok"}
+  {({ foo }) => "also ok"}
+>foo : Symbol(foo, Decl(index.tsx, 5, 5))
+
+</Fragment>;
+>Fragment : Symbol(Fragment, Decl(index.tsx, 0, 8))
+
+// This should also pass - using <> syntax should be equivalent
+<>
+  {"ok"}
+  {({ foo }) => "should also be ok"}
+>foo : Symbol(foo, Decl(index.tsx, 11, 5))
+
+</>;
+
diff --git a/tests/baselines/reference/jsxFragmentChildrenCheck.types b/tests/baselines/reference/jsxFragmentChildrenCheck.types
new file mode 100644
index 0000000000000..baa622a81272f
--- /dev/null
+++ b/tests/baselines/reference/jsxFragmentChildrenCheck.types
@@ -0,0 +1,96 @@
+//// [tests/cases/compiler/jsxFragmentChildrenCheck.tsx] ////
+
+=== node_modules/@test/jsx-runtime/index.d.ts ===
+export const jsx: any;
+>jsx : any
+
+export const jsxs: any;
+>jsxs : any
+
+type JsxElement =
+>JsxElement : JsxElement
+>           : ^^^^^^^^^^
+
+  | JsxElementArray
+  | undefined
+  | string
+  | ((arg: { foo: "bar" }) => void);
+>arg : { foo: "bar"; }
+>    : ^^^^^^^     ^^^
+>foo : "bar"
+>    : ^^^^^
+
+interface JsxElementArray extends Array<JsxElement> {}
+
+interface FragmentProps {
+  children?: JsxElement;
+>children : JsxElement
+>         : ^^^^^^^^^^
+}
+
+export const Fragment: (props: FragmentProps) => any;
+>Fragment : (props: FragmentProps) => any
+>         : ^     ^^             ^^^^^   
+>props : FragmentProps
+>      : ^^^^^^^^^^^^^
+
+declare global {
+>global : any
+>       : ^^^
+
+  namespace JSX {
+    interface IntrinsicElements {
+      div: any;
+>div : any
+
+      span: any;
+>span : any
+    }
+  }
+}
+
+=== index.tsx ===
+import { Fragment } from "@test/jsx-runtime";
+>Fragment : (props: import("node_modules/@test/jsx-runtime/index").FragmentProps) => any
+>         : ^     ^^       ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^  ^^^^^^^^^^^^^^^^^^   
+
+// This should pass - using explicit Fragment
+<Fragment>
+><Fragment>  {"ok"}  {({ foo }) => "also ok"}</Fragment> : error
+>Fragment : (props: import("node_modules/@test/jsx-runtime/index").FragmentProps) => any
+>         : ^     ^^       ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^  ^^^^^^^^^^^^^^^^^^   
+
+  {"ok"}
+>"ok" : "ok"
+>     : ^^^^
+
+  {({ foo }) => "also ok"}
+>({ foo }) => "also ok" : ({ foo }: { foo: "bar"; }) => string
+>                       : ^       ^^^^^^^^^     ^^^^^^^^^^^^^^
+>foo : "bar"
+>    : ^^^^^
+>"also ok" : "also ok"
+>          : ^^^^^^^^^
+
+</Fragment>;
+>Fragment : (props: import("node_modules/@test/jsx-runtime/index").FragmentProps) => any
+>         : ^     ^^       ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^  ^^^^^^^^^^^^^^^^^^   
+
+// This should also pass - using <> syntax should be equivalent
+<>
+><>  {"ok"}  {({ foo }) => "should also be ok"}</> : any
+
+  {"ok"}
+>"ok" : "ok"
+>     : ^^^^
+
+  {({ foo }) => "should also be ok"}
+>({ foo }) => "should also be ok" : ({ foo }: { foo: "bar"; }) => string
+>                                 : ^       ^^^^^^^^^     ^^^^^^^^^^^^^^
+>foo : "bar"
+>    : ^^^^^
+>"should also be ok" : "should also be ok"
+>                    : ^^^^^^^^^^^^^^^^^^^
+
+</>;
+
diff --git a/tests/baselines/reference/jsxFragmentFactoryReference(jsx=react-jsx).errors.txt b/tests/baselines/reference/jsxFragmentFactoryReference(jsx=react-jsx).errors.txt
index 453fbd038e286..97b1dd60a777d 100644
--- a/tests/baselines/reference/jsxFragmentFactoryReference(jsx=react-jsx).errors.txt
+++ b/tests/baselines/reference/jsxFragmentFactoryReference(jsx=react-jsx).errors.txt
@@ -1,12 +1,15 @@
 jsxFragmentFactoryReference.tsx(3,9): error TS2875: This JSX tag requires the module path 'react/jsx-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+jsxFragmentFactoryReference.tsx(3,9): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
 
 
-==== jsxFragmentFactoryReference.tsx (1 errors) ====
+==== jsxFragmentFactoryReference.tsx (2 errors) ====
     export class LoggedOut {
         content = () => (
             <></>
             ~~
 !!! error TS2875: This JSX tag requires the module path 'react/jsx-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+            ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
         )
     }
     
\ No newline at end of file
diff --git a/tests/baselines/reference/jsxFragmentFactoryReference(jsx=react-jsxdev).errors.txt b/tests/baselines/reference/jsxFragmentFactoryReference(jsx=react-jsxdev).errors.txt
index 7529f71c4d566..400aa3bd175b7 100644
--- a/tests/baselines/reference/jsxFragmentFactoryReference(jsx=react-jsxdev).errors.txt
+++ b/tests/baselines/reference/jsxFragmentFactoryReference(jsx=react-jsxdev).errors.txt
@@ -1,12 +1,15 @@
 jsxFragmentFactoryReference.tsx(3,9): error TS2875: This JSX tag requires the module path 'react/jsx-dev-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+jsxFragmentFactoryReference.tsx(3,9): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
 
 
-==== jsxFragmentFactoryReference.tsx (1 errors) ====
+==== jsxFragmentFactoryReference.tsx (2 errors) ====
     export class LoggedOut {
         content = () => (
             <></>
             ~~
 !!! error TS2875: This JSX tag requires the module path 'react/jsx-dev-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+            ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
         )
     }
     
\ No newline at end of file
diff --git a/tests/baselines/reference/jsxJsxsCjsTransformCustomImport(jsx=react-jsx).errors.txt b/tests/baselines/reference/jsxJsxsCjsTransformCustomImport(jsx=react-jsx).errors.txt
index 248540ed384da..2b1ec10df02e7 100644
--- a/tests/baselines/reference/jsxJsxsCjsTransformCustomImport(jsx=react-jsx).errors.txt
+++ b/tests/baselines/reference/jsxJsxsCjsTransformCustomImport(jsx=react-jsx).errors.txt
@@ -1,11 +1,14 @@
 jsxJsxsCjsTransformCustomImport.tsx(2,11): error TS2875: This JSX tag requires the module path 'preact/jsx-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+jsxJsxsCjsTransformCustomImport.tsx(2,11): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
 
 
-==== jsxJsxsCjsTransformCustomImport.tsx (1 errors) ====
+==== jsxJsxsCjsTransformCustomImport.tsx (2 errors) ====
     /// <reference path="/.lib/react16.d.ts" />
     const a = <>
               ~~
 !!! error TS2875: This JSX tag requires the module path 'preact/jsx-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+              ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
       <p></p>
       text
       <div className="foo"></div>
diff --git a/tests/baselines/reference/jsxJsxsCjsTransformCustomImport(jsx=react-jsxdev).errors.txt b/tests/baselines/reference/jsxJsxsCjsTransformCustomImport(jsx=react-jsxdev).errors.txt
index e66480f8dce2f..062df44ff8029 100644
--- a/tests/baselines/reference/jsxJsxsCjsTransformCustomImport(jsx=react-jsxdev).errors.txt
+++ b/tests/baselines/reference/jsxJsxsCjsTransformCustomImport(jsx=react-jsxdev).errors.txt
@@ -1,11 +1,14 @@
 jsxJsxsCjsTransformCustomImport.tsx(2,11): error TS2875: This JSX tag requires the module path 'preact/jsx-dev-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+jsxJsxsCjsTransformCustomImport.tsx(2,11): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
 
 
-==== jsxJsxsCjsTransformCustomImport.tsx (1 errors) ====
+==== jsxJsxsCjsTransformCustomImport.tsx (2 errors) ====
     /// <reference path="/.lib/react16.d.ts" />
     const a = <>
               ~~
 !!! error TS2875: This JSX tag requires the module path 'preact/jsx-dev-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+              ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
       <p></p>
       text
       <div className="foo"></div>
diff --git a/tests/baselines/reference/jsxJsxsCjsTransformCustomImportPragma(jsx=react-jsx).errors.txt b/tests/baselines/reference/jsxJsxsCjsTransformCustomImportPragma(jsx=react-jsx).errors.txt
index c37e010cab834..61276f782e430 100644
--- a/tests/baselines/reference/jsxJsxsCjsTransformCustomImportPragma(jsx=react-jsx).errors.txt
+++ b/tests/baselines/reference/jsxJsxsCjsTransformCustomImportPragma(jsx=react-jsx).errors.txt
@@ -1,4 +1,5 @@
 preact.tsx(3,11): error TS2875: This JSX tag requires the module path 'preact/jsx-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+preact.tsx(3,11): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
 
 
 ==== react.tsx (0 errors) ====
@@ -12,12 +13,14 @@ preact.tsx(3,11): error TS2875: This JSX tag requires the module path 'preact/js
     </>
     
     export {};
-==== preact.tsx (1 errors) ====
+==== preact.tsx (2 errors) ====
     /// <reference path="/.lib/react16.d.ts" />
     /* @jsxImportSource preact */
     const a = <>
               ~~
 !!! error TS2875: This JSX tag requires the module path 'preact/jsx-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+              ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
       <p></p>
       text
       <div className="foo"></div>
diff --git a/tests/baselines/reference/jsxJsxsCjsTransformCustomImportPragma(jsx=react-jsxdev).errors.txt b/tests/baselines/reference/jsxJsxsCjsTransformCustomImportPragma(jsx=react-jsxdev).errors.txt
index 79e8e02a87b2f..3a1dfd23eb335 100644
--- a/tests/baselines/reference/jsxJsxsCjsTransformCustomImportPragma(jsx=react-jsxdev).errors.txt
+++ b/tests/baselines/reference/jsxJsxsCjsTransformCustomImportPragma(jsx=react-jsxdev).errors.txt
@@ -1,4 +1,5 @@
 preact.tsx(3,11): error TS2875: This JSX tag requires the module path 'preact/jsx-dev-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+preact.tsx(3,11): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
 
 
 ==== react.tsx (0 errors) ====
@@ -12,12 +13,14 @@ preact.tsx(3,11): error TS2875: This JSX tag requires the module path 'preact/js
     </>
     
     export {};
-==== preact.tsx (1 errors) ====
+==== preact.tsx (2 errors) ====
     /// <reference path="/.lib/react16.d.ts" />
     /* @jsxImportSource preact */
     const a = <>
               ~~
 !!! error TS2875: This JSX tag requires the module path 'preact/jsx-dev-runtime' to exist, but none could be found. Make sure you have types for the appropriate package installed.
+              ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
       <p></p>
       text
       <div className="foo"></div>
diff --git a/tests/baselines/reference/jsxRuntimePragma(jsx=react-jsx).errors.txt b/tests/baselines/reference/jsxRuntimePragma(jsx=react-jsx).errors.txt
new file mode 100644
index 0000000000000..988e3e9d679ea
--- /dev/null
+++ b/tests/baselines/reference/jsxRuntimePragma(jsx=react-jsx).errors.txt
@@ -0,0 +1,41 @@
+four.tsx(6,21): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
+one.tsx(5,21): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
+
+
+==== one.tsx (1 errors) ====
+    /// <reference path="/.lib/react16.d.ts" />
+    /* @jsxRuntime classic */
+    import * as React from "react";
+    export const HelloWorld = () => <h1>Hello world</h1>;
+    export const frag = <><div></div></>;
+                        ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
+    export const selfClosing = <img src="./image.png" />;
+==== two.tsx (0 errors) ====
+    /// <reference path="/.lib/react16.d.ts" />
+    /* @jsxRuntime automatic */
+    export const HelloWorld = () => <h1>Hello world</h1>;
+    export const frag = <><div></div></>;
+    export const selfClosing = <img src="./image.png" />;
+==== three.tsx (0 errors) ====
+    /// <reference path="/.lib/react16.d.ts" />
+    /* @jsxRuntime classic */
+    /* @jsxRuntime automatic */
+    export const HelloWorld = () => <h1>Hello world</h1>;
+    export const frag = <><div></div></>;
+    export const selfClosing = <img src="./image.png" />;
+==== four.tsx (1 errors) ====
+    /// <reference path="/.lib/react16.d.ts" />
+    /* @jsxRuntime automatic */
+    /* @jsxRuntime classic */
+    import * as React from "react";
+    export const HelloWorld = () => <h1>Hello world</h1>;
+    export const frag = <><div></div></>;
+                        ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
+    export const selfClosing = <img src="./image.png" />;
+==== index.ts (0 errors) ====
+    export * as one from "./one.js";
+    export * as two from "./two.js";
+    export * as three from "./three.js";
+    export * as four from "./four.js";
\ No newline at end of file
diff --git a/tests/baselines/reference/jsxRuntimePragma(jsx=react-jsxdev).errors.txt b/tests/baselines/reference/jsxRuntimePragma(jsx=react-jsxdev).errors.txt
new file mode 100644
index 0000000000000..988e3e9d679ea
--- /dev/null
+++ b/tests/baselines/reference/jsxRuntimePragma(jsx=react-jsxdev).errors.txt
@@ -0,0 +1,41 @@
+four.tsx(6,21): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
+one.tsx(5,21): error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
+
+
+==== one.tsx (1 errors) ====
+    /// <reference path="/.lib/react16.d.ts" />
+    /* @jsxRuntime classic */
+    import * as React from "react";
+    export const HelloWorld = () => <h1>Hello world</h1>;
+    export const frag = <><div></div></>;
+                        ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
+    export const selfClosing = <img src="./image.png" />;
+==== two.tsx (0 errors) ====
+    /// <reference path="/.lib/react16.d.ts" />
+    /* @jsxRuntime automatic */
+    export const HelloWorld = () => <h1>Hello world</h1>;
+    export const frag = <><div></div></>;
+    export const selfClosing = <img src="./image.png" />;
+==== three.tsx (0 errors) ====
+    /// <reference path="/.lib/react16.d.ts" />
+    /* @jsxRuntime classic */
+    /* @jsxRuntime automatic */
+    export const HelloWorld = () => <h1>Hello world</h1>;
+    export const frag = <><div></div></>;
+    export const selfClosing = <img src="./image.png" />;
+==== four.tsx (1 errors) ====
+    /// <reference path="/.lib/react16.d.ts" />
+    /* @jsxRuntime automatic */
+    /* @jsxRuntime classic */
+    import * as React from "react";
+    export const HelloWorld = () => <h1>Hello world</h1>;
+    export const frag = <><div></div></>;
+                        ~~
+!!! error TS2879: Using JSX fragments requires fragment factory 'Fragment' to be in scope, but it could not be found.
+    export const selfClosing = <img src="./image.png" />;
+==== index.ts (0 errors) ====
+    export * as one from "./one.js";
+    export * as two from "./two.js";
+    export * as three from "./three.js";
+    export * as four from "./four.js";
\ No newline at end of file
diff --git a/tests/cases/compiler/jsxFragmentChildrenCheck.tsx b/tests/cases/compiler/jsxFragmentChildrenCheck.tsx
new file mode 100644
index 0000000000000..d290747645655
--- /dev/null
+++ b/tests/cases/compiler/jsxFragmentChildrenCheck.tsx
@@ -0,0 +1,46 @@
+// @jsx: react-jsx
+// @strict: true
+// @module: esnext
+// @skipLibCheck: true
+// @jsxImportSource: @test
+
+// @filename: node_modules/@test/jsx-runtime/index.d.ts
+export const jsx: any;
+export const jsxs: any;
+
+type JsxElement =
+  | JsxElementArray
+  | undefined
+  | string
+  | ((arg: { foo: "bar" }) => void);
+interface JsxElementArray extends Array<JsxElement> {}
+
+interface FragmentProps {
+  children?: JsxElement;
+}
+
+export const Fragment: (props: FragmentProps) => any;
+
+declare global {
+  namespace JSX {
+    interface IntrinsicElements {
+      div: any;
+      span: any;
+    }
+  }
+}
+
+// @filename: index.tsx
+import { Fragment } from "@test/jsx-runtime";
+
+// This should pass - using explicit Fragment
+<Fragment>
+  {"ok"}
+  {({ foo }) => "also ok"}
+</Fragment>;
+
+// This should also pass - using <> syntax should be equivalent
+<>
+  {"ok"}
+  {({ foo }) => "should also be ok"}
+</>;