diff --git a/packages/babylon/src/parser/statement.js b/packages/babylon/src/parser/statement.js
index 57115f80f106..96f51c53814c 100644
--- a/packages/babylon/src/parser/statement.js
+++ b/packages/babylon/src/parser/statement.js
@@ -826,7 +826,6 @@ export default class StatementParser extends ExpressionParser {
     const oldInClassProperty = this.state.inClassProperty;
     this.state.inFunction = true;
     this.state.inMethod = false;
-    this.state.inAsync = isAsync;
     this.state.inClassProperty = false;
 
     this.initFunction(node, isAsync);
@@ -856,11 +855,18 @@ export default class StatementParser extends ExpressionParser {
     // valid because yield is parsed as if it was outside the generator.
     // Therefore, this.state.inGenerator is set before or after parsing the
     // function id according to the "isStatement" parameter.
-    if (!isStatement) this.state.inGenerator = node.generator;
+    // The same applies to await & async functions.
+    if (!isStatement) {
+      this.state.inAsync = isAsync;
+      this.state.inGenerator = node.generator;
+    }
     if (this.match(tt.name) || this.match(tt._yield)) {
       node.id = this.parseBindingIdentifier();
     }
-    if (isStatement) this.state.inGenerator = node.generator;
+    if (isStatement) {
+      this.state.inAsync = isAsync;
+      this.state.inGenerator = node.generator;
+    }
 
     this.parseFunctionParams(node);
     this.parseFunctionBodyAndFinish(
diff --git a/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-declaration-name/input.js b/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-declaration-name/input.js
new file mode 100644
index 000000000000..60b70d4a68e9
--- /dev/null
+++ b/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-declaration-name/input.js
@@ -0,0 +1 @@
+async function await() {}
\ No newline at end of file
diff --git a/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-declaration-name/output.json b/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-declaration-name/output.json
new file mode 100644
index 000000000000..0cde29d7f404
--- /dev/null
+++ b/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-declaration-name/output.json
@@ -0,0 +1,86 @@
+{
+  "type": "File",
+  "start": 0,
+  "end": 25,
+  "loc": {
+    "start": {
+      "line": 1,
+      "column": 0
+    },
+    "end": {
+      "line": 1,
+      "column": 25
+    }
+  },
+  "program": {
+    "type": "Program",
+    "start": 0,
+    "end": 25,
+    "loc": {
+      "start": {
+        "line": 1,
+        "column": 0
+      },
+      "end": {
+        "line": 1,
+        "column": 25
+      }
+    },
+    "sourceType": "script",
+    "body": [
+      {
+        "type": "FunctionDeclaration",
+        "start": 0,
+        "end": 25,
+        "loc": {
+          "start": {
+            "line": 1,
+            "column": 0
+          },
+          "end": {
+            "line": 1,
+            "column": 25
+          }
+        },
+        "id": {
+          "type": "Identifier",
+          "start": 15,
+          "end": 20,
+          "loc": {
+            "start": {
+              "line": 1,
+              "column": 15
+            },
+            "end": {
+              "line": 1,
+              "column": 20
+            },
+            "identifierName": "await"
+          },
+          "name": "await"
+        },
+        "generator": false,
+        "async": true,
+        "params": [],
+        "body": {
+          "type": "BlockStatement",
+          "start": 23,
+          "end": 25,
+          "loc": {
+            "start": {
+              "line": 1,
+              "column": 23
+            },
+            "end": {
+              "line": 1,
+              "column": 25
+            }
+          },
+          "body": [],
+          "directives": []
+        }
+      }
+    ],
+    "directives": []
+  }
+}
\ No newline at end of file
diff --git a/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-expression-name/input.js b/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-expression-name/input.js
new file mode 100644
index 000000000000..5102f04c3f84
--- /dev/null
+++ b/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-expression-name/input.js
@@ -0,0 +1 @@
+(async function await() {});
\ No newline at end of file
diff --git a/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-expression-name/options.json b/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-expression-name/options.json
new file mode 100644
index 000000000000..848e79b9dbca
--- /dev/null
+++ b/packages/babylon/test/fixtures/es2017/async-functions/await-async-function-expression-name/options.json
@@ -0,0 +1,3 @@
+{
+  "throws": "invalid use of await inside of an async function (1:16)"
+}
\ No newline at end of file
diff --git a/packages/babylon/test/fixtures/es2017/async-functions/await-function-declaration-name-inside-async-function/input.js b/packages/babylon/test/fixtures/es2017/async-functions/await-function-declaration-name-inside-async-function/input.js
new file mode 100644
index 000000000000..1df99191e510
--- /dev/null
+++ b/packages/babylon/test/fixtures/es2017/async-functions/await-function-declaration-name-inside-async-function/input.js
@@ -0,0 +1,3 @@
+async function foo() {
+  function await() {}
+}
\ No newline at end of file
diff --git a/packages/babylon/test/fixtures/es2017/async-functions/await-function-declaration-name-inside-async-function/options.json b/packages/babylon/test/fixtures/es2017/async-functions/await-function-declaration-name-inside-async-function/options.json
new file mode 100644
index 000000000000..e2abd7d95537
--- /dev/null
+++ b/packages/babylon/test/fixtures/es2017/async-functions/await-function-declaration-name-inside-async-function/options.json
@@ -0,0 +1,3 @@
+{
+  "throws": "invalid use of await inside of an async function (2:11)"
+}
\ No newline at end of file
diff --git a/packages/babylon/test/fixtures/es2017/async-functions/await-function-expression-name-inside-async-function/input.js b/packages/babylon/test/fixtures/es2017/async-functions/await-function-expression-name-inside-async-function/input.js
new file mode 100644
index 000000000000..97183151654b
--- /dev/null
+++ b/packages/babylon/test/fixtures/es2017/async-functions/await-function-expression-name-inside-async-function/input.js
@@ -0,0 +1,3 @@
+async function fn() {
+  (function await() {});
+}
\ No newline at end of file
diff --git a/packages/babylon/test/fixtures/es2017/async-functions/await-function-expression-name-inside-async-function/output.json b/packages/babylon/test/fixtures/es2017/async-functions/await-function-expression-name-inside-async-function/output.json
new file mode 100644
index 000000000000..5711b91c540d
--- /dev/null
+++ b/packages/babylon/test/fixtures/es2017/async-functions/await-function-expression-name-inside-async-function/output.json
@@ -0,0 +1,158 @@
+{
+  "type": "File",
+  "start": 0,
+  "end": 48,
+  "loc": {
+    "start": {
+      "line": 1,
+      "column": 0
+    },
+    "end": {
+      "line": 3,
+      "column": 1
+    }
+  },
+  "program": {
+    "type": "Program",
+    "start": 0,
+    "end": 48,
+    "loc": {
+      "start": {
+        "line": 1,
+        "column": 0
+      },
+      "end": {
+        "line": 3,
+        "column": 1
+      }
+    },
+    "sourceType": "script",
+    "body": [
+      {
+        "type": "FunctionDeclaration",
+        "start": 0,
+        "end": 48,
+        "loc": {
+          "start": {
+            "line": 1,
+            "column": 0
+          },
+          "end": {
+            "line": 3,
+            "column": 1
+          }
+        },
+        "id": {
+          "type": "Identifier",
+          "start": 15,
+          "end": 17,
+          "loc": {
+            "start": {
+              "line": 1,
+              "column": 15
+            },
+            "end": {
+              "line": 1,
+              "column": 17
+            },
+            "identifierName": "fn"
+          },
+          "name": "fn"
+        },
+        "generator": false,
+        "async": true,
+        "params": [],
+        "body": {
+          "type": "BlockStatement",
+          "start": 20,
+          "end": 48,
+          "loc": {
+            "start": {
+              "line": 1,
+              "column": 20
+            },
+            "end": {
+              "line": 3,
+              "column": 1
+            }
+          },
+          "body": [
+            {
+              "type": "ExpressionStatement",
+              "start": 24,
+              "end": 46,
+              "loc": {
+                "start": {
+                  "line": 2,
+                  "column": 2
+                },
+                "end": {
+                  "line": 2,
+                  "column": 24
+                }
+              },
+              "expression": {
+                "type": "FunctionExpression",
+                "start": 25,
+                "end": 44,
+                "loc": {
+                  "start": {
+                    "line": 2,
+                    "column": 3
+                  },
+                  "end": {
+                    "line": 2,
+                    "column": 22
+                  }
+                },
+                "id": {
+                  "type": "Identifier",
+                  "start": 34,
+                  "end": 39,
+                  "loc": {
+                    "start": {
+                      "line": 2,
+                      "column": 12
+                    },
+                    "end": {
+                      "line": 2,
+                      "column": 17
+                    },
+                    "identifierName": "await"
+                  },
+                  "name": "await"
+                },
+                "generator": false,
+                "async": false,
+                "params": [],
+                "body": {
+                  "type": "BlockStatement",
+                  "start": 42,
+                  "end": 44,
+                  "loc": {
+                    "start": {
+                      "line": 2,
+                      "column": 20
+                    },
+                    "end": {
+                      "line": 2,
+                      "column": 22
+                    }
+                  },
+                  "body": [],
+                  "directives": []
+                },
+                "extra": {
+                  "parenthesized": true,
+                  "parenStart": 24
+                }
+              }
+            }
+          ],
+          "directives": []
+        }
+      }
+    ],
+    "directives": []
+  }
+}
\ No newline at end of file