diff --git a/packages/babel-plugin-transform-react-jsx/src/index.js b/packages/babel-plugin-transform-react-jsx/src/index.js
index 5b119cb6f6..60cb13d3a1 100644
--- a/packages/babel-plugin-transform-react-jsx/src/index.js
+++ b/packages/babel-plugin-transform-react-jsx/src/index.js
@@ -47,6 +47,12 @@ export default function({ types: t }) {
     );
   };
 
+  visitor.JSXAttribute = function(path) {
+    if (t.isJSXElement(path.node.value)) {
+      path.node.value = t.jSXExpressionContainer(path.node.value);
+    }
+  };
+
   return {
     inherits: jsx,
     visitor,
diff --git a/packages/babel-plugin-transform-react-jsx/test/fixtures/react/should-allow-elements-as-attributes/actual.js b/packages/babel-plugin-transform-react-jsx/test/fixtures/react/should-allow-elements-as-attributes/actual.js
new file mode 100644
index 0000000000..240f6d37ae
--- /dev/null
+++ b/packages/babel-plugin-transform-react-jsx/test/fixtures/react/should-allow-elements-as-attributes/actual.js
@@ -0,0 +1 @@
+<div attr=<div /> />
diff --git a/packages/babel-plugin-transform-react-jsx/test/fixtures/react/should-allow-elements-as-attributes/expected.js b/packages/babel-plugin-transform-react-jsx/test/fixtures/react/should-allow-elements-as-attributes/expected.js
new file mode 100644
index 0000000000..23783424a4
--- /dev/null
+++ b/packages/babel-plugin-transform-react-jsx/test/fixtures/react/should-allow-elements-as-attributes/expected.js
@@ -0,0 +1,3 @@
+React.createElement("div", {
+  attr: React.createElement("div", null)
+});
\ No newline at end of file