diff --git a/src/babel/transformation/helpers/build-react-transformer.js b/src/babel/transformation/helpers/build-react-transformer.js
index b8c0e9a79d..e21b54e390 100644
--- a/src/babel/transformation/helpers/build-react-transformer.js
+++ b/src/babel/transformation/helpers/build-react-transformer.js
@@ -57,6 +57,8 @@ export default function (exports, opts) {
 
   exports.JSXOpeningElement = {
     exit(node, parent, scope, file) {
+      parent.children = react.buildChildren(parent);
+
       var tagExpr = node.name;
       var args = [];
 
@@ -144,10 +146,6 @@ export default function (exports, opts) {
   };
 
   exports.JSXElement = {
-    enter(node) {
-      node.children = react.buildChildren(node);
-    },
-
     exit(node) {
       var callExpr = node.openingElement;
 
diff --git a/src/babel/transformation/helpers/react.js b/src/babel/transformation/helpers/react.js
index 74a4705320..5e0e824d18 100644
--- a/src/babel/transformation/helpers/react.js
+++ b/src/babel/transformation/helpers/react.js
@@ -34,9 +34,8 @@ function cleanJSXElementLiteralChild(child, args) {
   var lines = child.value.split(/\r\n|\n|\r/);
 
   var lastNonEmptyLine = 0;
-  var i;
 
-  for (i = 0; i < lines.length; i++) {
+  for (let i = 0; i < lines.length; i++) {
     if (lines[i].match(/[^ \t]/)) {
       lastNonEmptyLine = i;
     }
@@ -44,7 +43,7 @@ function cleanJSXElementLiteralChild(child, args) {
 
   var str = "";
 
-  for (i = 0; i < lines.length; i++) {
+  for (let i = 0; i < lines.length; i++) {
     var line = lines[i];
 
     var isFirstLine = i === 0;
diff --git a/test/core/fixtures/transformation/react/should-handle-attributed-elements/actual.js b/test/core/fixtures/transformation/react/should-handle-attributed-elements/actual.js
new file mode 100644
index 0000000000..e179659161
--- /dev/null
+++ b/test/core/fixtures/transformation/react/should-handle-attributed-elements/actual.js
@@ -0,0 +1,11 @@
+var HelloMessage = React.createClass({
+  render: function() {
+    return <div>Hello {this.props.name}</div>;
+  }
+});
+
+React.render(<HelloMessage name={
+  <span>
+    Sebastian
+  </span>
+} />, mountNode);
diff --git a/test/core/fixtures/transformation/react/should-handle-attributed-elements/expected.js b/test/core/fixtures/transformation/react/should-handle-attributed-elements/expected.js
new file mode 100644
index 0000000000..7b386d4a3e
--- /dev/null
+++ b/test/core/fixtures/transformation/react/should-handle-attributed-elements/expected.js
@@ -0,0 +1,18 @@
+var HelloMessage = React.createClass({
+  displayName: "HelloMessage",
+
+  render: function render() {
+    return React.createElement(
+      "div",
+      null,
+      "Hello ",
+      this.props.name
+    );
+  }
+});
+
+React.render(React.createElement(HelloMessage, { name: React.createElement(
+    "span",
+    null,
+    "Sebastian"
+  ) }), mountNode);