diff --git a/src/babel/transformation/modules/system.js b/src/babel/transformation/modules/system.js
index ae5cbb57a0..7223c4f9ba 100644
--- a/src/babel/transformation/modules/system.js
+++ b/src/babel/transformation/modules/system.js
@@ -78,6 +78,7 @@ export default class SystemFormatter extends AMDFormatter {
   constructor(file) {
     super(file);
 
+    this._setters = null;
     this.exportIdentifier = file.scope.generateUidIdentifier("export");
     this.noInteropRequireExport = true;
     this.noInteropRequireImport = true;
@@ -178,11 +179,14 @@ export default class SystemFormatter extends AMDFormatter {
 
     var block = t.blockStatement(program.body);
 
+    var setterListNode = this._buildRunnerSetters(block, hoistDeclarators);
+    this._setters = setterListNode;
+
     var runner = util.template("system", {
       MODULE_DEPENDENCIES: t.arrayExpression(this.buildDependencyLiterals()),
       EXPORT_IDENTIFIER:   this.exportIdentifier,
       MODULE_NAME:         moduleNameLiteral,
-      SETTERS:             this._buildRunnerSetters(block, hoistDeclarators),
+      SETTERS:             setterListNode,
       EXECUTE:             t.functionExpression(null, [], block)
     }, true);
 
diff --git a/src/babel/transformation/transformers/index.js b/src/babel/transformation/transformers/index.js
index 31e1bde216..9dacb52d1e 100644
--- a/src/babel/transformation/transformers/index.js
+++ b/src/babel/transformation/transformers/index.js
@@ -84,4 +84,5 @@ export default {
   _blockHoist:                             require("./internal/block-hoist"),
   jscript:                                 require("babel-plugin-jscript"),
   flow:                                    require("./other/flow"),
+  "optimisation.modules.system":           require("./optimisation/modules.system"),
 };
diff --git a/src/babel/transformation/transformers/optimisation/modules.system.js b/src/babel/transformation/transformers/optimisation/modules.system.js
new file mode 100644
index 0000000000..9c2388eb2c
--- /dev/null
+++ b/src/babel/transformation/transformers/optimisation/modules.system.js
@@ -0,0 +1,50 @@
+import * as t from "../../../types";
+
+export var metadata = {
+  optional: true,
+  group: "builtin-trailing"
+};
+
+export var visitor = {
+  Program(node, parent, scope, file){
+    if (file.moduleFormatter._setters){
+      scope.traverse(file.moduleFormatter._setters, optimizeSettersVisitor, {
+        exportFunctionIdentifier: file.moduleFormatter.exportIdentifier
+      });
+    }
+  }
+};
+
+/**
+ * Setters are optimized to avoid slow export behavior in modules that rely on deep hierarchies
+ * of export-from declarations.
+ * More info in https://github.com/babel/babel/pull/1722 and
+ * https://github.com/ModuleLoader/es6-module-loader/issues/386.
+ *
+ * TODO: Ideally this would be optimized during construction of the setters, but the current
+ * architecture of the module formatters make that difficult.
+ */
+var optimizeSettersVisitor = {
+  FunctionExpression: {
+    enter: (node, parent, scope, state) => {
+      state.hasExports = false;
+      state.exportObjectIdentifier = scope.generateUidIdentifier("exportObj");
+    },
+    exit: (node, parent, scope, state) => {
+      if (!state.hasExports) return;
+
+      node.body.body.unshift(t.variableDeclaration("var", [
+        t.variableDeclarator(t.cloneDeep(state.exportObjectIdentifier), t.objectExpression([]))
+      ]));
+      node.body.body.push(t.expressionStatement(t.callExpression(
+        t.cloneDeep(state.exportFunctionIdentifier), [t.cloneDeep(state.exportObjectIdentifier)])));
+    }
+  },
+  CallExpression: (node, parent, scope, state) => {
+    if (!t.isIdentifier(node.callee, {name: state.exportFunctionIdentifier.name})) return;
+
+    state.hasExports = true;
+    var memberNode = t.memberExpression(t.cloneDeep(state.exportObjectIdentifier), node.arguments[0], true);
+    return t.assignmentExpression("=", memberNode, node.arguments[1]);
+  }
+};
diff --git a/test/core/fixtures/transformation/optimisation.modules.system/options.json b/test/core/fixtures/transformation/optimisation.modules.system/options.json
new file mode 100644
index 0000000000..4609d2a157
--- /dev/null
+++ b/test/core/fixtures/transformation/optimisation.modules.system/options.json
@@ -0,0 +1,4 @@
+{
+  "modules": "system",
+  "optional": ["optimisation.modules.system"]
+}
diff --git a/test/core/fixtures/transformation/optimisation.modules.system/setters/actual.js b/test/core/fixtures/transformation/optimisation.modules.system/setters/actual.js
new file mode 100644
index 0000000000..9dcc9094ea
--- /dev/null
+++ b/test/core/fixtures/transformation/optimisation.modules.system/setters/actual.js
@@ -0,0 +1,8 @@
+export * from "foo";
+export {foo} from "foo";
+export {foo, bar} from "foo";
+export {foo as bar} from "bar";
+export {foo as default} from "bar";
+export {foo as default, bar} from "bar";
+
+export var foo, bar;
diff --git a/test/core/fixtures/transformation/optimisation.modules.system/setters/expected.js b/test/core/fixtures/transformation/optimisation.modules.system/setters/expected.js
new file mode 100644
index 0000000000..24f9c92628
--- /dev/null
+++ b/test/core/fixtures/transformation/optimisation.modules.system/setters/expected.js
@@ -0,0 +1,33 @@
+System.register(["foo", "bar"], function (_export) {
+  "use strict";
+
+  var foo, bar;
+  return {
+    setters: [function (_foo) {
+      var _exportObj = {};
+
+      for (var _key in _foo) {
+        _exportObj[_key] = _foo[_key];
+      }
+
+      _exportObj["foo"] = _foo.foo;
+      _exportObj["foo"] = _foo.foo;
+      _exportObj["bar"] = _foo.bar;
+
+      _export(_exportObj);
+    }, function (_bar) {
+      var _exportObj2 = {};
+      _exportObj2["bar"] = _bar.foo;
+      _exportObj2["default"] = _bar.foo;
+      _exportObj2["default"] = _bar.foo;
+      _exportObj2["bar"] = _bar.bar;
+
+      _export(_exportObj2);
+    }],
+    execute: function () {
+      _export("foo", foo);
+
+      _export("bar", bar);
+    }
+  };
+});