diff --git a/tensorflow/contrib/autograph/pyct/BUILD b/tensorflow/contrib/autograph/pyct/BUILD
index c483ff68c4b..796ab445c74 100644
--- a/tensorflow/contrib/autograph/pyct/BUILD
+++ b/tensorflow/contrib/autograph/pyct/BUILD
@@ -125,3 +125,14 @@ py_test(
         "@gast_archive//:gast",
     ],
 )
+
+py_test(
+    name = "transformer_test",
+    srcs = ["transformer_test.py"],
+    srcs_version = "PY2AND3",
+    deps = [
+        ":pyct",
+        "//tensorflow/python:client_testlib",
+        "@gast_archive//:gast",
+    ],
+)
diff --git a/tensorflow/contrib/autograph/pyct/transformer.py b/tensorflow/contrib/autograph/pyct/transformer.py
index 35f114b6e11..b38d52c5b2c 100644
--- a/tensorflow/contrib/autograph/pyct/transformer.py
+++ b/tensorflow/contrib/autograph/pyct/transformer.py
@@ -51,6 +51,11 @@ class Base(gast.NodeTransformer):
     self._lineno = 0
     self._col_offset = 0
     self.context = context
+    self._enclosing_entities = []
+
+  @property
+  def enclosing_entities(self):
+    return tuple(self._enclosing_entities)
 
   def debug_print(self, node):
     """Helper method useful for debugging."""
@@ -61,13 +66,20 @@ class Base(gast.NodeTransformer):
   def visit(self, node):
     source_code = self.context.source_code
     source_file = self.context.source_file
+    did_enter_function = False
+
     try:
+      if isinstance(node, (gast.FunctionDef, gast.ClassDef, gast.Lambda)):
+        self._enclosing_entities.append(node)
+        did_enter_function = True
+
       if source_code and hasattr(node, 'lineno'):
         self._lineno = node.lineno
         self._col_offset = node.col_offset
       if anno.hasanno(node, anno.Basic.SKIP_PROCESSING):
         return node
       return super(Base, self).visit(node)
+
     except (ValueError, AttributeError, KeyError, NotImplementedError,
             AssertionError) as e:
       msg = '%s: %s\nOffending source:\n%s\n\nOccurred at node:\n%s' % (
@@ -82,3 +94,6 @@ class Base(gast.NodeTransformer):
                       msg,
                       (source_file, self._lineno, self._col_offset + 1, line)),
                   sys.exc_info()[2])
+    finally:
+      if did_enter_function:
+        self._enclosing_entities.pop()
diff --git a/tensorflow/contrib/autograph/pyct/transformer_test.py b/tensorflow/contrib/autograph/pyct/transformer_test.py
new file mode 100644
index 00000000000..57f1c31ef65
--- /dev/null
+++ b/tensorflow/contrib/autograph/pyct/transformer_test.py
@@ -0,0 +1,97 @@
+# Copyright 2017 The TensorFlow Authors. All Rights Reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+# ==============================================================================
+"""Tests for templates module."""
+
+from __future__ import absolute_import
+from __future__ import division
+from __future__ import print_function
+
+from tensorflow.contrib.autograph.pyct import anno
+from tensorflow.contrib.autograph.pyct import context
+from tensorflow.contrib.autograph.pyct import parser
+from tensorflow.contrib.autograph.pyct import transformer
+from tensorflow.python.platform import test
+
+
+class TransformerTest(test.TestCase):
+
+  def test_entity_scope_tracking(self):
+
+    class TestTransformer(transformer.Base):
+
+      # The choice of note to assign to is arbitrary. Using Assign because it's
+      # easy to find in the tree.
+      def visit_Assign(self, node):
+        anno.setanno(node, 'enclosing_entities', self.enclosing_entities)
+        return self.generic_visit(node)
+
+      # This will show up in the lambda function.
+      def visit_BinOp(self, node):
+        anno.setanno(node, 'enclosing_entities', self.enclosing_entities)
+        return self.generic_visit(node)
+
+    tr = TestTransformer(
+        context.EntityContext(
+            namer=None,
+            source_code=None,
+            source_file=None,
+            namespace=None,
+            arg_values=None,
+            arg_types=None,
+            owner_type=None,
+            recursive=False))
+
+    def test_function():
+      a = 0
+
+      class TestClass(object):
+
+        def test_method(self):
+          b = 0
+          def inner_function(x):
+            c = 0
+            d = lambda y: (x + y)
+            return c, d
+          return b, inner_function
+      return a, TestClass
+
+    node, _ = parser.parse_entity(test_function)
+    node = tr.visit(node)
+
+    test_function_node = node.body[0]
+    test_class = test_function_node.body[1]
+    test_method = test_class.body[0]
+    inner_function = test_method.body[1]
+    lambda_node = inner_function.body[1].value
+
+    a = test_function_node.body[0]
+    b = test_method.body[0]
+    c = inner_function.body[0]
+    lambda_expr = lambda_node.body
+
+    self.assertEqual(
+        (test_function_node,), anno.getanno(a, 'enclosing_entities'))
+    self.assertEqual((test_function_node, test_class, test_method),
+                     anno.getanno(b, 'enclosing_entities'))
+    self.assertEqual(
+        (test_function_node, test_class, test_method, inner_function),
+        anno.getanno(c, 'enclosing_entities'))
+    self.assertEqual((test_function_node, test_class, test_method,
+                      inner_function, lambda_node),
+                     anno.getanno(lambda_expr, 'enclosing_entities'))
+
+
+if __name__ == '__main__':
+  test.main()