diff --git a/src/babel/transformation/modules/system.js b/src/babel/transformation/modules/system.js
index 20a39f97ca..835a344a24 100644
--- a/src/babel/transformation/modules/system.js
+++ b/src/babel/transformation/modules/system.js
@@ -6,6 +6,10 @@ import each from "lodash/collection/each";
 import map from "lodash/collection/map";
 import * as t from "../../types";
 
+var canHoist = function (node, file) {
+  return node._blockHoist && !file.transformers.runtime.canTransform();
+}
+
 var hoistVariablesVisitor = {
   enter(node, parent, scope, hoistDeclarators) {
     if (t.isFunction(node)) {
@@ -20,7 +24,7 @@ var hoistVariablesVisitor = {
       }
 
       // ignore block hoisted nodes as these can be left in
-      if (node._blockHoist) return;
+      if (canHoist(node, scope.file)) return;
 
       var nodes = [];
 
@@ -55,7 +59,7 @@ var hoistFunctionsVisitor = {
   enter(node, parent, scope, handlerBody) {
     if (t.isFunction(node)) this.skip();
 
-    if (t.isFunctionDeclaration(node) || node._blockHoist) {
+    if (t.isFunctionDeclaration(node) || canHoist(node, scope.file)) {
       handlerBody.push(node);
       this.remove();
     }
diff --git a/test/core/fixtures/transformation/es6.modules-system/exports-generator/actual.js b/test/core/fixtures/transformation/es6.modules-system/exports-generator/actual.js
deleted file mode 100644
index 18cc16452e..0000000000
--- a/test/core/fixtures/transformation/es6.modules-system/exports-generator/actual.js
+++ /dev/null
@@ -1,3 +0,0 @@
-export function* generator() {
-  yield 1;
-}
\ No newline at end of file
diff --git a/test/core/fixtures/transformation/es6.modules-system/exports-generator/expected.js b/test/core/fixtures/transformation/es6.modules-system/exports-generator/expected.js
deleted file mode 100644
index 60d886680a..0000000000
--- a/test/core/fixtures/transformation/es6.modules-system/exports-generator/expected.js
+++ /dev/null
@@ -1,26 +0,0 @@
-System.register([], function (_export) {
-  var generator;
-
-  _export("generator", generator);
-
-  return {
-    setters: [],
-    execute: function () {
-      "use strict";
-
-      generator = regeneratorRuntime.mark(function generator() {
-        return regeneratorRuntime.wrap(function generator$(context$1$0) {
-          while (1) switch (context$1$0.prev = context$1$0.next) {
-            case 0:
-              context$1$0.next = 2;
-              return 1;
-
-            case 2:
-            case "end":
-              return context$1$0.stop();
-          }
-        }, generator, this);
-      });
-    }
-  };
-});
\ No newline at end of file
diff --git a/test/core/fixtures/transformation/runtime/modules-system/actual.js b/test/core/fixtures/transformation/runtime/modules-system/actual.js
index d4f5786183..34353bc650 100644
--- a/test/core/fixtures/transformation/runtime/modules-system/actual.js
+++ b/test/core/fixtures/transformation/runtime/modules-system/actual.js
@@ -1 +1,5 @@
 foo(...bar);
+
+export function* generator() {
+  yield 1;
+}
diff --git a/test/core/fixtures/transformation/runtime/modules-system/expected.js b/test/core/fixtures/transformation/runtime/modules-system/expected.js
index 3ccf69068d..adcb2aaba3 100644
--- a/test/core/fixtures/transformation/runtime/modules-system/expected.js
+++ b/test/core/fixtures/transformation/runtime/modules-system/expected.js
@@ -1,14 +1,32 @@
-System.register(["babel-runtime/helpers/to-consumable-array"], function (_export) {
-  var _toConsumableArray;
+System.register(["babel-runtime/helpers/to-consumable-array", "babel-runtime/regenerator"], function (_export) {
+  var _toConsumableArray, _regeneratorRuntime, generator;
 
   return {
     setters: [function (_babelRuntimeHelpersToConsumableArray) {
       _toConsumableArray = _babelRuntimeHelpersToConsumableArray["default"];
+    }, function (_babelRuntimeRegenerator) {
+      _regeneratorRuntime = _babelRuntimeRegenerator["default"];
     }],
     execute: function () {
       "use strict";
 
+      generator = _regeneratorRuntime.mark(function generator() {
+        return _regeneratorRuntime.wrap(function generator$(context$1$0) {
+          while (1) switch (context$1$0.prev = context$1$0.next) {
+            case 0:
+              context$1$0.next = 2;
+              return 1;
+
+            case 2:
+            case "end":
+              return context$1$0.stop();
+          }
+        }, generator, this);
+      });
+
+      _export("generator", generator);
+
       foo.apply(undefined, _toConsumableArray(bar));
     }
   };
-});
\ No newline at end of file
+});