diff --git a/collects/tests/typed-racket/fail/submod-req-cnt.rkt b/collects/tests/typed-racket/fail/submod-req-cnt.rkt
new file mode 100644
index 00000000..51cc7092
--- /dev/null
+++ b/collects/tests/typed-racket/fail/submod-req-cnt.rkt
@@ -0,0 +1,18 @@
+#;
+(exn-pred exn:fail:contract?)
+#lang racket/load
+
+(module outer typed/racket  
+  (: f : Integer -> Integer)
+  (define (f x) (add1 x))
+  
+  (provide f)
+  
+  (module* m racket
+    (require (submod ".."))
+    (f "foo"))
+  
+  (module* main racket
+    (require (submod ".." m))))
+
+(require (submod 'outer main))
diff --git a/collects/tests/typed-racket/succeed/module-plus.rkt b/collects/tests/typed-racket/succeed/module-plus.rkt
new file mode 100644
index 00000000..e203182b
--- /dev/null
+++ b/collects/tests/typed-racket/succeed/module-plus.rkt
@@ -0,0 +1,14 @@
+#lang typed/racket
+
+(: f : Integer -> Integer)
+(define (f x) x)
+
+(module+ main
+  (: g : Integer -> Integer)
+  (f (+ 3 5)))
+
+(module+ main
+  (define (g x) (add1 x)))
+
+(module+ main
+  (g (f 7)))
diff --git a/collects/tests/typed-racket/succeed/req-type-sub.rkt b/collects/tests/typed-racket/succeed/req-type-sub.rkt
new file mode 100644
index 00000000..0f141e99
--- /dev/null
+++ b/collects/tests/typed-racket/succeed/req-type-sub.rkt
@@ -0,0 +1,11 @@
+#lang racket
+
+(define (f x) (add1 x))
+(provide f)
+(module* m typed/racket
+  (require/typed (submod "..") [f (Integer -> Integer)])
+  (f 7))
+
+(module* n typed/racket
+  (require/typed (submod "..") [f (Integer -> String)])
+  (f 7))
diff --git a/collects/tests/typed-racket/succeed/submodules.rkt b/collects/tests/typed-racket/succeed/submodules.rkt
new file mode 100644
index 00000000..2e79f827
--- /dev/null
+++ b/collects/tests/typed-racket/succeed/submodules.rkt
@@ -0,0 +1,11 @@
+#lang typed/racket
+
+(: g : Number -> Number)
+(define (g x) (add1 x))
+
+(provide g)
+
+(module+ main
+  (g (assert (string->number 
+	      (vector-ref (current-command-line-arguments) 0)))))
+
diff --git a/collects/typed-racket/tc-setup.rkt b/collects/typed-racket/tc-setup.rkt
index 320ba3c5..fce91f20 100644
--- a/collects/typed-racket/tc-setup.rkt
+++ b/collects/typed-racket/tc-setup.rkt
@@ -59,8 +59,8 @@
                      ;; reinitialize disappeared uses
                      [disappeared-use-todo      null]
                      [disappeared-bindings-todo null])        
-        (define fully-expanded-stx (disarm* (local-expand stx expand-ctxt null)))
-        (when (show-input?)
+        (define fully-expanded-stx (disarm* (local-expand stx expand-ctxt (list #'module*))))
+        (when #t
           (pretty-print (syntax->datum fully-expanded-stx)))
         (do-time "Local Expand Done")
         (init)
diff --git a/collects/typed-racket/typecheck/tc-toplevel.rkt b/collects/typed-racket/typecheck/tc-toplevel.rkt
index 9b89c9eb..3716021f 100644
--- a/collects/typed-racket/typecheck/tc-toplevel.rkt
+++ b/collects/typed-racket/typecheck/tc-toplevel.rkt
@@ -58,6 +58,12 @@
        #:when (or (syntax-property form 'typechecker:ignore)
                   (syntax-property form 'typechecker:ignore-some))
        (list)]
+      
+      [((~literal module) n:id spec ((~literal #%plain-module-begin) body ...))
+       (list)]
+       ;; module* is not expanded, so it doesn't have a `#%plain-module-begin`
+      [((~literal module*) n:id spec body ...)
+       (list)]
 
       ;; type aliases have already been handled by an earlier pass
       [(define-values () (begin (quote-syntax (define-type-alias-internal nm ty)) (#%plain-app values)))
@@ -172,7 +178,7 @@
 (define (tc-toplevel/pass2 form)
   (parameterize ([current-orig-stx form])
     (kernel-syntax-case* form #f (define-type-alias-internal define-typed-struct-internal define-type-internal
-                                   require/typed-internal values)
+                                   require/typed-internal values module module*)
       ;; these forms we have been instructed to ignore
       [stx
        (syntax-property form 'typechecker:ignore)
@@ -197,6 +203,13 @@
        (void)]
       [(define-values () (begin (quote-syntax (define-typed-struct-internal . rest)) (#%plain-app values)))
        (void)]
+      
+      ;; submodules take care of themselves:      
+      [(module n spec (#%plain-module-begin body ...))
+       (void)]
+      ;; module* is not expanded, so it doesn't have a `#%plain-module-begin`
+      [(module* n spec body ...)
+       (void)]
 
       ;; definitions just need to typecheck their bodies
       [(define-values (var ...) expr)