diff --git a/src/libsyntax/ext/expand.rs b/src/libsyntax/ext/expand.rs
index 3036a88430a2b..a10d890014017 100644
--- a/src/libsyntax/ext/expand.rs
+++ b/src/libsyntax/ext/expand.rs
@@ -691,7 +691,7 @@ impl<'a> Folder for PatIdentRenamer<'a> {
 }
 
 fn expand_multi_modified(a: Annotatable, fld: &mut MacroExpander) -> SmallVector<Annotatable> {
-    let new_items: SmallVector<Annotatable> = match a {
+    match a {
         Annotatable::Item(it) => match it.node {
             ast::ItemKind::Mac(..) => {
                 it.and_then(|it| match it.node {
@@ -728,63 +728,6 @@ fn expand_multi_modified(a: Annotatable, fld: &mut MacroExpander) -> SmallVector
             expand_impl_item(ii.unwrap(), fld).into_iter().
                 map(|ii| Annotatable::ImplItem(P(ii))).collect()
         }
-    };
-
-    new_items.into_iter().flat_map(|a| decorate(a, fld)).collect()
-}
-
-fn decorate(a: Annotatable, fld: &mut MacroExpander) -> SmallVector<Annotatable> {
-    let mut decorator_items = SmallVector::zero();
-    let mut new_attrs = Vec::new();
-    expand_decorators(a.clone(), fld, &mut decorator_items, &mut new_attrs);
-
-    let mut new_items = SmallVector::one(a.fold_attrs(new_attrs));
-    new_items.push_all(decorator_items);
-    new_items
-}
-
-fn expand_decorators(a: Annotatable,
-                     fld: &mut MacroExpander,
-                     decorator_items: &mut SmallVector<Annotatable>,
-                     new_attrs: &mut Vec<ast::Attribute>)
-{
-    for attr in a.attrs() {
-        let mname = intern(&attr.name());
-        match fld.cx.syntax_env.find(mname) {
-            Some(rc) => match *rc {
-                MultiDecorator(ref dec) => {
-                    attr::mark_used(&attr);
-
-                    fld.cx.bt_push(ExpnInfo {
-                        call_site: attr.span,
-                        callee: NameAndSpan {
-                            format: MacroAttribute(mname),
-                            span: Some(attr.span),
-                            // attributes can do whatever they like,
-                            // for now.
-                            allow_internal_unstable: true,
-                        }
-                    });
-
-                    let mut items: SmallVector<Annotatable> = SmallVector::zero();
-                    dec.expand(fld.cx,
-                               attr.span,
-                               &attr.node.value,
-                               &a,
-                               &mut |ann| items.push(ann));
-
-                    for item in items {
-                        for configured_item in item.fold_with(&mut fld.strip_unconfigured()) {
-                            decorator_items.extend(expand_annotatable(configured_item, fld));
-                        }
-                    }
-
-                    fld.cx.bt_pop();
-                }
-                _ => new_attrs.push((*attr).clone()),
-            },
-            _ => new_attrs.push((*attr).clone()),
-        }
     }
 }
 
@@ -793,9 +736,12 @@ fn expand_annotatable(mut item: Annotatable, fld: &mut MacroExpander) -> SmallVe
     item = item.map_attrs(|mut attrs| {
         for i in 0..attrs.len() {
             if let Some(extension) = fld.cx.syntax_env.find(intern(&attrs[i].name())) {
-                if let MultiModifier(..) = *extension {
-                    multi_modifier = Some((attrs.remove(i), extension));
-                    break;
+                match *extension {
+                    MultiModifier(..) | MultiDecorator(..) => {
+                        multi_modifier = Some((attrs.remove(i), extension));
+                        break;
+                    }
+                    _ => {}
                 }
             }
         }
@@ -804,23 +750,32 @@ fn expand_annotatable(mut item: Annotatable, fld: &mut MacroExpander) -> SmallVe
 
     match multi_modifier {
         None => expand_multi_modified(item, fld),
-        Some((attr, extension)) => match *extension {
-            MultiModifier(ref mac) => {
-                attr::mark_used(&attr);
-                fld.cx.bt_push(ExpnInfo {
-                    call_site: attr.span,
-                    callee: NameAndSpan {
-                        format: MacroAttribute(intern(&attr.name())),
-                        span: Some(attr.span),
-                        // attributes can do whatever they like, for now
-                        allow_internal_unstable: true,
-                    }
-                });
-                let modified = mac.expand(fld.cx, attr.span, &attr.node.value, item);
-                fld.cx.bt_pop();
-                modified.into_iter().flat_map(|it| expand_annotatable(it, fld)).collect()
-            }
-            _ => unreachable!(),
+        Some((attr, extension)) => {
+            attr::mark_used(&attr);
+            fld.cx.bt_push(ExpnInfo {
+                call_site: attr.span,
+                callee: NameAndSpan {
+                    format: MacroAttribute(intern(&attr.name())),
+                    span: Some(attr.span),
+                    // attributes can do whatever they like, for now
+                    allow_internal_unstable: true,
+                }
+            });
+
+            let modified = match *extension {
+                MultiModifier(ref mac) => mac.expand(fld.cx, attr.span, &attr.node.value, item),
+                MultiDecorator(ref mac) => {
+                    let mut items = Vec::new();
+                    mac.expand(fld.cx, attr.span, &attr.node.value, &item,
+                               &mut |item| items.push(item));
+                    items.push(item);
+                    items
+                }
+                _ => unreachable!(),
+            };
+
+            fld.cx.bt_pop();
+            modified.into_iter().flat_map(|it| expand_annotatable(it, fld)).collect()
         }
     }
 }
diff --git a/src/libsyntax_ext/deriving/generic/mod.rs b/src/libsyntax_ext/deriving/generic/mod.rs
index 647e414a7fd27..e01f4ed1f9bd2 100644
--- a/src/libsyntax_ext/deriving/generic/mod.rs
+++ b/src/libsyntax_ext/deriving/generic/mod.rs
@@ -345,15 +345,18 @@ pub fn combine_substructure<'a>(f: CombineSubstructureFunc<'a>)
 /// This method helps to extract all the type parameters referenced from a
 /// type. For a type parameter `<T>`, it looks for either a `TyPath` that
 /// is not global and starts with `T`, or a `TyQPath`.
-fn find_type_parameters(ty: &ast::Ty, ty_param_names: &[ast::Name]) -> Vec<P<ast::Ty>> {
+fn find_type_parameters(ty: &ast::Ty, ty_param_names: &[ast::Name], span: Span, cx: &ExtCtxt)
+                        -> Vec<P<ast::Ty>> {
     use syntax::visit;
 
-    struct Visitor<'a> {
+    struct Visitor<'a, 'b: 'a> {
+        cx: &'a ExtCtxt<'b>,
+        span: Span,
         ty_param_names: &'a [ast::Name],
         types: Vec<P<ast::Ty>>,
     }
 
-    impl<'a> visit::Visitor for Visitor<'a> {
+    impl<'a, 'b> visit::Visitor for Visitor<'a, 'b> {
         fn visit_ty(&mut self, ty: &ast::Ty) {
             match ty.node {
                 ast::TyKind::Path(_, ref path) if !path.global => {
@@ -371,11 +374,18 @@ fn find_type_parameters(ty: &ast::Ty, ty_param_names: &[ast::Name]) -> Vec<P<ast
 
             visit::walk_ty(self, ty)
         }
+
+        fn visit_mac(&mut self, mac: &ast::Mac) {
+            let span = Span { expn_id: self.span.expn_id, ..mac.span };
+            self.cx.span_err(span, "`derive` cannot be used on items with type macros");
+        }
     }
 
     let mut visitor = Visitor {
         ty_param_names: ty_param_names,
         types: Vec::new(),
+        span: span,
+        cx: cx,
     };
 
     visit::Visitor::visit_ty(&mut visitor, ty);
@@ -556,7 +566,7 @@ impl<'a> TraitDef<'a> {
 
             let mut processed_field_types = HashSet::new();
             for field_ty in field_tys {
-                let tys = find_type_parameters(&field_ty, &ty_param_names);
+                let tys = find_type_parameters(&field_ty, &ty_param_names, self.span, cx);
 
                 for ty in tys {
                     // if we have already handled this type, skip it
diff --git a/src/test/compile-fail/issue-32950.rs b/src/test/compile-fail/issue-32950.rs
index e47ebdd6a6938..e8ca1c1fa98ff 100644
--- a/src/test/compile-fail/issue-32950.rs
+++ b/src/test/compile-fail/issue-32950.rs
@@ -8,11 +8,11 @@
 // option. This file may not be copied, modified, or distributed
 // except according to those terms.
 
-#![feature(type_macros, concat_idents, rustc_attrs)]
-#![allow(unused)]
+#![feature(type_macros, concat_idents)]
 
-#[derive(Debug)] struct FooBar;
-#[derive(Debug)] struct Baz<T>(T, concat_idents!(Foo, Bar));
+#[derive(Debug)] //~ NOTE in this expansion
+struct Baz<T>(
+    concat_idents!(Foo, Bar) //~ ERROR `derive` cannot be used on items with type macros
+);
 
-#[rustc_error]
-fn main() {} //~ ERROR compilation successful
+fn main() {}