diff --git a/packages/react-reconciler/src/ReactFiberBeginWork.js b/packages/react-reconciler/src/ReactFiberBeginWork.js
index 0cf92b4b27342..2450f3c82ec3a 100644
--- a/packages/react-reconciler/src/ReactFiberBeginWork.js
+++ b/packages/react-reconciler/src/ReactFiberBeginWork.js
@@ -196,6 +196,7 @@ function updateForwardRef(
   workInProgress: Fiber,
   type: any,
   nextProps: any,
+  updateExpirationTime: ExpirationTime,
   renderExpirationTime: ExpirationTime,
 ) {
   const render = type.render;
@@ -212,6 +213,23 @@ function updateForwardRef(
         renderExpirationTime,
       );
     }
+  } else if (
+    current !== null &&
+    type.compare !== undefined &&
+    (updateExpirationTime === NoWork ||
+      updateExpirationTime > renderExpirationTime)
+  ) {
+    const prevProps = current.memoizedProps;
+    // Default to shallow comparison
+    let compare = type.compare;
+    compare = compare !== null ? compare : shallowEqual;
+    if (compare(prevProps, nextProps) && current.ref === workInProgress.ref) {
+      return bailoutOnAlreadyFinishedWork(
+        current,
+        workInProgress,
+        renderExpirationTime,
+      );
+    }
   }
 
   let nextChildren;
@@ -769,6 +787,7 @@ function mountIndeterminateComponent(
           workInProgress,
           Component,
           resolvedProps,
+          updateExpirationTime,
           renderExpirationTime,
         );
         break;
@@ -1561,6 +1580,7 @@ function beginWork(
         workInProgress,
         type,
         workInProgress.pendingProps,
+        updateExpirationTime,
         renderExpirationTime,
       );
     }
@@ -1573,6 +1593,7 @@ function beginWork(
         workInProgress,
         Component,
         resolveDefaultProps(Component, unresolvedProps),
+        updateExpirationTime,
         renderExpirationTime,
       );
       workInProgress.memoizedProps = unresolvedProps;
diff --git a/packages/react/src/__tests__/forwardRef-test.js b/packages/react/src/__tests__/forwardRef-test.js
index c22424c00e186..e7ef1ffeabbb6 100644
--- a/packages/react/src/__tests__/forwardRef-test.js
+++ b/packages/react/src/__tests__/forwardRef-test.js
@@ -226,4 +226,131 @@ describe('forwardRef', () => {
         '    in Foo (at **)',
     );
   });
+
+  it('should not bailout if forwardRef is not wrapped in pure', () => {
+    const Component = props => <div {...props} />;
+
+    let renderCount = 0;
+
+    const RefForwardingComponent = React.forwardRef((props, ref) => {
+      renderCount++;
+      return <Component {...props} forwardedRef={ref} />;
+    });
+
+    const ref = React.createRef();
+
+    ReactNoop.render(<RefForwardingComponent ref={ref} optional="foo" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(1);
+
+    ReactNoop.render(<RefForwardingComponent ref={ref} optional="foo" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(2);
+  });
+
+  it('should bailout if forwardRef is wrapped in pure', () => {
+    const Component = props => <div ref={props.forwardedRef} />;
+
+    let renderCount = 0;
+
+    const RefForwardingComponent = React.pure(
+      React.forwardRef((props, ref) => {
+        renderCount++;
+        return <Component {...props} forwardedRef={ref} />;
+      }),
+    );
+
+    const ref = React.createRef();
+
+    ReactNoop.render(<RefForwardingComponent ref={ref} optional="foo" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(1);
+
+    expect(ref.current.type).toBe('div');
+
+    ReactNoop.render(<RefForwardingComponent ref={ref} optional="foo" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(1);
+
+    const differentRef = React.createRef();
+
+    ReactNoop.render(
+      <RefForwardingComponent ref={differentRef} optional="foo" />,
+    );
+    ReactNoop.flush();
+    expect(renderCount).toBe(2);
+
+    expect(ref.current).toBe(null);
+    expect(differentRef.current.type).toBe('div');
+
+    ReactNoop.render(<RefForwardingComponent ref={ref} optional="bar" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(3);
+  });
+
+  it('should custom pure comparisons to compose', () => {
+    const Component = props => <div ref={props.forwardedRef} />;
+
+    let renderCount = 0;
+
+    const RefForwardingComponent = React.pure(
+      React.forwardRef((props, ref) => {
+        renderCount++;
+        return <Component {...props} forwardedRef={ref} />;
+      }),
+      (o, p) => o.a === p.a && o.b === p.b,
+    );
+
+    const ref = React.createRef();
+
+    ReactNoop.render(<RefForwardingComponent ref={ref} a="0" b="0" c="1" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(1);
+
+    expect(ref.current.type).toBe('div');
+
+    // Changing either a or b rerenders
+    ReactNoop.render(<RefForwardingComponent ref={ref} a="0" b="1" c="1" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(2);
+
+    // Changing c doesn't rerender
+    ReactNoop.render(<RefForwardingComponent ref={ref} a="0" b="1" c="2" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(2);
+
+    const ComposedPure = React.pure(
+      RefForwardingComponent,
+      (o, p) => o.a === p.a && o.c === p.c,
+    );
+
+    ReactNoop.render(<ComposedPure ref={ref} a="0" b="0" c="0" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(3);
+
+    // Changing just b no longer updates
+    ReactNoop.render(<ComposedPure ref={ref} a="0" b="1" c="0" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(3);
+
+    // Changing just a and c updates
+    ReactNoop.render(<ComposedPure ref={ref} a="2" b="2" c="2" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(4);
+
+    // Changing just c does not update
+    ReactNoop.render(<ComposedPure ref={ref} a="2" b="2" c="3" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(4);
+
+    // Changing ref still rerenders
+    const differentRef = React.createRef();
+
+    ReactNoop.render(<ComposedPure ref={differentRef} a="2" b="2" c="3" />);
+    ReactNoop.flush();
+    expect(renderCount).toBe(5);
+
+    expect(ref.current).toBe(null);
+    expect(differentRef.current.type).toBe('div');
+  });
 });
diff --git a/packages/react/src/forwardRef.js b/packages/react/src/forwardRef.js
index 1018375e8c92a..9c9f721d821b5 100644
--- a/packages/react/src/forwardRef.js
+++ b/packages/react/src/forwardRef.js
@@ -9,9 +9,15 @@ import {REACT_FORWARD_REF_TYPE} from 'shared/ReactSymbols';
 
 import warningWithoutStack from 'shared/warningWithoutStack';
 
+export type ForwardRef<Props> = {
+  $$typeof: Symbol,
+  render: (props: Props, ref: React$Ref<ElementType>) => React$Node,
+  compare: void | null | ((oldProps: Props, newProps: Props) => boolean),
+};
+
 export default function forwardRef<Props, ElementType: React$ElementType>(
   render: (props: Props, ref: React$Ref<ElementType>) => React$Node,
-) {
+): ForwardRef<Props> {
   if (__DEV__) {
     if (typeof render !== 'function') {
       warningWithoutStack(
@@ -42,5 +48,6 @@ export default function forwardRef<Props, ElementType: React$ElementType>(
   return {
     $$typeof: REACT_FORWARD_REF_TYPE,
     render,
+    compare: undefined,
   };
 }
diff --git a/packages/react/src/pure.js b/packages/react/src/pure.js
index 0431c05269ce5..941fb50c1d93e 100644
--- a/packages/react/src/pure.js
+++ b/packages/react/src/pure.js
@@ -5,14 +5,37 @@
  * LICENSE file in the root directory of this source tree.
  */
 
-import {REACT_PURE_TYPE} from 'shared/ReactSymbols';
+import type {ForwardRef} from './forwardRef';
+
+import {REACT_PURE_TYPE, REACT_FORWARD_REF_TYPE} from 'shared/ReactSymbols';
 
 import warningWithoutStack from 'shared/warningWithoutStack';
 
+function composeComparisonFunctions(inner, outer) {
+  return function(oldProps, newProps) {
+    // Either is allowed to block the update.
+    return outer(oldProps, newProps) || inner(oldProps, newProps);
+  };
+}
+
 export default function pure<Props>(
-  render: (props: Props) => React$Node,
+  render: (props: Props) => React$Node | ForwardRef,
   compare?: (oldProps: Props, newProps: Props) => boolean,
 ) {
+  if (
+    typeof render === 'object' &&
+    render.$$typeof === REACT_FORWARD_REF_TYPE
+  ) {
+    let forwardRef = (render: ForwardRef);
+    if (forwardRef.compare !== undefined && forwardRef.compare !== null) {
+      compare = composeComparisonFunctions(forwardRef.compare, compare);
+    }
+    return {
+      $$typeof: REACT_FORWARD_REF_TYPE,
+      render: forwardRef.render,
+      compare: compare === undefined ? null : compare,
+    };
+  }
   if (__DEV__) {
     if (typeof render !== 'function') {
       warningWithoutStack(