diff --git a/docs/source/common_issues.rst b/docs/source/common_issues.rst
index 17d42d5766ac..c67c6cb728d3 100644
--- a/docs/source/common_issues.rst
+++ b/docs/source/common_issues.rst
@@ -163,6 +163,25 @@ including imports or docstrings) has the effect of ignoring the *entire* module.
 
     foo.bar()
 
+When running mypy with Python 3.8 or later, a ``# type: ignore`` comment
+anywhere at the top indentation level of a module will skip type checking for
+all remaining lines in the file.
+
+.. code-block:: python
+
+    """Docstring."""
+
+    import spam
+    import eggs
+    import foo
+
+    eggs.fry()  # This code is still checked!
+
+    # type: ignore
+    
+    foo.bar()  # Mypy skips over everything here.
+    foo.baz()
+
 Unexpected errors about 'None' and/or 'Optional' types
 ------------------------------------------------------
 
diff --git a/mypy/fastparse.py b/mypy/fastparse.py
index ec0556d598fc..788667105167 100644
--- a/mypy/fastparse.py
+++ b/mypy/fastparse.py
@@ -313,7 +313,27 @@ def translate_stmt_list(self,
             return [block]
 
         res = []  # type: List[Statement]
-        for stmt in stmts:
+        line = 0
+
+        for i, stmt in enumerate(stmts):
+
+            if ismodule:  # This line needs to be split for mypy to branch on version:
+                if sys.version_info >= (3, 8):
+                    # In Python 3.8+ (we need end_lineno), a "# type: ignore" comment
+                    # between statements at the top level of a module skips checking
+                    # for everything else:
+                    ignores = set(range(line + 1, self.get_lineno(stmt))) & self.type_ignores
+
+                    if ignores:
+                        self.errors.used_ignored_lines[self.errors.file].add(min(ignores))
+                        rest = self.fix_function_overloads(self.translate_stmt_list(stmts[i:]))
+                        block = Block(rest)
+                        block.is_unreachable = True
+                        res.append(block)
+                        return res
+
+                    line = stmt.end_lineno if stmt.end_lineno is not None else stmt.lineno
+
             node = self.visit(stmt)
             res.append(node)
 
diff --git a/test-data/unit/check-38.test b/test-data/unit/check-38.test
index 16f279545bc8..376fea612386 100644
--- a/test-data/unit/check-38.test
+++ b/test-data/unit/check-38.test
@@ -106,3 +106,8 @@ def g(x: int): ...
     /
     0  # type: ignore
 )  # type: ignore  # E: unused 'type: ignore' comment
+
+[case testIgnoreRestOfModule]
+ERROR  # E: Name 'ERROR' is not defined
+# type: ignore
+IGNORE