--- a/src/share/classes/com/sun/tools/javac/comp/Check.java	Mon Aug 26 11:48:37 2013 -0700
+++ b/src/share/classes/com/sun/tools/javac/comp/Check.java	Mon Aug 26 15:55:46 2013 -0700
@@ -2216,11 +2216,11 @@
         if  (t.hasTag(TYPEVAR) && (t.tsym.flags() & UNATTRIBUTED) != 0)
             return;
         if (seen.contains(t)) {
-            tv = (TypeVar)t;
+            tv = (TypeVar)t.unannotatedType();
             tv.bound = types.createErrorType(t);
             log.error(pos, "cyclic.inheritance", t);
         } else if (t.hasTag(TYPEVAR)) {
-            tv = (TypeVar)t;
+            tv = (TypeVar)t.unannotatedType();
             seen = seen.prepend(tv);
             for (Type b : types.getBounds(tv))
                 checkNonCyclic1(pos, b, seen);

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/test/tools/javac/annotations/typeAnnotations/failures/TypeVariableCycleTest.java	Mon Aug 26 15:55:46 2013 -0700
@@ -0,0 +1,44 @@
+/*
+ * Copyright (c) 2013, Oracle and/or its affiliates. All rights reserved.
+ * DO NOT ALTER OR REMOVE COPYRIGHT NOTICES OR THIS FILE HEADER.
+ *
+ * This code is free software; you can redistribute it and/or modify it
+ * under the terms of the GNU General Public License version 2 only, as
+ * published by the Free Software Foundation.
+ *
+ * This code is distributed in the hope that it will be useful, but WITHOUT
+ * ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
+ * FITNESS FOR A PARTICULAR PURPOSE.  See the GNU General Public License
+ * version 2 for more details (a copy is included in the LICENSE file that
+ * accompanied this code).
+ *
+ * You should have received a copy of the GNU General Public License version
+ * 2 along with this work; if not, write to the Free Software Foundation,
+ * Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301 USA.
+ *
+ * Please contact Oracle, 500 Oracle Parkway, Redwood Shores, CA 94065 USA
+ * or visit www.oracle.com if you need additional information or have any
+ * questions.
+ */
+
+/*
+ * @test
+ * @bug 8023768
+ * @summary Type annotations on a type variable, where the bound of
+ *   the type variable is an annotated type variable,
+ *   need to be processed correctly.
+ * @author Werner Dietl
+ * @compile TypeVariableCycleTest.java
+ */
+
+import java.lang.annotation.*;
+
+class TypeVariableCycleTest<CTV> {
+    <MTV extends  @TA CTV> MTV cast(CTV p) {
+        return (@TA MTV) p;
+    }
+}
+
+@Target({ElementType.TYPE_USE, ElementType.TYPE_PARAMETER})
+@interface TA {}
+