--- a/src/share/classes/java/lang/invoke/AbstractValidatingLambdaMetafactory.java	Tue Jan 28 13:02:33 2014 -0800
+++ b/src/share/classes/java/lang/invoke/AbstractValidatingLambdaMetafactory.java	Tue Jan 28 17:23:15 2014 -0800
@@ -226,6 +226,13 @@
                         String.format("Invalid receiver type %s; not a subtype of implementation type %s",
                                       receiverClass, implDefiningClass));
             }
+
+           Class<?> implReceiverClass = implMethod.type().parameterType(0);
+           if (implReceiverClass != implDefiningClass && !implReceiverClass.isAssignableFrom(receiverClass)) {
+               throw new LambdaConversionException(
+                       String.format("Invalid receiver type %s; not a subtype of implementation receiver type %s",
+                                     receiverClass, implReceiverClass));
+             }
         } else {
             // no receiver
             capturedStart = 0;

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/test/java/lang/invoke/lambda/T8032697.java	Tue Jan 28 17:23:15 2014 -0800
@@ -0,0 +1,69 @@
+/*
+ * Copyright (c) 2014, 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 8032697
+ * @summary Issues with Lambda
+ */
+
+import java.lang.invoke.LambdaMetafactory;
+import java.lang.invoke.LambdaConversionException;
+import java.lang.invoke.MethodHandle;
+import java.lang.invoke.MethodHandles;
+import java.lang.invoke.MethodType;
+
+import T8032697_anotherpkg.T8032697_A;
+
+public class T8032697 extends T8032697_A {
+
+    interface I {
+        int m();
+    }
+
+    interface IA {
+        int m(T8032697_A x);
+    }
+
+    static MethodHandles.Lookup l;
+    static MethodHandle h;
+    private static MethodType mt(Class<?> k) { return MethodType.methodType(k); }
+    private static MethodType mt(Class<?> k, Class<?> k2) { return MethodType.methodType(k, k2); }
+    private static boolean mf(MethodType mti, MethodType mtf) {
+        try {
+            LambdaMetafactory.metafactory(l, "m", mti,mtf,h,mtf);
+        } catch(LambdaConversionException e) {
+            return true;
+        }
+        return false;
+    }
+
+    public static void main(String[] args) throws Throwable {
+        l = MethodHandles.lookup();
+        h = l.findVirtual(T8032697_A.class, "f", mt(int.class));
+        if (mf(mt(I.class, T8032697.class), mt(int.class))) throw new AssertionError("Error: Should work");
+        if (mf(mt(IA.class), mt(int.class, T8032697.class))) throw new AssertionError("Error: Should work");
+        if (!mf(mt(I.class, T8032697_A.class), mt(int.class))) throw new AssertionError("Error: Should fail");
+        if (!mf(mt(IA.class), mt(int.class, T8032697_A.class))) throw new AssertionError("Error: Should fail");
+    }
+}

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/test/java/lang/invoke/lambda/T8032697_anotherpkg/T8032697_A.java	Tue Jan 28 17:23:15 2014 -0800
@@ -0,0 +1,28 @@
+/*
+ * Copyright (c) 2014, 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.
+ */
+
+package T8032697_anotherpkg;
+
+public class T8032697_A {
+  protected final int f() { return 2; }
+}