--- a/langtools/src/share/classes/com/sun/tools/javac/comp/Flow.java	Mon Jul 23 12:38:49 2012 -0700
+++ b/langtools/src/share/classes/com/sun/tools/javac/comp/Flow.java	Tue Jul 24 11:05:52 2012 -0700
@@ -746,6 +746,7 @@
                 pendingExits = prevPendingExits;
                 alive = true;
                 scanStat(tree.finalizer);
+                tree.finallyCanCompleteNormally = alive;
                 if (!alive) {
                     // discard exits and exceptions from try and finally
                     thrown = chk.union(thrown, thrownPrev);
@@ -764,7 +765,6 @@
                     }
                     alive = aliveEnd;
                 }
-                tree.finallyCanCompleteNormally = alive;
             } else {
                 thrown = chk.union(thrown, chk.diff(thrownInTry, caughtInTry));
                 alive = aliveEnd;

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/langtools/test/tools/javac/DefiniteAssignment/T7181578.java	Tue Jul 24 11:05:52 2012 -0700
@@ -0,0 +1,46 @@
+/*
+ * Copyright (c) 2012, 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 7181578
+ * @summary javac reports uninitialized variable with nested try...finally blocks
+  *
+ * @compile T7181578.java
+ */
+class T7181578 {
+    String test(boolean cond) {
+        final String s;
+        try {
+            if (cond) {
+                try {
+                    s = "";
+                    return s;
+                } finally { }
+            } else {
+                s = "";
+            }
+            return s; // bug occurs here: mapping is always initialized
+        } finally { }
+    }
+}