--- a/jdk/src/java.base/share/classes/java/lang/ClassLoader.java	Thu Oct 27 14:52:01 2016 -0400
+++ b/jdk/src/java.base/share/classes/java/lang/ClassLoader.java	Thu Oct 27 13:42:12 2016 -0700
@@ -1681,6 +1681,15 @@
      * this method during startup should take care not to cache the return
      * value until the system is fully initialized.
      *
+     * <p> The class path used by the built-in system class loader is determined
+     * by the system property "{@code java.class.path}" during early
+     * initialization of the VM. If the system property is not defined,
+     * or its value is an empty string, then there is no class path
+     * when the initial module is a module on the application module path,
+     * i.e. <em>a named module</em>. If the initial module is not on
+     * the application module path then the class path defaults to
+     * the current working directory.
+     *
      * @return  The system <tt>ClassLoader</tt> for delegation
      *
      * @throws  SecurityException

--- a/jdk/src/java.base/share/classes/jdk/internal/loader/ClassLoaders.java	Thu Oct 27 14:52:01 2016 -0400
+++ b/jdk/src/java.base/share/classes/jdk/internal/loader/ClassLoaders.java	Thu Oct 27 13:42:12 2016 -0700
@@ -69,16 +69,17 @@
             bcp = toURLClassPath(s);
 
         // we have a class path if -cp is specified or -m is not specified.
-        // If neither is specified then default to -cp <working directory>.
+        // If neither is specified then default to -cp <working directory>
+        // If -cp is not specified and -m is specified, the value of
+        // java.class.path is an empty string, then no class path.
         URLClassPath ucp = null;
         String mainMid = System.getProperty("jdk.module.main");
         String cp = System.getProperty("java.class.path");
-        if (mainMid == null && cp == null)
+        if (cp == null)
             cp = "";
-        if (cp != null)
+        if (mainMid == null || cp.length() > 0)
             ucp = toURLClassPath(cp);
 
-
         // create the class loaders
         BOOT_LOADER = new BootClassLoader(bcp);
         PLATFORM_LOADER = new PlatformClassLoader(BOOT_LOADER);

--- a/jdk/src/java.base/share/native/launcher/defines.h	Thu Oct 27 14:52:01 2016 -0400
+++ b/jdk/src/java.base/share/native/launcher/defines.h	Thu Oct 27 13:42:12 2016 -0700
@@ -51,16 +51,6 @@
 static char* const_progname = NULL;
 #endif
 static const char* const_jargs[] = JAVA_ARGS;
-/*
- * ApplicationHome is prepended to each of these entries; the resulting
- * strings are concatenated (separated by PATH_SEPARATOR) and used as the
- * value of -cp option to the launcher.
- */
-#ifndef APP_CLASSPATH
-static const char* const_appclasspath[] = { NULL };
-#else
-static const char* const_appclasspath[] = APP_CLASSPATH;
-#endif /* APP_CLASSPATH */
 #else  /* !JAVA_ARGS */
 #define HAS_JAVA_ARGS JNI_FALSE
 static const char* const_progname = "java";

--- a/jdk/src/java.base/share/native/launcher/main.c	Thu Oct 27 14:52:01 2016 -0400
+++ b/jdk/src/java.base/share/native/launcher/main.c	Thu Oct 27 13:42:12 2016 -0700
@@ -83,7 +83,7 @@
 int WINAPI
 WinMain(HINSTANCE inst, HINSTANCE previnst, LPSTR cmdline, int cmdshow)
 {
-    int margc, appclassc;
+    int margc;
     char** margv;
     const jboolean const_javaw = JNI_TRUE;
 
@@ -93,7 +93,7 @@
 int
 main(int argc, char **argv)
 {
-    int margc, appclassc;
+    int margc;
     char** margv;
     const jboolean const_javaw = JNI_FALSE;
 #endif /* JAVAW */
@@ -148,14 +148,9 @@
         margv = args->elements;
     }
 #endif /* WIN32 */
-    if (const_appclasspath[0] == NULL) {
-        appclassc = 0;
-    } else {
-        appclassc = sizeof(const_appclasspath) / sizeof(char *);
-    }
     return JLI_Launch(margc, margv,
                    sizeof(const_jargs) / sizeof(char *), const_jargs,
-                   appclassc, const_appclasspath,
+                   0, NULL,
                    VERSION_STRING,
                    DOT_VERSION,
                    (const_progname != NULL) ? const_progname : *margv,

--- a/jdk/src/java.base/share/native/libjli/java.c	Thu Oct 27 14:52:01 2016 -0400
+++ b/jdk/src/java.base/share/native/libjli/java.c	Thu Oct 27 13:42:12 2016 -0700
@@ -1664,19 +1664,21 @@
     AddOption(apphome, NULL);
 
     /* How big is the application's classpath? */
-    size = 40;                                 /* 40: "-Djava.class.path=" */
-    for (i = 0; i < cpathc; i++) {
-        size += (int)JLI_StrLen(home) + (int)JLI_StrLen(cpathv[i]) + 1; /* 1: separator */
+    if (cpathc > 0) {
+        size = 40;                                 /* 40: "-Djava.class.path=" */
+        for (i = 0; i < cpathc; i++) {
+            size += (int)JLI_StrLen(home) + (int)JLI_StrLen(cpathv[i]) + 1; /* 1: separator */
+        }
+        appcp = (char *)JLI_MemAlloc(size + 1);
+        JLI_StrCpy(appcp, "-Djava.class.path=");
+        for (i = 0; i < cpathc; i++) {
+            JLI_StrCat(appcp, home);                        /* c:\program files\myapp */
+            JLI_StrCat(appcp, cpathv[i]);           /* \lib\myapp.jar         */
+            JLI_StrCat(appcp, separator);           /* ;                      */
+        }
+        appcp[JLI_StrLen(appcp)-1] = '\0';  /* remove trailing path separator */
+        AddOption(appcp, NULL);
     }
-    appcp = (char *)JLI_MemAlloc(size + 1);
-    JLI_StrCpy(appcp, "-Djava.class.path=");
-    for (i = 0; i < cpathc; i++) {
-        JLI_StrCat(appcp, home);                        /* c:\program files\myapp */
-        JLI_StrCat(appcp, cpathv[i]);           /* \lib\myapp.jar         */
-        JLI_StrCat(appcp, separator);           /* ;                      */
-    }
-    appcp[JLI_StrLen(appcp)-1] = '\0';  /* remove trailing path separator */
-    AddOption(appcp, NULL);
     return JNI_TRUE;
 }
 

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/jdk/test/tools/launcher/modules/classpath/JavaClassPathTest.java	Thu Oct 27 13:42:12 2016 -0700
@@ -0,0 +1,131 @@
+/*
+ * Copyright (c) 2016, 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.
+ */
+
+import java.nio.file.Files;
+import java.nio.file.Path;
+import java.nio.file.Paths;
+import java.util.ArrayList;
+import java.util.List;
+import java.util.Map;
+
+import jdk.testlibrary.OutputAnalyzer;
+import org.testng.annotations.BeforeTest;
+import org.testng.annotations.DataProvider;
+import org.testng.annotations.Test;
+
+import static org.testng.Assert.assertTrue;
+import static jdk.testlibrary.ProcessTools.*;
+
+/**
+ * @test
+ * @bug 8168205
+ * @summary Test the default class path if -Djava.class.path is set
+ * @library /lib/testlibrary
+ * @modules jdk.compiler
+ * @build CompilerUtils jdk.testlibrary.*
+ * @run testng JavaClassPathTest
+ */
+
+public class JavaClassPathTest {
+    private static final Path SRC_DIR = Paths.get(System.getProperty("test.src"),
+                                                  "src");
+    private static final Path MODS_DIR = Paths.get("mods");
+    private static final String TEST_MODULE = "m";
+    private static final String TEST_MAIN = "jdk.test.Main";
+
+    @BeforeTest
+    public void setup() throws Exception {
+        boolean compiled = CompilerUtils.compile(SRC_DIR.resolve(TEST_MODULE),
+                                                 MODS_DIR.resolve(TEST_MODULE));
+        assertTrue(compiled, "module " + TEST_MODULE + " did not compile");
+
+        // add the class and a resource to the current working directory
+        Path file = Paths.get("jdk/test/Main.class");
+        Files.createDirectories(file.getParent());
+        Files.copy(MODS_DIR.resolve(TEST_MODULE).resolve(file), file);
+
+        Path res = Paths.get("jdk/test/res.properties");
+        Files.createFile(res);
+    }
+
+    @DataProvider(name = "classpath")
+    public Object[][] classpath() {
+        return new Object[][]{
+            // true indicates that class path default to current working directory
+            { "",                              true  },
+            { "-Djava.class.path",             true  },
+            { "-Djava.class.path=",            true  },
+            { "-Djava.class.path=.",           true  },
+        };
+    }
+
+    @Test(dataProvider = "classpath")
+    public void testUnnamedModule(String option, boolean expected) throws Throwable {
+        List<String> args = new ArrayList<>();
+        if (!option.isEmpty()) {
+            args.add(option);
+        }
+        args.add(TEST_MAIN);
+        args.add(Boolean.toString(expected));
+
+        assertTrue(execute(args).getExitValue() == 0);
+    }
+
+    @DataProvider(name = "moduleAndClassPath")
+    public Object[][] moduleAndClassPath() {
+        return new Object[][]{
+            // true indicates that class path default to current working directory
+            { "",                              false  },
+            { "-Djava.class.path",             false  },
+            { "-Djava.class.path=",            false  },
+            { "-Djava.class.path=.",           true   },
+        };
+    }
+
+    @Test(dataProvider = "moduleAndClassPath")
+    public void testNamedModule(String option, boolean expected) throws Throwable {
+        List<String> args = new ArrayList<>();
+        if (!option.isEmpty()) {
+            args.add(option);
+        }
+        args.add("--module-path");
+        args.add(MODS_DIR.toString());
+        args.add("-m");
+        args.add(TEST_MODULE + "/" + TEST_MAIN);
+        args.add(Boolean.toString(expected));
+
+        assertTrue(execute(args).getExitValue() == 0);
+    }
+
+    private OutputAnalyzer execute(List<String> options) throws Throwable {
+        ProcessBuilder pb =
+            createJavaProcessBuilder(options.toArray(new String[0]));
+        Map<String,String> env = pb.environment();
+        // remove CLASSPATH environment variable
+        String value = env.remove("CLASSPATH");
+        return executeCommand(pb)
+                    .outputTo(System.out)
+                    .errorTo(System.out);
+    }
+
+}

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/jdk/test/tools/launcher/modules/classpath/src/m/jdk/test/Main.java	Thu Oct 27 13:42:12 2016 -0700
@@ -0,0 +1,45 @@
+/**
+ * Copyright (c) 2016, 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 jdk.test;
+
+import java.net.URL;
+
+public class Main {
+    static final String JAVA_CLASS_PATH = "java.class.path";
+
+    public static void main(String[] args) throws Exception {
+        String value = System.getProperty(JAVA_CLASS_PATH);
+        if (value == null) {
+            throw new RuntimeException(JAVA_CLASS_PATH + " is expected non-null" +
+                " for compatibility");
+        }
+
+        boolean expected = args[0].equals("true");
+        ClassLoader loader = ClassLoader.getSystemClassLoader();
+        URL url = loader.getResource("jdk/test/res.properties");
+        if ((expected && url == null) || (!expected && url != null)) {
+            throw new RuntimeException("URL: " + url + " expected non-null: " + expected);
+        }
+    }
+}

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/jdk/test/tools/launcher/modules/classpath/src/m/module-info.java	Thu Oct 27 13:42:12 2016 -0700
@@ -0,0 +1,26 @@
+/*
+ * Copyright (c) 2016, 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.
+ */
+
+module m {
+}
+