--- a/hotspot/src/share/vm/opto/runtime.cpp	Tue Jun 21 19:37:30 2016 +0200
+++ b/hotspot/src/share/vm/opto/runtime.cpp	Wed Jul 13 10:51:19 2016 +0300
@@ -59,6 +59,7 @@
 #include "opto/mulnode.hpp"
 #include "opto/runtime.hpp"
 #include "opto/subnode.hpp"
+#include "prims/jvmtiThreadState.hpp"
 #include "runtime/atomic.inline.hpp"
 #include "runtime/fprofiler.hpp"
 #include "runtime/handles.inline.hpp"
@@ -1451,6 +1452,11 @@
   }
 #endif
 
+  JvmtiThreadState *state = thread->jvmti_thread_state();
+  if (state != NULL) {
+    state->set_exception_detected();
+  }
+
   thread->set_vm_result(exception);
   // Frame not compiled (handles deoptimization blob)
   return SharedRuntime::raw_exception_handler_for_return_address(thread, ret_pc);

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/hotspot/test/serviceability/jvmti/ExceptionCaughtOutOfPhase/ExceptionCaughtOutOfPhaseTest.java	Wed Jul 13 10:51:19 2016 +0300
@@ -0,0 +1,61 @@
+/*
+ * 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.security.AccessController;
+import java.security.PrivilegedAction;
+
+/*
+ * @test
+ * @bug 8134434
+ * @summary JVM_DoPrivileged() fires assert(_exception_caught == false) failed: _exception_caught is out of phase
+ * @run main/othervm -agentlib:jdwp=transport=dt_socket,address=9000,server=y,suspend=n -Xbatch ExceptionCaughtOutOfPhaseTest
+ */
+
+public class ExceptionCaughtOutOfPhaseTest {
+    public static void main(String[] args) {
+        PrivilegedAction action = new HotThrowingAction();
+        System.out.println("### Warm-up");
+        for(int i=0; i<11000; i++) {
+            try {
+                action.run(); // call run() to get it compiled
+            } catch(Throwable t) {
+                // ignored
+            }
+        }
+
+        System.out.println("### Warm-up done");
+        System.out.println("### Executing privileged action");
+
+        try {
+            AccessController.doPrivileged(action);
+        } catch (Error e) {
+            // ignored
+        }
+    }
+
+    public static class HotThrowingAction implements PrivilegedAction {
+        public Object run() {
+            throw new Error();
+        }
+    }
+}