--- a/nashorn/src/jdk/nashorn/internal/runtime/Context.java	Thu Feb 21 15:24:31 2013 -0400
+++ b/nashorn/src/jdk/nashorn/internal/runtime/Context.java	Fri Feb 22 08:57:22 2013 +0100
@@ -37,6 +37,7 @@
 import java.lang.invoke.MethodHandle;
 import java.lang.invoke.MethodHandles;
 import java.lang.reflect.Constructor;
+import java.net.MalformedURLException;
 import java.net.URL;
 import java.security.AccessController;
 import java.security.CodeSigner;
@@ -639,7 +640,13 @@
                                 }
                             });
                 } else {
-                    final URL url = file.toURI().toURL();
+                    URL url = null;
+                    try {
+                        //check for malformed url. if malformed, it may still be a valid file
+                        url = new URL(srcStr);
+                    } catch (final MalformedURLException e) {
+                        url = file.toURI().toURL();
+                    }
                     source = new Source(url.toString(), url);
                 }
             } else if (file.isFile()) {

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/nashorn/test/script/basic/JDK-8008554.js	Fri Feb 22 08:57:22 2013 +0100
@@ -0,0 +1,36 @@
+/*
+ * Copyright (c) 2010, 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.
+ */
+
+
+/**
+ * JDK-8008554: Try loading another output free test in this dir both as file and as url
+ *
+ * @test
+ * @run
+ */
+
+var dir = __DIR__;
+var file = __FILE__.replace("JDK-8008554", "NASHORN-99");
+load(file);
+file = "file://" + __DIR__ + "NASHORN-99.js";
+load(file);