--- a/nashorn/src/jdk/nashorn/internal/runtime/arrays/ArrayData.java	Mon Jul 15 16:58:23 2013 +0200
+++ b/nashorn/src/jdk/nashorn/internal/runtime/arrays/ArrayData.java	Mon Jul 15 18:32:23 2013 +0200
@@ -75,8 +75,13 @@
      * @return ArrayData
      */
     public static ArrayData allocate(final int length) {
-        final ArrayData arrayData = new IntArrayData(length);
-        return length == 0 ? arrayData : new DeletedRangeArrayFilter(arrayData, 0, length - 1);
+        if (length == 0) {
+            return new IntArrayData();
+        } else if (length >= SparseArrayData.MAX_DENSE_LENGTH) {
+            return new SparseArrayData(EMPTY_ARRAY, length);
+        } else {
+            return new DeletedRangeArrayFilter(new IntArrayData(length), 0, length - 1);
+        }
     }
 
     /**

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/nashorn/test/script/basic/JDK-8020358.js	Mon Jul 15 18:32:23 2013 +0200
@@ -0,0 +1,43 @@
+/*
+ * 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-8020358: Array(0xfffffff) throws OutOfMemoryError
+ *
+ * @test
+ * @run
+ */
+
+var x = new Array(0xfffffff);
+print(x.length);
+x[0xffffffe] = 1;
+print(x.length);
+x[0xfffffff] = 1;
+print(x.length);
+
+x = new Array(0x8ffff);
+print(x.length);
+print(Function("return 'ok'").apply(null, x));
+x[0] = "pass";
+print(Function("p", "return p").apply(null, x));
+print(Function("return arguments[0]").apply(null, x));

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/nashorn/test/script/basic/JDK-8020358.js.EXPECTED	Mon Jul 15 18:32:23 2013 +0200
@@ -0,0 +1,7 @@
+268435455
+268435455
+268435456
+589823
+ok
+pass
+pass