--- a/jaxp/src/java.xml/share/classes/com/sun/org/apache/xerces/internal/impl/XMLDocumentFragmentScannerImpl.java	Thu Aug 25 21:18:45 2016 +0000
+++ b/jaxp/src/java.xml/share/classes/com/sun/org/apache/xerces/internal/impl/XMLDocumentFragmentScannerImpl.java	Thu Aug 25 22:36:20 2016 +0000
@@ -511,7 +511,8 @@
                     //fDocumentHandler.endElement(getElementQName(),null);
                     break;
                 default :
-                    throw new InternalError("processing event: " + event);
+                    // Errors should have already been handled by the Scanner
+                    return false;
 
             }
             //System.out.println("here in before calling next");

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/jaxp/test/javax/xml/jaxp/unittest/parsers/HandleError.java	Thu Aug 25 22:36:20 2016 +0000
@@ -0,0 +1,98 @@
+/*
+ * 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 parsers;
+
+import java.io.StringReader;
+import javax.xml.parsers.SAXParser;
+import javax.xml.parsers.SAXParserFactory;
+import org.xml.sax.InputSource;
+import org.xml.sax.SAXException;
+import org.xml.sax.SAXParseException;
+import org.xml.sax.helpers.DefaultHandler;
+
+import org.testng.annotations.DataProvider;
+import org.testng.annotations.Listeners;
+import org.testng.annotations.Test;
+
+/*
+ * @test
+ * @bug 8157797
+ * @library /javax/xml/jaxp/libs /javax/xml/jaxp/unittest
+ * @run testng/othervm -DrunSecMngr=true parsers.HandleError
+ * @run testng/othervm parsers.HandleError
+ * @summary Tests that the parser handles errors properly.
+ */
+@Listeners({jaxp.library.BasePolicy.class})
+public class HandleError {
+
+    /*
+     * Verifies that the parser returns with no unexpected "java.lang.InternalError"
+     * when continue-after-fatal-error is requested.
+    */
+    @Test
+    public void test() throws Exception {
+        String invalidXml = "<a>";
+        SAXParserFactory saxParserFactory = SAXParserFactory.newInstance();
+        saxParserFactory.setFeature("http://apache.org/xml/features/continue-after-fatal-error", true);
+        SAXParser parser = saxParserFactory.newSAXParser();
+        parser.parse(new InputSource(new StringReader(invalidXml)), new DefaultHandler() {
+            @Override
+            public void fatalError(SAXParseException e) throws SAXException {
+                System.err.printf("%s%n", e.getMessage());
+            }
+        });
+    }
+
+
+    /*
+     * Verifies that the parser throws SAXParseException when parsing error is
+     * encountered when:
+     * continue-after-fatal-error is not set, the default it false
+     * continue-after-fatal-error is explicitly set to false
+    */
+    @Test(dataProvider = "setFeature", expectedExceptions = SAXParseException.class)
+    public void test1(boolean setFeature, boolean value) throws Exception {
+        String invalidXml = "<a>";
+        SAXParserFactory saxParserFactory = SAXParserFactory.newInstance();
+        if (setFeature) {
+            saxParserFactory.setFeature("http://apache.org/xml/features/continue-after-fatal-error", value);
+        }
+        SAXParser parser = saxParserFactory.newSAXParser();
+        parser.parse(new InputSource(new StringReader(invalidXml)), new DefaultHandler());
+    }
+
+    /*
+       DataProvider: used to set feature "continue-after-fatal-error"
+        Data columns:
+        flag to indicate the feature is to be set, the value of the feature
+     */
+    @DataProvider(name = "setFeature")
+    public Object[][] getFeatureSetting() {
+
+        return new Object[][]{
+            {false, false},
+            {true, false},
+         };
+    }
+}