--- a/src/jdk.compiler/share/classes/com/sun/tools/javac/comp/LambdaToMethod.java	Wed Dec 05 19:22:04 2018 +0530
+++ b/src/jdk.compiler/share/classes/com/sun/tools/javac/comp/LambdaToMethod.java	Wed Dec 05 09:34:01 2018 -0500
@@ -2363,16 +2363,19 @@
                 List<Type> tl = tree.getDescriptorType(types).getParameterTypes();
                 for (; tl.nonEmpty(); tl = tl.tail) {
                     Type pt = tl.head;
-                    switch (pt.getKind()) {
-                        case INTERSECTION:
-                        case UNION:
-                            return true;
-                        case TYPEVAR:
-                            TypeVar tv = (TypeVar) pt;
-                            if (tv.bound.getKind() == TypeKind.INTERSECTION) {
-                                return true;
-                            }
-                    }
+                    return isIntersectionOrUnionType(pt);
+                }
+                return false;
+            }
+
+            boolean isIntersectionOrUnionType(Type t) {
+                switch (t.getKind()) {
+                    case INTERSECTION:
+                    case UNION:
+                        return true;
+                    case TYPEVAR:
+                        TypeVar tv = (TypeVar) t;
+                        return isIntersectionOrUnionType(tv.bound);
                 }
                 return false;
             }

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/test/langtools/tools/javac/lambda/T8213703/InvalidReceiverTypeTest.java	Wed Dec 05 09:34:01 2018 -0500
@@ -0,0 +1,57 @@
+/*
+ * Copyright (c) 2018, 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.
+ */
+
+/*
+ * @test
+ * @bug 8213703
+ * @summary LambdaConversionException: Invalid receiver type not a subtype of implementation type interface
+ */
+
+import java.util.Arrays;
+import java.util.List;
+
+public class InvalidReceiverTypeTest {
+
+    static abstract class A {}
+
+    interface B {
+        boolean g();
+    }
+
+    static class C extends A implements B {
+        public boolean g() {
+            return true;
+        }
+    }
+
+    static class D<R extends A & B> {
+        public long f(List<? extends R> xs) {
+            return xs.stream().filter(B::g).count();
+        }
+    }
+
+    public static void main(String[] args) {
+        long count = new D<C>().f(Arrays.asList(new C()));
+        System.err.println(count);
+    }
+}