diff -r 07acc51c1d2a -r 08eb13460b3a src/share/vm/opto/loopopts.cpp
--- a/src/share/vm/opto/loopopts.cpp	Sat Apr 02 09:49:27 2011 -0700
+++ b/src/share/vm/opto/loopopts.cpp	Sat Apr 02 10:54:15 2011 -0700
@@ -2139,9 +2139,12 @@
 //
 //                   orig
 //
-//                  stmt1
-//                    |
-//                    v
+//                   stmt1
+//                     |
+//                     v
+//               loop predicate
+//                     |
+//                     v
 //                   loop<----+
 //                     |      |
 //                   stmt2    |
@@ -2172,6 +2175,9 @@
 //            after clone loop
 //
 //                   stmt1
+//                     |
+//                     v
+//               loop predicate
 //                 /       \
 //        clone   /         \   orig
 //               /           \
@@ -2210,12 +2216,15 @@
 //           after partial peel
 //
 //                  stmt1
+//                     |
+//                     v
+//               loop predicate
 //                 /
 //        clone   /             orig
 //               /          TOP
 //              /             \
 //             v               v
-//    TOP->region             region----+
+//    TOP->loop                loop----+
 //          |                    |      |
 //        stmt2                stmt2    |
 //          |                    |      |
@@ -2253,13 +2262,17 @@
 //                  stmt1
 //                    |
 //                    v
+//                  stmt2 clone
+//                    |
+//                    v
 //         ........> ifA clone
 //         :        / |
 //        dom      /  |
 //         :      v   v
 //         :  false   true
 //         :  |       |
-//         :  |     stmt2 clone
+//         :  |       v
+//         :  | loop predicate
 //         :  |       |
 //         :  |       v
 //         :  |    newloop<-----+
@@ -2289,6 +2302,7 @@
 //
 bool PhaseIdealLoop::partial_peel( IdealLoopTree *loop, Node_List &old_new ) {
 
+  assert(!loop->_head->is_CountedLoop(), "Non-counted loop only");
   if (!loop->_head->is_Loop()) {
     return false;  }
 
@@ -2316,6 +2330,7 @@
     }
   }
 
+  Node* entry = head->in(LoopNode::EntryControl);
   int dd = dom_depth(head);
 
   // Step 1: find cut point
@@ -2612,6 +2627,8 @@
 
   // Backedge of the surviving new_head (the clone) is original last_peel
   _igvn.hash_delete(new_head_clone);
+  Node* new_entry = move_loop_predicates(entry, new_head_clone->in(LoopNode::EntryControl));
+  new_head_clone->set_req(LoopNode::EntryControl, new_entry);
   new_head_clone->set_req(LoopNode::LoopBackControl, last_peel);
   _igvn._worklist.push(new_head_clone);