diff -r b17805de5edf -r d02e9b7444fe test/tools/javac/lambda/LambdaOuterLocalTest.java
--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/test/tools/javac/lambda/LambdaOuterLocalTest.java	Thu May 01 15:43:28 2014 -0700
@@ -0,0 +1,61 @@
+/*
+ * Copyright (c) 2014, 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 8029725
+ * @summary Lambda reference to containing local class causes javac infinite recursion
+ * @author  Robert Field
+ * @run main LambdaOuterLocalTest
+ */
+
+public class LambdaOuterLocalTest {
+    interface F {void f();}
+
+    static F f;
+    static StringBuffer sb = new StringBuffer();
+
+    static void assertEquals(Object val, Object expected) {
+        if (!val.equals(expected)) {
+            throw new AssertionError("expected '" + expected + "' got '" + val + "'");
+        }
+    }
+
+    public static void main(String[] args) {
+        class Local1 {
+            public Local1() {
+                class Local2 {
+                    public Local2() {
+                        f = () -> new Local1();
+                        sb.append("2");
+                    }
+                }
+                sb.append("1");
+                new Local2();
+            }
+        }
+        new Local1();
+        f.f();
+        assertEquals(sb.toString(), "1212");
+    }
+}