diff --git a/src/cpu/sparc/vm/c1_LIRAssembler_sparc.cpp b/src/cpu/sparc/vm/c1_LIRAssembler_sparc.cpp
index d933aa000493ab54be12ddbb2c3be4eeaa9fa1ae..8304e40199445c5632e0878bead939e31fa853c8 100644
--- a/src/cpu/sparc/vm/c1_LIRAssembler_sparc.cpp
+++ b/src/cpu/sparc/vm/c1_LIRAssembler_sparc.cpp
@@ -2419,11 +2419,8 @@ void LIR_Assembler::type_profile_helper(Register mdo, int mdo_offset_bias,
 
 void LIR_Assembler::setup_md_access(ciMethod* method, int bci,
                                     ciMethodData*& md, ciProfileData*& data, int& mdo_offset_bias) {
-  md = method->method_data();
-  if (md == NULL) {
-    bailout("out of memory building methodDataOop");
-    return;
-  }
+  md = method->method_data_or_null();
+  assert(md != NULL, "Sanity");
   data = md->bci_to_data(bci);
   assert(data != NULL,       "need data for checkcast");
   assert(data->is_ReceiverTypeData(), "need ReceiverTypeData for type check");
@@ -2821,11 +2818,8 @@ void LIR_Assembler::emit_profile_call(LIR_OpProfileCall* op) {
   int bci          = op->profiled_bci();
 
   // Update counter for all call types
-  ciMethodData* md = method->method_data();
-  if (md == NULL) {
-    bailout("out of memory building methodDataOop");
-    return;
-  }
+  ciMethodData* md = method->method_data_or_null();
+  assert(md != NULL, "Sanity");
   ciProfileData* data = md->bci_to_data(bci);
   assert(data->is_CounterData(), "need CounterData for calls");
   assert(op->mdo()->is_single_cpu(),  "mdo must be allocated");
diff --git a/src/cpu/x86/vm/c1_LIRAssembler_x86.cpp b/src/cpu/x86/vm/c1_LIRAssembler_x86.cpp
index 4daac1aafc475bf444caed28a052196d4810eea9..25596b2c0d44895ab214db3dc27492826842ba57 100644
--- a/src/cpu/x86/vm/c1_LIRAssembler_x86.cpp
+++ b/src/cpu/x86/vm/c1_LIRAssembler_x86.cpp
@@ -1716,11 +1716,8 @@ void LIR_Assembler::emit_typecheck_helper(LIR_OpTypeCheck *op, Label* success, L
     ciMethod* method = op->profiled_method();
     assert(method != NULL, "Should have method");
     int bci = op->profiled_bci();
-    md = method->method_data();
-    if (md == NULL) {
-      bailout("out of memory building methodDataOop");
-      return;
-    }
+    md = method->method_data_or_null();
+    assert(md != NULL, "Sanity");
     data = md->bci_to_data(bci);
     assert(data != NULL,                "need data for type check");
     assert(data->is_ReceiverTypeData(), "need ReceiverTypeData for type check");
@@ -1879,11 +1876,8 @@ void LIR_Assembler::emit_opTypeCheck(LIR_OpTypeCheck* op) {
       ciMethod* method = op->profiled_method();
       assert(method != NULL, "Should have method");
       int bci = op->profiled_bci();
-      md = method->method_data();
-      if (md == NULL) {
-        bailout("out of memory building methodDataOop");
-        return;
-      }
+      md = method->method_data_or_null();
+      assert(md != NULL, "Sanity");
       data = md->bci_to_data(bci);
       assert(data != NULL,                "need data for type check");
       assert(data->is_ReceiverTypeData(), "need ReceiverTypeData for type check");
@@ -3373,11 +3367,8 @@ void LIR_Assembler::emit_profile_call(LIR_OpProfileCall* op) {
   int bci          = op->profiled_bci();
 
   // Update counter for all call types
-  ciMethodData* md = method->method_data();
-  if (md == NULL) {
-    bailout("out of memory building methodDataOop");
-    return;
-  }
+  ciMethodData* md = method->method_data_or_null();
+  assert(md != NULL, "Sanity");
   ciProfileData* data = md->bci_to_data(bci);
   assert(data->is_CounterData(), "need CounterData for calls");
   assert(op->mdo()->is_single_cpu(),  "mdo must be allocated");
diff --git a/src/share/vm/c1/c1_Compilation.cpp b/src/share/vm/c1/c1_Compilation.cpp
index f4c353f45927aa76dd5db31a119e12fa1495620e..9b55f915e0dff351f09eee3e68540eda2bc0ef0b 100644
--- a/src/share/vm/c1/c1_Compilation.cpp
+++ b/src/share/vm/c1/c1_Compilation.cpp
@@ -298,8 +298,8 @@ int Compilation::compile_java_method() {
 
   CHECK_BAILOUT_(no_frame_size);
 
-  if (is_profiling()) {
-    method()->build_method_data();
+  if (is_profiling() && !method()->ensure_method_data()) {
+    BAILOUT_("mdo allocation failed", no_frame_size);
   }
 
   {
@@ -484,11 +484,11 @@ Compilation::Compilation(AbstractCompiler* compiler, ciEnv* env, ciMethod* metho
     if (is_profiling()) {
       // Compilation failed, create MDO, which would signal the interpreter
       // to start profiling on its own.
-      _method->build_method_data();
+      _method->ensure_method_data();
     }
   } else if (is_profiling() && _would_profile) {
-    ciMethodData *md = method->method_data();
-    assert (md != NULL, "Should have MDO");
+    ciMethodData *md = method->method_data_or_null();
+    assert(md != NULL, "Sanity");
     md->set_would_profile(_would_profile);
   }
 }
diff --git a/src/share/vm/c1/c1_GraphBuilder.cpp b/src/share/vm/c1/c1_GraphBuilder.cpp
index 492e21f4d0850c9fb3804559b70ab42239dd1f87..1aa2cc00a54a63b2e0bc308da53fdfe7cb58aae9 100644
--- a/src/share/vm/c1/c1_GraphBuilder.cpp
+++ b/src/share/vm/c1/c1_GraphBuilder.cpp
@@ -3377,6 +3377,9 @@ bool GraphBuilder::try_inline_full(ciMethod* callee, bool holder_known) {
     INLINE_BAILOUT("total inlining greater than DesiredMethodLimit");
   }
 
+  if (is_profiling() && !callee->ensure_method_data()) {
+    INLINE_BAILOUT("mdo allocation failed");
+  }
 #ifndef PRODUCT
       // printing
   if (PrintInlining) {
diff --git a/src/share/vm/c1/c1_IR.cpp b/src/share/vm/c1/c1_IR.cpp
index 662b9ed060112f8ff3c8f470540f41fbb90aceec..917fc5bd5dbbd2d90ca91b754d46c3968cf1e5ca 100644
--- a/src/share/vm/c1/c1_IR.cpp
+++ b/src/share/vm/c1/c1_IR.cpp
@@ -504,7 +504,12 @@ ComputeLinearScanOrder::ComputeLinearScanOrder(Compilation* c, BlockBegin* start
   count_edges(start_block, NULL);
 
   if (compilation()->is_profiling()) {
-    compilation()->method()->method_data()->set_compilation_stats(_num_loops, _num_blocks);
+    ciMethod *method = compilation()->method();
+    if (!method->is_accessor()) {
+      ciMethodData* md = method->method_data_or_null();
+      assert(md != NULL, "Sanity");
+      md->set_compilation_stats(_num_loops, _num_blocks);
+    }
   }
 
   if (_num_loops > 0) {
diff --git a/src/share/vm/c1/c1_LIRGenerator.cpp b/src/share/vm/c1/c1_LIRGenerator.cpp
index b81d639f56dfe32e30e2353e9a775ae0bbe0b9d8..56b22f686f1ad7538c4f2767a5b0f10e38b7d847 100644
--- a/src/share/vm/c1/c1_LIRGenerator.cpp
+++ b/src/share/vm/c1/c1_LIRGenerator.cpp
@@ -836,11 +836,8 @@ void LIRGenerator::profile_branch(If* if_instr, If::Condition cond) {
   if (if_instr->should_profile()) {
     ciMethod* method = if_instr->profiled_method();
     assert(method != NULL, "method should be set if branch is profiled");
-    ciMethodData* md = method->method_data();
-    if (md == NULL) {
-      bailout("out of memory building methodDataOop");
-      return;
-    }
+    ciMethodData* md = method->method_data_or_null();
+    assert(md != NULL, "Sanity");
     ciProfileData* data = md->bci_to_data(if_instr->profiled_bci());
     assert(data != NULL, "must have profiling data");
     assert(data->is_BranchData(), "need BranchData for two-way branches");
@@ -2219,11 +2216,8 @@ void LIRGenerator::do_Goto(Goto* x) {
   if (x->should_profile()) {
     ciMethod* method = x->profiled_method();
     assert(method != NULL, "method should be set if branch is profiled");
-    ciMethodData* md = method->method_data();
-    if (md == NULL) {
-      bailout("out of memory building methodDataOop");
-      return;
-    }
+    ciMethodData* md = method->method_data_or_null();
+    assert(md != NULL, "Sanity");
     ciProfileData* data = md->bci_to_data(x->profiled_bci());
     assert(data != NULL, "must have profiling data");
     int offset;
@@ -2723,7 +2717,9 @@ void LIRGenerator::increment_event_counter_impl(CodeEmitInfo* info,
   } else if (level == CompLevel_full_profile) {
     offset = in_bytes(backedge ? methodDataOopDesc::backedge_counter_offset() :
                                  methodDataOopDesc::invocation_counter_offset());
-    __ oop2reg(method->method_data()->constant_encoding(), counter_holder);
+    ciMethodData* md = method->method_data_or_null();
+    assert(md != NULL, "Sanity");
+    __ oop2reg(md->constant_encoding(), counter_holder);
     meth = new_register(T_OBJECT);
     __ oop2reg(method->constant_encoding(), meth);
   } else {
diff --git a/src/share/vm/ci/ciMethod.cpp b/src/share/vm/ci/ciMethod.cpp
index 9e27c07cc076c5965b8dc0bef815647e0eab94b1..d1d86923f4158fa342872dc5fab7c331c7a3f4df 100644
--- a/src/share/vm/ci/ciMethod.cpp
+++ b/src/share/vm/ci/ciMethod.cpp
@@ -797,12 +797,13 @@ ciInstance* ciMethod::method_handle_type() {
 
 
 // ------------------------------------------------------------------
-// ciMethod::build_method_data
+// ciMethod::ensure_method_data
 //
 // Generate new methodDataOop objects at compile time.
-void ciMethod::build_method_data(methodHandle h_m) {
+// Return true if allocation was successful or no MDO is required.
+bool ciMethod::ensure_method_data(methodHandle h_m) {
   EXCEPTION_CONTEXT;
-  if (is_native() || is_abstract() || h_m()->is_accessor()) return;
+  if (is_native() || is_abstract() || h_m()->is_accessor()) return true;
   if (h_m()->method_data() == NULL) {
     methodOopDesc::build_interpreter_method_data(h_m, THREAD);
     if (HAS_PENDING_EXCEPTION) {
@@ -812,18 +813,22 @@ void ciMethod::build_method_data(methodHandle h_m) {
   if (h_m()->method_data() != NULL) {
     _method_data = CURRENT_ENV->get_object(h_m()->method_data())->as_method_data();
     _method_data->load_data();
+    return true;
   } else {
     _method_data = CURRENT_ENV->get_empty_methodData();
+    return false;
   }
 }
 
 // public, retroactive version
-void ciMethod::build_method_data() {
+bool ciMethod::ensure_method_data() {
+  bool result = true;
   if (_method_data == NULL || _method_data->is_empty()) {
     GUARDED_VM_ENTRY({
-      build_method_data(get_methodOop());
+      result = ensure_method_data(get_methodOop());
     });
   }
+  return result;
 }
 
 
@@ -839,11 +844,6 @@ ciMethodData* ciMethod::method_data() {
   Thread* my_thread = JavaThread::current();
   methodHandle h_m(my_thread, get_methodOop());
 
-  // Create an MDO for the inlinee
-  if (TieredCompilation && is_c1_compile(env->comp_level())) {
-    build_method_data(h_m);
-  }
-
   if (h_m()->method_data() != NULL) {
     _method_data = CURRENT_ENV->get_object(h_m()->method_data())->as_method_data();
     _method_data->load_data();
@@ -854,6 +854,15 @@ ciMethodData* ciMethod::method_data() {
 
 }
 
+// ------------------------------------------------------------------
+// ciMethod::method_data_or_null
+// Returns a pointer to ciMethodData if MDO exists on the VM side,
+// NULL otherwise.
+ciMethodData* ciMethod::method_data_or_null() {
+  ciMethodData *md = method_data();
+  if (md->is_empty()) return NULL;
+  return md;
+}
 
 // ------------------------------------------------------------------
 // ciMethod::will_link
diff --git a/src/share/vm/ci/ciMethod.hpp b/src/share/vm/ci/ciMethod.hpp
index 05df3ccc851c9f9e7d929caf5d3ec4a500a5ce4f..63d4bdc7c37362f0de79cc7d7cbc77ddacf58c42 100644
--- a/src/share/vm/ci/ciMethod.hpp
+++ b/src/share/vm/ci/ciMethod.hpp
@@ -106,7 +106,7 @@ class ciMethod : public ciObject {
 
   void check_is_loaded() const                   { assert(is_loaded(), "not loaded"); }
 
-  void build_method_data(methodHandle h_m);
+  bool ensure_method_data(methodHandle h_m);
 
   void code_at_put(int bci, Bytecodes::Code code) {
     Bytecodes::check(code);
@@ -121,6 +121,7 @@ class ciMethod : public ciObject {
   ciSymbol* name() const                         { return _name; }
   ciInstanceKlass* holder() const                { return _holder; }
   ciMethodData* method_data();
+  ciMethodData* method_data_or_null();
 
   // Signature information.
   ciSignature* signature() const                 { return _signature; }
@@ -230,7 +231,7 @@ class ciMethod : public ciObject {
   bool has_unloaded_classes_in_signature();
   bool is_klass_loaded(int refinfo_index, bool must_be_resolved) const;
   bool check_call(int refinfo_index, bool is_static) const;
-  void build_method_data();  // make sure it exists in the VM also
+  bool ensure_method_data();  // make sure it exists in the VM also
   int scale_count(int count, float prof_factor = 1.);  // make MDO count commensurate with IIC
 
   // JSR 292 support
diff --git a/src/share/vm/opto/compile.cpp b/src/share/vm/opto/compile.cpp
index 677279c5d10d8e6d9be1398c1cef2c0ce09b7ea0..972cc34ae5bddcdf14764c53e5c2e4024769a8a0 100644
--- a/src/share/vm/opto/compile.cpp
+++ b/src/share/vm/opto/compile.cpp
@@ -553,7 +553,7 @@ Compile::Compile( ciEnv* ci_env, C2Compiler* compiler, ciMethod* target, int osr
   if (ProfileTraps) {
     // Make sure the method being compiled gets its own MDO,
     // so we can at least track the decompile_count().
-    method()->build_method_data();
+    method()->ensure_method_data();
   }
 
   Init(::AliasLevel);
diff --git a/src/share/vm/opto/graphKit.cpp b/src/share/vm/opto/graphKit.cpp
index 1a3333db7556f058e121e6d752c0e8c3e28dcb98..80101d2da40a8409d355ba062481577b692335f4 100644
--- a/src/share/vm/opto/graphKit.cpp
+++ b/src/share/vm/opto/graphKit.cpp
@@ -1841,7 +1841,7 @@ void GraphKit::uncommon_trap(int trap_request,
 
   // Note:  If ProfileTraps is true, and if a deopt. actually
   // occurs here, the runtime will make sure an MDO exists.  There is
-  // no need to call method()->build_method_data() at this point.
+  // no need to call method()->ensure_method_data() at this point.
 
 #ifdef ASSERT
   if (!must_throw) {