diff --git a/src/share/classes/java/util/regex/Matcher.java b/src/share/classes/java/util/regex/Matcher.java
index d654790b24c7a2a9e4f8b09f3d511ab31194260a..5e437e6e8be9d6b908936778076a7134f622c21f 100644
--- a/src/share/classes/java/util/regex/Matcher.java
+++ b/src/share/classes/java/util/regex/Matcher.java
@@ -759,16 +759,19 @@ public final class Matcher implements MatchResult {
             char nextChar = replacement.charAt(cursor);
             if (nextChar == '\\') {
                 cursor++;
+                if (cursor == replacement.length())
+                    throw new IllegalArgumentException(
+                        "character to be escaped is missing");
                 nextChar = replacement.charAt(cursor);
                 result.append(nextChar);
                 cursor++;
             } else if (nextChar == '$') {
                 // Skip past $
                 cursor++;
-                // A StringIndexOutOfBoundsException is thrown if
-                // this "$" is the last character in replacement
-                // string in current implementation, a IAE might be
-                // more appropriate.
+                // Throw IAE if this "$" is the last character in replacement
+                if (cursor == replacement.length())
+                   throw new IllegalArgumentException(
+                        "Illegal group reference: group index is missing");
                 nextChar = replacement.charAt(cursor);
                 int refNum = -1;
                 if (nextChar == '{') {
diff --git a/test/java/util/regex/RegExTest.java b/test/java/util/regex/RegExTest.java
index 159e9afddd92830132035c2ec03387269a4e5649..f583769ecb274a75026b0d6901a18dcfeca45631 100644
--- a/test/java/util/regex/RegExTest.java
+++ b/test/java/util/regex/RegExTest.java
@@ -33,6 +33,7 @@
  * 5013885 5003322 4988891 5098443 5110268 6173522 4829857 5027748 6376940
  * 6358731 6178785 6284152 6231989 6497148 6486934 6233084 6504326 6635133
  * 6350801 6676425 6878475 6919132 6931676 6948903 6990617 7014645 7039066
+ * 7067045
  */
 
 import java.util.regex.*;
@@ -852,6 +853,17 @@ public class RegExTest {
         if (!result.equals(toSupplementaries("zzz\\t$\\$zzz")))
             failCount++;
 
+        // IAE should be thrown if backslash or '$' is the last character
+        // in replacement string
+        try {
+            "\uac00".replaceAll("\uac00", "$");
+            "\uac00".replaceAll("\uac00", "\\");
+            failCount++;
+        } catch (IllegalArgumentException iie) {
+        } catch (Exception e) {
+            failCount++;
+        }
+
         report("Literal replacement");
     }