diff --git a/src/share/classes/com/sun/tools/javac/comp/Attr.java b/src/share/classes/com/sun/tools/javac/comp/Attr.java
index a88b6a0f9d347ce1cc6bb0c55bd37ce88bd9d790..96148f02f5180e556b5e2d4b8ac04b9448ec40c1 100644
--- a/src/share/classes/com/sun/tools/javac/comp/Attr.java
+++ b/src/share/classes/com/sun/tools/javac/comp/Attr.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 1999, 2014, Oracle and/or its affiliates. All rights reserved.
+ * Copyright (c) 1999, 2016, 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
@@ -249,6 +249,7 @@ public class Attr extends JCTree.Visitor {
      *  are correct.
      *
      *  @param tree     The tree whose kind and type is checked
+     *  @param found    The computed type of the tree
      *  @param ownkind  The computed kind of the tree
      *  @param resultInfo  The expected result of the tree
      */
diff --git a/src/share/classes/com/sun/tools/javac/comp/Resolve.java b/src/share/classes/com/sun/tools/javac/comp/Resolve.java
index eace107252c98e05729aa888999e711b828b1558..064b3bb97df6920efd9a72fc41eb6c70a68de2a3 100644
--- a/src/share/classes/com/sun/tools/javac/comp/Resolve.java
+++ b/src/share/classes/com/sun/tools/javac/comp/Resolve.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 1999, 2014, Oracle and/or its affiliates. All rights reserved.
+ * Copyright (c) 1999, 2016, 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
@@ -1007,7 +1007,7 @@ public class Resolve {
                 DeferredType dt = (DeferredType)found;
                 return dt.check(this);
             } else {
-                Type uResult = U(found.baseType());
+                Type uResult = U(found);
                 Type capturedType = pos == null || pos.getTree() == null ?
                         types.capture(uResult) :
                         checkContext.inferenceContext()
diff --git a/test/tools/javac/conditional/ConditionalWithFinalStrings.java b/test/tools/javac/conditional/ConditionalWithFinalStrings.java
new file mode 100644
index 0000000000000000000000000000000000000000..a9dbdf549f1f2e8e63552e7f1a7cdb41428fe335
--- /dev/null
+++ b/test/tools/javac/conditional/ConditionalWithFinalStrings.java
@@ -0,0 +1,69 @@
+/*
+ * Copyright (c) 2016, 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 8066871
+ * @summary java.lang.VerifyError: Bad local variable type - local final String
+ * @author Srikanth Sankaran
+ *
+ * @compile -g:none ConditionalWithFinalStrings.java
+ * @run main ConditionalWithFinalStrings
+ */
+
+public class ConditionalWithFinalStrings {
+
+        interface I {
+            String foo();
+        }
+
+        static class Tmp {
+                private String value;
+                public void setValue(String tmpStr) {
+                        this.value = tmpStr;
+                        if (!this.value.equals("YES"))
+                            throw new AssertionError();
+                }
+        }
+
+        void goo(I i) {
+            if (!i.foo().equals("YES"))
+                throw new AssertionError();
+        }
+
+        public void test() {
+                final String y = "YES";
+                final String n = "NO";
+                Tmp tmp = new Tmp();
+                tmp.setValue(true ? y : n);
+                goo (() -> y);
+
+        }
+        public static void main(String[] args) {
+                new ConditionalWithFinalStrings().test();
+                if (!id("Hello!").equals("Hello!"))
+                    throw new AssertionError();
+
+        }
+        static <Z> Z id(Z z) { return z; }
+}