diff --git a/src/jdk.compiler/share/classes/com/sun/tools/javac/comp/Resolve.java b/src/jdk.compiler/share/classes/com/sun/tools/javac/comp/Resolve.java
index 0554cee3149..d8cb63e3c06 100644
--- a/src/jdk.compiler/share/classes/com/sun/tools/javac/comp/Resolve.java
+++ b/src/jdk.compiler/share/classes/com/sun/tools/javac/comp/Resolve.java
@@ -4061,7 +4061,7 @@ public class Resolve {
                 location = site.tsym;
             }
             if (!location.name.isEmpty()) {
-                if (location.kind == PCK && !site.tsym.exists()) {
+                if (location.kind == PCK && !site.tsym.exists() && location.name != names.java) {
                     return diags.create(dkind, log.currentSource(), pos,
                         "doesnt.exist", location);
                 }
diff --git a/src/jdk.compiler/share/classes/com/sun/tools/javac/util/Names.java b/src/jdk.compiler/share/classes/com/sun/tools/javac/util/Names.java
index 26e0b7577aa..27ba6f46eaa 100644
--- a/src/jdk.compiler/share/classes/com/sun/tools/javac/util/Names.java
+++ b/src/jdk.compiler/share/classes/com/sun/tools/javac/util/Names.java
@@ -117,6 +117,7 @@ public class Names {
     public final Name Method;
 
     // package names
+    public final Name java;
     public final Name java_lang;
 
     // module names
@@ -291,6 +292,7 @@ public class Names {
         Method = fromString("Method");
 
         // package names
+        java = fromString("java");
         java_lang = fromString("java.lang");
 
         // module names
diff --git a/test/langtools/tools/javac/8264258/MisleadingNonExistentPathError.java b/test/langtools/tools/javac/8264258/MisleadingNonExistentPathError.java
new file mode 100644
index 00000000000..a3fd5c6a41e
--- /dev/null
+++ b/test/langtools/tools/javac/8264258/MisleadingNonExistentPathError.java
@@ -0,0 +1,27 @@
+/*
+ * @test /nodynamiccopyright/
+ * @bug 8264258
+ * @summary Unknown lookups in the java package give misleading compilation errors
+ * @compile/fail/ref=MisleadingNonExistentPathError.out -XDrawDiagnostics MisleadingNonExistentPathError.java
+ */
+package knownpkg;
+
+public class MisleadingNonExistentPathError {
+
+    void classNotFound() {
+        // Not found, but in an existing package
+        Class<?> c1 = knownpkg.NotFound.class;
+
+        // Not found, but in a (system) package which exists and is in scope
+        Class<?> c2 = java.lang.NotFound.class;
+
+        // Not found, on a genuinely unknown package
+        Class<?> c3 = unknownpkg.NotFound.class;
+
+        // Not found, but in the 'java' package which is in scope as per JLS 6.3 and observable as per JLS 7.4.3
+        Class<?> c4 = java.NotFound.class;
+
+        // Not found, but in a (system) package which exists and is in scope
+        Object c5 = new java.lang();
+    }
+}
diff --git a/test/langtools/tools/javac/8264258/MisleadingNonExistentPathError.out b/test/langtools/tools/javac/8264258/MisleadingNonExistentPathError.out
new file mode 100644
index 00000000000..645aa456bf9
--- /dev/null
+++ b/test/langtools/tools/javac/8264258/MisleadingNonExistentPathError.out
@@ -0,0 +1,6 @@
+MisleadingNonExistentPathError.java:13:31: compiler.err.cant.resolve.location: kindname.class, NotFound, , , (compiler.misc.location: kindname.package, knownpkg, null)
+MisleadingNonExistentPathError.java:16:32: compiler.err.cant.resolve.location: kindname.class, NotFound, , , (compiler.misc.location: kindname.package, java.lang, null)
+MisleadingNonExistentPathError.java:19:33: compiler.err.doesnt.exist: unknownpkg
+MisleadingNonExistentPathError.java:22:27: compiler.err.cant.resolve.location: kindname.class, NotFound, , , (compiler.misc.location: kindname.package, java, null)
+MisleadingNonExistentPathError.java:25:29: compiler.err.cant.resolve.location: kindname.class, lang, , , (compiler.misc.location: kindname.package, java, null)
+5 errors
diff --git a/test/langtools/tools/javac/TryWithResources/TwrForVariable3.out b/test/langtools/tools/javac/TryWithResources/TwrForVariable3.out
index df6e2bfff6f..26e539910c2 100644
--- a/test/langtools/tools/javac/TryWithResources/TwrForVariable3.out
+++ b/test/langtools/tools/javac/TryWithResources/TwrForVariable3.out
@@ -1,5 +1,5 @@
 TwrForVariable3.java:15:14: compiler.err.prob.found.req: (compiler.misc.try.not.applicable.to.type: (compiler.misc.inconvertible.types: java.lang.Object, java.lang.AutoCloseable))
 TwrForVariable3.java:18:14: compiler.err.prob.found.req: (compiler.misc.try.not.applicable.to.type: (compiler.misc.inconvertible.types: java.lang.Object, java.lang.AutoCloseable))
-TwrForVariable3.java:21:18: compiler.err.doesnt.exist: java
+TwrForVariable3.java:21:18: compiler.err.cant.resolve.location: kindname.class, lang, , , (compiler.misc.location: kindname.package, java, null)
 TwrForVariable3.java:24:14: compiler.err.cant.resolve.location: kindname.variable, java, , , (compiler.misc.location: kindname.class, TwrForVariable3, null)
 4 errors