diff --git a/src/java.base/share/native/libjli/java.c b/src/java.base/share/native/libjli/java.c
index 0bb1daed28a..4f9a6426dff 100644
--- a/src/java.base/share/native/libjli/java.c
+++ b/src/java.base/share/native/libjli/java.c
@@ -1198,9 +1198,6 @@ ParseArguments(int *pargc, char ***pargv,
                    JLI_StrCmp(arg, "-cp") == 0) {
             REPORT_ERROR (has_arg_any_len, ARG_ERROR1, arg);
             SetClassPath(value);
-            if (mode != LM_SOURCE) {
-                mode = LM_CLASS;
-            }
         } else if (JLI_StrCmp(arg, "--list-modules") == 0) {
             listModules = JNI_TRUE;
         } else if (JLI_StrCmp(arg, "--show-resolved-modules") == 0) {
@@ -1355,11 +1352,12 @@ ParseArguments(int *pargc, char ***pargv,
             *pret = 1;
         }
     } else if (mode == LM_UNKNOWN) {
-        /* default to LM_CLASS if -m, -jar and -cp options are
-         * not specified */
         if (!_have_classpath) {
             SetClassPath(".");
         }
+        /* If neither of -m, -jar, --source option is set, then the
+         * launcher mode is LM_UNKNOWN. In such cases, we determine the
+         * mode as LM_CLASS or LM_SOURCE per the input file. */
         mode = IsSourceFile(arg) ? LM_SOURCE : LM_CLASS;
     } else if (mode == LM_CLASS && IsSourceFile(arg)) {
         /* override LM_CLASS mode if given a source file */