diff --git a/bundles/org.eclipse.osgi.tests/bundles_src/classloader.hooks.a/org/eclipse/osgi/tests/classloader/hooks/a/TestHookConfigurator.java b/bundles/org.eclipse.osgi.tests/bundles_src/classloader.hooks.a/org/eclipse/osgi/tests/classloader/hooks/a/TestHookConfigurator.java
index 0259d4f..db458e1 100644
--- a/bundles/org.eclipse.osgi.tests/bundles_src/classloader.hooks.a/org/eclipse/osgi/tests/classloader/hooks/a/TestHookConfigurator.java
+++ b/bundles/org.eclipse.osgi.tests/bundles_src/classloader.hooks.a/org/eclipse/osgi/tests/classloader/hooks/a/TestHookConfigurator.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2013, 2016 IBM Corporation and others.
+ * Copyright (c) 2013, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -10,6 +10,7 @@
  *******************************************************************************/
 package org.eclipse.osgi.tests.classloader.hooks.a;
 
+import org.eclipse.osgi.container.Module;
 import org.eclipse.osgi.internal.hookregistry.*;
 import org.eclipse.osgi.internal.loader.classpath.ClasspathEntry;
 import org.eclipse.osgi.internal.loader.classpath.ClasspathManager;
@@ -18,6 +19,13 @@
 public class TestHookConfigurator implements HookConfigurator {
 	private static final String REJECT_PROP = "classloader.hooks.a.reject";
 	private static final String BAD_TRANSFORM_PROP = "classloader.hooks.a.bad.transform";
+	private static final String RECURSION_LOAD = "classloader.hooks.a.recursion.load";
+	private static final String RECURSION_LOAD_SUPPORTED = "classloader.hooks.a.recursion.load.supported";
+	final ThreadLocal<Boolean> doingRecursionLoad = new ThreadLocal<Boolean>() {
+		protected Boolean initialValue() {
+			return false;
+		};
+	};
 
 	public void addHooks(HookRegistry hookRegistry) {
 		hookRegistry.addClassLoaderHook(new ClassLoaderHook() {
@@ -32,9 +40,34 @@
 				if (Boolean.getBoolean(BAD_TRANSFORM_PROP)) {
 					return new byte[] {'b', 'a', 'd', 'b', 'y', 't', 'e', 's'};
 				}
+				if (Boolean.getBoolean(RECURSION_LOAD)) {
+					if (isProcessClassRecursionSupported() && doingRecursionLoad.get()) {
+						return null;
+					}
+					Module m = manager.getGeneration().getBundleInfo().getStorage().getModuleContainer().getModule(1);
+					doingRecursionLoad.set(true);
+					try {
+						m.getCurrentRevision().getWiring().getClassLoader().loadClass("substitutes.x.Ax");
+						if (!isProcessClassRecursionSupported()) {
+							throw new LinkageError("Recursion is no supported.");
+						}
+					} catch (ClassNotFoundException e) {
+						if (isProcessClassRecursionSupported()) {
+							throw new LinkageError("Recursion should be supported.");
+						}
+						// expected
+					} finally {
+						doingRecursionLoad.set(false);
+					}
+				}
 				return null;
 			}
 
+			@Override
+			public boolean isProcessClassRecursionSupported() {
+				return Boolean.getBoolean(RECURSION_LOAD_SUPPORTED);
+			}
+
 		});
 	}
 }
diff --git a/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/bundles/ClassLoadingBundleTests.java b/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/bundles/ClassLoadingBundleTests.java
index 20fbe43..1acbfb4 100644
--- a/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/bundles/ClassLoadingBundleTests.java
+++ b/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/bundles/ClassLoadingBundleTests.java
@@ -15,6 +15,7 @@
 import java.net.*;
 import java.util.*;
 import java.util.concurrent.*;
+import java.util.concurrent.atomic.AtomicBoolean;
 import javax.jws.WebService;
 import javax.xml.namespace.QName;
 import javax.xml.ws.Endpoint;
@@ -25,6 +26,8 @@
 import org.osgi.framework.*;
 import org.osgi.framework.hooks.resolver.ResolverHook;
 import org.osgi.framework.hooks.resolver.ResolverHookFactory;
+import org.osgi.framework.hooks.weaving.WeavingHook;
+import org.osgi.framework.hooks.weaving.WovenClass;
 import org.osgi.framework.namespace.PackageNamespace;
 import org.osgi.framework.wiring.*;
 import org.osgi.service.packageadmin.ExportedPackage;
@@ -2221,6 +2224,84 @@
 		}
 	}
 
+	public void testRecursiveWeavingHookFactory() {
+		final ThreadLocal<Boolean> testThread = new ThreadLocal<Boolean>() {
+			@Override
+			protected Boolean initialValue() {
+				return Boolean.FALSE;
+			}
+		};
+
+		testThread.set(Boolean.TRUE);
+		final Set<String> weavingHookClasses = new HashSet<String>();
+		final List<WovenClass> called = new ArrayList<WovenClass>();
+		final AtomicBoolean loadNewClassInWeave = new AtomicBoolean(false);
+
+		ServiceFactory<WeavingHook> topFactory = new ServiceFactory<WeavingHook>() {
+			@Override
+			public WeavingHook getService(Bundle bundle, ServiceRegistration<WeavingHook> registration) {
+				if (!testThread.get()) {
+					return null;
+				}
+				WeavingHook hook = new WeavingHook() {
+
+					@Override
+					public void weave(WovenClass wovenClass) {
+						if (loadNewClassInWeave.get()) {
+							// Force a load of inner class
+							Runnable run = new Runnable() {
+								@Override
+								public void run() {
+									// nothing
+								}
+							};
+							run.run();
+							weavingHookClasses.add(run.getClass().getName());
+						}
+						called.add(wovenClass);
+					}
+				};
+				weavingHookClasses.add(hook.getClass().getName());
+				return hook;
+			}
+
+			@Override
+			public void ungetService(Bundle bundle, ServiceRegistration<WeavingHook> registration, WeavingHook service) {
+				// nothing
+			}
+		};
+		ServiceRegistration<WeavingHook> reg = getContext().registerService(WeavingHook.class, topFactory, null);
+
+		Runnable run = null;
+		try {
+			// force call to factory without protection of the framework recursion checks
+			topFactory.getService(null, null);
+
+			// set flag to load inner class while weaving
+			loadNewClassInWeave.set(true);
+
+			// Force a load of inner class
+			run = new Runnable() {
+				@Override
+				public void run() {
+					// nothing
+				}
+			};
+			run.run();
+		} finally {
+			reg.unregister();
+		}
+
+		assertEquals("Unexpected number of woven classes.", 3, called.size());
+		for (WovenClass wovenClass : called) {
+			if (weavingHookClasses.contains(wovenClass.getClassName())) {
+				assertNull("Did not expect to find class: " + wovenClass.getDefinedClass(), wovenClass.getDefinedClass());
+			} else {
+				assertEquals("Expected the inner runnable class.", run.getClass(), wovenClass.getDefinedClass());
+			}
+		}
+	}
+
 	public void testLoaderUninstalledBundle() throws BundleException, IOException {
 		String testResourcePath = "testResource";
 		File config = OSGiTestsActivator.getContext().getDataFile(getName()); //$NON-NLS-1$
diff --git a/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/hooks/framework/ClassLoaderHookTests.java b/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/hooks/framework/ClassLoaderHookTests.java
index 56d2b76..d342e8e 100644
--- a/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/hooks/framework/ClassLoaderHookTests.java
+++ b/bundles/org.eclipse.osgi.tests/src/org/eclipse/osgi/tests/hooks/framework/ClassLoaderHookTests.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2013, 2016 IBM Corporation and others.
+ * Copyright (c) 2013, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -32,6 +32,8 @@
 	private static final String HOOK_CONFIGURATOR_CLASS = "org.eclipse.osgi.tests.classloader.hooks.a.TestHookConfigurator";
 	private static final String REJECT_PROP = "classloader.hooks.a.reject";
 	private static final String BAD_TRANSFORM_PROP = "classloader.hooks.a.bad.transform";
+	private static final String RECURSION_LOAD = "classloader.hooks.a.recursion.load";
+	private static final String RECURSION_LOAD_SUPPORTED = "classloader.hooks.a.recursion.load.supported";
 
 	private Map<String, String> configuration;
 	private Framework framework;
@@ -41,6 +43,8 @@
 		super.setUp();
 		setRejectTransformation(false);
 		setBadTransform(false);
+		setRecursionLoad(false);
+		setRecursionLoadSupported(false);
 		String loc = bundleInstaller.getBundleLocation(HOOK_CONFIGURATOR_BUNDLE);
 		loc = loc.substring(loc.indexOf("file:"));
 		classLoader.addURL(new URL(loc));
@@ -65,7 +69,7 @@
 		return framework.getBundleContext().installBundle(location);
 	}
 
-	private void setRejectTransformation(boolean value) throws Exception {
+	private void setRejectTransformation(boolean value) {
 		System.setProperty(REJECT_PROP, Boolean.toString(value));
 	}
 
@@ -73,6 +77,14 @@
 		System.setProperty(BAD_TRANSFORM_PROP, Boolean.toString(value));
 	}
 
+	private void setRecursionLoad(boolean value) {
+		System.setProperty(RECURSION_LOAD, Boolean.toString(value));
+	}
+
+	private void setRecursionLoadSupported(boolean value) {
+		System.setProperty(RECURSION_LOAD_SUPPORTED, Boolean.toString(value));
+	}
+
 	public void testRejectTransformationFromWeavingHook() throws Exception {
 		setRejectTransformation(true);
 		initAndStartFramework();
@@ -95,6 +107,7 @@
 		refreshBundles(Collections.singleton(b));
 		try {
 			b.loadClass(TEST_CLASSNAME);
+			fail("Expected a ClassFormatError.");
 		} catch (ClassFormatError e) {
 			// expected
 		}
@@ -115,11 +128,27 @@
 		refreshBundles(Collections.singleton(b));
 		try {
 			b.loadClass(TEST_CLASSNAME);
+			fail("Expected a ClassFormatError.");
 		} catch (ClassFormatError e) {
 			// expected
 		}
 	}
 
+	public void testRecursionFromClassLoadingHookNotSupported() throws Exception {
+		setRecursionLoad(true);
+		initAndStartFramework();
+		Bundle b = installBundle();
+		b.loadClass(TEST_CLASSNAME);
+	}
+
+	public void testRecursionFromClassLoadingHookIsSupported() throws Exception {
+		setRecursionLoad(true);
+		setRecursionLoadSupported(true);
+		initAndStartFramework();
+		Bundle b = installBundle();
+		b.loadClass(TEST_CLASSNAME);
+	}
+
 	private void refreshBundles(Collection<Bundle> bundles) throws InterruptedException {
 		final CountDownLatch refreshSignal = new CountDownLatch(1);
 		framework.adapt(FrameworkWiring.class).refreshBundles(bundles, new FrameworkListener() {
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/BundleContextImpl.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/BundleContextImpl.java
index a65bbe4..a19273b 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/BundleContextImpl.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/BundleContextImpl.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2003, 2016 IBM Corporation and others.
+ * Copyright (c) 2003, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -235,6 +235,11 @@
 			public String getHookMethodName() {
 				return "find"; //$NON-NLS-1$ 
 			}
+
+			@Override
+			public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+				return false;
+			}
 		});
 	}
 
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/EquinoxContainer.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/EquinoxContainer.java
index db901c5..b81704c 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/EquinoxContainer.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/EquinoxContainer.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2012, 2016 IBM Corporation and others.
+ * Copyright (c) 2012, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -19,6 +19,7 @@
 import org.eclipse.osgi.framework.util.SecureAction;
 import org.eclipse.osgi.internal.framework.legacy.PackageAdminImpl;
 import org.eclipse.osgi.internal.framework.legacy.StartLevelImpl;
+import org.eclipse.osgi.internal.hookregistry.ClassLoaderHook;
 import org.eclipse.osgi.internal.hookregistry.HookRegistry;
 import org.eclipse.osgi.internal.location.EquinoxLocations;
 import org.eclipse.osgi.internal.log.EquinoxLogServices;
@@ -46,6 +47,7 @@
 	private final Set<String> bootDelegation;
 	private final String[] bootDelegationStems;
 	private final boolean bootDelegateAll;
+	private final boolean isProcessClassRecursionSupportedByAll;
 	private final EquinoxEventPublisher eventPublisher;
 
 	private final Object monitor = new Object();
@@ -97,6 +99,13 @@
 		bootDelegateAll = delegateAllValue;
 		bootDelegation = exactMatch;
 		bootDelegationStems = stemMatch.isEmpty() ? null : stemMatch.toArray(new String[stemMatch.size()]);
+
+		// Detect if all hooks can support recursive class processing
+		boolean supportRecursion = true;
+		for (ClassLoaderHook hook : equinoxConfig.getHookRegistry().getClassLoaderHooks()) {
+			supportRecursion &= hook.isProcessClassRecursionSupported();
+		}
+		isProcessClassRecursionSupportedByAll = supportRecursion;
 	}
 
 	public Storage getStorage() {
@@ -143,6 +152,10 @@
 		return false;
 	}
 
+	public boolean isProcessClassRecursionSupportedByAll() {
+		return isProcessClassRecursionSupportedByAll;
+	}
+
 	void init() {
 		eventPublisher.init();
 		synchronized (this.monitor) {
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/EquinoxEventPublisher.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/EquinoxEventPublisher.java
index 232c8de..9884a78 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/EquinoxEventPublisher.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/EquinoxEventPublisher.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2012, 2016 IBM Corporation and others.
+ * Copyright (c) 2012, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -247,6 +247,11 @@
 				public String getHookMethodName() {
 					return "event"; //$NON-NLS-1$
 				}
+
+				@Override
+				public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+					return false;
+				}
 			});
 		}
 	}
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/OSGiFrameworkHooks.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/OSGiFrameworkHooks.java
index 464e9dc..14a6df5 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/OSGiFrameworkHooks.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/framework/OSGiFrameworkHooks.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2012, 2016 IBM Corporation and others.
+ * Copyright (c) 2012, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -115,6 +115,11 @@
 					public String getHookMethodName() {
 						return "filterCollisions"; //$NON-NLS-1$ 
 					}
+
+					@Override
+					public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+						return false;
+					}
 				});
 			}
 		}
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hookregistry/ClassLoaderHook.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hookregistry/ClassLoaderHook.java
index f921acc..0f0b02b 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hookregistry/ClassLoaderHook.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hookregistry/ClassLoaderHook.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2005, 2013 IBM Corporation and others.
+ * Copyright (c) 2005, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -292,4 +292,17 @@
 		return null;
 	}
 
+	/**
+	 * Returns true if this hook can support invoking 
+	 * {@link ClassLoaderHook#processClass(String, byte[], ClasspathEntry, BundleEntry, ClasspathManager) processClass}
+	 * recursively for the same class name.  If false is returned then a class
+	 * loading error will occur if recursive class processing is detected.
+	 * <p>
+	 * This method must return a constant boolean value.
+	 * @return true if recursing class processing is supported
+	 */
+	public boolean isProcessClassRecursionSupported() {
+		return false;
+	}
+
 }
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hooks/DevClassLoadingHook.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hooks/DevClassLoadingHook.java
index d936f4e..99353e8 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hooks/DevClassLoadingHook.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hooks/DevClassLoadingHook.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2006, 2012 IBM Corporation and others.
+ * Copyright (c) 2006, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -109,4 +109,10 @@
 	public int getKeyHashCode() {
 		return HASHCODE;
 	}
+
+	@Override
+	public boolean isProcessClassRecursionSupported() {
+		return true;
+	}
+
 }
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hooks/EclipseLazyStarter.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hooks/EclipseLazyStarter.java
index 7312f8f..26edbba 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hooks/EclipseLazyStarter.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/hooks/EclipseLazyStarter.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2006, 2016 IBM Corporation and others.
+ * Copyright (c) 2006, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -174,4 +174,9 @@
 		return ((includes == null || includes.contains(packageName)) && (excludes == null || !excludes.contains(packageName)));
 	}
 
+	@Override
+	public boolean isProcessClassRecursionSupported() {
+		return true;
+	}
+
 }
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/loader/classpath/ClasspathManager.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/loader/classpath/ClasspathManager.java
index 8139ded..10ae89d 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/loader/classpath/ClasspathManager.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/loader/classpath/ClasspathManager.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2005, 2016 IBM Corporation and others.
+ * Copyright (c) 2005, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -63,7 +63,7 @@
 	// a Map<String,String> where "libname" is the key and libpath" is the value
 	private ArrayMap<String, String> loadedLibraries = null;
 	// used to detect recusive defineClass calls for the same class on the same class loader (bug 345500)
-	private ThreadLocal<Collection<String>> currentlyDefining = new ThreadLocal<>();
+	private ThreadLocal<DefineContext> currentDefineContext = new ThreadLocal<>();
 
 	/**
 	 * Constructs a classpath manager for the given generation and module class loader
@@ -574,25 +574,20 @@
 			Debug.println("  defining class " + name); //$NON-NLS-1$
 		}
 
-		Collection<String> current = currentlyDefining.get();
-		if (current == null) {
-			current = new ArrayList<>(5);
-			currentlyDefining.set(current);
-		}
-		if (current.contains(name))
-			return null; // avoid recursive defines (bug 345500)
 		try {
-			current.add(name);
 			return defineClass(name, classbytes, classpathEntry, entry, hooks);
 		} catch (Error e) {
 			if (debug.DEBUG_LOADER)
 				Debug.println("  error defining class " + name); //$NON-NLS-1$
 			throw e;
-		} finally {
-			current.remove(name);
 		}
 	}
 
+	static class DefineContext {
+		Collection<String> currentlyProcessing = new ArrayList<>(5);
+		Collection<String> currentlyDefining = new ArrayList<>(5);
+	}
+
 	/**
 	 * Defines the specified class.  This method will first call all the configured class loader hooks 
 	 * {@link ClassLoadingHook#processClass(String, byte[], ClasspathEntry, BundleEntry, ClasspathManager)} 
@@ -610,37 +605,90 @@
 	 */
 	private Class<?> defineClass(String name, byte[] classbytes, ClasspathEntry classpathEntry, BundleEntry entry, List<ClassLoaderHook> hooks) {
 		DefineClassResult result = null;
+		boolean recursionDetected = false;
 		try {
 			definePackage(name, classpathEntry);
-			for (ClassLoaderHook hook : hooks) {
-				byte[] modifiedBytes = hook.processClass(name, classbytes, classpathEntry, entry, this);
-				if (modifiedBytes != null) {
-					// the WeavingHookConfigurator already calls the rejectTransformation method; avoid calling it again.
-					if (!(hook instanceof WeavingHookConfigurator)) {
-						for (ClassLoaderHook rejectHook : hooks) {
-							if (rejectHook.rejectTransformation(name, modifiedBytes, classpathEntry, entry, this)) {
-								modifiedBytes = null;
-								break;
-							}
+			DefineContext context = currentDefineContext.get();
+			if (context == null) {
+				context = new DefineContext();
+				currentDefineContext.set(context);
+			}
+
+			// First call the hooks that do not handle recursion themselves
+			if (!hookRegistry.getContainer().isProcessClassRecursionSupportedByAll()) {
+				// One or more hooks do not support recursive class processing.
+				// We need to detect recursions for this set of hooks. 
+				if (context.currentlyProcessing.contains(name)) {
+					// Avoid recursion for the same class name for these hooks
+					recursionDetected = true;
+					// TODO consider thrown a ClassCircularityError here
+					return null;
+				}
+				context.currentlyProcessing.add(name);
+				try {
+
+					for (ClassLoaderHook hook : hooks) {
+						if (!hook.isProcessClassRecursionSupported()) {
+							classbytes = processClass(hook, name, classbytes, classpathEntry, entry, this, hooks);
 						}
 					}
-					if (modifiedBytes != null) {
-						classbytes = modifiedBytes;
-					}
+				} finally {
+					context.currentlyProcessing.remove(name);
 				}
 			}
-			result = classloader.defineClass(name, classbytes, classpathEntry);
-		} finally {
-			// only pass the newly defined class to the hook
-			Class<?> defined = result != null && result.defined ? result.clazz : null;
+
+			// Now call the hooks that do support recursion without the check.
 			for (ClassLoaderHook hook : hooks) {
-				hook.recordClassDefine(name, defined, classbytes, classpathEntry, entry, this);
+				if (hook.isProcessClassRecursionSupported()) {
+					// Note if the hooks don't take protective measures for a recursive class load here
+					// it will result in a stack overflow.
+					classbytes = processClass(hook, name, classbytes, classpathEntry, entry, this, hooks);
+				}
+			}
+
+			if (context.currentlyDefining.contains(name)) {
+				// TODO consider thrown a ClassCircularityError here
+				return null; // avoid recursive defines (bug 345500)
+			}
+			context.currentlyDefining.add(name);
+			try {
+				result = classloader.defineClass(name, classbytes, classpathEntry);
+			} finally {
+				context.currentlyDefining.remove(name);
+			}
+		} finally {
+			// only call hooks if we properly called processClass above
+			if (!recursionDetected) {
+				// only pass the newly defined class to the hook
+				Class<?> defined = result != null && result.defined ? result.clazz : null;
+				for (ClassLoaderHook hook : hooks) {
+					hook.recordClassDefine(name, defined, classbytes, classpathEntry, entry, this);
+				}
 			}
 		}
 		// return either the pre-loaded class or the newly defined class
 		return result == null ? null : result.clazz;
 	}
 
+	private byte[] processClass(ClassLoaderHook hook, String name, byte[] classbytes, ClasspathEntry classpathEntry, BundleEntry entry, ClasspathManager classpathManager, List<ClassLoaderHook> hooks) {
+		byte[] modifiedBytes = hook.processClass(name, classbytes, classpathEntry, entry, this);
+		if (modifiedBytes != null) {
+			// the WeavingHookConfigurator already calls the rejectTransformation method; avoid calling it again.
+			if (!(hook instanceof WeavingHookConfigurator)) {
+				for (ClassLoaderHook rejectHook : hooks) {
+					if (rejectHook.rejectTransformation(name, modifiedBytes, classpathEntry, entry, this)) {
+						modifiedBytes = null;
+						break;
+					}
+				}
+			}
+			if (modifiedBytes != null) {
+				classbytes = modifiedBytes;
+			}
+		}
+		return classbytes;
+	}
+
 	private void definePackage(String name, ClasspathEntry classpathEntry) {
 		// Define the package if it is not the default package.
 		int lastIndex = name.lastIndexOf('.');
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/serviceregistry/HookContext.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/serviceregistry/HookContext.java
index 521917d..3bb5528 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/serviceregistry/HookContext.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/serviceregistry/HookContext.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2010, 2012 IBM Corporation and others.
+ * Copyright (c) 2010, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -46,4 +46,11 @@
 	 * @return The hook method name called by this hook context.
 	 */
 	public String getHookMethodName();
+
+	/**
+	 * Returns true if the given registration should be skipped.
+	 * @param hookRegistration the registration to check
+	 * @return true if the given registration should be skipped.
+	 */
+	public boolean skipRegistration(ServiceRegistration<?> hookRegistration);
 }
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/serviceregistry/ServiceRegistry.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/serviceregistry/ServiceRegistry.java
index cc24fe0..c3ac4d9 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/serviceregistry/ServiceRegistry.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/serviceregistry/ServiceRegistry.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2004, 2016 IBM Corporation and others.
+ * Copyright (c) 2004, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -1187,6 +1187,11 @@
 			public String getHookMethodName() {
 				return "find"; //$NON-NLS-1$
 			}
+
+			@Override
+			public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+				return false;
+			}
 		});
 	}
 
@@ -1217,6 +1222,11 @@
 			public String getHookMethodName() {
 				return "event"; //$NON-NLS-1$
 			}
+
+			@Override
+			public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+				return false;
+			}
 		});
 	}
 
@@ -1246,6 +1256,11 @@
 			public String getHookMethodName() {
 				return "event"; //$NON-NLS-1$
 			}
+
+			@Override
+			public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+				return false;
+			}
 		});
 	}
 
@@ -1272,6 +1287,9 @@
 	 * @param hookContext Context to use when calling the hook service.
 	 */
 	private void notifyHookPrivileged(BundleContextImpl context, ServiceRegistrationImpl<?> registration, HookContext hookContext) {
+		if (hookContext.skipRegistration(registration)) {
+			return;
+		}
 		Object hook = registration.getSafeService(context, ServiceConsumer.singletonConsumer);
 		if (hook == null) { // if the hook is null
 			return;
@@ -1342,6 +1360,11 @@
 			public String getHookMethodName() {
 				return "added"; //$NON-NLS-1$
 			}
+
+			@Override
+			public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+				return false;
+			}
 		});
 	}
 
@@ -1393,6 +1416,11 @@
 			public String getHookMethodName() {
 				return added ? "added" : "removed"; //$NON-NLS-1$ //$NON-NLS-2$
 			}
+
+			@Override
+			public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+				return false;
+			}
 		});
 	}
 
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/weaving/WeavingHookConfigurator.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/weaving/WeavingHookConfigurator.java
index e37e267..e1f8304 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/weaving/WeavingHookConfigurator.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/weaving/WeavingHookConfigurator.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2010, 2016 IBM Corporation and others.
+ * Copyright (c) 2010, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -22,10 +22,15 @@
 import org.osgi.framework.*;
 
 public class WeavingHookConfigurator extends ClassLoaderHook {
+	static class WovenClassContext {
+		List<WovenClassImpl> wovenClassStack = new ArrayList<>(6);
+		List<String> processClassNameStack = new ArrayList<>(6);
+	}
+
 	// holds the map of black listed hooks.  Use weak map to avoid pinning and simplify cleanup.
 	private final Map<ServiceRegistration<?>, Boolean> blackList = Collections.synchronizedMap(new WeakHashMap<ServiceRegistration<?>, Boolean>());
 	// holds the stack of WovenClass objects currently being used to define classes
-	private final ThreadLocal<List<WovenClassImpl>> wovenClassStack = new ThreadLocal<>();
+	private final ThreadLocal<WovenClassContext> wovenClassContext = new ThreadLocal<>();
 
 	private final EquinoxContainer container;
 
@@ -45,34 +50,48 @@
 		BundleLoader loader = classLoader.getBundleLoader();
 		// create a woven class object and add it to the thread local stack
 		WovenClassImpl wovenClass = new WovenClassImpl(name, classbytes, entry, classpathEntry, loader, container, blackList);
-		List<WovenClassImpl> wovenClasses = wovenClassStack.get();
-		if (wovenClasses == null) {
-			wovenClasses = new ArrayList<>(6);
-			wovenClassStack.set(wovenClasses);
+		WovenClassContext context = wovenClassContext.get();
+		if (context == null) {
+			context = new WovenClassContext();
+			wovenClassContext.set(context);
 		}
-		wovenClasses.add(wovenClass);
-		// call the weaving hooks
-		try {
-			return wovenClass.callHooks();
-		} catch (Throwable t) {
-			ServiceRegistration<?> errorHook = wovenClass.getErrorHook();
-			Bundle errorBundle = errorHook != null ? errorHook.getReference().getBundle() : manager.getGeneration().getRevision().getBundle();
-			container.getEventPublisher().publishFrameworkEvent(FrameworkEvent.ERROR, errorBundle, t);
-			// fail hard with a class loading error
-			ClassFormatError error = new ClassFormatError("Unexpected error from weaving hook."); //$NON-NLS-1$
-			error.initCause(t);
-			throw error;
+		context.wovenClassStack.add(wovenClass);
+		// If we detect recursion for the same class name then we will not call the
+		// weaving hooks for the second request to load.
+		// Note that this means the actual bytes that get used to define the class
+		// will not have been woven at all.
+		if (!context.processClassNameStack.contains(name)) {
+			context.processClassNameStack.add(name);
+			// call the weaving hooks
+			try {
+				return wovenClass.callHooks();
+			} catch (Throwable t) {
+				ServiceRegistration<?> errorHook = wovenClass.getErrorHook();
+				Bundle errorBundle = errorHook != null ? errorHook.getReference().getBundle() : manager.getGeneration().getRevision().getBundle();
+				container.getEventPublisher().publishFrameworkEvent(FrameworkEvent.ERROR, errorBundle, t);
+				// fail hard with a class loading error
+				ClassFormatError error = new ClassFormatError("Unexpected error from weaving hook."); //$NON-NLS-1$
+				error.initCause(t);
+				throw error;
+			} finally {
+				context.processClassNameStack.remove(name);
+			}
 		}
+		return null;
 	}
 
 	public void recordClassDefine(String name, Class<?> clazz, byte[] classbytes, ClasspathEntry classpathEntry, BundleEntry entry, ClasspathManager manager) {
 		// here we assume the stack contans a woven class with the same name as the class we are defining.
-		List<WovenClassImpl> wovenClasses = wovenClassStack.get();
-		if (wovenClasses == null || wovenClasses.size() == 0)
+		WovenClassContext context = wovenClassContext.get();
+		if (context == null || context.wovenClassStack.size() == 0)
 			return;
-		WovenClassImpl wovenClass = wovenClasses.remove(wovenClasses.size() - 1);
+		WovenClassImpl wovenClass = context.wovenClassStack.remove(context.wovenClassStack.size() - 1);
 		// inform the woven class about the class that was defined.
 		wovenClass.setWeavingCompleted(clazz);
 	}
 
+	@Override
+	public boolean isProcessClassRecursionSupported() {
+		return true;
+	}
 }
diff --git a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/weaving/WovenClassImpl.java b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/weaving/WovenClassImpl.java
index fbd98bc..89609ba 100644
--- a/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/weaving/WovenClassImpl.java
+++ b/bundles/org.eclipse.osgi/container/src/org/eclipse/osgi/internal/weaving/WovenClassImpl.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2010, 2013 IBM Corporation and others.
+ * Copyright (c) 2010, 2017 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -147,8 +147,11 @@
 		if (error != null)
 			return; // do not call any other hooks once an error has occurred.
 		if (hook instanceof WeavingHook) {
-			if (blackList.containsKey(hookRegistration))
-				return; // black listed hook
+			if (skipRegistration(hookRegistration)) {
+				// Note we double check blacklist here just
+				// in case another thread blacklisted since the first check
+				return;
+			}
 			if ((hookFlags & FLAG_HOOKCALLED) == 0) {
 				hookFlags |= FLAG_HOOKCALLED;
 				// only do this check on the first weaving hook call
@@ -171,6 +174,11 @@
 		}
 	}
 
+	@Override
+	public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+		return blackList.containsKey(hookRegistration);
+	}
+
 	private boolean validBytes(byte[] checkBytes) {
 		if (checkBytes == null || checkBytes.length < 4)
 			return false;
@@ -215,6 +223,11 @@
 			public String getHookMethodName() {
 				return "modified"; //$NON-NLS-1$
 			}
+
+			@Override
+			public boolean skipRegistration(ServiceRegistration<?> hookRegistration) {
+				return false;
+			}
 		};
 		if (System.getSecurityManager() == null)
 			registry.notifyHooksPrivileged(context);