diff --git a/features/org.eclipse.objectteams.otdt.core.patch/feature.xml b/features/org.eclipse.objectteams.otdt.core.patch/feature.xml
index 8328269..5c376a2 100644
--- a/features/org.eclipse.objectteams.otdt.core.patch/feature.xml
+++ b/features/org.eclipse.objectteams.otdt.core.patch/feature.xml
@@ -66,7 +66,7 @@
          id="org.eclipse.jdt.core"
          download-size="5614"
          install-size="5614"
-         version="3.8.2.v_OTDT_r212_qualifier"
+         version="3.8.3.v_OTDT_r212_qualifier"
          unpack="false"/>
 
 </feature>
diff --git a/org.eclipse.jdt.core.tests.compiler/META-INF/MANIFEST.MF b/org.eclipse.jdt.core.tests.compiler/META-INF/MANIFEST.MF
index a08cfcf..4e51e16 100644
--- a/org.eclipse.jdt.core.tests.compiler/META-INF/MANIFEST.MF
+++ b/org.eclipse.jdt.core.tests.compiler/META-INF/MANIFEST.MF
@@ -2,7 +2,7 @@
 Bundle-ManifestVersion: 2
 Bundle-Name: %pluginName
 Bundle-SymbolicName: org.eclipse.jdt.core.tests.compiler
-Bundle-Version: 3.8.1
+Bundle-Version: 3.8.2
 Bundle-ClassPath: jdtcoretestscompiler.jar
 Bundle-Vendor: %providerName
 Bundle-Localization: plugin
diff --git a/org.eclipse.jdt.core.tests.compiler/pom.xml b/org.eclipse.jdt.core.tests.compiler/pom.xml
index fbdfee3..2d3a6d0 100644
--- a/org.eclipse.jdt.core.tests.compiler/pom.xml
+++ b/org.eclipse.jdt.core.tests.compiler/pom.xml
@@ -20,6 +20,6 @@
   </parent>
   <groupId>eclipse.jdt.core</groupId>
   <artifactId>org.eclipse.jdt.core.tests.compiler</artifactId>
-  <version>3.8.1-SNAPSHOT</version>
+  <version>3.8.2-SNAPSHOT</version>
   <packaging>eclipse-plugin</packaging>
 </project>
diff --git a/org.eclipse.jdt.core.tests.model/META-INF/MANIFEST.MF b/org.eclipse.jdt.core.tests.model/META-INF/MANIFEST.MF
index 6ced2f5..25fcd68 100644
--- a/org.eclipse.jdt.core.tests.model/META-INF/MANIFEST.MF
+++ b/org.eclipse.jdt.core.tests.model/META-INF/MANIFEST.MF
@@ -2,7 +2,7 @@
 Bundle-ManifestVersion: 2
 Bundle-Name: %pluginName
 Bundle-SymbolicName: org.eclipse.jdt.core.tests.model;singleton:=true
-Bundle-Version: 3.8.1
+Bundle-Version: 3.8.2
 Bundle-ClassPath: jdtcoretestsmodel.jar
 Bundle-Vendor: %providerName
 Bundle-Localization: plugin
diff --git a/org.eclipse.jdt.core.tests.model/pom.xml b/org.eclipse.jdt.core.tests.model/pom.xml
index 36df8eb..1415479 100644
--- a/org.eclipse.jdt.core.tests.model/pom.xml
+++ b/org.eclipse.jdt.core.tests.model/pom.xml
@@ -20,7 +20,7 @@
   </parent>
   <groupId>eclipse.jdt.core</groupId>
   <artifactId>org.eclipse.jdt.core.tests.model</artifactId>
-  <version>3.8.1-SNAPSHOT</version>
+  <version>3.8.2-SNAPSHOT</version>
   <packaging>eclipse-plugin</packaging>
 
   <build>
diff --git a/org.eclipse.jdt.core.tests.model/src/org/eclipse/jdt/core/tests/model/JavaSearchScopeTests.java b/org.eclipse.jdt.core.tests.model/src/org/eclipse/jdt/core/tests/model/JavaSearchScopeTests.java
index 52af315..23cf2f2 100644
--- a/org.eclipse.jdt.core.tests.model/src/org/eclipse/jdt/core/tests/model/JavaSearchScopeTests.java
+++ b/org.eclipse.jdt.core.tests.model/src/org/eclipse/jdt/core/tests/model/JavaSearchScopeTests.java
@@ -10,10 +10,13 @@
  *******************************************************************************/
 package org.eclipse.jdt.core.tests.model;
 
+import java.net.MalformedURLException;
+import java.net.URL;
 import java.util.HashMap;
 
 import junit.framework.Test;
 
+import org.eclipse.core.resources.IFile;
 import org.eclipse.core.resources.IWorkspaceRunnable;
 import org.eclipse.core.resources.IncrementalProjectBuilder;
 import org.eclipse.core.runtime.CoreException;
@@ -24,6 +27,7 @@
 import org.eclipse.jdt.core.tests.model.AbstractJavaSearchTests.JavaSearchResultCollector;
 import org.eclipse.jdt.core.tests.model.AbstractJavaSearchTests.TypeNameMatchCollector;
 import org.eclipse.jdt.internal.core.JavaModelManager;
+import org.eclipse.jdt.internal.core.index.IndexLocation;
 import org.eclipse.jdt.internal.core.search.indexing.IndexManager;
 
 /**
@@ -1096,4 +1100,22 @@
 		}
 	}
 }
+// https://bugs.eclipse.org/bugs/show_bug.cgi?id=397818
+public void testBug397818() throws CoreException {
+	try {
+		createJavaProject("P1", new String[] {"src"}, new String[] {}, "bin");
+		
+		createFolder("/P1/new folder");
+		IFile newFile = createFile("/P1/new folder/testindex.index", "");
+		try {
+			URL newURL = newFile.getLocationURI().toURL();
+			IndexLocation indexLoc = IndexLocation.createIndexLocation(newURL);
+			assertTrue("Malformed index location", indexLoc.getIndexFile().exists());
+		} catch (MalformedURLException e) {
+			fail("Malformed index location");
+		}
+	} finally {
+		deleteProject("P1");
+	}
+}
 }
diff --git a/org.eclipse.jdt.core/META-INF/MANIFEST.MF b/org.eclipse.jdt.core/META-INF/MANIFEST.MF
index c49fc6e..fc2206f 100644
--- a/org.eclipse.jdt.core/META-INF/MANIFEST.MF
+++ b/org.eclipse.jdt.core/META-INF/MANIFEST.MF
@@ -3,7 +3,7 @@
 Bundle-ManifestVersion: 2
 Bundle-Name: %pluginName
 Bundle-SymbolicName: org.eclipse.jdt.core; singleton:=true
-Bundle-Version: 3.8.2.v_OTDT_r212_qualifier
+Bundle-Version: 3.8.3.v_OTDT_r212_qualifier
 Bundle-Activator: org.eclipse.jdt.core.JavaCore
 Bundle-Vendor: %providerName
 Bundle-Localization: plugin
diff --git a/org.eclipse.jdt.core/batch/org/eclipse/jdt/internal/compiler/batch/messages.properties b/org.eclipse.jdt.core/batch/org/eclipse/jdt/internal/compiler/batch/messages.properties
index 6d9f277..19b4a15 100644
--- a/org.eclipse.jdt.core/batch/org/eclipse/jdt/internal/compiler/batch/messages.properties
+++ b/org.eclipse.jdt.core/batch/org/eclipse/jdt/internal/compiler/batch/messages.properties
@@ -22,7 +22,7 @@
 #Format: compiler.name = word1 word2 word3
 compiler.name = Eclipse Compiler for Java(TM)
 #Format: compiler.version = (The placeholder 'bundle_qualifier' will be automatically filled. Do not remove or alter it)
-compiler.version = bundle_qualifier, 3.8.2
+compiler.version = bundle_qualifier, 3.8.3
 compiler.copyright = Copyright IBM Corp 2000, 2012. All rights reserved.
 
 ###{ObjectTeams:
diff --git a/org.eclipse.jdt.core/pom.xml b/org.eclipse.jdt.core/pom.xml
index 159c3ec..718d33d 100644
--- a/org.eclipse.jdt.core/pom.xml
+++ b/org.eclipse.jdt.core/pom.xml
@@ -21,7 +21,7 @@
   </parent>
   <groupId>eclipse.jdt.core</groupId>
   <artifactId>org.eclipse.jdt.core</artifactId>
-  <version>3.8.2-SNAPSHOT</version>
+  <version>3.8.3-SNAPSHOT</version>
   <packaging>eclipse-plugin</packaging>
 
   <build>
diff --git a/org.eclipse.jdt.core/search/org/eclipse/jdt/internal/core/index/IndexLocation.java b/org.eclipse.jdt.core/search/org/eclipse/jdt/internal/core/index/IndexLocation.java
index d410f72..b5c542e 100644
--- a/org.eclipse.jdt.core/search/org/eclipse/jdt/internal/core/index/IndexLocation.java
+++ b/org.eclipse.jdt.core/search/org/eclipse/jdt/internal/core/index/IndexLocation.java
@@ -15,6 +15,7 @@
 import java.io.InputStream;
 
 import java.net.MalformedURLException;
+import java.net.URI;
 import java.net.URL;
 
 import org.eclipse.core.runtime.FileLocator;
@@ -37,7 +38,15 @@
 			return null;
 		}
 		if (localUrl.getProtocol().equals("file")) { //$NON-NLS-1$
-			return new FileIndexLocation(url, new File(localUrl.getPath()));
+			File localFile = null;
+			try {
+				URI localFileURI = new URI(localUrl.toExternalForm());
+				localFile = new File(localFileURI);
+			}
+			catch(Exception ex) {
+				localFile = new File(localUrl.getPath());
+			}
+			return new FileIndexLocation(url, localFile);
 		}
 		return new JarIndexLocation(url, localUrl);
 	}
diff --git a/releng/build-scripts/build/test.properties b/releng/build-scripts/build/test.properties
index 2e0f79a..58a97c4 100644
--- a/releng/build-scripts/build/test.properties
+++ b/releng/build-scripts/build/test.properties
@@ -10,8 +10,8 @@
 # ----
 
 # tests referenced without version qualifier:
-org.eclipse.jdt.core.tests.compiler=org.eclipse.jdt.core.tests.compiler_3.8.1
-org.eclipse.jdt.core.tests.model=org.eclipse.jdt.core.tests.model_3.8.1
+org.eclipse.jdt.core.tests.compiler=org.eclipse.jdt.core.tests.compiler_3.8.2
+org.eclipse.jdt.core.tests.model=org.eclipse.jdt.core.tests.model_3.8.2
 
 # this is part of eclipse-test-framework and holds library.xml:
 org.eclipse.test=org.eclipse.test_3.3.100
diff --git a/releng/map/otdt.map b/releng/map/otdt.map
index bae1084..d30acea 100644
--- a/releng/map/otdt.map
+++ b/releng/map/otdt.map
@@ -7,7 +7,7 @@
 feature@org.eclipse.objectteams.otequinox=GIT,repo=git://git.eclipse.org/gitroot/objectteams/org.eclipse.objectteams.git,path=features/org.eclipse.objectteams.otequinox.feature,tag=branches/maintenance/OTDT_2.1.x
 
 !-- Also don't use version numbers for those plugins that hold the various otre jars: --
-plugin@org.eclipse.jdt.core,3.8.2.v_OTDT_r212_qualifier=GIT,repo=git://git.eclipse.org/gitroot/objectteams/org.eclipse.objectteams.git,path=org.eclipse.jdt.core,tag=branches/maintenance/OTDT_2.1.x
+plugin@org.eclipse.jdt.core,3.8.3.v_OTDT_r212_qualifier=GIT,repo=git://git.eclipse.org/gitroot/objectteams/org.eclipse.objectteams.git,path=org.eclipse.jdt.core,tag=branches/maintenance/OTDT_2.1.x
 
 !next plug-in don't specify version so that org.eclipse.objectteams.runtime/customBuildCallbacks.xml will find the plug-in directory:
 plugin@org.eclipse.objectteams.otdt=GIT,repo=git://git.eclipse.org/gitroot/objectteams/org.eclipse.objectteams.git,path=plugins/org.eclipse.objectteams.otdt,tag=branches/maintenance/OTDT_2.1.x