--- old/src/java.desktop/share/classes/javax/swing/JList.java	2018-01-05 15:32:17.437289549 +0530
+++ new/src/java.desktop/share/classes/javax/swing/JList.java	2018-01-05 15:32:17.237289549 +0530
@@ -2359,26 +2359,37 @@
 
     /**
      * Selects the specified object from the list.
+     * If the object passed is not present in the list, the selection is
+     * cleared.
      *
      * @param anObject      the object to select
      * @param shouldScroll  {@code true} if the list should scroll to display
      *                      the selected object, if one exists; otherwise {@code false}
      */
     public void setSelectedValue(Object anObject,boolean shouldScroll) {
-        if(anObject == null)
-            setSelectedIndex(-1);
-        else if(!anObject.equals(getSelectedValue())) {
+        E selectedValue = getSelectedValue();
+        //This will be true if both anObject and selectedObject are either
+        // null or point to objects which return true on calling equals
+        if((anObject == selectedValue) ||
+                (anObject != null && anObject.equals(selectedValue))) {
+            return;
+        } else {
             int i,c;
             ListModel<E> dm = getModel();
-            for(i=0,c=dm.getSize();i<c;i++)
-                if(anObject.equals(dm.getElementAt(i))){
+            for(i=0,c=dm.getSize();i<c;i++) {
+                Object object  = dm.getElementAt(i);
+                //Either both should be null or reference to objects which
+                // return true with equals method
+                if ((anObject == object) ||
+                        anObject!= null && anObject.equals(object)) {
                     setSelectedIndex(i);
-                    if(shouldScroll)
+                    if (shouldScroll)
                         ensureIndexIsVisible(i);
                     repaint();  /** FIX-ME setSelectedIndex does not redraw all the time with the basic l&f**/
                     return;
                 }
-            setSelectedIndex(-1);
+            }
+            clearSelection();
         }
         repaint(); /** FIX-ME setSelectedIndex does not redraw all the time with the basic l&f**/
     }
--- /dev/null	2018-01-04 14:08:43.448000000 +0530
+++ new/test/jdk/javax/swing/JList/SetSelectedValueTest.java	2018-01-05 15:32:17.773289549 +0530
@@ -0,0 +1,85 @@
+/*
+ * Copyright (c) 2018 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
+ * @key headful
+ * @bug 5076761
+ * @summary Verifies that the selection is cleared when setSelectedValue is
+ *          called with a value not present in the list data
+ * @run main SetSelectedValueTest
+ */
+
+import javax.swing.SwingUtilities;
+import javax.swing.DefaultListModel;
+import javax.swing.JList;
+import javax.swing.ListSelectionModel;
+import java.util.Arrays;
+import java.util.Collections;
+import java.util.List;
+
+public class SetSelectedValueTest {
+    public static void main(String[] args) throws Exception {
+
+        SwingUtilities.invokeAndWait(new Runnable() {
+            public void run() {
+                // Create a JList with 3 elements
+                DefaultListModel dlm = new DefaultListModel();
+                JList list = new JList<String>(dlm);
+                list.setSelectionMode(
+                        ListSelectionModel.MULTIPLE_INTERVAL_SELECTION);
+                dlm.addElement("1");
+                dlm.addElement(null);
+                dlm.addElement("2");
+
+                // Select first two elements added in list
+                list.setSelectionInterval(0, 2);
+                checkSelectionByArray(list, new String[]{"1", null, "2"});
+
+                // Set the selected value as null. This should select the
+                // null element in the list
+                list.setSelectedValue(null, true);
+                checkSelectionByArray(list, new String[]{null});
+
+                // Select first two elements added in list
+                list.setSelectionInterval(0, 1);
+                checkSelectionByArray(list, new String[]{"1", null});
+
+                // Set the selected value as some object not present in the
+                // list. This should clear the selection
+                list.setSelectedValue("4", true);
+                checkSelectionByArray(list, new String[0]);
+            }
+        });
+    }
+
+    static void checkSelectionByArray(JList list, String[] selectionArray)
+            throws RuntimeException {
+        Object[] arraySelection = list.getSelectedValuesList().toArray();
+        if (!Arrays.equals(arraySelection, selectionArray)) {
+            System.out.println("Expected: " + selectionArray);
+            System.out.println("Actual: " + arraySelection);
+            throw new RuntimeException("Wrong selection");
+        }
+    }
+}