diff --git a/src/hotspot/share/opto/escape.cpp b/src/hotspot/share/opto/escape.cpp
index 295f7fca9f1eb..1a5bddd332ead 100644
--- a/src/hotspot/share/opto/escape.cpp
+++ b/src/hotspot/share/opto/escape.cpp
@@ -3272,10 +3272,12 @@ void ConnectionGraph::optimize_ideal_graph(GrowableArray<Node*>& ptr_cmp_worklis
 
 // Optimize objects compare.
 const TypeInt* ConnectionGraph::optimize_ptr_compare(Node* left, Node* right) {
-  assert(OptimizePtrCompare, "sanity");
+  const TypeInt* UNKNOWN = TypeInt::CC;    // [-1, 0,1]
+  if (!OptimizePtrCompare) {
+    return UNKNOWN;
+  }
   const TypeInt* EQ = TypeInt::CC_EQ; // [0] == ZERO
   const TypeInt* NE = TypeInt::CC_GT; // [1] == ONE
-  const TypeInt* UNKNOWN = TypeInt::CC;    // [-1, 0,1]
 
   PointsToNode* ptn1 = ptnode_adr(left->_idx);
   PointsToNode* ptn2 = ptnode_adr(right->_idx);
diff --git a/test/hotspot/jtreg/compiler/c2/TestReducePhiOnCmpWithNoOptPtrCompare.java b/test/hotspot/jtreg/compiler/c2/TestReducePhiOnCmpWithNoOptPtrCompare.java
new file mode 100644
index 0000000000000..1247effd46d34
--- /dev/null
+++ b/test/hotspot/jtreg/compiler/c2/TestReducePhiOnCmpWithNoOptPtrCompare.java
@@ -0,0 +1,90 @@
+/*
+ * Copyright (c) 2025, 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
+ * @bug 8361140
+ * @summary Test ConnectionGraph::reduce_phi_on_cmp when OptimizePtrCompare is disabled
+ * @library /test/lib /
+ * @run driver compiler.c2.TestReducePhiOnCmpWithNoOptPtrCompare
+ */
+
+package compiler.c2;
+
+import java.util.Random;
+import jdk.test.lib.Asserts;
+import compiler.lib.ir_framework.*;
+
+public class TestReducePhiOnCmpWithNoOptPtrCompare {
+
+    public static void main(String[] args) {
+        TestFramework.runWithFlags("-XX:-OptimizePtrCompare","-XX:+VerifyReduceAllocationMerges","-XX:+IgnoreUnrecognizedVMOptions");
+    }
+
+    @Run(test = {"testReducePhiOnCmp_C2"})
+    public void runner(RunInfo info) {
+        Random random = info.getRandom();
+        boolean cond = random.nextBoolean();
+        int x = random.nextInt();
+        int y = random.nextInt();
+        Asserts.assertEQ(testReducePhiOnCmp_Interp(cond, x, y),testReducePhiOnCmp_C2(cond, x, y));
+    }
+
+    @Test
+    int testReducePhiOnCmp_C2(boolean cond, int x, int y) { return testReducePhiOnCmp(cond, x, y); }
+
+    @DontCompile
+    int testReducePhiOnCmp_Interp(boolean cond, int x, int y) { return testReducePhiOnCmp(cond, x, y); }
+
+    int testReducePhiOnCmp(boolean cond,int x,int y) {
+        Point p = null;
+
+        if (cond) {
+            p = new Point(x*x, y*y);
+        } else if (x > y) {
+            p = new Point(x+y, x*y);
+        }
+
+        if (p != null) {
+            return p.x * p.y;
+        } else {
+            return 1984;
+        }
+    }
+
+    static class Point {
+        int x, y;
+        Point(int x, int y) {
+            this.x = x;
+            this.y = y;
+        }
+
+        @Override
+        public boolean equals(Object o) {
+            if (o == this) return true;
+            if (!(o instanceof Point)) return false;
+            Point p = (Point) o;
+            return (p.x == x) && (p.y == y);
+        }
+    }
+}
\ No newline at end of file
diff --git a/test/hotspot/jtreg/compiler/c2/irTests/scalarReplacement/AllocationMergesTests.java b/test/hotspot/jtreg/compiler/c2/irTests/scalarReplacement/AllocationMergesTests.java
index 69b3cb5274b57..8d25706f521f8 100644
--- a/test/hotspot/jtreg/compiler/c2/irTests/scalarReplacement/AllocationMergesTests.java
+++ b/test/hotspot/jtreg/compiler/c2/irTests/scalarReplacement/AllocationMergesTests.java
@@ -76,7 +76,21 @@ public static void main(String[] args) {
                                              "-XX:CompileCommand=inline,*Nested::*",
                                              "-XX:CompileCommand=exclude,*::dummy*");
 
-        framework.addScenarios(scenario0, scenario1, scenario2).start();
+        Scenario scenario3 = new Scenario(3, "-XX:+UnlockDiagnosticVMOptions",
+                                             "-XX:+ReduceAllocationMerges",
+                                             "-XX:+TraceReduceAllocationMerges",
+                                             "-XX:+DeoptimizeALot",
+                                             "-XX:+UseCompressedOops",
+                                             "-XX:+UseCompressedClassPointers",
+                                             "-XX:-OptimizePtrCompare",
+                                             "-XX:+VerifyReduceAllocationMerges",
+                                             "-XX:CompileCommand=inline,*::charAt*",
+                                             "-XX:CompileCommand=inline,*PicturePositions::*",
+                                             "-XX:CompileCommand=inline,*Point::*",
+                                             "-XX:CompileCommand=inline,*Nested::*",
+                                             "-XX:CompileCommand=exclude,*::dummy*");
+
+        framework.addScenarios(scenario0, scenario1, scenario2, scenario3).start();
     }
 
     // ------------------ No Scalar Replacement Should Happen in The Tests Below ------------------- //