diff --git a/src/cmd/gc/esc.c b/src/cmd/gc/esc.c
index 4091682485..a75517813d 100644
--- a/src/cmd/gc/esc.c
+++ b/src/cmd/gc/esc.c
@@ -204,6 +204,13 @@ struct EscState {
 	// flow to.
 	Node	theSink;
 	
+	// If an analyzed function is recorded to return
+	// pieces obtained via indirection from a parameter,
+	// and later there is a call f(x) to that function,
+	// we create a link funcParam <- x to record that fact.
+	// The funcParam node is handled specially in escflood.
+	Node	funcParam;	
+	
 	NodeList*	dsts;		// all dst nodes
 	int	loopdepth;	// for detecting nested loop scopes
 	int	pdepth;		// for debug printing in recursions.
@@ -269,7 +276,13 @@ analyze(NodeList *all, int recursive)
 	e->theSink.sym = lookup(".sink");
 	e->theSink.escloopdepth = -1;
 	e->recursive = recursive;
-
+	
+	e->funcParam.op = ONAME;
+	e->funcParam.orig = &e->funcParam;
+	e->funcParam.class = PAUTO;
+	e->funcParam.sym = lookup(".param");
+	e->funcParam.escloopdepth = 10000000;
+	
 	for(l=all; l; l=l->next)
 		if(l->n->op == ODCLFUNC)
 			l->n->esc = EscFuncPlanned;
@@ -822,12 +835,17 @@ escassignfromtag(EscState *e, Strlit *note, NodeList *dsts, Node *src)
 		escassign(e, &e->theSink, src);
 		return em;
 	}
-	
+
 	if(em == EscNone)
 		return em;
+	
+	// If content inside parameter (reached via indirection)
+	// escapes back to results, mark as such.
+	if(em & EscContentEscapes)
+		escassign(e, &e->funcParam, src);
 
 	em0 = em;
-	for(em >>= EscBits; em && dsts; em >>= 1, dsts=dsts->next)
+	for(em >>= EscReturnBits; em && dsts; em >>= 1, dsts=dsts->next)
 		if(em & 1)
 			escassign(e, dsts->n, src);
 
@@ -1090,19 +1108,30 @@ escwalk(EscState *e, int level, Node *dst, Node *src)
 
 	// Input parameter flowing to output parameter?
 	if(dst->op == ONAME && dst->class == PPARAMOUT && dst->vargen <= 20) {
-		if(src->op == ONAME && src->class == PPARAM && level == 0 && src->curfn == dst->curfn) {
-			if(src->esc != EscScope && src->esc != EscHeap) {
+		if(src->op == ONAME && src->class == PPARAM && src->curfn == dst->curfn && src->esc != EscScope && src->esc != EscHeap) {
+			if(level == 0) {
 				if(debug['m'])
 					warnl(src->lineno, "leaking param: %hN to result %S", src, dst->sym);
 				if((src->esc&EscMask) != EscReturn)
 					src->esc = EscReturn;
-				src->esc |= 1<<((dst->vargen-1) + EscBits);
+				src->esc |= 1<<((dst->vargen-1) + EscReturnBits);
+				goto recurse;
+			} else if(level > 0) {
+				if(debug['m'])
+					warnl(src->lineno, "%N leaking param %hN content to result %S", src->curfn->nname, src, dst->sym);
+				if((src->esc&EscMask) != EscReturn)
+					src->esc = EscReturn;
+				src->esc |= EscContentEscapes;
 				goto recurse;
 			}
 		}
 	}
 
-	leaks = (level <= 0) && (dst->escloopdepth < src->escloopdepth);
+	// The second clause is for values pointed at by an object passed to a call
+	// that returns something reached via indirect from the object.
+	// We don't know which result it is or how many indirects, so we treat it as leaking.
+	leaks = level <= 0 && dst->escloopdepth < src->escloopdepth ||
+		level < 0 && dst == &e->funcParam && haspointers(src->type);
 
 	switch(src->op) {
 	case ONAME:
diff --git a/src/cmd/gc/go.h b/src/cmd/gc/go.h
index 3e24258639..413e71069d 100644
--- a/src/cmd/gc/go.h
+++ b/src/cmd/gc/go.h
@@ -236,8 +236,10 @@ enum
 	EscNone,
 	EscReturn,
 	EscNever,
-	EscBits = 4,
+	EscBits = 3,
 	EscMask = (1<<EscBits) - 1,
+	EscContentEscapes = 1<<EscBits, // value obtained by indirect of parameter escapes to some returned result
+	EscReturnBits = EscBits+1,
 };
 
 struct	Node
diff --git a/test/escape2.go b/test/escape2.go
index 382e8e6d64..8cb3b6df66 100644
--- a/test/escape2.go
+++ b/test/escape2.go
@@ -135,7 +135,7 @@ func (b *Bar) Leak() *int { // ERROR "leaking param: b"
 	return &b.i // ERROR "&b.i escapes to heap"
 }
 
-func (b *Bar) AlsoNoLeak() *int { // ERROR "b does not escape"
+func (b *Bar) AlsoNoLeak() *int { // ERROR "leaking param b content to result ~r0"
 	return b.ii
 }
 
@@ -149,7 +149,7 @@ func (b Bar) LeaksToo() *int { // ERROR "leaking param: b"
 	return b.ii
 }
 
-func (b *Bar) LeaksABit() *int { // ERROR "b does not escape"
+func (b *Bar) LeaksABit() *int { // ERROR "leaking param b content to result ~r0"
 	v := 0    // ERROR "moved to heap: v"
 	b.ii = &v // ERROR "&v escapes"
 	return b.ii
@@ -182,7 +182,7 @@ func (b *Bar2) Leak() []int { // ERROR "leaking param: b"
 	return b.i[:] // ERROR "b.i escapes to heap"
 }
 
-func (b *Bar2) AlsoNoLeak() []int { // ERROR "b does not escape"
+func (b *Bar2) AlsoNoLeak() []int { // ERROR "leaking param b content to result ~r0"
 	return b.ii[0:1]
 }
 
@@ -1443,3 +1443,28 @@ func bar151d() {
 	b := a[:]            // ERROR "a escapes to heap"
 	foo151(&b[4:8:8][0]) // ERROR "&b\[4:8:8\]\[0\] escapes to heap"
 }
+
+// issue 8120
+
+type U struct {
+	s *string
+}
+
+func (u *U) String() *string { // ERROR "leaking param u content to result ~r0"
+	return u.s
+}
+
+type V struct {
+	s *string
+}
+
+func NewV(u U) *V { // ERROR "leaking param: u"
+	return &V{u.String()} // ERROR "&V literal escapes to heap" "u does not escape"
+}
+
+func foo152() {
+	a := "a"   // ERROR "moved to heap: a"
+	u := U{&a} // ERROR "&a escapes to heap"
+	v := NewV(u)
+	println(v)
+}