diff --git a/regression/cbmc-java/phi-merge_uninitialized_values/PhiMergeUninitialized.class b/regression/cbmc-java/phi-merge_uninitialized_values/PhiMergeUninitialized.class
new file mode 100644
index 00000000000..1f36e928d7a
Binary files /dev/null and b/regression/cbmc-java/phi-merge_uninitialized_values/PhiMergeUninitialized.class differ
diff --git a/regression/cbmc-java/phi-merge_uninitialized_values/PhiMergeUninitialized.java b/regression/cbmc-java/phi-merge_uninitialized_values/PhiMergeUninitialized.java
new file mode 100644
index 00000000000..9e20f0124d9
--- /dev/null
+++ b/regression/cbmc-java/phi-merge_uninitialized_values/PhiMergeUninitialized.java
@@ -0,0 +1,54 @@
+public class PhiMergeUninitialized {
+
+    public int dynamicAllocationUninitialized(Boolean trigger) {
+
+        Ephemeral obj;
+        if (trigger) {
+            obj = new Ephemeral(42);
+        } else {
+            obj = new Aetherial(20);
+        }
+
+        assert obj.val == 20;
+        return obj.val;
+    }
+
+    private Ephemeral field;
+
+    public int fieldUninitialized(Boolean trigger) {
+        if (trigger) {
+            field = new Ephemeral(42);
+        }
+
+        assert field.val == 42;
+        return field.val;
+    }
+
+    private static Ephemeral staticField;
+
+    public int staticFieldUninitialized(Boolean trigger) {
+        if (trigger) {
+            staticField = new Ephemeral(42);
+        } else {
+            staticField = new Aetherial(76);
+        }
+
+        assert staticField.val == 76;
+        return staticField.val;
+    }
+
+    class Ephemeral {
+        Ephemeral(int value) {
+            val = value;
+        }
+
+        int val;
+    }
+
+    class Aetherial extends Ephemeral {
+        Aetherial(int value) {
+            super(value);
+        }
+    }
+}
+
diff --git a/regression/cbmc-java/phi-merge_uninitialized_values/field.desc b/regression/cbmc-java/phi-merge_uninitialized_values/field.desc
new file mode 100644
index 00000000000..f83a55f6641
--- /dev/null
+++ b/regression/cbmc-java/phi-merge_uninitialized_values/field.desc
@@ -0,0 +1,16 @@
+CORE 
+PhiMergeUninitialized.class
+--function PhiMergeUninitialized.fieldUninitialized --show-vcc
+activate-multi-line-match
+^EXIT=0$
+^SIGNAL=0$
+--
+^.*:\s+(dynamic_object|new_tmp)[0-9]+(@[0-9]+)?#0\)
+^.*\?\s+(dynamic_object|new_tmp)[0-9]+(@[0-9]+)?#0\s+:
+--
+These regexes are making sure that a variable of generation 0 dosen't appear in a phi merge, so the below
+statement:
+
+ (guard ? dynamic_object2@3#1 : dynamic_object3@3#0)
+
+Should not appear. First regex deals with when the gen zero is the latter position, second when it's in the former.
\ No newline at end of file
diff --git a/regression/cbmc-java/phi-merge_uninitialized_values/local.desc b/regression/cbmc-java/phi-merge_uninitialized_values/local.desc
new file mode 100644
index 00000000000..0369f5967a7
--- /dev/null
+++ b/regression/cbmc-java/phi-merge_uninitialized_values/local.desc
@@ -0,0 +1,16 @@
+CORE 
+PhiMergeUninitialized.class
+--function PhiMergeUninitialized.dynamicAllocationUninitialized --show-vcc
+activate-multi-line-match
+^EXIT=0$
+^SIGNAL=0$
+--
+^.*:\s+(dynamic_object|new_tmp)[0-9]+(@[0-9]+)?#0\)
+^.*\?\s+(dynamic_object|new_tmp)[0-9]+(@[0-9]+)?#0\s+:
+--
+These regexes are making sure that a variable of generation 0 dosen't appear in a phi merge, so the below
+statement:
+
+ (guard ? dynamic_object2@3#1 : dynamic_object3@3#0)
+
+Should not appear. First regex deals with when the gen zero is the latter position, second when it's in the former.
\ No newline at end of file
diff --git a/regression/cbmc-java/phi-merge_uninitialized_values/static_field.desc b/regression/cbmc-java/phi-merge_uninitialized_values/static_field.desc
new file mode 100644
index 00000000000..6289e5f872a
--- /dev/null
+++ b/regression/cbmc-java/phi-merge_uninitialized_values/static_field.desc
@@ -0,0 +1,16 @@
+CORE 
+PhiMergeUninitialized.class
+--function PhiMergeUninitialized.staticFieldUninitialized --show-vcc
+activate-multi-line-match
+^EXIT=0$
+^SIGNAL=0$
+--
+^.*:\s+(dynamic_object|new_tmp)[0-9]+(@[0-9]+)?#0\)
+^.*\?\s+(dynamic_object|new_tmp)[0-9]+(@[0-9]+)?#0\s+:
+--
+These regexes are making sure that a variable of generation 0 dosen't appear in a phi merge, so the below
+statement:
+
+ (guard ? dynamic_object2@3#1 : dynamic_object3@3#0)
+
+Should not appear. First regex deals with when the gen zero is the latter position, second when it's in the former.
\ No newline at end of file
diff --git a/regression/cbmc/phi-merge_uninitialized_values/dynamic.desc b/regression/cbmc/phi-merge_uninitialized_values/dynamic.desc
new file mode 100644
index 00000000000..a6a1dbd4839
--- /dev/null
+++ b/regression/cbmc/phi-merge_uninitialized_values/dynamic.desc
@@ -0,0 +1,16 @@
+CORE 
+test.c
+--function dynamicAllocationUninitialized --show-vcc
+activate-multi-line-match
+^EXIT=0$
+^SIGNAL=0$
+--
+^.*:\s+dynamic_object[0-9]+(@[0-9]+)?#0\)
+^.*\?\s+dynamic_object[0-9]+(@[0-9]+)?#0\s+:
+--
+These regexes are making sure that a variable of generation 0 dosen't appear in a phi merge, so the below
+statement:
+
+ (guard ? dynamic_object2@3#1 : dynamic_object3@3#0)
+
+Should not appear. First regex deals with when the gen zero is the latter position, second when it's in the former.
\ No newline at end of file
diff --git a/regression/cbmc/phi-merge_uninitialized_values/global.desc b/regression/cbmc/phi-merge_uninitialized_values/global.desc
new file mode 100644
index 00000000000..95483b1acfb
--- /dev/null
+++ b/regression/cbmc/phi-merge_uninitialized_values/global.desc
@@ -0,0 +1,16 @@
+CORE 
+test.c
+--function globalUninitialized --show-vcc
+activate-multi-line-match
+^EXIT=0$
+^SIGNAL=0$
+--
+^.*:\s+global(@[0-9]+)?#0\)
+^.*\?\s+global(@[0-9]+)?#0\s+:
+--
+These regexes are making sure that a variable of generation 0 dosen't appear in a phi merge, so the below
+statement:
+
+ (guard ? global#1 : global#0)
+
+Should not appear. First regex deals with when the gen zero is the latter position, second when it's in the former.
\ No newline at end of file
diff --git a/regression/cbmc/phi-merge_uninitialized_values/local.desc b/regression/cbmc/phi-merge_uninitialized_values/local.desc
new file mode 100644
index 00000000000..459d31c32b0
--- /dev/null
+++ b/regression/cbmc/phi-merge_uninitialized_values/local.desc
@@ -0,0 +1,16 @@
+CORE 
+test.c
+--function localUninitialized --show-vcc
+activate-multi-line-match
+^EXIT=0$
+^SIGNAL=0$
+--
+^.*:\s+local(@[0-9]+)?#0\)
+^.*\?\s+local(@[0-9]+)?#0\s+:
+--
+These regexes are making sure that a variable of generation 0 dosen't appear in a phi merge, so the below
+statement:
+
+ (guard ? local#1 : local#0)
+
+Should not appear. First regex deals with when the gen zero is the latter position, second when it's in the former.
\ No newline at end of file
diff --git a/regression/cbmc/phi-merge_uninitialized_values/static_local.desc b/regression/cbmc/phi-merge_uninitialized_values/static_local.desc
new file mode 100644
index 00000000000..ce1ed0f81c8
--- /dev/null
+++ b/regression/cbmc/phi-merge_uninitialized_values/static_local.desc
@@ -0,0 +1,16 @@
+CORE 
+test.c
+--function staticLocalUninitialized --show-vcc
+activate-multi-line-match
+^EXIT=0$
+^SIGNAL=0$
+--
+^.*:\s+staticLocal(@[0-9]+)?#0\)
+^.*\?\s+staticLocal(@[0-9]+)?#0\s+:
+--
+These regexes are making sure that a variable of generation 0 dosen't appear in a phi merge, so the below
+statement:
+
+ (guard ? staticLocal#1 : dynamic_object#0)
+
+Should not appear. First regex deals with when the gen zero is the latter position, second when it's in the former.
\ No newline at end of file
diff --git a/regression/cbmc/phi-merge_uninitialized_values/test.c b/regression/cbmc/phi-merge_uninitialized_values/test.c
new file mode 100644
index 00000000000..1dcdd7194a0
--- /dev/null
+++ b/regression/cbmc/phi-merge_uninitialized_values/test.c
@@ -0,0 +1,56 @@
+#include <assert.h>
+#include <stdlib.h>
+
+void dynamicAllocationUninitialized(int trigger)
+{
+  int *obj;
+  if(trigger)
+  {
+    obj = (int *)malloc(sizeof(int));
+    *obj = 42;
+  }
+  else
+  {
+    obj = (int *)malloc(sizeof(int));
+    *obj = 76;
+  }
+
+  assert(*obj == 42);
+}
+
+int global;
+void globalUninitialized(int trigger)
+{
+  if(trigger)
+  {
+    global = 44;
+  }
+  else
+  {
+    global = 20;
+  }
+
+  assert(global == 44);
+}
+
+void staticLocalUninitialized(int trigger)
+{
+  static int staticLocal;
+  if(trigger)
+  {
+    staticLocal = 43;
+  }
+
+  assert(staticLocal == 43);
+}
+
+void localUninitialized(int trigger)
+{
+  int local;
+  if(trigger)
+  {
+    local = 24;
+  }
+
+  assert(local == 24);
+}
diff --git a/regression/test.pl b/regression/test.pl
index 92639accd3f..d137e2dbb84 100755
--- a/regression/test.pl
+++ b/regression/test.pl
@@ -174,7 +174,7 @@ ($$$$$$$$$)
             binmode $fh;
             my $whole_file = <$fh>;
             $whole_file =~ s/\r\n/\n/g;
-            my $is_match = $whole_file =~ /$result/;
+            my $is_match = $whole_file =~ /$result/m;
             $r = ($included ? !$is_match : $is_match);
           }
           else
diff --git a/src/goto-symex/goto_symex.cpp b/src/goto-symex/goto_symex.cpp
index bfd37cee334..3a5bea45c52 100644
--- a/src/goto-symex/goto_symex.cpp
+++ b/src/goto-symex/goto_symex.cpp
@@ -22,13 +22,19 @@ void goto_symext::do_simplify(exprt &expr)
     simplify(expr, ns);
 }
 
+nondet_symbol_exprt goto_symext::build_symex_nondet(typet &type)
+{
+  irep_idt identifier = "symex::nondet" + std::to_string(nondet_count++);
+  nondet_symbol_exprt new_expr(identifier, type);
+  return new_expr;
+}
+
 void goto_symext::replace_nondet(exprt &expr)
 {
   if(expr.id()==ID_side_effect &&
      expr.get(ID_statement)==ID_nondet)
   {
-    irep_idt identifier="symex::nondet"+std::to_string(nondet_count++);
-    nondet_symbol_exprt new_expr(identifier, expr.type());
+    nondet_symbol_exprt new_expr = build_symex_nondet(expr.type());
     new_expr.add_source_location()=expr.source_location();
     expr.swap(new_expr);
   }
diff --git a/src/goto-symex/goto_symex.h b/src/goto-symex/goto_symex.h
index 7811a4497eb..335d477ce96 100644
--- a/src/goto-symex/goto_symex.h
+++ b/src/goto-symex/goto_symex.h
@@ -368,6 +368,8 @@ class goto_symext
     exprt &code,
     const irep_idt &identifier);
 
+  nondet_symbol_exprt build_symex_nondet(typet &type);
+
   // exceptions
   void symex_throw(statet &);
   void symex_catch(statet &);
diff --git a/src/goto-symex/symex_builtin_functions.cpp b/src/goto-symex/symex_builtin_functions.cpp
index f827f1ecaea..1fff82d17fa 100644
--- a/src/goto-symex/symex_builtin_functions.cpp
+++ b/src/goto-symex/symex_builtin_functions.cpp
@@ -184,6 +184,12 @@ void goto_symext::symex_allocate(
     else
       throw "failed to zero initialize dynamic object";
   }
+  else
+  {
+    exprt nondet = build_symex_nondet(object_type);
+    code_assignt assignment(value_symbol.symbol_expr(), nondet);
+    symex_assign(state, assignment);
+  }
 
   exprt rhs;
 
diff --git a/src/goto-symex/symex_goto.cpp b/src/goto-symex/symex_goto.cpp
index 5951cd8284c..409de30c2c6 100644
--- a/src/goto-symex/symex_goto.cpp
+++ b/src/goto-symex/symex_goto.cpp
@@ -443,10 +443,22 @@ void goto_symext::phi_function(
 
     exprt rhs;
 
+    // Don't add a conditional to the assignment when:
+    //  1. Either guard is false, so we can't follow that branch.
+    //  2. Either identifier is of generation zero, and so hasn't been
+    //     initialized and therefor an invalid target.
     if(dest_state.guard.is_false())
       rhs=goto_state_rhs;
     else if(goto_state.guard.is_false())
       rhs=dest_state_rhs;
+    else if(goto_state.level2_current_count(l1_identifier) == 0)
+    {
+      rhs = dest_state_rhs;
+    }
+    else if(dest_state.level2.current_count(l1_identifier) == 0)
+    {
+      rhs = goto_state_rhs;
+    }
     else
     {
       rhs=if_exprt(diff_guard.as_expr(), goto_state_rhs, dest_state_rhs);