diff --git a/NEWS b/NEWS
index d2537c4f92b..d7da084b1ea 100644
--- a/NEWS
+++ b/NEWS
@@ -49,6 +49,7 @@ PHP                                                                        NEWS
 - Fixed bug #42069 (parse_ini_file() allows using some non-alpha numeric
   characters). (Jani)
 - Fixed bug #37911 (preg_replace_callback() ignores named groups). (Nuno)
+- Fixed bug #35163 (Array elements can lose references). (Dmitry)
 - Fixed bug #27372 (parse error loading browscap.ini at apache startup).
   (Jani)
 
diff --git a/Zend/tests/bug35163.phpt b/Zend/tests/bug35163.phpt
new file mode 100755
index 00000000000..4501fa9372c
--- /dev/null
+++ b/Zend/tests/bug35163.phpt
@@ -0,0 +1,38 @@
+--TEST--
+Bug #35163 (Array elements can lose references)
+--FILE--
+<?php
+$a = array(array(1));
+$a[0][] =& $a[0];
+$a[0][] =& $a[0];
+$a[0][0] = 2;
+var_dump($a);
+$a[0] = null;
+$a = null;
+?>
+--EXPECT--
+array(1) {
+  [0]=>
+  &array(3) {
+    [0]=>
+    int(2)
+    [1]=>
+    &array(3) {
+      [0]=>
+      int(2)
+      [1]=>
+      *RECURSION*
+      [2]=>
+      *RECURSION*
+    }
+    [2]=>
+    &array(3) {
+      [0]=>
+      int(2)
+      [1]=>
+      *RECURSION*
+      [2]=>
+      *RECURSION*
+    }
+  }
+}
diff --git a/Zend/zend_compile.c b/Zend/zend_compile.c
index 636a9c29ee0..e2a3621d139 100644
--- a/Zend/zend_compile.c
+++ b/Zend/zend_compile.c
@@ -927,6 +927,9 @@ void zend_do_end_variable_parse(int type, int arg_offset TSRMLS_DC)
 			if (le == NULL) break;
 			opline_ptr = (zend_op *)le->data;
 		}
+		if (opline->opcode == ZEND_FETCH_DIM_W) {
+			opline->extended_value = arg_offset;
+		}
 	}
 	zend_llist_destroy(fetch_list_ptr);
 	zend_stack_del_top(&CG(bp_stack));
diff --git a/Zend/zend_language_parser.y b/Zend/zend_language_parser.y
index 73fc0551629..7bab0f323d5 100644
--- a/Zend/zend_language_parser.y
+++ b/Zend/zend_language_parser.y
@@ -567,7 +567,7 @@ non_empty_for_expr:
 expr_without_variable:
 		T_LIST '(' { zend_do_list_init(TSRMLS_C); } assignment_list ')' '=' expr { zend_do_list_end(&$$, &$7 TSRMLS_CC); }
 	|	variable '=' expr		{ zend_check_writable_variable(&$1); zend_do_end_variable_parse(BP_VAR_W, 0 TSRMLS_CC); zend_do_assign(&$$, &$1, &$3 TSRMLS_CC); }
-	|	variable '=' '&' variable { zend_check_writable_variable(&$1); zend_do_end_variable_parse(BP_VAR_W, 0 TSRMLS_CC); zend_do_end_variable_parse(BP_VAR_W, 0 TSRMLS_CC); zend_do_assign_ref(&$$, &$1, &$4 TSRMLS_CC); }
+	|	variable '=' '&' variable { zend_check_writable_variable(&$1); zend_do_end_variable_parse(BP_VAR_W, 1 TSRMLS_CC); zend_do_end_variable_parse(BP_VAR_W, 0 TSRMLS_CC); zend_do_assign_ref(&$$, &$1, &$4 TSRMLS_CC); }
 	|	variable '=' '&' T_NEW class_name_reference { zend_error(E_STRICT, "Assigning the return value of new by reference is deprecated");  zend_check_writable_variable(&$1); zend_do_extended_fcall_begin(TSRMLS_C); zend_do_begin_new_object(&$4, &$5 TSRMLS_CC); } ctor_arguments { zend_do_end_new_object(&$3, &$4, &$7 TSRMLS_CC); zend_do_extended_fcall_end(TSRMLS_C); zend_do_end_variable_parse(BP_VAR_W, 0 TSRMLS_CC); zend_do_assign_ref(&$$, &$1, &$3 TSRMLS_CC); }
 	|	T_NEW class_name_reference { zend_do_extended_fcall_begin(TSRMLS_C); zend_do_begin_new_object(&$1, &$2 TSRMLS_CC); } ctor_arguments { zend_do_end_new_object(&$$, &$1, &$4 TSRMLS_CC); zend_do_extended_fcall_end(TSRMLS_C);}
 	|	T_CLONE expr { zend_do_clone(&$$, &$2 TSRMLS_CC); }
diff --git a/Zend/zend_vm_def.h b/Zend/zend_vm_def.h
index 54af310f5a9..7e1a41bbb66 100644
--- a/Zend/zend_vm_def.h
+++ b/Zend/zend_vm_def.h
@@ -1066,6 +1066,14 @@ ZEND_VM_HANDLER(84, ZEND_FETCH_DIM_W, VAR|CV, CONST|TMP|VAR|UNUSED|CV)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 	FREE_OP1_VAR_PTR();
+
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {		
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
diff --git a/Zend/zend_vm_execute.h b/Zend/zend_vm_execute.h
index 5cd25157e6e..7a9a99fcdfa 100644
--- a/Zend/zend_vm_execute.h
+++ b/Zend/zend_vm_execute.h
@@ -9219,6 +9219,14 @@ static int ZEND_FETCH_DIM_W_SPEC_VAR_CONST_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 	if (free_op1.var) {zval_ptr_dtor(&free_op1.var);};
+
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -10862,6 +10870,14 @@ static int ZEND_FETCH_DIM_W_SPEC_VAR_TMP_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 	if (free_op1.var) {zval_ptr_dtor(&free_op1.var);};
+
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -12441,6 +12457,14 @@ static int ZEND_FETCH_DIM_W_SPEC_VAR_VAR_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 	if (free_op1.var) {zval_ptr_dtor(&free_op1.var);};
+
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -13623,6 +13647,14 @@ static int ZEND_FETCH_DIM_W_SPEC_VAR_UNUSED_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 	if (free_op1.var) {zval_ptr_dtor(&free_op1.var);};
+
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -14581,6 +14613,14 @@ static int ZEND_FETCH_DIM_W_SPEC_VAR_CV_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 	if (free_op1.var) {zval_ptr_dtor(&free_op1.var);};
+
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -21692,6 +21732,13 @@ static int ZEND_FETCH_DIM_W_SPEC_CV_CONST_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -23171,6 +23218,13 @@ static int ZEND_FETCH_DIM_W_SPEC_CV_TMP_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -24653,6 +24707,13 @@ static int ZEND_FETCH_DIM_W_SPEC_CV_VAR_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -25737,6 +25798,13 @@ static int ZEND_FETCH_DIM_W_SPEC_CV_UNUSED_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }
 
@@ -26605,6 +26673,13 @@ static int ZEND_FETCH_DIM_W_SPEC_CV_CV_HANDLER(ZEND_OPCODE_HANDLER_ARGS)
 		AI_USE_PTR(EX_T(opline->result.u.var).var);
 	}
 
+	/* We are going to assign the result by reference */
+	if (opline->extended_value) {
+		Z_DELREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+		SEPARATE_ZVAL_TO_MAKE_IS_REF(EX_T(opline->result.u.var).var.ptr_ptr);
+		Z_ADDREF_PP(EX_T(opline->result.u.var).var.ptr_ptr);
+	}
+
 	ZEND_VM_NEXT_OPCODE();
 }