diff --git a/src/test/py/bazel/runfiles_test.py b/src/test/py/bazel/runfiles_test.py
index e3f697cc554753..2c6a9c9d698db0 100644
--- a/src/test/py/bazel/runfiles_test.py
+++ b/src/test/py/bazel/runfiles_test.py
@@ -79,6 +79,8 @@ def testPythonRunfilesLibraryInBazelToolsRepo(self):
         ("bar/BUILD.mock", "bar/BUILD"),
         ("bar/bar.py", "bar/bar.py"),
         ("bar/bar-py-data.txt", "bar/bar-py-data.txt"),
+        ("bar/Bar.java", "bar/Bar.java"),
+        ("bar/bar-java-data.txt", "bar/bar-java-data.txt"),
     ]:
       self.CopyFile(
           self.Rlocation(
@@ -101,15 +103,21 @@ def testPythonRunfilesLibraryInBazelToolsRepo(self):
     exit_code, stdout, stderr = self.RunProgram(
         [bin_path], env_add={"TEST_SRCDIR": "__ignore_me__"})
     self.AssertExitCode(exit_code, 0, stderr)
-    if len(stdout) < 4:
+    if len(stdout) != 6:
       self.fail("stdout: %s" % stdout)
+
     self.assertEqual(stdout[0], "Hello Python Foo!")
     six.assertRegex(self, stdout[1], "^rloc=.*/foo/datadep/hello.txt")
     self.assertNotIn("__ignore_me__", stdout[1])
+
     self.assertEqual(stdout[2], "Hello Python Bar!")
     six.assertRegex(self, stdout[3], "^rloc=.*/bar/bar-py-data.txt")
     self.assertNotIn("__ignore_me__", stdout[3])
 
+    self.assertEqual(stdout[4], "Hello Java Bar!")
+    six.assertRegex(self, stdout[5], "^rloc=.*/bar/bar-java-data.txt")
+    self.assertNotIn("__ignore_me__", stdout[5])
+
     with open(stdout[1].split("=", 1)[1], "r") as f:
       lines = [l.strip() for l in f.readlines()]
     if len(lines) != 1:
@@ -122,6 +130,12 @@ def testPythonRunfilesLibraryInBazelToolsRepo(self):
       self.fail("lines: %s" % lines)
     self.assertEqual(lines[0], "data for bar.py")
 
+    with open(stdout[5].split("=", 1)[1], "r") as f:
+      lines = [l.strip() for l in f.readlines()]
+    if len(lines) != 1:
+      self.fail("lines: %s" % lines)
+    self.assertEqual(lines[0], "data for Bar.java")
+
   def testRunfilesLibrariesFindRunfilesWithoutEnvvars(self):
     for s, t in [
         ("WORKSPACE.mock", "WORKSPACE"),
diff --git a/src/test/py/bazel/testdata/runfiles_test/foo/BUILD.mock b/src/test/py/bazel/testdata/runfiles_test/foo/BUILD.mock
index 618ea723b972a4..15a3a7d467b3ad 100644
--- a/src/test/py/bazel/testdata/runfiles_test/foo/BUILD.mock
+++ b/src/test/py/bazel/testdata/runfiles_test/foo/BUILD.mock
@@ -4,6 +4,7 @@ py_binary(
     data = [
         "datadep/hello.txt",
         "//bar:bar-py",
+        "//bar:bar-java",
     ],
     main = "runfiles.py",
     deps = ["@bazel_tools//tools/runfiles:py-runfiles"],
diff --git a/src/test/py/bazel/testdata/runfiles_test/foo/runfiles.py b/src/test/py/bazel/testdata/runfiles_test/foo/runfiles.py
index 1be07c4e8fca69..32100447e95c55 100644
--- a/src/test/py/bazel/testdata/runfiles_test/foo/runfiles.py
+++ b/src/test/py/bazel/testdata/runfiles_test/foo/runfiles.py
@@ -53,18 +53,20 @@ def main():
   else:
     env = {}
   env.update(r.EnvVars())
-  p = subprocess.Popen(
-      [r.Rlocation(ChildBinaryName("py"))],
-      env=env,
-      stdout=subprocess.PIPE,
-      stderr=subprocess.PIPE)
-  out, err = p.communicate()
-  out = SplitToLines(out)
-  if len(out) >= 2:
-    print(out[0])  # e.g. "Hello Python Bar!"
-    print(out[1])  # e.g. "rloc=/tmp/foo_ws/bar/bar-py-data.txt"
-  else:
-    raise Exception("ERROR: error running bar-py: %s" % SplitToLines(err))
+  for lang in ["py", "java"]:
+    p = subprocess.Popen(
+        [r.Rlocation(ChildBinaryName(lang))],
+        env=env,
+        stdout=subprocess.PIPE,
+        stderr=subprocess.PIPE)
+    out, err = p.communicate()
+    out = SplitToLines(out)
+    if len(out) >= 2:
+      print(out[0])  # e.g. "Hello Python Bar!"
+      print(out[1])  # e.g. "rloc=/tmp/foo_ws/bar/bar-py-data.txt"
+    else:
+      raise Exception("ERROR: error running bar-%s: %s" % (lang,
+                                                           SplitToLines(err)))
 
 
 if __name__ == "__main__":
diff --git a/src/tools/runfiles/runfiles.py b/src/tools/runfiles/runfiles.py
index 8b00539a008fd3..3e062034fb3ad0 100644
--- a/src/tools/runfiles/runfiles.py
+++ b/src/tools/runfiles/runfiles.py
@@ -175,8 +175,23 @@ def _LoadRunfiles(path):
             result[tokens[0]] = tokens[1]
     return result
 
+  def _GetRunfilesDir(self):
+    if self._path.endswith("/MANIFEST") or self._path.endswith("\\MANIFEST"):
+      return self._path[:-len("/MANIFEST")]
+    elif self._path.endswith(".runfiles_manifest"):
+      return self._path[:-len("_manifest")]
+    else:
+      return ""
+
   def EnvVars(self):
-    return {"RUNFILES_MANIFEST_FILE": self._path}
+    directory = self._GetRunfilesDir()
+    return {
+        "RUNFILES_MANIFEST_FILE": self._path,
+        "RUNFILES_DIR": directory,
+        # TODO(laszlocsomor): remove JAVA_RUNFILES once the Java launcher can
+        # pick up RUNFILES_DIR.
+        "JAVA_RUNFILES": directory,
+    }
 
 
 class _DirectoryBased(object):
@@ -196,4 +211,9 @@ def RlocationChecked(self, path):
     return posixpath.join(self._runfiles_root, path)
 
   def EnvVars(self):
-    return {"RUNFILES_DIR": self._runfiles_root}
+    return {
+        "RUNFILES_DIR": self._runfiles_root,
+        # TODO(laszlocsomor): remove JAVA_RUNFILES once the Java launcher can
+        # pick up RUNFILES_DIR.
+        "JAVA_RUNFILES": self._runfiles_root,
+    }
diff --git a/src/tools/runfiles/runfiles_test.py b/src/tools/runfiles/runfiles_test.py
index eb022a675c2117..e4715568ebda47 100644
--- a/src/tools/runfiles/runfiles_test.py
+++ b/src/tools/runfiles/runfiles_test.py
@@ -42,7 +42,7 @@ def testRlocationArgumentValidation(self):
                               lambda: r.Rlocation("/foo"))
 
   def testCreatesManifestBasedRunfiles(self):
-    with _MockFile(["a/b c/d"]) as mf:
+    with _MockFile(contents=["a/b c/d"]) as mf:
       r = runfiles.Create({
           "RUNFILES_MANIFEST_FILE": mf.Path(),
           "RUNFILES_DIR": "ignored when RUNFILES_MANIFEST_FILE has a value",
@@ -50,7 +50,46 @@ def testCreatesManifestBasedRunfiles(self):
       })
       self.assertEqual(r.Rlocation("a/b"), "c/d")
       self.assertIsNone(r.Rlocation("foo"))
-      self.assertDictEqual(r.EnvVars(), {"RUNFILES_MANIFEST_FILE": mf.Path()})
+
+  def testManifestBasedRunfilesEnvVars(self):
+    with _MockFile(name="MANIFEST") as mf:
+      r = runfiles.Create({
+          "RUNFILES_MANIFEST_FILE": mf.Path(),
+          "TEST_SRCDIR": "always ignored",
+      })
+      self.assertDictEqual(
+          r.EnvVars(), {
+              "RUNFILES_MANIFEST_FILE": mf.Path(),
+              "RUNFILES_DIR": mf.Path()[:-len("/MANIFEST")],
+              "JAVA_RUNFILES": mf.Path()[:-len("/MANIFEST")],
+          })
+
+    with _MockFile(name="foo.runfiles_manifest") as mf:
+      r = runfiles.Create({
+          "RUNFILES_MANIFEST_FILE": mf.Path(),
+          "TEST_SRCDIR": "always ignored",
+      })
+      self.assertDictEqual(
+          r.EnvVars(), {
+              "RUNFILES_MANIFEST_FILE":
+                  mf.Path(),
+              "RUNFILES_DIR": (
+                  mf.Path()[:-len("foo.runfiles_manifest")] + "foo.runfiles"),
+              "JAVA_RUNFILES": (
+                  mf.Path()[:-len("foo.runfiles_manifest")] + "foo.runfiles"),
+          })
+
+    with _MockFile(name="x_manifest") as mf:
+      r = runfiles.Create({
+          "RUNFILES_MANIFEST_FILE": mf.Path(),
+          "TEST_SRCDIR": "always ignored",
+      })
+      self.assertDictEqual(
+          r.EnvVars(), {
+              "RUNFILES_MANIFEST_FILE": mf.Path(),
+              "RUNFILES_DIR": "",
+              "JAVA_RUNFILES": "",
+          })
 
   def testCreatesDirectoryBasedRunfiles(self):
     r = runfiles.Create({
@@ -59,7 +98,16 @@ def testCreatesDirectoryBasedRunfiles(self):
     })
     self.assertEqual(r.Rlocation("a/b"), "runfiles/dir/a/b")
     self.assertEqual(r.Rlocation("foo"), "runfiles/dir/foo")
-    self.assertDictEqual(r.EnvVars(), {"RUNFILES_DIR": "runfiles/dir"})
+
+  def testDirectoryBasedRunfilesEnvVars(self):
+    r = runfiles.Create({
+        "RUNFILES_DIR": "runfiles/dir",
+        "TEST_SRCDIR": "always ignored",
+    })
+    self.assertDictEqual(r.EnvVars(), {
+        "RUNFILES_DIR": "runfiles/dir",
+        "JAVA_RUNFILES": "runfiles/dir",
+    })
 
   def testFailsToCreateManifestBasedBecauseManifestDoesNotExist(self):
 
@@ -69,7 +117,7 @@ def _Run():
     self.assertRaisesRegexp(IOError, "non-existing path", _Run)
 
   def testFailsToCreateAnyRunfilesBecauseEnvvarsAreNotDefined(self):
-    with _MockFile(["a b"]) as mf:
+    with _MockFile(contents=["a b"]) as mf:
       runfiles.Create({
           "RUNFILES_MANIFEST_FILE": mf.Path(),
           "RUNFILES_DIR": "whatever",
@@ -83,7 +131,7 @@ def testFailsToCreateAnyRunfilesBecauseEnvvarsAreNotDefined(self):
     self.assertIsNone(runfiles.Create({"FOO": "bar"}))
 
   def testManifestBasedRlocation(self):
-    with _MockFile([
+    with _MockFile(contents=[
         "Foo/runfile1", "Foo/runfile2 C:/Actual Path\\runfile2",
         "Foo/Bar/runfile3 D:\\the path\\run file 3.txt"
     ]) as mf:
@@ -93,7 +141,6 @@ def testManifestBasedRlocation(self):
       self.assertEqual(
           r.Rlocation("Foo/Bar/runfile3"), "D:\\the path\\run file 3.txt")
       self.assertIsNone(r.Rlocation("unknown"))
-      self.assertDictEqual(r.EnvVars(), {"RUNFILES_MANIFEST_FILE": mf.Path()})
 
   def testDirectoryBasedRlocation(self):
     # The _DirectoryBased strategy simply joins the runfiles directory and the
@@ -101,7 +148,6 @@ def testDirectoryBasedRlocation(self):
     # nor does it check that the path exists.
     r = runfiles.CreateDirectoryBased("foo/bar baz//qux/")
     self.assertEqual(r.Rlocation("arg"), "foo/bar baz//qux/arg")
-    self.assertDictEqual(r.EnvVars(), {"RUNFILES_DIR": "foo/bar baz//qux/"})
 
   @staticmethod
   def IsWindows():
@@ -110,13 +156,14 @@ def IsWindows():
 
 class _MockFile(object):
 
-  def __init__(self, contents):
-    self._contents = contents
+  def __init__(self, name=None, contents=None):
+    self._contents = contents or []
+    self._name = name or "x"
     self._path = None
 
   def __enter__(self):
     tmpdir = os.environ.get("TEST_TMPDIR")
-    self._path = os.path.join(tempfile.mkdtemp(dir=tmpdir), "x")
+    self._path = os.path.join(tempfile.mkdtemp(dir=tmpdir), self._name)
     with open(self._path, "wt") as f:
       f.writelines(l + "\n" for l in self._contents)
     return self