3 files changed, 28 insertions, 12 deletions
diff --git a/src/library/scala/Array.scala b/src/library/scala/Array.scala
index 9712990d73..250fd09602 100644
--- a/src/library/scala/Array.scala
+++ b/src/library/scala/Array.scala
@@ -363,13 +363,18 @@ object Array extends FallbackArrayBuilding {
    */
   def iterate[T: ClassManifest](start: T, len: Int)(f: T => T): Array[T] = {
     val b = newBuilder[T]
-    b.sizeHint(len)
-    var acc = start
-    var i = 0
-    while (i < len) {
+
+    if (len > 0) {
+      b.sizeHint(len)
+      var acc = start
+      var i = 1
       b += acc
-      acc = f(acc)
-      i += 1
+
+      while (i < len) {
+        acc = f(acc)
+        i += 1
+        b += acc
+      }
     }
     b.result
   }
diff --git a/src/library/scala/collection/generic/TraversableFactory.scala b/src/library/scala/collection/generic/TraversableFactory.scala
index d8541d2714..c6f5ce4dde 100644
--- a/src/library/scala/collection/generic/TraversableFactory.scala
+++ b/src/library/scala/collection/generic/TraversableFactory.scala
@@ -224,13 +224,17 @@ abstract class TraversableFactory[CC[X] <: Traversable[X] with GenericTraversabl
    */
   def iterate[A](start: A, len: Int)(f: A => A): CC[A] = {
     val b = newBuilder[A]
-    b.sizeHint(len)
-    var acc = start
-    var i = 0
-    while (i < len) {
+    if (len > 0) {
+      b.sizeHint(len)
+      var acc = start
+      var i = 1
       b += acc
-      acc = f(acc)
-      i += 1
+
+      while (i < len) {
+        acc = f(acc)
+        i += 1
+        b += acc
+      }
     }
     b.result
   }
diff --git a/test/files/run/bug3540.scala b/test/files/run/bug3540.scala
new file mode 100644
index 0000000000..5ffacb5dff
--- /dev/null
+++ b/test/files/run/bug3540.scala
@@ -0,0 +1,7 @@
+object Test {
+  def main(args: Array[String]): Unit = {
+    assert(List.iterate(List(1,2,3), 4)(_.tail).last.isEmpty)
+    assert(Stream.iterate(Stream(1,2,3), 4)(_.tail).last.isEmpty)
+    assert(Array.iterate(Array(1,2,3), 4)(_.tail).last.isEmpty)
+  }
+}