diff --git a/mysql-test/r/federated.result b/mysql-test/r/federated.result
index 3a934e7fe3c..685e4d0c335 100644
--- a/mysql-test/r/federated.result
+++ b/mysql-test/r/federated.result
@@ -2069,6 +2069,8 @@ a	b
 1	1
 DROP TABLE t1;
 DROP TABLE t1;
+CREATE TABLE t1 (a INT) ENGINE=federated CONNECTION='mysql://@:://';
+DROP TABLE t1;
 DROP TABLE IF EXISTS federated.t1;
 DROP DATABASE IF EXISTS federated;
 DROP TABLE IF EXISTS federated.t1;
diff --git a/mysql-test/t/federated.test b/mysql-test/t/federated.test
index 934db5cd68b..9e7548a21ed 100644
--- a/mysql-test/t/federated.test
+++ b/mysql-test/t/federated.test
@@ -1738,4 +1738,16 @@ DROP TABLE t1;
 connection slave;
 DROP TABLE t1;
 
+#
+# BUG#34788 - malformed federated connection url is not handled correctly -
+#             crashes server !
+#
+# also tests
+#
+# BUG#35509 - Federated leaks memory when connecting to localhost/default
+#             port
+#
+CREATE TABLE t1 (a INT) ENGINE=federated CONNECTION='mysql://@:://';
+DROP TABLE t1;
+
 source include/federated_cleanup.inc;
diff --git a/sql/ha_federated.cc b/sql/ha_federated.cc
index c0743bd6c9a..d414dc34f02 100644
--- a/sql/ha_federated.cc
+++ b/sql/ha_federated.cc
@@ -643,13 +643,20 @@ static int parse_url(FEDERATED_SHARE *share, TABLE *table,
   if ((strchr(share->table_name, '/')))
     goto error;
 
+  /*
+    If hostname is omitted, we set it to NULL. According to
+    mysql_real_connect() manual:
+    The value of host may be either a hostname or an IP address.
+    If host is NULL or the string "localhost", a connection to the
+    local host is assumed.
+  */
   if (share->hostname[0] == '\0')
     share->hostname= NULL;
 
   if (!share->port)
   {
-    if (strcmp(share->hostname, my_localhost) == 0)
-      share->socket= my_strdup(MYSQL_UNIX_ADDR, MYF(0));
+    if (!share->hostname || strcmp(share->hostname, my_localhost) == 0)
+      share->socket= (char*) MYSQL_UNIX_ADDR;
     else
       share->port= MYSQL_PORT;
   }
@@ -1335,7 +1342,6 @@ static int free_share(FEDERATED_SHARE *share)
   {
     hash_delete(&federated_open_tables, (byte*) share);
     my_free((gptr) share->scheme, MYF(MY_ALLOW_ZERO_PTR));
-    my_free((gptr) share->socket, MYF(MY_ALLOW_ZERO_PTR));
     thr_lock_delete(&share->lock);
     VOID(pthread_mutex_destroy(&share->mutex));
     my_free((gptr) share, MYF(0));