diff --git a/Zend/tests/type_declarations/intersection_types/assigning_intersection_types.phpt b/Zend/tests/type_declarations/intersection_types/assigning_intersection_types.phpt
index 568e6e25afade..8a18d83b66656 100644
--- a/Zend/tests/type_declarations/intersection_types/assigning_intersection_types.phpt
+++ b/Zend/tests/type_declarations/intersection_types/assigning_intersection_types.phpt
@@ -20,6 +20,9 @@ class A {
     public function method2(X $a): X&Y {
         return new TestParent();
     }
+    public function method3(X&Y|null $a): X&Y|null {
+        return $a;
+    }
 }
 
 $tp = new TestParent();
@@ -42,7 +45,10 @@ $r = $o->method1($tc);
 var_dump($r);
 $r = $o->method2($tc);
 var_dump($r);
-
+$r = $o->method3($tc);
+var_dump($r);
+$r = $o->method3(null);
+var_dump($r);
 
 ?>
 --EXPECTF--
@@ -55,3 +61,6 @@ object(TestChild)#%d (0) {
 }
 object(TestParent)#%d (0) {
 }
+object(TestChild)#%d (0) {
+}
+NULL
diff --git a/Zend/tests/type_declarations/intersection_types/bug81268.phpt b/Zend/tests/type_declarations/intersection_types/bug81268.phpt
index 19f86d4eeb960..6a317fea3dd17 100644
--- a/Zend/tests/type_declarations/intersection_types/bug81268.phpt
+++ b/Zend/tests/type_declarations/intersection_types/bug81268.phpt
@@ -1,5 +1,5 @@
 --TEST--
-Bug #81268 Wrong message when using null as a default value for intersection types
+Bug #81268 Message when using null as a default value for intersection types
 --FILE--
 <?php
 
@@ -9,4 +9,4 @@ class Test {
 
 ?>
 --EXPECTF--
-Fatal error: Cannot use null as default value for property Test::$y of type X&Y in %s on line %d
+Fatal error: Default value for property of type X&Y may not be null. Use the nullable type X&Y|null to allow null default value in %s on line %d
diff --git a/Zend/tests/type_declarations/intersection_types/implicit_nullable_intersection_type.phpt b/Zend/tests/type_declarations/intersection_types/implicit_nullable_intersection_type.phpt
index fdac7576a78f8..23681a5cd5c69 100644
--- a/Zend/tests/type_declarations/intersection_types/implicit_nullable_intersection_type.phpt
+++ b/Zend/tests/type_declarations/intersection_types/implicit_nullable_intersection_type.phpt
@@ -1,10 +1,12 @@
 --TEST--
-Intersection types cannot be implicitly nullable
+Intersection types can be implicitly nullable as the others
 --FILE--
 <?php
 
-function foo(X&Y $foo = null) {}
+function foo(X&Y $foo = null) { return $foo; }
+
+var_dump(foo());
 
 ?>
---EXPECTF--
-Fatal error: Cannot use null as default value for parameter $foo of type X&Y in %s on line %d
+--EXPECT--
+NULL
diff --git a/Zend/tests/type_declarations/intersection_types/invalid_types/invalid_nullable_type.phpt b/Zend/tests/type_declarations/intersection_types/invalid_types/invalid_nullable_type.phpt
deleted file mode 100644
index 1c35dfdf91c70..0000000000000
--- a/Zend/tests/type_declarations/intersection_types/invalid_types/invalid_nullable_type.phpt
+++ /dev/null
@@ -1,10 +0,0 @@
---TEST--
-Intersection type cannot be nullable
---FILE--
-<?php
-
-function foo(): ?Countable&Iterator {}
-
-?>
---EXPECTF--
-Parse error: syntax error, unexpected token "&", expecting "{" in %s on line %d
diff --git a/Zend/tests/type_declarations/intersection_types/parameter.phpt b/Zend/tests/type_declarations/intersection_types/parameter.phpt
index d1c7de2243654..a84b2bef5ccb7 100644
--- a/Zend/tests/type_declarations/intersection_types/parameter.phpt
+++ b/Zend/tests/type_declarations/intersection_types/parameter.phpt
@@ -9,10 +9,11 @@ interface B {}
 class Foo implements A, B {}
 class Bar implements A {}
 
-function foo(A&B $bar) {
+function foo(A&B|null $bar) {
     var_dump($bar);
 }
 
+foo(null);
 foo(new Foo());
 
 try {
@@ -23,6 +24,7 @@ try {
 
 ?>
 --EXPECTF--
+NULL
 object(Foo)#1 (0) {
 }
-foo(): Argument #1 ($bar) must be of type A&B, Bar given, called in %s on line %d
+foo(): Argument #1 ($bar) must be of type A&B|null, Bar given, called in %s on line %d
diff --git a/Zend/tests/type_declarations/intersection_types/typed_reference2.phpt b/Zend/tests/type_declarations/intersection_types/typed_reference2.phpt
new file mode 100644
index 0000000000000..ade1405c0e4fc
--- /dev/null
+++ b/Zend/tests/type_declarations/intersection_types/typed_reference2.phpt
@@ -0,0 +1,31 @@
+--TEST--
+Intersection types and typed reference
+--FILE--
+<?php
+
+interface X {}
+interface Y {}
+interface Z {}
+
+class A implements X, Y, Z {}
+class B implements X, Y {}
+
+class Test {
+    public X&Y|null $y;
+    public X&Z $z;
+}
+$test = new Test;
+$r = new A;
+$test->y =& $r;
+$test->z =& $r;
+
+
+try {
+    $r = null;
+} catch (\TypeError $e) {
+    echo $e->getMessage(), \PHP_EOL;
+}
+
+?>
+--EXPECT--
+Cannot assign null to reference held by property Test::$z of type X&Z
diff --git a/Zend/tests/type_declarations/intersection_types/typed_reference3.phpt b/Zend/tests/type_declarations/intersection_types/typed_reference3.phpt
new file mode 100644
index 0000000000000..c5a78a86e6ac2
--- /dev/null
+++ b/Zend/tests/type_declarations/intersection_types/typed_reference3.phpt
@@ -0,0 +1,27 @@
+--TEST--
+Intersection types and typed reference
+--FILE--
+<?php
+
+interface X {}
+interface Y {}
+interface Z {}
+
+class A implements X, Y, Z {}
+class B implements X, Y {}
+
+class Test {
+    public X&Y|null $y;
+    public X&Z|null $z;
+}
+$test = new Test;
+$r = new A;
+$test->y =& $r;
+$test->z =& $r;
+
+$r = null;
+
+?>
+==DONE==
+--EXPECT--
+==DONE==
diff --git a/Zend/tests/type_declarations/intersection_types/variance/invalid7.phpt b/Zend/tests/type_declarations/intersection_types/variance/invalid7.phpt
new file mode 100644
index 0000000000000..8e102f7ff3c4f
--- /dev/null
+++ b/Zend/tests/type_declarations/intersection_types/variance/invalid7.phpt
@@ -0,0 +1,32 @@
+--TEST--
+Invalid nullable widening
+--FILE--
+<?php
+
+interface A {}
+interface B {}
+interface C {}
+
+class Test implements A, B, C {}
+
+class Foo {
+    public function foo(): A {
+        return new Test();
+    }
+}
+
+class FooChild extends Foo {
+    public function foo(): A&B {
+        return new Test();
+    }
+}
+
+class FooSecondChild extends FooChild {
+    public function foo(): A&B|null {
+        return new Test();
+    }
+}
+
+?>
+--EXPECTF--
+Fatal error: Declaration of FooSecondChild::foo(): A&B|null must be compatible with FooChild::foo(): A&B in %s on line %d
diff --git a/Zend/tests/type_declarations/intersection_types/variance/invalid8.phpt b/Zend/tests/type_declarations/intersection_types/variance/invalid8.phpt
new file mode 100644
index 0000000000000..b05113e80d79c
--- /dev/null
+++ b/Zend/tests/type_declarations/intersection_types/variance/invalid8.phpt
@@ -0,0 +1,18 @@
+--TEST--
+Intersection type removing nullable
+--FILE--
+<?php
+
+class A {}
+class B extends A {}
+
+class Test {
+    public A&B|null $prop;
+}
+class Test2 extends Test {
+    public A&B $prop;
+}
+
+?>
+--EXPECTF--
+Fatal error: Type of Test2::$prop must be A&B|null (as in class Test) in %s on line %d
diff --git a/Zend/tests/type_declarations/intersection_types/variance/invalid9.phpt b/Zend/tests/type_declarations/intersection_types/variance/invalid9.phpt
new file mode 100644
index 0000000000000..867b7fb6a0777
--- /dev/null
+++ b/Zend/tests/type_declarations/intersection_types/variance/invalid9.phpt
@@ -0,0 +1,21 @@
+--TEST--
+Invalid nullable narrowing
+--FILE--
+<?php
+
+interface A {}
+interface B {}
+
+class Foo {
+    public function foo(A&B|null $foo) {
+    }
+}
+
+class FooChild extends Foo {
+    public function foo(A&B $foo) {
+    }
+}
+
+?>
+--EXPECTF--
+Fatal error: Declaration of FooChild::foo(A&B $foo) must be compatible with Foo::foo(A&B|null $foo) in %s on line %d
diff --git a/Zend/tests/type_declarations/intersection_types/variance/valid10.phpt b/Zend/tests/type_declarations/intersection_types/variance/valid10.phpt
new file mode 100644
index 0000000000000..923ad8c20909e
--- /dev/null
+++ b/Zend/tests/type_declarations/intersection_types/variance/valid10.phpt
@@ -0,0 +1,29 @@
+--TEST--
+Valid intersection type variance
+--FILE--
+<?php
+
+interface X {}
+interface Y {}
+interface Z {}
+
+class TestParent implements X, Y, Z {}
+class TestChild implements Z {}
+
+class A {
+    public X&Y|null $prop;
+
+    public function method1(X&Y&Z $a): X&Y|null{}
+    public function method2(X&Y $a): ?X {}
+}
+class B extends A {
+    public X&Y|null $prop;
+
+    public function method1(X&Y|null $a): X&Y&Z {}
+    public function method2(?X $a): X&Y {}
+}
+
+?>
+===DONE===
+--EXPECT--
+===DONE===
diff --git a/Zend/tests/type_declarations/intersection_types/variance/valid9.phpt b/Zend/tests/type_declarations/intersection_types/variance/valid9.phpt
new file mode 100644
index 0000000000000..d0cf28775d79e
--- /dev/null
+++ b/Zend/tests/type_declarations/intersection_types/variance/valid9.phpt
@@ -0,0 +1,33 @@
+--TEST--
+Valid inheritence - co-variance
+--FILE--
+<?php
+
+interface A {}
+interface B {}
+interface C {}
+
+class Test implements A, B, C {}
+
+class Foo {
+    public function foo(): A&B|null {
+        return null;
+    }
+}
+
+class FooChild extends Foo {
+    public function foo(): A&B {
+        return new Test();
+    }
+}
+
+$o = new Foo();
+var_dump($o->foo());
+$o = new FooChild();
+var_dump($o->foo());
+
+?>
+--EXPECTF--
+NULL
+object(Test)#%d (0) {
+}
diff --git a/Zend/zend_ast.c b/Zend/zend_ast.c
index a2bbf2c9c5dc3..ffc19e8c98aed 100644
--- a/Zend/zend_ast.c
+++ b/Zend/zend_ast.c
@@ -1543,6 +1543,9 @@ static ZEND_COLD void zend_ast_export_type(smart_str *str, zend_ast *ast, int in
 			}
 			zend_ast_export_type(str, list->child[i], indent);
 		}
+		if (ast->attr & ZEND_TYPE_NULLABLE) {
+			smart_str_appends(str, "|null");
+		}
 		return;
 	}
 	if (ast->attr & ZEND_TYPE_NULLABLE) {
diff --git a/Zend/zend_compile.c b/Zend/zend_compile.c
index f9f98b74b7d6f..894cf20caba20 100644
--- a/Zend/zend_compile.c
+++ b/Zend/zend_compile.c
@@ -1284,7 +1284,7 @@ zend_string *zend_type_to_string_resolved(zend_type type, zend_class_entry *scop
 
 	if (type_mask & MAY_BE_NULL) {
 		bool is_union = !str || memchr(ZSTR_VAL(str), '|', ZSTR_LEN(str)) != NULL;
-		if (!is_union) {
+		if (!is_union && !ZEND_TYPE_IS_INTERSECTION(type)) {
 			zend_string *nullable_str = zend_string_concat2("?", 1, ZSTR_VAL(str), ZSTR_LEN(str));
 			zend_string_release(str);
 			return nullable_str;
@@ -6694,15 +6694,6 @@ void zend_compile_params(zend_ast *ast, zend_ast *return_type_ast, uint32_t fall
 				zend_error_noreturn(E_COMPILE_ERROR, "never cannot be used as a parameter type");
 			}
 
-			if (force_nullable && ZEND_TYPE_IS_INTERSECTION(arg_info->type)) {
-				zend_string *type_str = zend_type_to_string(arg_info->type);
-				zend_error_noreturn(E_COMPILE_ERROR,
-					"Cannot use null as default value for parameter $%s of type %s",
-					/* We move type_str pointer one char forward to skip the '?' generated by
-					 * the call to zend_compile_typename() */
-					ZSTR_VAL(name), ZSTR_VAL(type_str)+1);
-			}
-
 			if (default_type != IS_UNDEF && default_type != IS_CONSTANT_AST && !force_nullable
 					&& !zend_is_valid_default_value(arg_info->type, &default_node.u.constant)) {
 				zend_string *type_str = zend_type_to_string(arg_info->type);
@@ -7333,7 +7324,7 @@ void zend_compile_prop_decl(zend_ast *ast, zend_ast *type_ast, uint32_t flags, z
 			if (ZEND_TYPE_IS_SET(type) && !Z_CONSTANT(value_zv)
 					&& !zend_is_valid_default_value(type, &value_zv)) {
 				zend_string *str = zend_type_to_string(type);
-				if (Z_TYPE(value_zv) == IS_NULL && !ZEND_TYPE_IS_INTERSECTION(type)) {
+				if (Z_TYPE(value_zv) == IS_NULL) {
 					ZEND_TYPE_FULL_MASK(type) |= MAY_BE_NULL;
 					zend_string *nullable_str = zend_type_to_string(type);
 
diff --git a/Zend/zend_language_parser.y b/Zend/zend_language_parser.y
index ccf11bda8b8c3..c410755bc6099 100644
--- a/Zend/zend_language_parser.y
+++ b/Zend/zend_language_parser.y
@@ -287,6 +287,8 @@ static YYSIZE_T zend_yytnamerr(char*, const char*);
 
 %type <ident> reserved_non_modifiers semi_reserved
 
+%type <void> null_type
+
 %% /* Rules */
 
 start:
@@ -793,10 +795,21 @@ optional_type_without_static:
 	|	type_expr_without_static	{ $$ = $1; }
 ;
 
+null_type:
+		T_STRING {
+			zend_string *str = Z_STR(((zend_ast_zval*)$1)->val);
+			if (!zend_string_equals_literal_ci(str, "null")) {
+				zend_error(E_PARSE, "Invalid compound type expression");
+			}
+			zend_string_free(str);
+		}
+;
+
 type_expr:
 		type				{ $$ = $1; }
 	|	'?' type			{ $$ = $2; $$->attr |= ZEND_TYPE_NULLABLE; }
 	|	union_type			{ $$ = $1; }
+	|	intersection_type '|' null_type	{ $$ = $1; $$->attr |= ZEND_TYPE_NULLABLE; }
 	|	intersection_type	{ $$ = $1; }
 ;
 
@@ -822,6 +835,7 @@ type_expr_without_static:
 		type_without_static			{ $$ = $1; }
 	|	'?' type_without_static		{ $$ = $2; $$->attr |= ZEND_TYPE_NULLABLE; }
 	|	union_type_without_static	{ $$ = $1; }
+	|	intersection_type_without_static '|' null_type	{ $$ = $1; $$->attr |= ZEND_TYPE_NULLABLE; }
 	|	intersection_type_without_static	{ $$ = $1; }
 ;