We present an improved slicing algorithm for Java. The best algorithm known so far, first presented in , is not always precise if nested objects are used as actual parameters. The new algorithm presented in this paper always generates correct and precise slices, but is more expensive in general. We describe the algorithms and their treatment of objects as parameters. In particular, we present a new, safe criterion for termination of unfolding nested parameter objects. We then compare the two algorithms by providing measurements for a benchmark of Java and JavaCard programs.