diff --git a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
index 4e4de91d0134..e0a482b5aee2 100644
--- a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
+++ b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
@@ -125,6 +125,46 @@ public class GradleDependenciesImportingTest extends GradleImportingTestCase {
     }
   }
 
+  @Test
+  @TargetVersions("2.0+")
+  public void testProvidedDependencyScopeMerge() throws Exception {
+    createSettingsFile("include 'web'\n" +
+                       "include 'user'");
+
+    importProject(
+      "subprojects {\n" +
+      "  apply plugin: 'java'\n" +
+      "  configurations {\n" +
+      "    provided\n" +
+      "  }\n" +
+      "}\n" +
+      "\n" +
+      "project(':web') {\n" +
+      "  dependencies {\n" +
+      "    provided 'junit:junit:4.11'\n" +
+      "  }\n" +
+      "}\n" +
+      "project(':user') {\n" +
+      "  apply plugin: 'war'\n" +
+      "  dependencies {\n" +
+      "    compile project(':web')\n" +
+      "    providedCompile project(path: ':web', configuration: 'provided')\n" +
+      "  }\n" +
+      "}"
+    );
+
+    assertModules("project", "web", "web_main", "web_test", "user", "user_main", "user_test");
+
+    assertModuleLibDeps("web");
+    assertModuleLibDeps("web_main");
+    assertModuleLibDeps("web_test");
+
+    assertModuleModuleDeps("user_main", "web_main");
+    assertModuleModuleDepScope("user_main", "web_main", DependencyScope.COMPILE);
+    assertModuleLibDepScope("user_main", "Gradle: org.hamcrest:hamcrest-core:1.3", DependencyScope.PROVIDED);
+    assertModuleLibDepScope("user_main", "Gradle: junit:junit:4.11", DependencyScope.PROVIDED);
+  }
+
   @Test
   public void testCustomSourceSetsDependencies() throws Exception {
     createSettingsFile("include 'api', 'impl' ");
diff --git a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/util/DependencyResolverImpl.groovy b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/util/DependencyResolverImpl.groovy
index 24987866cc62..5b7c1ca3df4e 100644
--- a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/util/DependencyResolverImpl.groovy
+++ b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/util/DependencyResolverImpl.groovy
@@ -773,11 +773,11 @@ class DependencyResolverImpl implements DependencyResolver {
                   dependency.projectDependencyArtifacts = artifactMap.get(componentResult.moduleVersion).collect { it.file }
                   dependency.projectDependencyArtifacts.each { resolvedDepsFiles.add(it) }
 
-//                  if (componentResult != dependencyResult.from) {
-//                    dependency.dependencies.addAll(
-//                      transform(componentResult.dependencies)
-//                    )
-//                  }
+                  if (componentResult != dependencyResult.from) {
+                    dependency.dependencies.addAll(
+                      transform(componentResult.dependencies)
+                    )
+                  }
                   dependencies.add(dependency)
 
                   def files = []