diff --git a/platform/platform-impl/src/com/intellij/openapi/vfs/impl/local/FileWatcher.java b/platform/platform-impl/src/com/intellij/openapi/vfs/impl/local/FileWatcher.java
index 7516febe596b..c5b459261fa8 100644
--- a/platform/platform-impl/src/com/intellij/openapi/vfs/impl/local/FileWatcher.java
+++ b/platform/platform-impl/src/com/intellij/openapi/vfs/impl/local/FileWatcher.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2014 JetBrains s.r.o.
+ * Copyright 2000-2015 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -556,7 +556,7 @@ public class FileWatcher {
           case CREATE:
           case DELETE:
             for (String p : paths) {
-              myDirtyPaths.dirtyPaths.add(p);
+              myDirtyPaths.dirtyPathsRecursive.add(p);
               String parentPath = new File(p).getParent();
               if (parentPath != null) {
                 myDirtyPaths.dirtyPaths.add(parentPath);
diff --git a/platform/platform-tests/testSrc/com/intellij/openapi/vfs/local/FileWatcherTest.java b/platform/platform-tests/testSrc/com/intellij/openapi/vfs/local/FileWatcherTest.java
index 8baa5a78c50f..7f52a1df5ff6 100644
--- a/platform/platform-tests/testSrc/com/intellij/openapi/vfs/local/FileWatcherTest.java
+++ b/platform/platform-tests/testSrc/com/intellij/openapi/vfs/local/FileWatcherTest.java
@@ -714,6 +714,33 @@ public class FileWatcherTest extends PlatformLangTestCase {
     }
   }
 
+  public void testDisplacementByIsomorphicTree() throws Exception {
+    File top = createTestDir("top");
+    File up = createTestDir(top, "up");
+    File middle = createTestDir(up, "middle");
+    File file = createTestFile(middle, "file.txt", "original content");
+    File up_copy = new File(top, "up_copy");
+    FileUtil.copyDir(up, up_copy);
+    FileUtil.writeToFile(file, "new content");
+
+    VirtualFile vFile = LocalFileSystem.getInstance().refreshAndFindFileByIoFile(file);
+    assertNotNull(vFile);
+    assertEquals("new content", VfsUtilCore.loadText(vFile));
+
+    LocalFileSystem.WatchRequest request = watch(up);
+    try {
+      myAccept = true;
+      FileUtil.rename(up, new File(top, "up.bak"));
+      FileUtil.rename(up_copy, up);
+      assertEvent(VFileContentChangeEvent.class, file.getPath());
+      assertTrue(vFile.isValid());
+      assertEquals("original content", VfsUtilCore.loadText(vFile));
+    }
+    finally {
+      unwatch(request);
+    }
+  }
+
 
   @NotNull
   private LocalFileSystem.WatchRequest watch(File watchFile) {