diff --git a/bin/win/IdeaWin32.dll b/bin/win/IdeaWin32.dll
index 9085f6512b2d..ae77ff9b2309 100644
Binary files a/bin/win/IdeaWin32.dll and b/bin/win/IdeaWin32.dll differ
diff --git a/bin/win/IdeaWin64.dll b/bin/win/IdeaWin64.dll
index 668ff24f5aca..62c674fab522 100644
Binary files a/bin/win/IdeaWin64.dll and b/bin/win/IdeaWin64.dll differ
diff --git a/platform/util/src/com/intellij/openapi/util/io/FileSystemUtil.java b/platform/util/src/com/intellij/openapi/util/io/FileSystemUtil.java
index 6155b9fb01e5..f30863bc012e 100644
--- a/platform/util/src/com/intellij/openapi/util/io/FileSystemUtil.java
+++ b/platform/util/src/com/intellij/openapi/util/io/FileSystemUtil.java
@@ -15,6 +15,7 @@ import org.jetbrains.annotations.Nullable;
 import org.jetbrains.annotations.TestOnly;
 
 import java.io.File;
+import java.io.FileNotFoundException;
 import java.io.IOException;
 import java.lang.reflect.Array;
 import java.lang.reflect.Field;
@@ -164,7 +165,7 @@ public class FileSystemUtil {
       else {
         realPath = ourMediator.resolveSymLink(path);
       }
-      if (realPath != null && new File(realPath).exists()) {
+      if (realPath != null && (SystemInfo.isWindows && realPath.startsWith("\\\\") || new File(realPath).exists())) {
         return realPath;
       }
     }
@@ -364,18 +365,39 @@ public class FileSystemUtil {
     private final IdeaWin32 myInstance = IdeaWin32.getInstance();
 
     @Override
-    protected FileAttributes getAttributes(@NotNull final String path) {
-      final FileInfo fileInfo = myInstance.getInfo(path);
+    protected FileAttributes getAttributes(@NotNull String path) {
+      FileInfo fileInfo = myInstance.getInfo(path);
       return fileInfo != null ? fileInfo.toFileAttributes() : null;
     }
 
     @Override
-    protected String resolveSymLink(@NotNull final String path) {
-      return myInstance.resolveSymLink(path);
+    protected String resolveSymLink(@NotNull String path) throws FileNotFoundException {
+      path = new File(path).getAbsolutePath();
+
+      char drive = Character.toUpperCase(path.charAt(0));
+      if (!(path.length() > 3 && drive >= 'A' && drive <= 'Z' && path.charAt(1) == ':' && path.charAt(2) == '\\')) {
+        return path;  // unknown format
+      }
+
+      int remainder = 4;
+      while (remainder < path.length()) {
+        int next = path.indexOf('\\', remainder);
+        String subPath = next > 0 ? path.substring(0, next) : path;
+        FileAttributes attributes = getAttributes(subPath);
+        if (attributes == null) {
+          throw new FileNotFoundException(subPath);
+        }
+        if (attributes.isSymLink()) {
+          return myInstance.resolveSymLink(path);
+        }
+
+        remainder = next > 0 ? next + 1 : path.length();
+      }
+
+      return path;
     }
   }
 
-
   // thanks to SVNKit for the idea of platform-specific offsets
   private static class JnaUnixMediatorImpl extends Mediator {
     @SuppressWarnings({"OctalInteger", "SpellCheckingInspection"})
@@ -433,7 +455,7 @@ public class FileSystemUtil {
     private final boolean myCoarseTs = SystemProperties.getBooleanProperty(COARSE_TIMESTAMP_KEY, false);
 
     private JnaUnixMediatorImpl() {
-           if ("linux-x86".equals(Platform.RESOURCE_PREFIX)) myOffsets = LINUX_32;
+      if ("linux-x86".equals(Platform.RESOURCE_PREFIX)) myOffsets = LINUX_32;
       else if ("linux-x86-64".equals(Platform.RESOURCE_PREFIX)) myOffsets = LINUX_64;
       else if ("linux-arm".equals(Platform.RESOURCE_PREFIX)) myOffsets = LNX_ARM32;
       else if ("linux-ppc".equals(Platform.RESOURCE_PREFIX)) myOffsets = LNX_PPC32;
diff --git a/platform/util/testSrc/com/intellij/openapi/util/io/FileAttributesReadingTest.java b/platform/util/testSrc/com/intellij/openapi/util/io/FileAttributesReadingTest.java
index 5e6a2849f725..10264227a0ec 100644
--- a/platform/util/testSrc/com/intellij/openapi/util/io/FileAttributesReadingTest.java
+++ b/platform/util/testSrc/com/intellij/openapi/util/io/FileAttributesReadingTest.java
@@ -60,7 +60,9 @@ public abstract class FileAttributesReadingTest {
     @Override public void linkToDirectory() { }
     @Override public void missingLink() { }
     @Override public void selfLink() { }
+    @Override public void innerSymlinkResolve() { }
     @Override public void junction() { }
+    @Override public void innerJunctionResolve() { }
     @Override public void permissionsCloning() { }
   }
 
@@ -292,13 +294,22 @@ public abstract class FileAttributesReadingTest {
     assertEquals(dir.getPath(), target);
   }
 
+  @Test
+  public void innerSymlinkResolve() throws IOException {
+    File file = tempDir.newFile("dir/file.txt");
+    File link = new File(tempDir.getRoot(), "link");
+    Files.createSymbolicLink(link.toPath(), file.getParentFile().toPath());
+
+    String target = FileSystemUtil.resolveSymLink(link.getPath() + '/' + file.getName());
+    assertEquals(file.getPath(), target);
+  }
+
   @Test
   public void junction() throws IOException {
     assumeTrue(SystemInfo.isWinVistaOrNewer);
 
     File target = tempDir.newFolder("dir");
-    File path = new File(tempDir.getRoot(), "junction.dir");
-    File junction = IoTestUtil.createJunction(target.getPath(), path.getAbsolutePath());
+    File junction = IoTestUtil.createJunction(target.getPath(), tempDir.getRoot() + "/junction.dir");
 
     try {
       FileAttributes attributes = getAttributes(junction);
@@ -324,6 +335,18 @@ public abstract class FileAttributesReadingTest {
     }
   }
 
+  @Test
+  public void innerJunctionResolve() throws IOException {
+    assumeTrue(SystemInfo.isWinVistaOrNewer);
+
+    File file = tempDir.newFile("dir/file.txt");
+    File junction = new File(tempDir.getRoot(), "junction");
+    IoTestUtil.createJunction(file.getParent(), junction.getPath());
+
+    String target = FileSystemUtil.resolveSymLink(junction.getPath() + '/' + file.getName());
+    assertEquals(file.getPath(), target);
+  }
+
   @Test
   public void hiddenDir() throws IOException {
     assumeTrue(SystemInfo.isWindows);
@@ -535,7 +558,7 @@ public abstract class FileAttributesReadingTest {
   }
 
   @Test
-  public void testUnicodeName() throws IOException {
+  public void unicodeName() throws IOException {
     String name = IoTestUtil.getUnicodeName();
     assumeTrue(name != null);
     File file = tempDir.newFile(name + ".txt");
@@ -560,9 +583,9 @@ public abstract class FileAttributesReadingTest {
     if (SystemInfo.isWindows && checkList) {
       String parent = file.getParent();
       if (parent != null) {
-        FileInfo[] infos = IdeaWin32.getInstance().listChildren(parent);
-        assertNotNull(infos);
-        for (FileInfo info : infos) {
+        FileInfo[] children = IdeaWin32.getInstance().listChildren(parent);
+        assertNotNull(children);
+        for (FileInfo info : children) {
           if (file.getName().equals(info.getName())) {
             assertEquals(attributes, info.toFileAttributes());
             return attributes;