diff --git a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleMiscImportingTest.java b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleMiscImportingTest.java
index f11cd68036af..5715e892b738 100644
--- a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleMiscImportingTest.java
+++ b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleMiscImportingTest.java
@@ -167,8 +167,15 @@ public class GradleMiscImportingTest extends GradleImportingTestCase {
 
   @Test
   public void testCompilerConfigurationSettingsImport() throws Exception {
+    final String pathToPlugin = getClass().getResource("/testCompilerConfigurationSettingsImport/gradle-idea-ext.jar").toString();
+
     importProject(
-      "apply plugin: 'idea'\n" +
+      "buildscript {\n" +
+      "  dependencies {\n" +
+      "     classpath files('" + pathToPlugin + "')\n" +
+      "  }\n" +
+      "}\n" +
+      "apply plugin: 'org.jetbrains.gradle.plugin.idea-ext'\n" +
       "idea {\n" +
       "  project.settings {\n" +
       "    compiler {\n" +
diff --git a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/builder/IntelliJProjectSettingsBuilder.groovy b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/builder/IntelliJProjectSettingsBuilder.groovy
index 8f803a96bed7..8415e07925ce 100644
--- a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/builder/IntelliJProjectSettingsBuilder.groovy
+++ b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/builder/IntelliJProjectSettingsBuilder.groovy
@@ -23,7 +23,6 @@ import org.jetbrains.plugins.gradle.model.DefaultIntelliJSettings
 import org.jetbrains.plugins.gradle.model.IntelliJProjectSettings
 import org.jetbrains.plugins.gradle.tooling.ErrorMessageBuilder
 import org.jetbrains.plugins.gradle.tooling.ModelBuilderService
-import org.jetbrains.plugins.gradle.tooling.internal.DynamicSettings
 
 /**
  * @author Vladislav.Soroka
@@ -41,7 +40,7 @@ class IntelliJProjectSettingsBuilder implements ModelBuilderService {
       ExtensionAware extensionAware = project.plugins.findPlugin(IdeaPlugin.class)?.model?.project as ExtensionAware
       if (extensionAware) {
         def object = extensionAware.extensions.findByName("settings")
-        if (object instanceof DynamicSettings && !object.objects.isEmpty()) {
+        if (object) {
           return new DefaultIntelliJSettings(object.toString())
         }
       }
diff --git a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/builder/IntelliJSettingsBuilder.groovy b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/builder/IntelliJSettingsBuilder.groovy
index d9be555d79da..6ef3894da2da 100644
--- a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/builder/IntelliJSettingsBuilder.groovy
+++ b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/builder/IntelliJSettingsBuilder.groovy
@@ -24,7 +24,6 @@ import org.jetbrains.plugins.gradle.model.DefaultIntelliJSettings
 import org.jetbrains.plugins.gradle.model.IntelliJSettings
 import org.jetbrains.plugins.gradle.tooling.ErrorMessageBuilder
 import org.jetbrains.plugins.gradle.tooling.ModelBuilderService
-import org.jetbrains.plugins.gradle.tooling.internal.DynamicSettings
 
 /**
  * @author Vladislav.Soroka
@@ -42,7 +41,7 @@ class IntelliJSettingsBuilder implements ModelBuilderService {
     ExtensionAware extensionAware = project.plugins.findPlugin(IdeaPlugin.class)?.model?.module as ExtensionAware
     if (extensionAware) {
       def object = extensionAware.extensions.findByName("settings")
-      if (object instanceof DynamicSettings && !(object as DynamicSettings).objects.isEmpty()) {
+      if (object) {
         return new DefaultIntelliJSettings(object.toString())
       }
     }
diff --git a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/internal/init/init.gradle b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/internal/init/init.gradle
index b44c64dde80c..552bcd0cafb8 100644
--- a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/internal/init/init.gradle
+++ b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/internal/init/init.gradle
@@ -1,6 +1,5 @@
 import org.gradle.api.internal.project.ProjectInternal
 import org.gradle.tooling.provider.model.ToolingModelBuilderRegistry
-import org.jetbrains.plugins.gradle.tooling.internal.DynamicSettings
 import org.jetbrains.plugins.gradle.tooling.internal.ExtraModelBuilder
 
 System.setProperty("idea.active", "true")
@@ -55,16 +54,5 @@ class JetGradlePlugin implements Plugin<Gradle> {
         it.register(extraModelBuilderInstance)
       }
     }
-    gradle.allprojects { project ->
-      project.pluginManager.withPlugin('idea') { plugin ->
-        def ideaModel = project.extensions.getByName('idea')
-        if (project.parent == null && !ideaModel.project.extensions.findByName('settings')) {
-          ideaModel.project.extensions.create('settings', DynamicSettings)
-        }
-        if (!ideaModel.module.extensions.findByName('settings')) {
-          ideaModel.module.extensions.create('settings', DynamicSettings)
-        }
-      }
-    }
   }
 }
diff --git a/plugins/gradle/tooling-extension-impl/testData/testCompilerConfigurationSettingsImport/gradle-idea-ext.jar b/plugins/gradle/tooling-extension-impl/testData/testCompilerConfigurationSettingsImport/gradle-idea-ext.jar
new file mode 100644
index 000000000000..288c066560c5
Binary files /dev/null and b/plugins/gradle/tooling-extension-impl/testData/testCompilerConfigurationSettingsImport/gradle-idea-ext.jar differ