diff --git a/build/scripts/layouts.gant b/build/scripts/layouts.gant
index 2d2c56280509..3c064f0d9168 100644
--- a/build/scripts/layouts.gant
+++ b/build/scripts/layouts.gant
@@ -238,6 +238,7 @@ def layoutFull(String home, String targetDirectory, String patchedDescriptorDir
         module("forms-compiler")
         module("forms_rt")
         module("instrumentation-util")
+        module("instrumentation-util-8")
       }
 
       jar("jps-model.jar") {
diff --git a/java/compiler/instrumentation-util-8/instrumentation-util-8.iml b/java/compiler/instrumentation-util-8/instrumentation-util-8.iml
index c00964488054..c94604452705 100644
--- a/java/compiler/instrumentation-util-8/instrumentation-util-8.iml
+++ b/java/compiler/instrumentation-util-8/instrumentation-util-8.iml
@@ -1,8 +1,6 @@
 <?xml version="1.0" encoding="UTF-8"?>
 <module type="JAVA_MODULE" version="4">
-  <component name="NewModuleRootManager" inherit-compiler-output="false">
-    <output url="file://$MODULE_DIR$/../../../../out/classes/production/instrumentation-util" />
-    <output-test url="file://$MODULE_DIR$/../../../../out/classes/test/instrumentation-util" />
+  <component name="NewModuleRootManager" inherit-compiler-output="true">
     <exclude-output />
     <content url="file://$MODULE_DIR$">
       <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
diff --git a/jps/jps-builders/src/org/jetbrains/jps/cmdline/ClasspathBootstrap.java b/jps/jps-builders/src/org/jetbrains/jps/cmdline/ClasspathBootstrap.java
index f77eeb2bbfb4..a4e044eb0533 100644
--- a/jps/jps-builders/src/org/jetbrains/jps/cmdline/ClasspathBootstrap.java
+++ b/jps/jps-builders/src/org/jetbrains/jps/cmdline/ClasspathBootstrap.java
@@ -141,7 +141,7 @@ public class ClasspathBootstrap {
     cp.add(getResourcePath(AlienFormFileException.class));  // forms-compiler
     cp.add(getResourcePath(GridConstraints.class));  // forms-rt
     cp.add(getResourcePath(CellConstraints.class));  // jGoodies-forms
-    cp.add(getResourcePath(NotNullVerifyingInstrumenter.class));  // not-null
+    cp.addAll(getInstrumentationUtilRoots());
     cp.add(getResourcePath(IXMLBuilder.class));  // nano-xml
     cp.add(getJpsPluginSystemClassesPath().getAbsolutePath().replace('\\', '/'));
     
@@ -286,7 +286,20 @@ public class ClasspathBootstrap {
   public static File getResourceFile(Class aClass) {
     return new File(getResourcePath(aClass));
   }
-  
+
+  private static List<String> getInstrumentationUtilRoots() {
+    String instrumentationUtilPath = getResourcePath(NotNullVerifyingInstrumenter.class);
+    File instrumentationUtil = new File(instrumentationUtilPath);
+    if (instrumentationUtil.isDirectory()) {
+      //running from sources: load classes from .../out/production/instrumentation-util-8
+      return Arrays.asList(instrumentationUtilPath, new File(instrumentationUtil.getParentFile(), "instrumentation-util-8").getAbsolutePath());
+    }
+    else {
+      //running from jars: instrumentation-util-8 is located in the same jar
+      return Collections.singletonList(instrumentationUtilPath);
+    }
+  }
+
   private static File getJpsPluginSystemClassesPath() {
     File classesRoot = new File(getResourcePath(ClasspathBootstrap.class));
     if (classesRoot.isDirectory()) {