diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/JavaModuleGraphUtil.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/JavaModuleGraphUtil.java
index f26cf534f6c0..170e6a8e5d2d 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/JavaModuleGraphUtil.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/JavaModuleGraphUtil.java
@@ -152,11 +152,14 @@ public class JavaModuleGraphUtil {
     }
 
     public boolean reads(PsiJavaModule source, PsiJavaModule destination) {
-      Iterator<PsiJavaModule> directReaders = myGraph.getOut(destination);
-      while (directReaders.hasNext()) {
-        PsiJavaModule next = directReaders.next();
-        if (source.equals(next) || myPublicEdges.contains(key(destination, next)) && reads(source, next)) {
-          return true;
+      Collection<PsiJavaModule> nodes = myGraph.getNodes();
+      if (nodes.contains(destination) && nodes.contains(source)) {
+        Iterator<PsiJavaModule> directReaders = myGraph.getOut(destination);
+        while (directReaders.hasNext()) {
+          PsiJavaModule next = directReaders.next();
+          if (source.equals(next) || myPublicEdges.contains(key(destination, next)) && reads(source, next)) {
+            return true;
+          }
         }
       }
       return false;
diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/ModuleHighlightUtil.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/ModuleHighlightUtil.java
index f268eefe3391..6ee5c450a1bb 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/ModuleHighlightUtil.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/ModuleHighlightUtil.java
@@ -55,16 +55,13 @@ import static com.intellij.psi.SyntaxTraverser.psiTraverser;
 
 public class ModuleHighlightUtil {
   @Nullable
-  static PsiJavaModule getModuleDescriptor(@NotNull PsiElement element) {
-    VirtualFile file = Optional.of(element)
-      .map(e -> e instanceof PsiFileSystemItem ? (PsiFileSystemItem)e : e.getContainingFile())
-      .map(PsiFileSystemItem::getVirtualFile)
-      .orElse(null);
+  static PsiJavaModule getModuleDescriptor(@NotNull PsiFileSystemItem fsItem) {
+    VirtualFile file = fsItem.getVirtualFile();
     if (file == null) return null;
 
-    Project project = element.getProject();
+    Project project = fsItem.getProject();
     ProjectFileIndex index = ProjectFileIndex.SERVICE.getInstance(project);
-    if (element instanceof PsiCompiledElement) {
+    if (index.isInLibraryClasses(file)) {
       return Optional.ofNullable(index.getClassRootForFile(file))
         .map(r -> r.findChild(PsiJavaModule.MODULE_INFO_CLS_FILE))
         .map(PsiManager.getInstance(project)::findFile)
@@ -96,7 +93,7 @@ public class ModuleHighlightUtil {
 
   @Nullable
   static HighlightInfo checkFileDuplicates(@NotNull PsiJavaModule element, @NotNull PsiFile file) {
-    Module module = ModuleUtilCore.findModuleForPsiElement(element);
+    Module module = findModule(file);
     if (module != null) {
       Project project = file.getProject();
       Collection<VirtualFile> others = FilenameIndex.getVirtualFilesByName(project, MODULE_INFO_FILE, module.getModuleScope(false));
@@ -173,12 +170,12 @@ public class ModuleHighlightUtil {
       }
     }
 
-    Module host = ModuleUtilCore.findModuleForPsiElement(module);
+    Module host = findModule(module);
     for (PsiProvidesStatement statement : psiTraverser().children(module).filter(PsiProvidesStatement.class)) {
       PsiJavaCodeReferenceElement ref = statement.getInterfaceReference();
       if (ref != null) {
         PsiElement target = ref.resolve();
-        if (target instanceof PsiClass && ModuleUtilCore.findModuleForPsiElement(target) == host) {
+        if (target instanceof PsiClass && findModule(target) == host) {
           String className = refText(ref), packageName = StringUtil.getPackageName(className);
           if (!exports.contains(packageName) && !uses.contains(className)) {
             String message = JavaErrorMessages.message("module.service.unused");
@@ -243,7 +240,7 @@ public class ModuleHighlightUtil {
     if (refElement != null) {
       PsiElement target = refElement.resolve();
       if (target instanceof PsiPackage) {
-        Module module = ModuleUtilCore.findModuleForPsiElement(refElement);
+        Module module = findModule(refElement);
         if (module != null) {
           String packageName = ((PsiPackage)target).getQualifiedName();
           PsiDirectory[] directories = ((PsiPackage)target).getDirectories(module.getModuleScope(false));
@@ -339,12 +336,12 @@ public class ModuleHighlightUtil {
   static HighlightInfo checkPackageAccessibility(@NotNull PsiJavaCodeReferenceElement ref,
                                                  @NotNull PsiElement target,
                                                  @NotNull PsiJavaModule refModule) {
-    Module module = ModuleUtilCore.findModuleForPsiElement(ref);
+    Module module = findModule(refModule);
     if (module != null) {
-      if (target instanceof PsiClass && !(target instanceof PsiCompiledElement) && module != ModuleUtilCore.findModuleForPsiElement(target)) {
+      if (target instanceof PsiClass) {
         PsiElement targetFile = target.getParent();
         if (targetFile instanceof PsiClassOwner) {
-          PsiJavaModule targetModule = getModuleDescriptor(target);
+          PsiJavaModule targetModule = getModuleDescriptor((PsiFileSystemItem)targetFile);
           String packageName = ((PsiClassOwner)targetFile).getPackageName();
           return checkPackageAccessibility(ref, refModule, targetModule, packageName);
         }
@@ -353,7 +350,7 @@ public class ModuleHighlightUtil {
         PsiElement refImport = ref.getParent();
         if (refImport instanceof PsiImportStatementBase && ((PsiImportStatementBase)refImport).isOnDemand()) {
           PsiDirectory[] dirs = ((PsiPackage)target).getDirectories(module.getModuleWithDependenciesAndLibrariesScope(false));
-          if (dirs.length == 1 && ModuleUtilCore.findModuleForPsiElement(dirs[0]) != module) {
+          if (dirs.length == 1) {
             PsiJavaModule targetModule = getModuleDescriptor(dirs[0]);
             String packageName = ((PsiPackage)target).getQualifiedName();
             return checkPackageAccessibility(ref, refModule, targetModule, packageName);
@@ -369,26 +366,35 @@ public class ModuleHighlightUtil {
                                                          PsiJavaModule refModule,
                                                          PsiJavaModule targetModule,
                                                          String packageName) {
-    if (targetModule == null) {
-      String message = JavaErrorMessages.message("module.package.on.classpath");
-      return HighlightInfo.newHighlightInfo(HighlightInfoType.WRONG_REF).range(ref).description(message).create();
-    }
+    if (!refModule.equals(targetModule)) {
+      if (targetModule == null) {
+        String message = JavaErrorMessages.message("module.package.on.classpath");
+        return HighlightInfo.newHighlightInfo(HighlightInfoType.WRONG_REF).range(ref).description(message).create();
+      }
 
-    String refModuleName = refModule.getModuleName();
-    String requiredName = targetModule.getModuleName();
-    if (!(targetModule instanceof PsiCompiledElement) && !JavaModuleGraphUtil.exports(targetModule, packageName, refModule)) {
-      String message = JavaErrorMessages.message("module.package.not.exported", requiredName, packageName, refModuleName);
-      return HighlightInfo.newHighlightInfo(HighlightInfoType.WRONG_REF).range(ref).description(message).create();
-    }
+      String refModuleName = refModule.getModuleName();
+      String requiredName = targetModule.getModuleName();
+      if (!JavaModuleGraphUtil.exports(targetModule, packageName, refModule)) {
+        String message = JavaErrorMessages.message("module.package.not.exported", requiredName, packageName, refModuleName);
+        return HighlightInfo.newHighlightInfo(HighlightInfoType.WRONG_REF).range(ref).description(message).create();
+      }
 
-    if (!(PsiJavaModule.JAVA_BASE.equals(requiredName) || JavaModuleGraphUtil.reads(refModule, targetModule))) {
-      String message = JavaErrorMessages.message("module.not.in.requirements", refModuleName, requiredName);
-      return HighlightInfo.newHighlightInfo(HighlightInfoType.WRONG_REF).range(ref).description(message).create();
+      if (!(PsiJavaModule.JAVA_BASE.equals(requiredName) || JavaModuleGraphUtil.reads(refModule, targetModule))) {
+        String message = JavaErrorMessages.message("module.not.in.requirements", refModuleName, requiredName);
+        return HighlightInfo.newHighlightInfo(HighlightInfoType.WRONG_REF).range(ref).description(message).create();
+      }
     }
 
     return null;
   }
 
+  private static Module findModule(PsiElement element) {
+    return Optional.ofNullable(element.getContainingFile())
+      .map(PsiFile::getVirtualFile)
+      .map(f -> ModuleUtilCore.findModuleForFile(f, element.getProject()))
+      .orElse(null);
+  }
+
   private static HighlightInfo moduleResolveError(PsiJavaModuleReferenceElement refElement, PsiPolyVariantReference ref) {
     boolean missing = ref.multiResolve(true).length == 0;
     String message = JavaErrorMessages.message(missing ? "module.not.found" : "module.not.on.path", refElement.getReferenceText());
diff --git a/java/java-tests/testData/codeInsight/jigsaw/lib1.jar b/java/java-tests/testData/codeInsight/jigsaw/lib1.jar
new file mode 100644
index 000000000000..f719fc6306be
Binary files /dev/null and b/java/java-tests/testData/codeInsight/jigsaw/lib1.jar differ
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/ModuleHighlightingTest.kt b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/ModuleHighlightingTest.kt
index 05d8b4117228..292ebf115985 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/ModuleHighlightingTest.kt
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/ModuleHighlightingTest.kt
@@ -134,7 +134,7 @@ class ModuleHighlightingTest : LightJava9ModulesCodeInsightFixtureTestCase() {
   }
 
   fun testPackageAccessibility() {
-    addFile("module-info.java", "module M { requires M2; requires M6; }")
+    addFile("module-info.java", "module M { requires M2; requires M6; requires LIB1; }")
     addFile("module-info.java", "module M2 { exports pkg.m2; exports pkg.m2.impl to close.friends.only; }", M2)
     addFile("pkg/m2/C2.java", "package pkg.m2;\npublic class C2 { }", M2)
     addFile("pkg/m2/impl/C2Impl.java", "package pkg.m2.impl;\nimport pkg.m2.C2;\npublic class C2Impl { public static C2 make() {} }", M2)
@@ -154,6 +154,10 @@ class ModuleHighlightingTest : LightJava9ModulesCodeInsightFixtureTestCase() {
         import <error descr="The module 'M' does not have the module 'M5' in requirements">pkg.m5.C5</error>;
         import pkg.m7.C7;
 
+        import pkg.lib1.LC1;
+        import <error descr="The module 'LIB1' does not export the package 'pkg.lib1.impl' to the module 'M'">pkg.lib1.impl.LC1Impl</error>;
+        import <error descr="The module 'LIB1' does not export the package 'pkg.lib1.impl' to the module 'M'">pkg.lib1.impl</error>.*;
+
         import static <error descr="The module 'M2' does not export the package 'pkg.m2.impl' to the module 'M'">pkg.m2.impl.C2Impl</error>.make;
 
         class C { }
diff --git a/java/java-tests/testSrc/com/intellij/testFramework/fixtures/MultiModuleJava9ProjectDescriptor.kt b/java/java-tests/testSrc/com/intellij/testFramework/fixtures/MultiModuleJava9ProjectDescriptor.kt
index cdc211e11e3c..f29828fc4d91 100644
--- a/java/java-tests/testSrc/com/intellij/testFramework/fixtures/MultiModuleJava9ProjectDescriptor.kt
+++ b/java/java-tests/testSrc/com/intellij/testFramework/fixtures/MultiModuleJava9ProjectDescriptor.kt
@@ -15,6 +15,7 @@
  */
 package com.intellij.testFramework.fixtures
 
+import com.intellij.openapi.application.ex.PathManagerEx
 import com.intellij.openapi.application.runWriteAction
 import com.intellij.openapi.module.Module
 import com.intellij.openapi.module.ModuleManager
@@ -49,6 +50,7 @@ object MultiModuleJava9ProjectDescriptor : DefaultLightProjectDescriptor() {
 
   override fun setUpProject(project: Project, handler: SetupHandler) {
     super.setUpProject(project, handler)
+
     runWriteAction {
       val main = ModuleManager.getInstance(project).findModuleByName(TEST_MODULE_NAME)!!
 
@@ -68,6 +70,9 @@ object MultiModuleJava9ProjectDescriptor : DefaultLightProjectDescriptor() {
 
       val m7 = makeModule(project, ModuleDescriptor.M7)
       ModuleRootModificationUtil.addDependency(m6, m7, DependencyScope.COMPILE, true)
+
+      val libDir = "jar://${PathManagerEx.getTestDataPath()}/codeInsight/jigsaw/"
+      ModuleRootModificationUtil.addModuleLibrary(main, libDir + "lib1.jar!/")
     }
   }