diff --git a/platform/projectModel-impl/src/com/intellij/workspaceModel/ide/impl/GlobalWorkspaceModel.kt b/platform/projectModel-impl/src/com/intellij/workspaceModel/ide/impl/GlobalWorkspaceModel.kt
index 657706db6e31..62c0a6c809ad 100644
--- a/platform/projectModel-impl/src/com/intellij/workspaceModel/ide/impl/GlobalWorkspaceModel.kt
+++ b/platform/projectModel-impl/src/com/intellij/workspaceModel/ide/impl/GlobalWorkspaceModel.kt
@@ -59,7 +59,8 @@ class GlobalWorkspaceModel : Disposable {
   var loadedFromCache = false
     private set
 
-  private val modelVersionUpdate = AtomicLong(-1)
+  private val updateModelMethodName = GlobalWorkspaceModel::updateModel.name
+  private val onChangedMethodName = GlobalWorkspaceModel::onChanged.name
 
   init {
     LOG.debug { "Loading global workspace model" }
@@ -96,10 +97,7 @@ class GlobalWorkspaceModel : Disposable {
   @OptIn(EntityStorageInstrumentationApi::class)
   fun updateModel(description: @NonNls String, updater: (MutableEntityStorage) -> Unit) {
     ThreadingAssertions.assertWriteAccess()
-    if (modelVersionUpdate.get() == entityStorage.pointer.version) {
-      LOG.error("Trying to update global model twice from the same version. Maybe recursive call of 'updateModel'? Action:$description")
-    }
-    modelVersionUpdate.set(entityStorage.pointer.version)
+    checkRecursiveUpdate(description)
 
     val updateTimeMillis: Long
     val collectChangesTimeMillis: Long
@@ -213,6 +211,25 @@ class GlobalWorkspaceModel : Disposable {
     filteredProject = null
   }
 
+  /**
+   * Things that must be considered if you'd love to change this logic: IDEA-342103
+   */
+  private fun checkRecursiveUpdate(description: @NonNls String) {
+    val stackStraceIterator = RuntimeException().stackTrace.iterator()
+    // Skip two methods of the current update
+    repeat(2) { stackStraceIterator.next() }
+    while (stackStraceIterator.hasNext()) {
+      val frame = stackStraceIterator.next()
+      if (frame.methodName == updateModelMethodName && frame.className == GlobalWorkspaceModel::class.qualifiedName) {
+        LOG.error("Trying to update global model twice from the same version. Maybe recursive call of 'updateModel'? Action: $description")
+      }
+      else if (frame.methodName == onChangedMethodName && frame.className == GlobalWorkspaceModel::class.qualifiedName) {
+        // It's fine to update the project method in "after update" listeners
+        return
+      }
+    }
+  }
+
   private fun copyEntitiesToEmptyStorage(storage: EntityStorage, vfuManager: VirtualFileUrlManager): MutableEntityStorage {
     val mutableEntityStorage = MutableEntityStorage.create()
     // Copying global and custom libraries
diff --git a/platform/projectModel-impl/src/com/intellij/workspaceModel/ide/impl/WorkspaceModelImpl.kt b/platform/projectModel-impl/src/com/intellij/workspaceModel/ide/impl/WorkspaceModelImpl.kt
index 0b7abab6a6f0..6c04d07dc17d 100644
--- a/platform/projectModel-impl/src/com/intellij/workspaceModel/ide/impl/WorkspaceModelImpl.kt
+++ b/platform/projectModel-impl/src/com/intellij/workspaceModel/ide/impl/WorkspaceModelImpl.kt
@@ -249,6 +249,9 @@ open class WorkspaceModelImpl(private val project: Project, private val cs: Coro
     }
   }
 
+  /**
+   * Things that must be considered if you'd love to change this logic: IDEA-342103
+   */
   private fun checkRecursiveUpdate() = checkRecursiveUpdateTimeMs.addMeasuredTimeMillis {
     val stackStraceIterator = RuntimeException().stackTrace.iterator()
     // Skip two methods of the current update