diff --git a/python/src/com/jetbrains/python/codeInsight/imports/AddImportHelper.java b/python/src/com/jetbrains/python/codeInsight/imports/AddImportHelper.java
index ba0f11131b2c..52ca2006a44c 100644
--- a/python/src/com/jetbrains/python/codeInsight/imports/AddImportHelper.java
+++ b/python/src/com/jetbrains/python/codeInsight/imports/AddImportHelper.java
@@ -225,6 +225,9 @@ public class AddImportHelper {
       if (fromImportStatement.isFromFuture()) {
         return ImportPriority.FUTURE;
       }
+      if (fromImportStatement.getRelativeLevel() > 0) {
+        return ImportPriority.PROJECT;
+      }
       resolved = fromImportStatement.resolveImportSource();
     }
     else {
diff --git a/python/testData/optimizeImports/alphabeticalOrder.after.py b/python/testData/optimizeImports/alphabeticalOrder.after.py
index edf016f2f333..b06b7ad267a8 100644
--- a/python/testData/optimizeImports/alphabeticalOrder.after.py
+++ b/python/testData/optimizeImports/alphabeticalOrder.after.py
@@ -16,6 +16,7 @@ from alphabet import B, A
 from alphabet import C
 from alphabet import D
 from b import func
+
 from . import m1
 from . import m4, m5
 from .pkg import m3
diff --git a/python/testData/optimizeImports/disableAlphabeticalOrder.after.py b/python/testData/optimizeImports/disableAlphabeticalOrder.after.py
index 46e2c5d80bbe..25e330235b74 100644
--- a/python/testData/optimizeImports/disableAlphabeticalOrder.after.py
+++ b/python/testData/optimizeImports/disableAlphabeticalOrder.after.py
@@ -12,12 +12,13 @@ from alphabet import D
 from b import func
 from
 import foo # broken
-from . import m1
 import # broken
 from alphabet import *
-from .. import m2
 from alphabet import C
 from alphabet import B, A
+
+from . import m1
+from .. import m2
 from .pkg import m3
 from . import m4, m5
 
diff --git a/python/testData/optimizeImports/unresolvedRelativeImportsShouldBeInProjectGroup/pkg/__init__.py b/python/testData/optimizeImports/unresolvedRelativeImportsShouldBeInProjectGroup/pkg/__init__.py
new file mode 100644
index 000000000000..e69de29bb2d1
diff --git a/python/testData/optimizeImports/unresolvedRelativeImportsShouldBeInProjectGroup/pkg/main.after.py b/python/testData/optimizeImports/unresolvedRelativeImportsShouldBeInProjectGroup/pkg/main.after.py
new file mode 100644
index 000000000000..ba77b50a254c
--- /dev/null
+++ b/python/testData/optimizeImports/unresolvedRelativeImportsShouldBeInProjectGroup/pkg/main.after.py
@@ -0,0 +1,6 @@
+import re
+
+from . import foo
+from .module import A
+
+print(re, foo, A)
diff --git a/python/testData/optimizeImports/unresolvedRelativeImportsShouldBeInProjectGroup/pkg/main.py b/python/testData/optimizeImports/unresolvedRelativeImportsShouldBeInProjectGroup/pkg/main.py
new file mode 100644
index 000000000000..47d1a0c8d4d8
--- /dev/null
+++ b/python/testData/optimizeImports/unresolvedRelativeImportsShouldBeInProjectGroup/pkg/main.py
@@ -0,0 +1,5 @@
+import re
+from . import foo
+from .module import A
+
+print(re, foo, A)
diff --git a/python/testSrc/com/jetbrains/python/PyOptimizeImportsTest.java b/python/testSrc/com/jetbrains/python/PyOptimizeImportsTest.java
index 251a49d8560d..3226eb60ae5a 100644
--- a/python/testSrc/com/jetbrains/python/PyOptimizeImportsTest.java
+++ b/python/testSrc/com/jetbrains/python/PyOptimizeImportsTest.java
@@ -182,6 +182,15 @@ public class PyOptimizeImportsTest extends PyTestCase {
     doTest();
   }
 
+  // PY-19674
+  public void testUnresolvedRelativeImportsShouldBeInProjectGroup() {
+    final String testName = getTestName(true);
+    myFixture.copyDirectoryToProject(testName, "");
+    myFixture.configureByFile("pkg/main.py");
+    OptimizeImportsAction.actionPerformedImpl(DataManager.getInstance().getDataContext(myFixture.getEditor().getContentComponent()));
+    myFixture.checkResultByFile(testName + "/pkg/main.after.py");
+  }
+
   private void doTest() {
     myFixture.configureByFile(getTestName(true) + ".py");
     OptimizeImportsAction.actionPerformedImpl(DataManager.getInstance().getDataContext(myFixture.getEditor().getContentComponent()));