diff --git a/java/java-tests/testSrc/com/intellij/java/find/impl/FindManagerTest.java b/java/java-tests/testSrc/com/intellij/java/find/impl/FindManagerTest.java
index 62a4bfd07567..72aabdd6b84a 100644
--- a/java/java-tests/testSrc/com/intellij/java/find/impl/FindManagerTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/find/impl/FindManagerTest.java
@@ -23,6 +23,8 @@ import com.intellij.find.impl.FindResultImpl;
 import com.intellij.find.replaceInProject.ReplaceInProjectManager;
 import com.intellij.lang.properties.IProperty;
 import com.intellij.lang.properties.psi.PropertiesFile;
+import com.intellij.openapi.actionSystem.CommonDataKeys;
+import com.intellij.openapi.actionSystem.LangDataKeys;
 import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.application.Result;
 import com.intellij.openapi.application.ex.PathManagerEx;
@@ -31,10 +33,13 @@ import com.intellij.openapi.command.WriteCommandAction;
 import com.intellij.openapi.fileEditor.FileDocumentManager;
 import com.intellij.openapi.fileTypes.FileTypes;
 import com.intellij.openapi.fileTypes.PlainTextFileType;
+import com.intellij.openapi.module.Module;
+import com.intellij.openapi.module.ModuleManager;
 import com.intellij.openapi.progress.ProcessCanceledException;
 import com.intellij.openapi.progress.ProgressManager;
 import com.intellij.openapi.progress.util.ProgressIndicatorBase;
 import com.intellij.openapi.project.DumbServiceImpl;
+import com.intellij.openapi.project.Project;
 import com.intellij.openapi.projectRoots.Sdk;
 import com.intellij.openapi.util.Condition;
 import com.intellij.openapi.util.ProperTextRange;
@@ -49,14 +54,12 @@ import com.intellij.psi.*;
 import com.intellij.psi.search.GlobalSearchScope;
 import com.intellij.psi.search.GlobalSearchScopesCore;
 import com.intellij.psi.search.LocalSearchScope;
+import com.intellij.psi.search.SearchScope;
 import com.intellij.psi.search.scope.packageSet.NamedScope;
 import com.intellij.psi.search.scope.packageSet.PackageSet;
 import com.intellij.psi.search.scope.packageSet.PackageSetFactory;
 import com.intellij.psi.search.scope.packageSet.ParsingException;
-import com.intellij.testFramework.IdeaTestUtil;
-import com.intellij.testFramework.LightVirtualFile;
-import com.intellij.testFramework.PlatformTestUtil;
-import com.intellij.testFramework.PsiTestUtil;
+import com.intellij.testFramework.*;
 import com.intellij.testFramework.fixtures.TempDirTestFixture;
 import com.intellij.testFramework.fixtures.impl.LightTempDirTestFixtureImpl;
 import com.intellij.testFramework.fixtures.impl.TempDirTestFixtureImpl;
@@ -1041,4 +1044,41 @@ public class FindManagerTest extends DaemonAnalyzerTestCase {
     assertTrue(FindUtil.replace(myProject, myEditor, 0, model));
     assertEquals(expectedResult, myEditor.getDocument().getText());
   }
+
+  public void testDataContextProcessing() {
+    initProject("findInPath", "src");
+    VirtualFile directory = mySourceDirs[0].findFileByRelativePath("x");
+    VirtualFile file = directory.findChild("dd.properties");
+    assertNotNull(file);
+    SearchScope scope = GlobalSearchScope.filesScope(myProject, ContainerUtil.list(directory));
+    Module module = ModuleManager.getInstance(myProject).getModules()[0];
+    String moduleName = module.getName();
+    String dirName = directory.getPresentableUrl();
+
+    FindModel model = new FindModel();
+    model.setDirectoryName("initialDirectoryName");
+    model.setModuleName("initialModuleName");
+    model.setProjectScope(false);
+    model.setCustomScopeName("initialScopeName");
+
+    checkContext(model, myProject, directory, module, false, null, moduleName, false);
+    checkContext(model, myProject, directory, null, false, dirName, moduleName, false);//prev module state
+    checkContext(model, myProject, null, null, true, dirName, moduleName, false);//prev module and dir state
+    model.setCustomScope(scope);
+    model.setCustomScope(true);
+    checkContext(model, myProject, null, null, false, dirName, moduleName, true);//prev module and dir state
+  }
+
+  private static void checkContext(FindModel model, Project project, VirtualFile directory, Module module,
+                                   boolean shouldBeProjectScope, String expectedDirectoryName, String expectedModuleName, boolean shouldBeCustomScope) {
+    MapDataContext dataContext = new MapDataContext();
+    dataContext.put(CommonDataKeys.PROJECT, project);
+    dataContext.put(CommonDataKeys.VIRTUAL_FILE, directory);
+    dataContext.put(LangDataKeys.MODULE_CONTEXT, module);
+    FindInProjectUtil.setDirectoryName(model, dataContext);
+    assertEquals(shouldBeProjectScope, model.isProjectScope());
+    assertEquals(expectedDirectoryName, model.getDirectoryName());
+    assertEquals(expectedModuleName, model.getModuleName());
+    assertEquals(shouldBeCustomScope, model.isCustomScope());
+  }
 }
diff --git a/platform/lang-impl/src/com/intellij/find/impl/FindInProjectUtil.java b/platform/lang-impl/src/com/intellij/find/impl/FindInProjectUtil.java
index dd75314ad78d..515503da9df4 100644
--- a/platform/lang-impl/src/com/intellij/find/impl/FindInProjectUtil.java
+++ b/platform/lang-impl/src/com/intellij/find/impl/FindInProjectUtil.java
@@ -113,6 +113,9 @@ public class FindInProjectUtil {
     // apply explicit settings from context
     if (module != null) {
       model.setModuleName(module.getName());
+      directoryName = null;// Explicit 'module' scope is more specific than 'module directory' scope
+      model.setCustomScope(false);
+      model.setDirectoryName(null);
     }
 
     Editor editor = CommonDataKeys.EDITOR.getData(dataContext);
@@ -124,7 +127,7 @@ public class FindInProjectUtil {
     }
 
     // set project scope if we have no other settings
-    model.setProjectScope(model.getDirectoryName() == null && model.getModuleName() == null && !model.isCustomScope());
+    model.setProjectScope(directoryName == null && module == null && !model.isCustomScope());
   }
 
   /**