diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleConfigurable.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleConfigurable.java
index 35034e6af7e1..65d496e0648b 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleConfigurable.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleConfigurable.java
@@ -441,7 +441,7 @@ public class GradleConfigurable implements SearchableConfigurable, Configurable.
       return;
     }
 
-    GradleSettings settings = GradleSettings.getInstance(myProject);
+    GradleSettings settings = myHelper.getSettings(myProject);
 
     String linkedProjectPath = myLinkedGradleProjectPathField.getText();
     final String gradleHomePath = getPathToUse(myGradleHomeModifiedByUser, settings.getGradleHome(), myGradleHomePathField.getText());
@@ -456,11 +456,11 @@ public class GradleConfigurable implements SearchableConfigurable, Configurable.
     else {
       preferLocalToWrapper = myUseLocalDistributionButton.isSelected();
     }
-    GradleSettings.applySettings(linkedProjectPath, gradleHomePath, preferLocalToWrapper, serviceDirPath, myProject);
+    myHelper.applySettings(linkedProjectPath, gradleHomePath, preferLocalToWrapper, serviceDirPath, myProject);
 
-    Project defaultProject = ProjectManager.getInstance().getDefaultProject();
+    Project defaultProject = myHelper.getDefaultProject();
     if (myProject != defaultProject) {
-      GradleSettings.applyPreferLocalInstallationToWrapper(preferLocalToWrapper, defaultProject);
+      myHelper.applyPreferLocalInstallationToWrapper(preferLocalToWrapper, defaultProject);
     }
 
     if (isValidGradleHome(gradleHomePath)) {
@@ -476,7 +476,7 @@ public class GradleConfigurable implements SearchableConfigurable, Configurable.
         myGradleHomeSettingType = GradleHomeSettingType.DEDUCED;
       }
     }
-    else {
+    else if (preferLocalToWrapper) {
       if (StringUtil.isEmpty(gradleHomePath)) {
         myGradleHomeSettingType = GradleHomeSettingType.UNKNOWN;
       }
@@ -696,9 +696,20 @@ public class GradleConfigurable implements SearchableConfigurable, Configurable.
     @Nullable
     File getGradleHome(@Nullable Project project);
 
+    @NotNull
+    Project getDefaultProject();
+    
     @NotNull
     GradleSettings getSettings(@NotNull Project project);
 
+    void applySettings(@Nullable String linkedProjectPath,
+                       @Nullable String gradleHomePath,
+                       boolean preferLocalInstallationToWrapper,
+                       @Nullable String serviceDirectoryPath,
+                       @NotNull Project project);
+    
+    void applyPreferLocalInstallationToWrapper(boolean preferLocalToWrapper, @NotNull Project project);
+
     boolean isGradleWrapperDefined(@Nullable String linkedProjectPath);
     
     void showBalloon(@NotNull MessageType messageType, @NotNull GradleHomeSettingType settingType, long delayMillis);
@@ -722,13 +733,34 @@ public class GradleConfigurable implements SearchableConfigurable, Configurable.
     public File getGradleHome(@Nullable Project project) {
       return myInstallationManager.getGradleHome(project);
     }
-
+    
+    @NotNull
+    @Override
+    public Project getDefaultProject() {
+      return ProjectManager.getInstance().getDefaultProject();
+    }
+    
     @NotNull
     @Override
     public GradleSettings getSettings(@NotNull Project project) {
       return GradleSettings.getInstance(project);
     }
 
+    @Override
+    public void applySettings(@Nullable String linkedProjectPath,
+                              @Nullable String gradleHomePath,
+                              boolean preferLocalInstallationToWrapper,
+                              @Nullable String serviceDirectoryPath,
+                              @NotNull Project project)
+    {
+      GradleSettings.applySettings(linkedProjectPath, gradleHomePath, preferLocalInstallationToWrapper, serviceDirectoryPath, project); 
+    }
+
+    @Override
+    public void applyPreferLocalInstallationToWrapper(boolean preferLocalToWrapper, @NotNull Project project) {
+      GradleSettings.applyPreferLocalInstallationToWrapper(preferLocalToWrapper, project);
+    }
+
     @Override
     public boolean isGradleWrapperDefined(@Nullable String linkedProjectPath) {
       return GradleUtil.isGradleWrapperDefined(linkedProjectPath);
diff --git a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/config/GradleConfigurableTest.groovy b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/config/GradleConfigurableTest.groovy
index 94027e3544e7..230182e849ec 100644
--- a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/config/GradleConfigurableTest.groovy
+++ b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/config/GradleConfigurableTest.groovy
@@ -20,6 +20,7 @@ public class GradleConfigurableTest {
   
   def GradleConfigurable configurable
   def projectImpl
+  Project defaultProject = {} as Project
   Project project
   def helper
   Map<Project, GradleSettings> settings = [:].withDefault { new GradleSettings() }
@@ -28,7 +29,10 @@ public class GradleConfigurableTest {
   void setUp() {
     helper = [
       getSettings : { settings[it] },
-      getGradleHome : { new File(VALID_GRADLE_HOME) },
+      applySettings: {linkedProjectPath, gradleHomePath, preferLocalInstallationToWrapper, serviceDirectoryPath, project -> },
+      applyPreferLocalInstallationToWrapper: { preferLocalInstallationToWrapper, project -> },
+      getGradleHome: { new File(VALID_GRADLE_HOME) },
+      getDefaultProject: { defaultProject },
       isGradleSdkHome: { it == VALID_GRADLE_HOME },
       isGradleWrapperDefined: { it == VALID_LINKED_PATH_WITH_WRAPPER }
     ]
@@ -76,7 +80,7 @@ public class GradleConfigurableTest {
 
   @SuppressWarnings("GroovyAssignabilityCheck")
   @Test
-  void "invalid gradle home is not reported if home control inactive"() {
+  void "invalid gradle home is not reported if home control is inactive"() {
     projectImpl.isDefault = { false }
     settings[project].linkedProjectPath = VALID_LINKED_PATH_WITH_WRAPPER
     settings[project].preferLocalInstallationToWrapper = false
@@ -98,4 +102,15 @@ public class GradleConfigurableTest {
       fail()
     }
   }
+
+  @Test
+  void "do not show 'invalid gradle path' balloon if 'use wrapper' is selected"() {
+    settings[project].linkedProjectPath = VALID_LINKED_PATH_WITH_WRAPPER
+    settings[project].preferLocalInstallationToWrapper = false
+    configurable.useWrapperButton.selected = false
+    configurable.gradleHomePathField.text = INVALID_GRADLE_HOME
+    configurable.useWrapperButton.selected = true
+    helper.showBalloon = { messageType, settingType, long delay -> fail() }
+    configurable.apply()
+  }
 }