diff --git a/platform/lang-api/src/com/intellij/ide/util/projectWizard/WizardContext.java b/platform/lang-api/src/com/intellij/ide/util/projectWizard/WizardContext.java
index e5daad1340c0..2a608531a170 100644
--- a/platform/lang-api/src/com/intellij/ide/util/projectWizard/WizardContext.java
+++ b/platform/lang-api/src/com/intellij/ide/util/projectWizard/WizardContext.java
@@ -80,6 +80,10 @@ public class WizardContext {
            "Projects";
   }
 
+  public boolean isProjectFileDirectorySet() {
+    return myProjectFileDirectory != null;
+  }
+
   public void setProjectFileDirectory(String projectFileDirectory) {
     myProjectFileDirectory = projectFileDirectory;
   }
diff --git a/plugins/eclipse/src/org/jetbrains/idea/eclipse/importWizard/EclipseWorkspaceRootStep.java b/plugins/eclipse/src/org/jetbrains/idea/eclipse/importWizard/EclipseWorkspaceRootStep.java
index 5fd3df7449e6..9472c748c0cf 100644
--- a/plugins/eclipse/src/org/jetbrains/idea/eclipse/importWizard/EclipseWorkspaceRootStep.java
+++ b/plugins/eclipse/src/org/jetbrains/idea/eclipse/importWizard/EclipseWorkspaceRootStep.java
@@ -109,7 +109,11 @@ public class EclipseWorkspaceRootStep extends ProjectImportWizardStep {
   public void updateStep() {
     String path = getContext().getRootDirectory();
     if (path == null) {
-      path = PropertiesComponent.getInstance().isValueSet(_ECLIPSE_PROJECT_DIR) ? PropertiesComponent.getInstance().getValue(_ECLIPSE_PROJECT_DIR) : getWizardContext().getProjectFileDirectory();
+      if (getWizardContext().isProjectFileDirectorySet() || !PropertiesComponent.getInstance().isValueSet(_ECLIPSE_PROJECT_DIR)) {
+        path = getWizardContext().getProjectFileDirectory();
+      } else {
+        path =  PropertiesComponent.getInstance().getValue(_ECLIPSE_PROJECT_DIR);
+      }
     }
     myWorkspaceRootComponent.setText(path.replace('/', File.separatorChar));
     myWorkspaceRootComponent.getTextField().selectAll();