diff --git a/python/python-psi-api/src/com/jetbrains/python/psi/LanguageLevel.java b/python/python-psi-api/src/com/jetbrains/python/psi/LanguageLevel.java
index b59dd8142521..1e2469cfbcea 100644
--- a/python/python-psi-api/src/com/jetbrains/python/psi/LanguageLevel.java
+++ b/python/python-psi-api/src/com/jetbrains/python/psi/LanguageLevel.java
@@ -18,7 +18,6 @@ package com.jetbrains.python.psi;
 import com.google.common.collect.ImmutableList;
 import com.intellij.openapi.util.Key;
 import com.intellij.psi.PsiElement;
-import com.intellij.psi.PsiFile;
 import com.intellij.util.ArrayUtil;
 import org.jetbrains.annotations.NotNull;
 
@@ -204,11 +203,7 @@ public enum LanguageLevel {
 
   @NotNull
   public static LanguageLevel forElement(@NotNull PsiElement element) {
-    final PsiFile containingFile = element.getContainingFile();
-    if (containingFile instanceof PyFile) {
-      return ((PyFile)containingFile).getLanguageLevel();
-    }
-    return getDefault();
+    return PyPsiFacade.getInstance(element.getProject()).getLanguageLevel(element);
   }
 
   @NotNull
diff --git a/python/python-psi-api/src/com/jetbrains/python/psi/PyPsiFacade.java b/python/python-psi-api/src/com/jetbrains/python/psi/PyPsiFacade.java
index a76d31093b7c..481cd3bda6b7 100644
--- a/python/python-psi-api/src/com/jetbrains/python/psi/PyPsiFacade.java
+++ b/python/python-psi-api/src/com/jetbrains/python/psi/PyPsiFacade.java
@@ -78,4 +78,7 @@ public abstract class PyPsiFacade {
 
   @Nullable
   public abstract String findShortestImportableName(@NotNull VirtualFile targetFile, @NotNull PsiElement anchor);
+
+  @NotNull
+  public abstract LanguageLevel getLanguageLevel(@NotNull PsiElement element);
 }
diff --git a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyPsiFacadeImpl.java b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyPsiFacadeImpl.java
index 802f0dfc0035..91ae062c94c0 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyPsiFacadeImpl.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyPsiFacadeImpl.java
@@ -19,11 +19,12 @@ import com.intellij.openapi.module.Module;
 import com.intellij.openapi.module.ModuleUtilCore;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.vfs.VirtualFile;
+import com.intellij.psi.PsiDirectory;
 import com.intellij.psi.PsiElement;
+import com.intellij.psi.PsiFile;
 import com.intellij.psi.util.QualifiedName;
 import com.intellij.util.ObjectUtils;
-import com.jetbrains.python.psi.PyClass;
-import com.jetbrains.python.psi.PyPsiFacade;
+import com.jetbrains.python.psi.*;
 import com.jetbrains.python.psi.resolve.PyQualifiedNameResolveContext;
 import com.jetbrains.python.psi.resolve.PyResolveImportUtil;
 import com.jetbrains.python.psi.resolve.QualifiedNameFinder;
@@ -36,6 +37,8 @@ import org.jetbrains.annotations.Nullable;
 import java.util.Collection;
 import java.util.List;
 
+import static com.jetbrains.python.psi.LanguageLevel.getDefault;
+
 /**
  * @author yole
  */
@@ -113,4 +116,20 @@ public class PyPsiFacadeImpl extends PyPsiFacade {
   public String findShortestImportableName(@NotNull VirtualFile targetFile, @NotNull PsiElement anchor) {
     return QualifiedNameFinder.findShortestImportableName(anchor, targetFile);
   }
+
+  @NotNull
+  @Override
+  public LanguageLevel getLanguageLevel(@NotNull PsiElement element) {
+    if (element instanceof PsiDirectory) {
+      final PsiDirectory directory = (PsiDirectory)element;
+      return PyUtil.getLanguageLevelForVirtualFile(directory.getProject(), directory.getVirtualFile());
+    }
+
+    final PsiFile containingFile = element.getContainingFile();
+    if (containingFile instanceof PyFile) {
+      return ((PyFile)containingFile).getLanguageLevel();
+    }
+
+    return getDefault();
+  }
 }
diff --git a/python/python-psi-impl/test/com/jetbrains/python/PythonParsingTest.java b/python/python-psi-impl/test/com/jetbrains/python/PythonParsingTest.java
index 09d492e6c957..4e854280977c 100644
--- a/python/python-psi-impl/test/com/jetbrains/python/PythonParsingTest.java
+++ b/python/python-psi-impl/test/com/jetbrains/python/PythonParsingTest.java
@@ -22,6 +22,8 @@ import com.intellij.testFramework.ParsingTestCase;
 import com.intellij.testFramework.TestDataPath;
 import com.jetbrains.python.psi.LanguageLevel;
 import com.jetbrains.python.psi.PyFunction;
+import com.jetbrains.python.psi.PyPsiFacade;
+import com.jetbrains.python.psi.impl.PyPsiFacadeImpl;
 import com.jetbrains.python.psi.impl.PythonASTFactory;
 import org.jetbrains.annotations.NotNull;
 
@@ -50,6 +52,7 @@ public class PythonParsingTest extends ParsingTestCase {
     registerExtension(PythonDialectsTokenSetContributor.EP_NAME, new PythonTokenSetContributor());
     addExplicitExtension(LanguageASTFactory.INSTANCE, PythonLanguage.getInstance(), new PythonASTFactory());
     PythonDialectsTokenSetProvider.reset();
+    getProject().registerService(PyPsiFacade.class, PyPsiFacadeImpl.class);
   }
 
   @Override
diff --git a/python/testSrc/com/jetbrains/python/PyMultiFileResolveTest.java b/python/testSrc/com/jetbrains/python/PyMultiFileResolveTest.java
index 5c02e81f8057..aba809348836 100644
--- a/python/testSrc/com/jetbrains/python/PyMultiFileResolveTest.java
+++ b/python/testSrc/com/jetbrains/python/PyMultiFileResolveTest.java
@@ -534,9 +534,14 @@ public class PyMultiFileResolveTest extends PyMultiFileResolveTestCase {
 
   // PY-19989
   public void testAmbiguousImplicitRelativeImport() {
-    prepareTestDirectory();
-    assertSameElements(doMultiResolveAndGetFileUrls("pkg2/__init__.py"), "pkg2/mod.py");
-    assertSameElements(doMultiResolveAndGetFileUrls("pkg/__init__.py"), "pkg/mod.py");
+    runWithLanguageLevel(
+      LanguageLevel.PYTHON27,
+      () -> {
+        prepareTestDirectory();
+        assertSameElements(doMultiResolveAndGetFileUrls("pkg2/__init__.py"), "pkg2/mod.py");
+        assertSameElements(doMultiResolveAndGetFileUrls("pkg/__init__.py"), "pkg/mod.py");
+      }
+    );
   }
 
   // PY-21088