diff --git a/plugins/android/src/org/jetbrains/android/newProject/AndroidModuleBuilder.java b/plugins/android/src/org/jetbrains/android/newProject/AndroidModuleBuilder.java
index 4c2f09049869..063ce71d1244 100644
--- a/plugins/android/src/org/jetbrains/android/newProject/AndroidModuleBuilder.java
+++ b/plugins/android/src/org/jetbrains/android/newProject/AndroidModuleBuilder.java
@@ -35,14 +35,13 @@ import com.intellij.openapi.module.ModuleType;
 import com.intellij.openapi.options.ConfigurationException;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.projectRoots.Sdk;
-import com.intellij.openapi.roots.DependencyScope;
-import com.intellij.openapi.roots.ModifiableRootModel;
-import com.intellij.openapi.roots.ModuleOrderEntry;
+import com.intellij.openapi.roots.*;
 import com.intellij.openapi.startup.StartupManager;
 import com.intellij.openapi.ui.Messages;
 import com.intellij.openapi.util.Computable;
 import com.intellij.openapi.util.io.FileUtil;
 import com.intellij.openapi.vfs.VirtualFile;
+import com.intellij.pom.java.LanguageLevel;
 import com.intellij.psi.ExternalChangeAction;
 import com.intellij.psi.PsiDirectory;
 import com.intellij.psi.PsiManager;
@@ -91,6 +90,21 @@ public class AndroidModuleBuilder extends JavaModuleBuilder {
 
     rootModel.setSdk(mySdk);
 
+    final LanguageLevelModuleExtension moduleExt = rootModel.getModuleExtension(LanguageLevelModuleExtension.class);
+
+    if (moduleExt != null) {
+      LanguageLevel languageLevel = moduleExt.getLanguageLevel();
+      if (languageLevel == null) {
+        final LanguageLevelProjectExtension projectExt = LanguageLevelProjectExtension.getInstance(rootModel.getProject());
+        if (projectExt != null) {
+          languageLevel = projectExt.getLanguageLevel();
+        }
+      }
+      if (languageLevel == LanguageLevel.JDK_1_3) {
+        moduleExt.setLanguageLevel(LanguageLevel.JDK_1_5);
+      }
+    }
+
     VirtualFile[] files = rootModel.getContentRoots();
     if (files.length > 0) {
       final VirtualFile contentRoot = files[0];