diff --git a/java/idea-ui/src/com/intellij/codeInsight/daemon/impl/SetupSDKNotificationProvider.java b/java/idea-ui/src/com/intellij/codeInsight/daemon/impl/SetupSDKNotificationProvider.java
new file mode 100644
index 000000000000..b4abfb99cc60
--- /dev/null
+++ b/java/idea-ui/src/com/intellij/codeInsight/daemon/impl/SetupSDKNotificationProvider.java
@@ -0,0 +1,98 @@
+/*
+ * Copyright 2000-2012 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.codeInsight.daemon.impl;
+
+import com.intellij.ProjectTopics;
+import com.intellij.ide.highlighter.JavaClassFileType;
+import com.intellij.openapi.application.ApplicationManager;
+import com.intellij.openapi.module.Module;
+import com.intellij.openapi.module.ModuleUtil;
+import com.intellij.openapi.project.Project;
+import com.intellij.openapi.project.ProjectBundle;
+import com.intellij.openapi.projectRoots.Sdk;
+import com.intellij.openapi.roots.*;
+import com.intellij.openapi.roots.ui.configuration.ProjectSettingsService;
+import com.intellij.openapi.util.Key;
+import com.intellij.openapi.vfs.VirtualFile;
+import com.intellij.psi.PsiFile;
+import com.intellij.psi.PsiManager;
+import com.intellij.ui.EditorNotificationPanel;
+import com.intellij.ui.EditorNotifications;
+import org.jetbrains.annotations.NotNull;
+
+/**
+ * @author Danila Ponomarenko
+ */
+public class SetupSDKNotificationProvider implements EditorNotifications.Provider<EditorNotificationPanel> {
+  private static final Key<EditorNotificationPanel> KEY = Key.create("Setup SDK");
+
+  private final Project myProject;
+
+  public SetupSDKNotificationProvider(Project project, final EditorNotifications notifications) {
+    myProject = project;
+    myProject.getMessageBus().connect(project).subscribe(ProjectTopics.PROJECT_ROOTS, new ModuleRootAdapter() {
+      public void rootsChanged(ModuleRootEvent event) {
+        notifications.updateAllNotifications();
+      }
+    });
+  }
+
+  @Override
+  public Key<EditorNotificationPanel> getKey() {
+    return KEY;
+  }
+
+  @Override
+  public EditorNotificationPanel createNotificationPanel(VirtualFile file) {
+    if (file.getFileType() == JavaClassFileType.INSTANCE) return null;
+
+    final PsiFile psiFile = PsiManager.getInstance(myProject).findFile(file);
+    if (psiFile == null) {
+      return null;
+    }
+
+    if (ProjectRootManager.getInstance(myProject).getProjectSdk() != null) {
+      return null;
+    }
+
+    return createPanel(myProject, psiFile);
+  }
+
+  @NotNull
+  private static EditorNotificationPanel createPanel(final @NotNull Project project, final @NotNull PsiFile file) {
+    final EditorNotificationPanel panel = new EditorNotificationPanel();
+    panel.setText(ProjectBundle.message("project.sdk.not.defined"));
+    panel.createActionLabel(ProjectBundle.message("project.sdk.setup"), new Runnable() {
+      @Override
+      public void run() {
+        final Sdk projectSdk = ProjectSettingsService.getInstance(project).chooseAndSetSdk();
+        if (projectSdk == null) return;
+        ApplicationManager.getApplication().runWriteAction(new Runnable() {
+          @Override
+          public void run() {
+            final Module module = ModuleUtil.findModuleForPsiElement(file);
+            if (module != null) {
+              ModifiableRootModel modifiableModel = ModuleRootManager.getInstance(module).getModifiableModel();
+              modifiableModel.inheritSdk();
+              modifiableModel.commit();
+            }
+          }
+        });
+      }
+    });
+    return panel;
+  }
+}
diff --git a/platform/projectModel-impl/src/messages/ProjectBundle.properties b/platform/projectModel-impl/src/messages/ProjectBundle.properties
index 6e08ca5d3c41..cee4e41dc4c3 100644
--- a/platform/projectModel-impl/src/messages/ProjectBundle.properties
+++ b/platform/projectModel-impl/src/messages/ProjectBundle.properties
@@ -154,6 +154,9 @@ library.attach.sources.action=Attach Sources
 library.attach.sources.action.busy.text=Attaching...
 library.attach.sources.description=Select jar/zip files or directories in which library sources are located
 
+project.sdk.not.defined=Project SDK is not defined
+project.sdk.setup=Setup SDK
+
 module.module.language.level=&Language level:
 module.module.language.level.comment=(effective on project reload)
 module.circular.dependency.warning.short=There is circular dependency between modules {0}
diff --git a/resources/src/idea/RichPlatformPlugin.xml b/resources/src/idea/RichPlatformPlugin.xml
index 72ef62dedb26..6f614bddea9a 100644
--- a/resources/src/idea/RichPlatformPlugin.xml
+++ b/resources/src/idea/RichPlatformPlugin.xml
@@ -267,6 +267,7 @@
     <applicationConfigurable instance="com.intellij.execution.console.ConsoleFoldingConfigurable"/>
 
     <editorNotificationProvider implementation="com.intellij.codeInsight.daemon.impl.AttachSourcesNotificationProvider"/>
+    <editorNotificationProvider implementation="com.intellij.codeInsight.daemon.impl.SetupSDKNotificationProvider"/>
 
     <checkoutListener implementation="com.intellij.openapi.vcs.checkout.ProjectCheckoutListener"/>
     <checkoutListener implementation="com.intellij.openapi.vcs.checkout.ProjectDirCheckoutListener"/>