diff --git a/java/idea-ui/src/com/intellij/ide/util/importProject/ModuleInsight.java b/java/idea-ui/src/com/intellij/ide/util/importProject/ModuleInsight.java
index bd442e91114c..14e31698ac51 100644
--- a/java/idea-ui/src/com/intellij/ide/util/importProject/ModuleInsight.java
+++ b/java/idea-ui/src/com/intellij/ide/util/importProject/ModuleInsight.java
@@ -1,7 +1,6 @@
 // Copyright 2000-2019 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
 package com.intellij.ide.util.importProject;
 
-import com.google.common.collect.ImmutableSet;
 import com.intellij.ide.util.projectWizard.importSources.DetectedProjectRoot;
 import com.intellij.ide.util.projectWizard.importSources.DetectedSourceRoot;
 import com.intellij.ide.util.projectWizard.importSources.impl.ProjectFromSourcesBuilderImpl;
@@ -45,7 +44,6 @@ public abstract class ModuleInsight {
   private List<LibraryDescriptor> myLibraries;
   private final Set<String> myExistingModuleNames;
   private final Set<String> myExistingProjectLibraryNames;
-  private static final Set<String> ourModuleUndesirableNames = ImmutableSet.of("src");
 
   public ModuleInsight(@Nullable final ProgressIndicator progress, Set<String> existingModuleNames, Set<String> existingProjectLibraryNames) {
     myExistingModuleNames = existingModuleNames;
@@ -113,7 +111,7 @@ public abstract class ModuleInsight {
       Map<File, ModuleCandidate> rootToModule = new HashMap<>();
       for (DetectedSourceRoot sourceRoot : processedRoots) {
         final File srcRoot = sourceRoot.getDirectory();
-        final File moduleContentRoot = suggestModuleRoot(srcRoot);
+        final File moduleContentRoot = isEntryPointRoot(srcRoot) ? srcRoot : srcRoot.getParentFile();
         rootToModule.computeIfAbsent(moduleContentRoot, file -> new ModuleCandidate(moduleContentRoot)).myRoots.add(sourceRoot);
       }
       maximizeModuleFolders(rootToModule.values());
@@ -150,41 +148,26 @@ public abstract class ModuleInsight {
         if (!dirToChildRootCount.adjustValue(file, 1)) {
           dirToChildRootCount.put(file, 1);
         }
-      }, true);
+      });
     }
     for (ModuleCandidate module : modules) {
       File moduleRoot = module.myFolder;
       Ref<File> adjustedRootRef = new Ref<>(module.myFolder);
-      walkParents(moduleRoot,
-                  file -> isEntryPointRoot(file) || dirToChildRootCount.get(file) != 1,
-                  file -> adjustedRootRef.set(file),
-                  false
-      );
+      File current = moduleRoot;
+      while (dirToChildRootCount.get(current) == 1) {
+        adjustedRootRef.set(current);
+        if (isEntryPointRoot(current)) break;
+        current = current.getParentFile();
+      }
       module.myFolder = adjustedRootRef.get();
     }
   }
 
-  private static void walkParents(@NotNull File file, Predicate<File> stopCondition, @NotNull Consumer<File> fileConsumer, boolean includeStop) {
+  private static void walkParents(@NotNull File file, Predicate<File> stopCondition, @NotNull Consumer<File> fileConsumer) {
     File current = file;
     while (true) {
-      if (!includeStop) {
-        if (stopCondition.test(current)) break;
-        fileConsumer.consume(current);
-      } else {
-        fileConsumer.consume(current);
-        if (stopCondition.test(current)) break;
-      }
-      current = current.getParentFile();
-    }
-  }
-  
-  @NotNull
-  private File suggestModuleRoot(@NotNull File srcRoot) {
-    File current = isEntryPointRoot(srcRoot) ? srcRoot : srcRoot.getParentFile();
-    while (true) {
-      if (isEntryPointRoot(current) || !ourModuleUndesirableNames.contains(current.getName())) {
-        return current;
-      }
+      fileConsumer.consume(current);
+      if (stopCondition.test(current)) break;
       current = current.getParentFile();
     }
   }
diff --git a/java/idea-ui/testSrc/com/intellij/ide/projectWizard/ImportActionTest.java b/java/idea-ui/testSrc/com/intellij/ide/projectWizard/ImportActionTest.java
index a6a723a7f8ca..a034533509cd 100644
--- a/java/idea-ui/testSrc/com/intellij/ide/projectWizard/ImportActionTest.java
+++ b/java/idea-ui/testSrc/com/intellij/ide/projectWizard/ImportActionTest.java
@@ -68,6 +68,15 @@ public class ImportActionTest extends ProjectWizardTestCase<AddModuleWizard> {
     assertEquals(path + "/inner/m2", contentRoots.get(1).getPath());
   }
 
+  public void testSingleModuleInProject() {
+    String path = getModuleMaximizationPath("single");
+    Project project = importProjectFrom(path, null, new ImportFromSourcesProvider()).getProject();
+    Module[] modules = ModuleManager.getInstance(project).getModules();
+    assertEquals(1, modules.length);
+    List<VirtualFile> contentRoots = getSingleContentRoots(modules);
+    assertEquals(path, contentRoots.get(0).getPath());
+  }
+
   private static String getModuleMaximizationPath(String projectName) {
     String basePath = "/ide/importAction/moduleMaximization";
     return PathManagerEx.getTestDataPath(basePath + "/" + projectName);
diff --git a/java/java-tests/testData/ide/importAction/moduleMaximization/single/m1/src/main/f1.java b/java/java-tests/testData/ide/importAction/moduleMaximization/single/m1/src/main/f1.java
new file mode 100644
index 000000000000..f72abf33fa2a
--- /dev/null
+++ b/java/java-tests/testData/ide/importAction/moduleMaximization/single/m1/src/main/f1.java
@@ -0,0 +1 @@
+class Foo {}
\ No newline at end of file
diff --git a/java/java-tests/testData/ide/importAction/moduleMaximization/single/m1/src/test/f2.java b/java/java-tests/testData/ide/importAction/moduleMaximization/single/m1/src/test/f2.java
new file mode 100644
index 000000000000..31eebff6972e
--- /dev/null
+++ b/java/java-tests/testData/ide/importAction/moduleMaximization/single/m1/src/test/f2.java
@@ -0,0 +1 @@
+class FooTest {}
\ No newline at end of file