diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/service/settings/GradleProjectSettingsControl.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/service/settings/GradleProjectSettingsControl.java
index cc8eb204e95f..52ee263fb59c 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/service/settings/GradleProjectSettingsControl.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/service/settings/GradleProjectSettingsControl.java
@@ -222,6 +222,10 @@ public class GradleProjectSettingsControl extends AbstractExternalProjectSetting
     myGradleHomePathField.getTextField().setForeground(LocationSettingType.EXPLICIT_CORRECT.getColor());
     
     updateWrapperControls(getInitialSettings().getExternalProjectPath());
+    if (myUseWrapperButton.isSelected()) {
+      myGradleHomePathField.setEnabled(false);
+      return;
+    }
 
     if (StringUtil.isEmpty(gradleHome)) {
       myGradleHomeSettingType = LocationSettingType.UNKNOWN;
diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/util/GradleUtil.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/util/GradleUtil.java
index acde80d07bba..fc3b0708d383 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/util/GradleUtil.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/util/GradleUtil.java
@@ -76,7 +76,7 @@ public class GradleUtil {
       gradleDir = new File(file.getParentFile(), "gradle");
     }
     else {
-      gradleDir = file;
+      gradleDir = new File(file, "gradle");
     }
     if (!gradleDir.isDirectory()) {
       return null;