diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/service/project/BaseGradleProjectResolverExtension.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/service/project/BaseGradleProjectResolverExtension.java
index 154290f323d0..b1303fd0e03c 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/service/project/BaseGradleProjectResolverExtension.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/service/project/BaseGradleProjectResolverExtension.java
@@ -942,7 +942,12 @@ public class BaseGradleProjectResolverExtension implements GradleProjectResolver
 
     if (moduleVersion == null) {
       if (binaryPath.isFile()) {
-        boolean isModuleLocalLibrary = FileUtil.isAncestor(gradleModule.getGradleProject().getProjectDirectory(), binaryPath, false);
+        boolean isModuleLocalLibrary = false;
+        try {
+          isModuleLocalLibrary = FileUtil.isAncestor(gradleModule.getGradleProject().getProjectDirectory(), binaryPath, false);
+        } catch (UnsupportedMethodException e) {
+          // ignore, generate project-level library for the dependency
+        }
         if (isModuleLocalLibrary) {
           level = LibraryLevel.MODULE;
         } else {
diff --git a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
index 84f76d0230ea..1225be4b127b 100644
--- a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
+++ b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
@@ -412,14 +412,15 @@ public class GradleDependenciesImportingTest extends GradleImportingTestCase {
     assertModules("project", "p1", "p2");
 
     final List<LibraryOrderEntry> moduleLibDepsP1 = getModuleLibDeps("p1", "Gradle: dep");
+    final boolean isGradleNewerThen_2_4 = GradleVersion.version(gradleVersion).getBaseVersion().compareTo(GradleVersion.version("2.4")) > 0;
     for (LibraryOrderEntry libDep : moduleLibDepsP1) {
-      assertTrue("Dependency be project level: " + libDep.toString(), libDep.isModuleLevel());
+      assertEquals("Dependency must be " + (isGradleNewerThen_2_4 ? "module" : "project") + " level: " + libDep.toString(), isGradleNewerThen_2_4, libDep.isModuleLevel());
       assertEquals("Wrong library dependency", depP1Jar.getUrl(), libDep.getLibrary().getUrls(OrderRootType.CLASSES)[0]);
     }
 
     final List<LibraryOrderEntry> moduleLibDepsP2 = getModuleLibDeps("p2", "Gradle: dep");
     for (LibraryOrderEntry libDep : moduleLibDepsP2) {
-      assertTrue("Dependency be project level: " + libDep.toString(), libDep.isModuleLevel());
+      assertEquals("Dependency must be " + (isGradleNewerThen_2_4 ? "module" : "project") + " level: " + libDep.toString(), isGradleNewerThen_2_4, libDep.isModuleLevel());
       assertEquals("Wrong library dependency", depP2Jar.getUrl(), libDep.getLibrary().getUrls(OrderRootType.CLASSES)[0]);
     }
   }