diff --git a/platform/external-system-impl/src/com/intellij/openapi/externalSystem/service/project/manage/SourceFolderManagerImpl.kt b/platform/external-system-impl/src/com/intellij/openapi/externalSystem/service/project/manage/SourceFolderManagerImpl.kt
index c6d40e422002..500af49703ab 100644
--- a/platform/external-system-impl/src/com/intellij/openapi/externalSystem/service/project/manage/SourceFolderManagerImpl.kt
+++ b/platform/external-system-impl/src/com/intellij/openapi/externalSystem/service/project/manage/SourceFolderManagerImpl.kt
@@ -131,13 +131,12 @@ class SourceFolderManagerImpl(private val project: Project) : SourceFolderManage
               for ((eventFile, sourceFolders) in p) {
                 val (_, url, type, packagePrefix, generated) = sourceFolders
                 val contentEntry = MarkRootActionBase.findContentEntry(model, eventFile)
-                if (contentEntry != null) {
-                  val sourceFolder = contentEntry.addSourceFolder(url, type)
-                  if (packagePrefix != null && packagePrefix.isNotEmpty()) {
-                    sourceFolder.packagePrefix = packagePrefix
-                  }
-                  setForGeneratedSources(sourceFolder, generated)
+                                   ?: model.addContentEntry(url)
+                val sourceFolder = contentEntry.addSourceFolder(url, type)
+                if (packagePrefix != null && packagePrefix.isNotEmpty()) {
+                  sourceFolder.packagePrefix = packagePrefix
                 }
+                setForGeneratedSources(sourceFolder, generated)
               }
             }
           }
diff --git a/platform/external-system-impl/testSrc/com/intellij/openapi/externalSystem/service/project/manage/SourceFolderManagerTest.kt b/platform/external-system-impl/testSrc/com/intellij/openapi/externalSystem/service/project/manage/SourceFolderManagerTest.kt
new file mode 100644
index 000000000000..3e7fab3dc102
--- /dev/null
+++ b/platform/external-system-impl/testSrc/com/intellij/openapi/externalSystem/service/project/manage/SourceFolderManagerTest.kt
@@ -0,0 +1,93 @@
+// 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.openapi.externalSystem.service.project.manage
+
+import com.intellij.configurationStore.contentRootUrls
+import com.intellij.openapi.application.runWriteAction
+import com.intellij.openapi.module.Module
+import com.intellij.openapi.module.ModuleManager
+import com.intellij.openapi.module.ModuleTypeId
+import com.intellij.openapi.roots.ModuleRootManager
+import com.intellij.openapi.util.io.FileUtil
+import com.intellij.openapi.vfs.LocalFileSystem
+import com.intellij.openapi.vfs.VfsUtilCore
+import com.intellij.testFramework.HeavyPlatformTestCase
+import org.assertj.core.api.BDDAssertions.then
+import org.jetbrains.jps.model.java.JavaSourceRootType
+import java.io.File
+
+class SourceFolderManagerTest: HeavyPlatformTestCase() {
+
+  fun `test source folder is added to content root when created`() {
+    val rootManager = ModuleRootManager.getInstance(module)
+    val dir = createTempDir("contentEntry")
+    val modifiableModel = rootManager.modifiableModel
+    modifiableModel.addContentEntry(VfsUtilCore.pathToUrl(dir.absolutePath))
+    runWriteAction {
+      modifiableModel.commit()
+    }
+
+    val manager = SourceFolderManager.getInstance(project)
+
+    val folderUrl = module.contentRootUrls[0] + "/newFolder";
+    val folderFile = File(VfsUtilCore.urlToPath(folderUrl))
+
+    manager.addSourceFolder(module, folderUrl, JavaSourceRootType.SOURCE)
+
+    val file = File(folderFile, "file.txt")
+    FileUtil.writeToFile(file, "SomeContent");
+
+    LocalFileSystem.getInstance().refreshAndFindFileByIoFile(file)
+
+    then(rootManager.contentEntries[0].sourceFolders)
+      .hasSize(1)
+      .extracting("url")
+      .containsExactly(folderUrl)
+  }
+
+  fun `test new content root is created if source folder does not belong to existing one`() {
+    val rootManager = ModuleRootManager.getInstance(module)
+    val dir = createTempDir("contentEntry")
+    createModuleWithContentRoot(dir)
+
+    val manager = SourceFolderManager.getInstance(project)
+    val folderFile = File(dir, "newFolder")
+    val folderUrl = VfsUtilCore.pathToUrl(folderFile.absolutePath)
+
+    manager.addSourceFolder(module, folderUrl, JavaSourceRootType.SOURCE)
+
+    val file = File(folderFile, "file.txt")
+    FileUtil.writeToFile(file, "SomeContent");
+
+    LocalFileSystem.getInstance().refreshAndFindFileByIoFile(file)
+
+    then(rootManager
+           .contentEntries
+           .flatMap { it.sourceFolders.asList() }
+           .map { it.url })
+      .containsExactly(folderUrl)
+  }
+
+  private fun createModuleWithContentRoot(dir: File): Module {
+    val moduleManager = ModuleManager.getInstance(project)
+    val modifiableModel = moduleManager.modifiableModel
+    val newModule: Module =
+      try {
+        modifiableModel.newModule(File(dir, "topModule").absolutePath, ModuleTypeId.JAVA_MODULE)
+    } finally {
+        runWriteAction {
+          modifiableModel.commit()
+        }
+    }
+
+    val modifiableRootModel = ModuleRootManager.getInstance(newModule).modifiableModel
+    try {
+      modifiableRootModel.addContentEntry(VfsUtilCore.pathToUrl(dir.absolutePath))
+    } finally {
+      runWriteAction {
+        modifiableRootModel.commit()
+      }
+    }
+
+    return newModule
+  }
+}
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