diff --git a/xml/xml-psi-impl/src/com/intellij/xml/actions/validate/ValidateXmlActionHandler.java b/xml/xml-psi-impl/src/com/intellij/xml/actions/validate/ValidateXmlActionHandler.java
index 2a200cba1e16..fa830d93cd4e 100644
--- a/xml/xml-psi-impl/src/com/intellij/xml/actions/validate/ValidateXmlActionHandler.java
+++ b/xml/xml-psi-impl/src/com/intellij/xml/actions/validate/ValidateXmlActionHandler.java
@@ -153,7 +153,9 @@ public class ValidateXmlActionHandler {
 
   public void doParse() {
     try {
-      myParser.parse(new InputSource(new StringReader(myFile.getText())), new DefaultHandler() {
+      InputSource inputSource = new InputSource(new StringReader(myFile.getText()));
+      inputSource.setSystemId(myFile.getVirtualFile().getUrl().replace("file:", "file:/"));
+      myParser.parse(inputSource, new DefaultHandler() {
         @Override
         public void warning(SAXParseException e) throws SAXException {
           if (myErrorReporter.isUniqueProblem(e)) myErrorReporter.processError(e, ProblemType.WARNING);
diff --git a/xml/xml-psi-impl/src/com/intellij/xml/util/XmlResourceResolver.java b/xml/xml-psi-impl/src/com/intellij/xml/util/XmlResourceResolver.java
index e44ad0f2cc42..cf48a662dd68 100644
--- a/xml/xml-psi-impl/src/com/intellij/xml/util/XmlResourceResolver.java
+++ b/xml/xml-psi-impl/src/com/intellij/xml/util/XmlResourceResolver.java
@@ -40,6 +40,7 @@ import java.io.StringReader;
 import java.net.MalformedURLException;
 import java.net.URI;
 import java.net.URL;
+import java.nio.file.Path;
 import java.util.HashMap;
 import java.util.Map;
 
@@ -225,21 +226,16 @@ public class XmlResourceResolver implements XMLEntityResolver {
                   xmlResourceIdentifier.getLiteralSystemId():
                   xmlResourceIdentifier.getNamespace();
 
-    if (publicId != null) {
+    if (publicId != null && publicId.startsWith("file:")) {
+      Path basePath = new File(URI.create(xmlResourceIdentifier.getBaseSystemId())).getParentFile().toPath();
       try {
-        String userDir = new File(System.getProperty("user.dir")).toURI().getPath();
-        String publicIdPath = new URI(publicId).getPath();
-        if (publicIdPath.startsWith(userDir)) {
-          publicId = publicIdPath.substring(publicIdPath.indexOf(userDir) + userDir.length());
-        }
+        Path publicIdPath = new File(URI.create(publicId)).toPath();
+        publicId = basePath.relativize(publicIdPath).toString().replace(File.separatorChar, '/');
       }
-      catch (Exception e) {
+      catch (Exception ignore) {
       }
     }
     PsiFile psiFile = resolve(xmlResourceIdentifier.getBaseSystemId(), publicId);
-    if (psiFile == null && xmlResourceIdentifier.getBaseSystemId() != null) {
-        psiFile = ExternalResourceManager.getInstance().getResourceLocation(xmlResourceIdentifier.getBaseSystemId(), myFile, null);
-    }
     if (psiFile==null && xmlResourceIdentifier.getLiteralSystemId()!=null && xmlResourceIdentifier.getNamespace()!=null) {
       psiFile = resolve(
         xmlResourceIdentifier.getBaseSystemId(),
@@ -274,6 +270,7 @@ public class XmlResourceResolver implements XMLEntityResolver {
       }
     }
     source.setPublicId(publicId);
+    source.setBaseSystemId(null);
     source.setCharacterStream(new StringReader(psiFile.getText()));
 
     return source;