diff --git a/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/GeneralProjectSettingsElement.java b/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/GeneralProjectSettingsElement.java
index a266c6043c06..337d3f2bd03a 100644
--- a/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/GeneralProjectSettingsElement.java
+++ b/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/GeneralProjectSettingsElement.java
@@ -21,6 +21,7 @@ import com.intellij.openapi.module.Module;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.project.ProjectBundle;
 import com.intellij.openapi.projectRoots.Sdk;
+import com.intellij.openapi.roots.ContentEntry;
 import com.intellij.openapi.roots.ModuleRootModel;
 import com.intellij.openapi.roots.ui.configuration.projectRoot.ProjectSdksModel;
 import com.intellij.openapi.roots.ui.configuration.projectRoot.StructureConfigurableContext;
@@ -72,9 +73,9 @@ public class GeneralProjectSettingsElement extends ProjectStructureElement {
 
 
     Graph<ModuleSourceSet> graph = ModuleCompilerUtil.createModuleSourceDependenciesGraph(myContext.getModulesConfigurator());
-    Collection<Chunk<ModuleSourceSet>> allSourceSetCycles = extractCycles(
-      GraphAlgorithms.getInstance().computeStronglyConnectedComponents(graph));
-    List<Chunk<ModuleSourceSet>> sourceSetCycles = removeDummyNodes(filterDuplicates(allSourceSetCycles));
+    Collection<Chunk<ModuleSourceSet>> chunks = GraphAlgorithms.getInstance().computeStronglyConnectedComponents(graph);
+    List<Chunk<ModuleSourceSet>> sourceSetCycles =
+      removeSingleElementChunks(removeDummyNodes(filterDuplicates(removeSingleElementChunks(chunks))));
 
     List<String> cycles = new ArrayList<String>();
 
@@ -128,7 +129,13 @@ public class GeneralProjectSettingsElement extends ProjectStructureElement {
 
   private boolean isDummy(ModuleSourceSet set) {
     JavaSourceRootType type = set.getType() == ModuleSourceSet.Type.PRODUCTION ? JavaSourceRootType.SOURCE : JavaSourceRootType.TEST_SOURCE;
-    return myContext.getModulesConfigurator().getRootModel(set.getModule()).getSourceRoots(type).isEmpty();
+    ModuleRootModel rootModel = myContext.getModulesConfigurator().getRootModel(set.getModule());
+    for (ContentEntry entry : rootModel.getContentEntries()) {
+      if (!entry.getSourceFolders(type).isEmpty()) {
+        return false;
+      }
+    }
+    return true;
   }
 
   private boolean containsModuleWithInheritedSdk() {
@@ -141,7 +148,7 @@ public class GeneralProjectSettingsElement extends ProjectStructureElement {
     return false;
   }
 
-  private static Collection<Chunk<ModuleSourceSet>> extractCycles(Collection<Chunk<ModuleSourceSet>> chunks) {
+  private static List<Chunk<ModuleSourceSet>> removeSingleElementChunks(Collection<Chunk<ModuleSourceSet>> chunks) {
     return ContainerUtil.filter(chunks, new Condition<Chunk<ModuleSourceSet>>() {
       @Override
       public boolean value(Chunk<ModuleSourceSet> chunk) {