diff --git a/jps/model/src/org/jetbrains/jps/Library.groovy b/jps/model/src/org/jetbrains/jps/Library.groovy
index 4e5fc5fffa82..eb60360b6504 100644
--- a/jps/model/src/org/jetbrains/jps/Library.groovy
+++ b/jps/model/src/org/jetbrains/jps/Library.groovy
@@ -1,5 +1,7 @@
 package org.jetbrains.jps
 
+import com.intellij.openapi.util.io.FileUtil
+
 /**
  * @author max
  */
@@ -23,11 +25,11 @@ class Library extends LazyInitializeableObject implements ClasspathItem {
     Closure lazyInit = {
       def meta = new InitializingExpando()
       meta.classpath = {Object[] arg ->
-        arg.each { classpath << it.toString() }
+        arg.each { classpath << FileUtil.toCanonicalPath(it.toString()) }
       }
 
       meta.src = {Object[] arg ->
-        arg.each { sourceRoots << it.toString() }
+        arg.each { sourceRoots << FileUtil.toCanonicalPath(it.toString()) }
       }
 
       initializer.delegate = meta
diff --git a/jps/model/src/org/jetbrains/jps/idea/IdeaProjectLoader.groovy b/jps/model/src/org/jetbrains/jps/idea/IdeaProjectLoader.groovy
index bca2a8581a74..e3bc47fefac2 100644
--- a/jps/model/src/org/jetbrains/jps/idea/IdeaProjectLoader.groovy
+++ b/jps/model/src/org/jetbrains/jps/idea/IdeaProjectLoader.groovy
@@ -291,7 +291,7 @@ public class IdeaProjectLoader {
     }
     def outputTag = componentTag?.output?.getAt(0)
     String outputPath = outputTag != null ? IdeaProjectLoadingUtil.pathFromUrl(outputTag.'@url') : null
-    projectOutputPath = outputPath != null && outputPath.length() > 0 ? projectMacroExpander.expandMacros(outputPath) : null
+    projectOutputPath = outputPath != null && outputPath.length() > 0 ? FileUtil.toCanonicalPath(projectMacroExpander.expandMacros(outputPath)) : null
     project.projectSdk = sdk
     projectLanguageLevel = componentTag?."@languageLevel"
   }
@@ -540,8 +540,8 @@ public class IdeaProjectLoader {
             }
           }
           else {
-            currentModule.outputPath = moduleMacroExpander.expandMacros(IdeaProjectLoadingUtil.pathFromUrl(componentTag.output[0]?.@url))
-            currentModule.testOutputPath = moduleMacroExpander.expandMacros(IdeaProjectLoadingUtil.pathFromUrl(componentTag."output-test"[0]?.'@url'))
+            currentModule.outputPath = FileUtil.toCanonicalPath(moduleMacroExpander.expandMacros(IdeaProjectLoadingUtil.pathFromUrl(componentTag.output[0]?.@url)))
+            currentModule.testOutputPath = FileUtil.toCanonicalPath(moduleMacroExpander.expandMacros(IdeaProjectLoadingUtil.pathFromUrl(componentTag."output-test"[0]?.'@url')))
             if (currentModule.testOutputPath == null) {
               currentModule.testOutputPath = currentModule.outputPath
             }