diff --git a/python/src/com/jetbrains/python/testing/PyTestsShared.kt b/python/src/com/jetbrains/python/testing/PyTestsShared.kt
index 8f6e33a4fbc9..b1ee4474ec2e 100644
--- a/python/src/com/jetbrains/python/testing/PyTestsShared.kt
+++ b/python/src/com/jetbrains/python/testing/PyTestsShared.kt
@@ -700,7 +700,7 @@ object PyTestsConfigurationProducer : com.jetbrains.python.testing.AbstractPytho
           }
         }
       }
-      element = element.parent
+      element = element.parent ?: break
     }
     while (element !is com.intellij.psi.PsiDirectory) // if parent is folder, then we are at file level
     return null