diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleConfigurable.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleConfigurable.java
index dc73ca6a5845..13a6a3b869c6 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleConfigurable.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleConfigurable.java
@@ -20,7 +20,6 @@ import com.intellij.openapi.options.ConfigurationException;
 import com.intellij.openapi.options.SearchableConfigurable;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.util.text.StringUtil;
-import com.intellij.openapi.vfs.VirtualFile;
 import org.jetbrains.annotations.Nls;
 import org.jetbrains.annotations.NonNls;
 import org.jetbrains.annotations.NotNull;
@@ -28,7 +27,6 @@ import org.jetbrains.annotations.Nullable;
 import org.jetbrains.plugins.gradle.util.GradleBundle;
 import org.jetbrains.plugins.gradle.util.GradleIcons;
 import org.jetbrains.plugins.gradle.util.GradleLibraryManager;
-import org.jetbrains.plugins.groovy.util.SdkHomeConfigurable;
 
 import javax.swing.*;
 import java.awt.*;
@@ -91,36 +89,45 @@ public class GradleConfigurable implements SearchableConfigurable {
 
   @Override
   public boolean isModified() {
-    // TODO den implement
-    return true;
+    if (!myPathComponent.isPathChangedByUser()) {
+      return false;
+    }
+    String newPath = myPathComponent.getPath();
+    String oldPath = GradleSettings.getInstance(myProject).GRADLE_HOME;
+    return newPath == null ? oldPath == null : newPath.equals(oldPath);
   }
 
   @Override
   public void apply() throws ConfigurationException {
-    GradleSettings.getInstance(myProject).INSTALLATION_HOME = myPathComponent.getPath();
+    useNormalColorForPath();
+    GradleSettings.getInstance(myProject).GRADLE_HOME = myPathComponent.getPath();
   }
 
   @Override
   public void reset() {
-    myPathComponent.setForeground(UIManager.getColor("TextField.foreground"));
-    String valueToUse = GradleSettings.getInstance(myProject).INSTALLATION_HOME;
+    useNormalColorForPath();
+    String valueToUse = GradleSettings.getInstance(myProject).GRADLE_HOME;
     if (!StringUtil.isEmpty(valueToUse)) {
       myPathComponent.setPath(valueToUse);
       return; 
     }
-    applyDefaultPathIfPossible();  
+    deduceGradleHomeIfPossible();  
   }
 
+  private void useNormalColorForPath() {
+    myPathComponent.getPathComponent().setForeground(UIManager.getColor("TextField.foreground"));
+  }
+  
   /**
    * Updates GUI of the gradle configurable in order to show deduced path to gradle (if possible).
    */
-  private void applyDefaultPathIfPossible() {
+  private void deduceGradleHomeIfPossible() {
     File gradleHome = myLibraryManager.getGradleHome(myProject);
     if (gradleHome == null) {
       return;
     }
     myPathComponent.setPath(gradleHome.getPath());
-    myPathComponent.setForeground(UIManager.getColor("TextField.inactiveForeground"));
+    myPathComponent.getPathComponent().setForeground(UIManager.getColor("TextField.inactiveForeground"));
   }
   
   @Override
diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleLibraryPresentationProvider.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleLibraryPresentationProvider.java
index 91183298fd7d..734225e3a34d 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleLibraryPresentationProvider.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleLibraryPresentationProvider.java
@@ -129,7 +129,7 @@ public class GradleLibraryPresentationProvider extends GroovyLibraryPresentation
 
     // TODO den implement
     return null;
-    //return GradleSettings.getInstance(project).INSTALLATION_HOME;
+    //return GradleSettings.getInstance(project).GRADLE_HOME;
   }
 
   @Nullable
diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleSettings.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleSettings.java
index 06741e45b1cc..d147a24af95f 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleSettings.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/config/GradleSettings.java
@@ -32,7 +32,7 @@ import org.jetbrains.annotations.NotNull;
 )
 public class GradleSettings implements PersistentStateComponent<GradleSettings> {
   
-  public String INSTALLATION_HOME;
+  public String GRADLE_HOME;
   
   @Override
   public GradleSettings getState() {
diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/util/GradleLibraryManager.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/util/GradleLibraryManager.java
index 27ea9b30ed51..8670f9f01d62 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/util/GradleLibraryManager.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/util/GradleLibraryManager.java
@@ -99,7 +99,7 @@ public class GradleLibraryManager {
       return null;
     }
     GradleSettings settings = GradleSettings.getInstance(project);
-    String path = settings.INSTALLATION_HOME;
+    String path = settings.GRADLE_HOME;
     if (path == null) {
       return null;
     }