diff --git a/java/java-impl/src/com/intellij/ide/actions/CreateClassAction.java b/java/java-impl/src/com/intellij/ide/actions/CreateClassAction.java
index 6e998df1000f..5d65cacd79f6 100644
--- a/java/java-impl/src/com/intellij/ide/actions/CreateClassAction.java
+++ b/java/java-impl/src/com/intellij/ide/actions/CreateClassAction.java
@@ -24,11 +24,11 @@ import com.intellij.ide.fileTemplates.JavaTemplateUtil;
 import com.intellij.ide.highlighter.JavaFileType;
 import com.intellij.openapi.project.DumbAware;
 import com.intellij.openapi.project.Project;
-import com.intellij.openapi.roots.LanguageLevelProjectExtension;
 import com.intellij.openapi.ui.InputValidatorEx;
 import com.intellij.openapi.util.text.StringUtil;
 import com.intellij.pom.java.LanguageLevel;
 import com.intellij.psi.*;
+import com.intellij.psi.util.PsiUtil;
 import com.intellij.util.IncorrectOperationException;
 import com.intellij.util.PlatformIcons;
 import org.jetbrains.annotations.NotNull;
@@ -51,7 +51,7 @@ public class CreateClassAction extends JavaCreateTemplateInPackageAction<PsiClas
       .setTitle(IdeBundle.message("action.create.new.class"))
       .addKind("Class", PlatformIcons.CLASS_ICON, JavaTemplateUtil.INTERNAL_CLASS_TEMPLATE_NAME)
       .addKind("Interface", PlatformIcons.INTERFACE_ICON, JavaTemplateUtil.INTERNAL_INTERFACE_TEMPLATE_NAME);
-    if (LanguageLevelProjectExtension.getInstance(project).getLanguageLevel().isAtLeast(LanguageLevel.JDK_1_5)) {
+    if (PsiUtil.getLanguageLevel(directory).isAtLeast(LanguageLevel.JDK_1_5)) {
       builder.addKind("Enum", PlatformIcons.ENUM_ICON, JavaTemplateUtil.INTERNAL_ENUM_TEMPLATE_NAME);
       builder.addKind("Annotation", PlatformIcons.ANNOTATION_TYPE_ICON, JavaTemplateUtil.INTERNAL_ANNOTATION_TYPE_TEMPLATE_NAME);
     }
diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaFileBaseImpl.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaFileBaseImpl.java
index 24d225c4c4db..d180a4045f51 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaFileBaseImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaFileBaseImpl.java
@@ -20,7 +20,6 @@ import com.intellij.lang.Language;
 import com.intellij.lang.java.JavaLanguage;
 import com.intellij.openapi.diagnostic.Logger;
 import com.intellij.openapi.project.Project;
-import com.intellij.openapi.roots.LanguageLevelProjectExtension;
 import com.intellij.openapi.util.Key;
 import com.intellij.openapi.util.NotNullLazyKey;
 import com.intellij.openapi.vfs.VirtualFile;
@@ -529,7 +528,7 @@ public abstract class PsiJavaFileBaseImpl extends PsiFileImpl implements PsiJava
       if (originalFile instanceof PsiJavaFile && originalFile != this) {
         return ((PsiJavaFile)originalFile).getLanguageLevel();
       }
-      return LanguageLevelProjectExtension.getInstance(project).getLanguageLevel();
+      return LanguageLevel.HIGHEST;
     }
 
     return JavaPsiImplementationHelper.getInstance(project).getEffectiveLanguageLevel(virtualFile);
diff --git a/java/java-tests/testSrc/com/intellij/psi/JavaDirectoryServiceHeavyTest.java b/java/java-tests/testSrc/com/intellij/psi/JavaDirectoryServiceHeavyTest.java
new file mode 100644
index 000000000000..c94ceb474edf
--- /dev/null
+++ b/java/java-tests/testSrc/com/intellij/psi/JavaDirectoryServiceHeavyTest.java
@@ -0,0 +1,38 @@
+/*
+ * Copyright 2000-2017 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.psi;
+
+import com.intellij.openapi.roots.LanguageLevelProjectExtension;
+import com.intellij.pom.java.LanguageLevel;
+import com.intellij.psi.util.PsiUtil;
+import com.intellij.testFramework.IdeaTestUtil;
+import com.intellij.testFramework.fixtures.JavaCodeInsightFixtureTestCase;
+
+/**
+ * @author peter
+ */
+public class JavaDirectoryServiceHeavyTest extends JavaCodeInsightFixtureTestCase {
+  public void testCreatingEnumInLanguageLevel3Project() {
+    LanguageLevelProjectExtension.getInstance(getProject()).setLanguageLevel(LanguageLevel.JDK_1_3);
+    IdeaTestUtil.setModuleLanguageLevel(myModule, LanguageLevel.JDK_1_7);
+
+    PsiDirectory dir = getPsiManager().findDirectory(myFixture.getTempDirFixture().getFile(""));
+    PsiClass createdEnum = JavaDirectoryService.getInstance().createEnum(dir, "Foo");
+    assertTrue(createdEnum.isEnum());
+    assertEquals(LanguageLevel.JDK_1_7, PsiUtil.getLanguageLevel(createdEnum));
+  }
+
+}