diff --git a/platform/analysis-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/FileReference.java b/platform/analysis-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/FileReference.java
index 69c2b0cdf326..207b819fff23 100644
--- a/platform/analysis-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/FileReference.java
+++ b/platform/analysis-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/FileReference.java
@@ -163,40 +163,39 @@ public class FileReference implements PsiFileReference, FileReferenceOwner, PsiP
       }
       else {
         final String decoded = decode(text);
-        if (decoded != null) {
 
-          if (context instanceof PackagePrefixFileSystemItem) {
-            context = ((PackagePrefixFileSystemItem)context).getDirectory();
+        if (context instanceof PackagePrefixFileSystemItem) {
+          context = ((PackagePrefixFileSystemItem)context).getDirectory();
+        }
+
+        if (context instanceof PsiDirectory && caseSensitivityApplies((PsiDirectory)context, caseSensitive)) {
+          // optimization: do not load all children into VFS
+          PsiDirectory directory = (PsiDirectory)context;
+          PsiFileSystemItem child = directory.findFile(decoded);
+          if (child == null) child = directory.findSubdirectory(decoded);
+          if (child != null) {
+            result.add(new PsiElementResolveResult(getOriginalFile(child)));
           }
-
-          if (context instanceof PsiDirectory && caseSensitivityApplies((PsiDirectory)context, caseSensitive)) {
-            // optimization: do not load all children into VFS
-            PsiDirectory directory = (PsiDirectory)context;
-            PsiFileSystemItem child = directory.findFile(decoded);
-            if (child == null) child = directory.findSubdirectory(decoded);
-            if (child != null) {
-              result.add(new PsiElementResolveResult(getOriginalFile(child)));
+        }
+        else {
+          processVariants(context, new PsiFileSystemItemProcessor() {
+            @Override
+            public boolean acceptItem(String name, boolean isDirectory) {
+              return caseSensitive ? decoded.equals(name) : decoded.compareToIgnoreCase(name) == 0;
             }
-          }
-          else {
-            processVariants(context, new PsiFileSystemItemProcessor() {
-              @Override
-              public boolean acceptItem(String name, boolean isDirectory) {
-                return caseSensitive ? decoded.equals(name) : decoded.compareToIgnoreCase(name) == 0;
-              }
 
-              @Override
-              public boolean execute(@NotNull PsiFileSystemItem element) {
-                result.add(new PsiElementResolveResult(getOriginalFile(element)));
-                return true;
-              }
-            });
-          }
+            @Override
+            public boolean execute(@NotNull PsiFileSystemItem element) {
+              result.add(new PsiElementResolveResult(getOriginalFile(element)));
+              return true;
+            }
+          });
         }
       }
     }
   }
 
+  @NotNull
   public String getFileNameToCreate() {
     return decode(getCanonicalText());
   }
@@ -218,8 +217,8 @@ public class FileReference implements PsiFileReference, FileReferenceOwner, PsiP
             !myFileReferenceSet.isEndingSlashNotAllowed() && myIndex > 0);
   }
 
-  @Nullable
-  public String decode(final String text) {
+  @NotNull
+  public String decode(@NotNull final String text) {
     // strip http get parameters
     String _text = text;
     if (text.indexOf('?') >= 0) {
@@ -228,7 +227,7 @@ public class FileReference implements PsiFileReference, FileReferenceOwner, PsiP
 
     if (myFileReferenceSet.isUrlEncoded()) {
       try {
-        return new URI(_text).getPath();
+        return StringUtil.notNullize(new URI(_text).getPath(), text);
       }
       catch (Exception e) {
         return text;
@@ -504,7 +503,7 @@ public class FileReference implements PsiFileReference, FileReferenceOwner, PsiP
   public String getUnresolvedMessagePattern() {
     return LangBundle.message("error.cannot.resolve")
            + " " + (isLast() ? LangBundle.message("terms.file") : LangBundle.message("terms.directory"))
-           + " '" + StringUtil.escapePattern(StringUtil.notNullize(decode(getCanonicalText()))) + "'";
+           + " '" + StringUtil.escapePattern(decode(getCanonicalText())) + "'";
   }
 
   public final boolean isLast() {