diff --git a/java/compiler/impl/src/com/intellij/compiler/server/impl/CompileServerClasspathManager.java b/java/compiler/impl/src/com/intellij/compiler/server/impl/CompileServerClasspathManager.java
index fb9d17c4cafe..f95d151d6b43 100644
--- a/java/compiler/impl/src/com/intellij/compiler/server/impl/CompileServerClasspathManager.java
+++ b/java/compiler/impl/src/com/intellij/compiler/server/impl/CompileServerClasspathManager.java
@@ -73,9 +73,14 @@ public class CompileServerClasspathManager {
       else if (baseFile.isDirectory()) {
         for (String relativePath : StringUtil.split(serverPlugin.getClasspath(), ";")) {
           final File jarFile = new File(new File(baseFile, "lib"), relativePath);
+          File classesDir = new File(baseFile, "classes");
           if (jarFile.exists()) {
             classpath.add(jarFile.getPath());
           }
+          else if (classesDir.isDirectory()) {
+            //'plugin run configuration': all module output are copied to 'classes' folder
+            classpath.add(classesDir.getPath());
+          }
           else {
             //development mode: add directory out/classes/production/<jar-name> to classpath, assuming that jar-name is equal to module name
             final String moduleName = FileUtil.getNameWithoutExtension(PathUtil.getFileName(relativePath));