diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/settings/GradleSettings.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/settings/GradleSettings.java
index c6e8235e11ab..ff412b64ebb6 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/settings/GradleSettings.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/settings/GradleSettings.java
@@ -20,6 +20,7 @@ import com.intellij.openapi.components.ServiceManager;
 import com.intellij.openapi.components.State;
 import com.intellij.openapi.components.Storage;
 import com.intellij.openapi.externalSystem.service.project.manage.ExternalProjectsManager;
+import com.intellij.openapi.externalSystem.service.project.manage.ExternalProjectsManagerImpl;
 import com.intellij.openapi.externalSystem.settings.AbstractExternalSystemSettings;
 import com.intellij.openapi.externalSystem.settings.ExternalSystemSettingsListener;
 import com.intellij.openapi.project.Project;
@@ -128,6 +129,9 @@ public class GradleSettings extends AbstractExternalSystemSettings<GradleSetting
     if (old.isResolveModulePerSourceSet() != current.isResolveModulePerSourceSet()) {
       ExternalProjectsManager.getInstance(getProject()).getExternalProjectsWatcher().markDirty(current.getExternalProjectPath());
     }
+    if (old.isStoreProjectFilesExternally() != current.isStoreProjectFilesExternally()) {
+      ExternalProjectsManagerImpl.getInstance(getProject()).setStoreExternally(current.isStoreProjectFilesExternally());
+    }
   }
 
   public static class MyState implements State<GradleProjectSettings> {