diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/service/project/GradleProjectResolver.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/service/project/GradleProjectResolver.java
index 78209645d1cc..460e07bce1a1 100644
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/service/project/GradleProjectResolver.java
+++ b/plugins/gradle/src/org/jetbrains/plugins/gradle/service/project/GradleProjectResolver.java
@@ -438,13 +438,12 @@ public class GradleProjectResolver implements ExternalSystemProjectResolver<Grad
           }
           else {
             final Set<String> testSet = ContainerUtil.newHashSet();
-            Map<ExternalSystemSourceType, String> gradleTestOutputs = pair.first.getUserData(GRADLE_OUTPUTS);
-            if(gradleTestOutputs != null) {
-              ContainerUtil.addAllNotNull(compileSet,
-                                          gradleTestOutputs.get(ExternalSystemSourceType.TEST),
-                                          gradleTestOutputs.get(ExternalSystemSourceType.TEST_RESOURCE));
+            if(gradleOutputs != null) {
+              ContainerUtil.addAllNotNull(testSet,
+                                          gradleOutputs.get(ExternalSystemSourceType.TEST),
+                                          gradleOutputs.get(ExternalSystemSourceType.TEST_RESOURCE));
             }
-            if (compileSet.isEmpty() && ContainerUtil.intersects(libraryPaths, testSet)) {
+            if (!testSet.isEmpty() && ContainerUtil.intersects(libraryPaths, testSet)) {
               targetModuleOutputPaths = testSet;
             }
           }
diff --git a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
index 161986352c98..e1a2e15dbe7a 100644
--- a/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
+++ b/plugins/gradle/testSources/org/jetbrains/plugins/gradle/importing/GradleDependenciesImportingTest.java
@@ -849,4 +849,50 @@ public class GradleDependenciesImportingTest extends GradleImportingTestCase {
     }
     assertModuleModuleDepScope("projectC", "projectB", DependencyScope.PROVIDED);
   }
+
+  @Test
+  public void testProjectConfigurationDependencyWithDependencyOnTestOutput() throws Exception {
+    createSettingsFile("include 'project1'\n" +
+                       "include 'project2'\n");
+
+    importProject(
+      "project(':project1') {\n" +
+      "  apply plugin: 'java'\n" +
+      "  configurations {\n" +
+      "    testOutput\n" +
+      "    testOutput.extendsFrom (testCompile)\n" +
+      "  }\n" +
+      "\n" +
+      "  dependencies {\n" +
+      "    testOutput sourceSets.test.output\n" +
+      "    testCompile group: 'junit', name: 'junit', version: '4.11'\n" +
+      "  }\n" +
+      "}\n" +
+      "\n" +
+      "project(':project2') {\n" +
+      "  apply plugin: 'java'\n" +
+      "  dependencies {\n" +
+      "    compile project(path: ':project1')\n" +
+      "\n" +
+      "    testCompile group: 'junit', name: 'junit', version: '4.11'\n" +
+      "    testCompile project(path: ':project1', configuration: 'testOutput')\n" +
+      "  }\n" +
+      "\n" +
+      "}\n"
+    );
+
+    assertModules("project", "project1", "project1_main", "project1_test", "project2", "project2_main", "project2_test");
+
+    assertModuleModuleDepScope("project1_test", "project1_main", DependencyScope.COMPILE);
+    assertModuleLibDepScope("project1_test", "Gradle: junit:junit:4.11", DependencyScope.COMPILE);
+    assertModuleLibDepScope("project1_test", "Gradle: org.hamcrest:hamcrest-core:1.3", DependencyScope.COMPILE);
+
+    assertModuleModuleDepScope("project2_main", "project1_main", DependencyScope.COMPILE);
+
+    assertModuleModuleDepScope("project2_test", "project2_main", DependencyScope.COMPILE);
+    assertModuleModuleDepScope("project2_test", "project1_test", DependencyScope.COMPILE);
+    assertModuleModuleDepScope("project2_test", "project1_main", DependencyScope.COMPILE);
+    assertModuleLibDepScope("project2_test", "Gradle: junit:junit:4.11", DependencyScope.COMPILE);
+    assertModuleLibDepScope("project2_test", "Gradle: org.hamcrest:hamcrest-core:1.3", DependencyScope.COMPILE);
+  }
 }
diff --git a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/model/DefaultExternalProjectDependency.java b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/model/DefaultExternalProjectDependency.java
index b504fbc8d99e..807b4c0f1bff 100644
--- a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/model/DefaultExternalProjectDependency.java
+++ b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/model/DefaultExternalProjectDependency.java
@@ -63,6 +63,10 @@ public class DefaultExternalProjectDependency extends AbstractExternalDependency
 
   public void setConfigurationName(String configurationName) {
     myConfigurationName = configurationName;
+    // have to differentiate(using different DefaultExternalDependencyId) project dependencies on different configurations
+    if(!Dependency.DEFAULT_CONFIGURATION.equals(configurationName)){
+      setClassifier(configurationName);
+    }
   }
 
   @Override
diff --git a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/util/DependencyResolverImpl.groovy b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/util/DependencyResolverImpl.groovy
index fc51a2d5192a..dd6ac919a370 100644
--- a/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/util/DependencyResolverImpl.groovy
+++ b/plugins/gradle/tooling-extension-impl/src/org/jetbrains/plugins/gradle/tooling/util/DependencyResolverImpl.groovy
@@ -155,10 +155,19 @@ class DependencyResolverImpl implements DependencyResolver {
 
         ResolutionResult resolutionResult = configuration.incoming.resolutionResult
         if(!configuration.resolvedConfiguration.hasError()) {
-          def fileDeps = new LinkedHashSet<File>(configuration.incoming.files.files);
+          Collection<File> fileDeps = new LinkedHashSet<File>(configuration.incoming.files.files);
           artifactMap.values().each {
             fileDeps.remove(it.file)
           }
+          configurationProjectDependencies.values().each {
+            def intersect = fileDeps.intersect(it.resolve())
+            if(!intersect.isEmpty()) {
+              def fileCollectionDependency = new DefaultFileCollectionDependency(intersect)
+              fileCollectionDependency.scope = scope
+              result.add(fileCollectionDependency)
+              fileDeps.removeAll(intersect)
+            }
+          }
           fileDeps.each {
             def fileCollectionDependency = new DefaultFileCollectionDependency([it])
             fileCollectionDependency.scope = scope