diff --git a/python/python-psi-impl/src/com/jetbrains/python/psi/resolve/PyNamespacePackageUtil.kt b/python/python-psi-impl/src/com/jetbrains/python/psi/resolve/PyNamespacePackageUtil.kt
index 2fb953d80726..1ecf92334eec 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/psi/resolve/PyNamespacePackageUtil.kt
+++ b/python/python-psi-impl/src/com/jetbrains/python/psi/resolve/PyNamespacePackageUtil.kt
@@ -41,6 +41,7 @@ fun isNamespacePackage(element: PsiElement): Boolean {
 fun isInNamespacePackage(element: PsiElement): Boolean {
   val myFile = element.containingFile ?: return false
   val parentDirectory = myFile.containingDirectory
+  if (parentDirectory.virtualFile in PyUtil.getSourceRoots(element)) return false
   return parentDirectory != null && isNamespacePackage(parentDirectory)
 }
 
diff --git a/python/testData/refactoring/extractsuperclass/multifileNew/after/__init__.py b/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/main.py
similarity index 100%
rename from python/testData/refactoring/extractsuperclass/multifileNew/after/__init__.py
rename to python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/main.py
diff --git a/python/testData/refactoring/extractsuperclass/multifileNew/before/__init__.py b/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/pkg/__init__.py
similarity index 100%
rename from python/testData/refactoring/extractsuperclass/multifileNew/before/__init__.py
rename to python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/pkg/__init__.py
diff --git a/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/pkg/subpkg/__init__.py b/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/pkg/subpkg/__init__.py
new file mode 100644
index 000000000000..e69de29bb2d1
diff --git a/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/pkg/subpkg/b.py b/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/pkg/subpkg/b.py
new file mode 100644
index 000000000000..07d9e0efebfa
--- /dev/null
+++ b/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/after/src/pkg/subpkg/b.py
@@ -0,0 +1,2 @@
+class MyClass:
+    pass
diff --git a/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/before/src/main.py b/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/before/src/main.py
new file mode 100644
index 000000000000..1dea43b79188
--- /dev/null
+++ b/python/testData/refactoring/move/moveSymbolFromTopLevelModuleToNewPackageCreatesInitPy/before/src/main.py
@@ -0,0 +1,2 @@
+class MyClass:
+    pass
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/refactoring/PyMoveTest.java b/python/testSrc/com/jetbrains/python/refactoring/PyMoveTest.java
index 710eab0b22a4..ef23ffde9920 100644
--- a/python/testSrc/com/jetbrains/python/refactoring/PyMoveTest.java
+++ b/python/testSrc/com/jetbrains/python/refactoring/PyMoveTest.java
@@ -427,6 +427,12 @@ public class PyMoveTest extends PyTestCase {
     });
   }
 
+  public void testMoveSymbolFromTopLevelModuleToNewPackageCreatesInitPy() {
+    doComparingDirectories(testDir -> {
+      moveSymbols(testDir, "pkg/subpkg/b.py", "MyClass");
+    });
+  }
+
   //PY-44858
   public void testMoveNotCreateInitPyForNamespacePackagesToAnotherDirectory() {
     doMoveSymbolsTest("pkg/subpkg/B/module_b.py", "myfunc");