diff --git a/idea/src/org/jetbrains/kotlin/idea/configuration/KotlinWithGradleConfigurator.kt b/idea/src/org/jetbrains/kotlin/idea/configuration/KotlinWithGradleConfigurator.kt
index 7fc367b82c3..d356cd5f4b4 100644
--- a/idea/src/org/jetbrains/kotlin/idea/configuration/KotlinWithGradleConfigurator.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/configuration/KotlinWithGradleConfigurator.kt
@@ -62,13 +62,10 @@ abstract class KotlinWithGradleConfigurator : KotlinProjectConfigurator {
             return ConfigureKotlinStatus.CONFIGURED
         }
 
-        val moduleGradleFile = getBuildGradleFile(module.project, getModuleFilePath(module))
-        if (moduleGradleFile != null && !isFileConfigured(moduleGradleFile)) {
-            return ConfigureKotlinStatus.CAN_BE_CONFIGURED
-        }
-
-        val projectGradleFile = getBuildGradleFile(module.project, getTopLevelProjectFilePath(module.project))
-        if (projectGradleFile != null && !isFileConfigured(projectGradleFile)) {
+        val buildFiles = listOf(getBuildGradleFile(module.project, getModuleFilePath(module)),
+                                getBuildGradleFile(module.project, getTopLevelProjectFilePath(module.project)))
+                .filterNotNull()
+        if (buildFiles.none(this::isFileConfigured)) {
             return ConfigureKotlinStatus.CAN_BE_CONFIGURED
         }
 
diff --git a/idea/tests/org/jetbrains/kotlin/idea/codeInsight/gradle/GradleConfiguratorTest.kt b/idea/tests/org/jetbrains/kotlin/idea/codeInsight/gradle/GradleConfiguratorTest.kt
new file mode 100644
index 00000000000..a63775e24ff
--- /dev/null
+++ b/idea/tests/org/jetbrains/kotlin/idea/codeInsight/gradle/GradleConfiguratorTest.kt
@@ -0,0 +1,66 @@
+/*
+ * Copyright 2010-2017 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea.codeInsight.gradle
+
+import com.intellij.openapi.extensions.Extensions
+import com.intellij.openapi.module.ModuleManager
+import org.jetbrains.kotlin.idea.configuration.ConfigureKotlinStatus
+import org.jetbrains.kotlin.idea.configuration.KotlinGradleModuleConfigurator
+import org.jetbrains.kotlin.idea.configuration.KotlinProjectConfigurator
+import org.jetbrains.kotlin.test.testFramework.runInEdtAndWait
+import org.jetbrains.kotlin.test.testFramework.runWriteAction
+import org.junit.Test
+
+class GradleConfiguratorTest : GradleImportingTestCase() {
+    @Test
+    fun testProjectWithModule() {
+        createProjectSubFile("settings.gradle", "include ':app'")
+        createProjectSubFile("app/build.gradle", """
+        buildscript {
+            repositories {
+                jcenter()
+                mavenCentral()
+            }
+            dependencies {
+                classpath "org.jetbrains.kotlin:kotlin-gradle-plugin:1.1.0"
+            }
+        }
+
+        apply plugin: 'kotlin'
+
+        dependencies {
+            compile "org.jetbrains.kotlin:kotlin-stdlib-0.0"   // intentionally invalid version
+        }
+        """.trimIndent())
+
+        importProject()
+
+        runInEdtAndWait {
+            runWriteAction {
+                // Create not configured build.gradle for project
+                myProject.baseDir.createChildData(null, "build.gradle")
+
+                val module = ModuleManager.getInstance(myProject).findModuleByName("app")!!
+                val configurator = Extensions.findExtension(KotlinProjectConfigurator.EP_NAME,
+                                                            KotlinGradleModuleConfigurator::class.java)
+                // We have a Kotlin runtime in build.gradle but not in the classpath, so it doesn't make sense
+                // to suggest configuring it
+                assertEquals(ConfigureKotlinStatus.BROKEN, configurator.getStatus(module))
+            }
+        }
+    }
+}