diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/K2JVMCompiler.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/K2JVMCompiler.kt
index 07884486d25..2c37df3e028 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/K2JVMCompiler.kt
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/K2JVMCompiler.kt
@@ -171,19 +171,22 @@ public open class K2JVMCompiler : CLICompiler<K2JVMCompilerArguments>() {
                 val compilerConfiguration = KotlinToJVMBytecodeCompiler.createCompilerConfiguration(configuration, moduleScript.getModules(), directory)
                 environment = createCoreEnvironment(rootDisposable, compilerConfiguration)
 
+                if (messageSeverityCollector.anyReported(CompilerMessageSeverity.ERROR)) return COMPILATION_ERROR
+
                 KotlinToJVMBytecodeCompiler.compileModules(environment, configuration, moduleScript.getModules(), directory, jar, arguments.includeRuntime)
             }
             else if (arguments.script) {
                 val scriptArgs = arguments.freeArgs.subList(1, arguments.freeArgs.size())
                 environment = createCoreEnvironment(rootDisposable, configuration)
+
+                if (messageSeverityCollector.anyReported(CompilerMessageSeverity.ERROR)) return COMPILATION_ERROR
+
                 KotlinToJVMBytecodeCompiler.compileAndExecuteScript(configuration, paths, environment, scriptArgs)
             }
             else {
                 environment = createCoreEnvironment(rootDisposable, configuration)
 
-                if (messageSeverityCollector.anyReported(CompilerMessageSeverity.ERROR)) {
-                    return COMPILATION_ERROR
-                }
+                if (messageSeverityCollector.anyReported(CompilerMessageSeverity.ERROR)) return COMPILATION_ERROR
 
                 if (environment.getSourceFiles().isEmpty()) {
                     messageSeverityCollector.report(CompilerMessageSeverity.ERROR, "No source files", CompilerMessageLocation.NO_LOCATION)
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.java b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.java
index 19689a3c54f..ab1cac76491 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.java
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.java
@@ -85,11 +85,6 @@ public class KotlinToJVMBytecodeCompiler {
             if (!source.isAbsolute()) {
                 source = new File(directory, sourceFile);
             }
-
-            if (!source.exists()) {
-                throw new CompileEnvironmentException("'" + source + "' does not exist in module " + module.getModuleName());
-            }
-
             result.add(source.getAbsolutePath());
         }
         return result;
diff --git a/compiler/testData/cli/jvm/nonexistentPathInModule.args b/compiler/testData/cli/jvm/nonexistentPathInModule.args
new file mode 100644
index 00000000000..bf3db449d6b
--- /dev/null
+++ b/compiler/testData/cli/jvm/nonexistentPathInModule.args
@@ -0,0 +1,2 @@
+-module
+$TESTDATA_DIR$/nonexistentPathInModule.xml
diff --git a/compiler/testData/cli/jvm/nonexistentPathInModule.out b/compiler/testData/cli/jvm/nonexistentPathInModule.out
new file mode 100644
index 00000000000..56f17b9ff22
--- /dev/null
+++ b/compiler/testData/cli/jvm/nonexistentPathInModule.out
@@ -0,0 +1,3 @@
+error: source file or directory not found: $TESTDATA_DIR$/nonexistentFile.kt
+error: source file or directory not found: $TESTDATA_DIR$/some/nonexistent/dir
+COMPILATION_ERROR
diff --git a/compiler/testData/cli/jvm/nonexistentPathInModule.xml b/compiler/testData/cli/jvm/nonexistentPathInModule.xml
new file mode 100644
index 00000000000..1ddd1289d9a
--- /dev/null
+++ b/compiler/testData/cli/jvm/nonexistentPathInModule.xml
@@ -0,0 +1,6 @@
+<modules>
+    <module name="name" outputDir="whatever" type="java-production">
+        <sources path="nonexistentFile.kt"/>
+        <sources path="some/nonexistent/dir/"/>
+    </module>
+</modules>
diff --git a/compiler/testData/cli/jvm/nonexistentScript.args b/compiler/testData/cli/jvm/nonexistentScript.args
new file mode 100644
index 00000000000..0bb0463a006
--- /dev/null
+++ b/compiler/testData/cli/jvm/nonexistentScript.args
@@ -0,0 +1,2 @@
+-script
+path/to/nonexistent.kts
diff --git a/compiler/testData/cli/jvm/nonexistentScript.out b/compiler/testData/cli/jvm/nonexistentScript.out
new file mode 100644
index 00000000000..2dc22bb8c2b
--- /dev/null
+++ b/compiler/testData/cli/jvm/nonexistentScript.out
@@ -0,0 +1,2 @@
+error: source file or directory not found: path/to/nonexistent.kts
+COMPILATION_ERROR
diff --git a/compiler/tests/org/jetbrains/kotlin/cli/CliCommonTest.java b/compiler/tests/org/jetbrains/kotlin/cli/CliCommonTest.java
index f9631cf9902..c7c2137f954 100644
--- a/compiler/tests/org/jetbrains/kotlin/cli/CliCommonTest.java
+++ b/compiler/tests/org/jetbrains/kotlin/cli/CliCommonTest.java
@@ -53,6 +53,16 @@ public class CliCommonTest extends CliBaseTest {
         executeCompilerCompareOutputJVM();
     }
 
+    @Test
+    public void nonexistentPathInModule() throws Exception {
+        executeCompilerCompareOutputJVM();
+    }
+
+    @Test
+    public void nonexistentScript() throws Exception {
+        executeCompilerCompareOutputJVM();
+    }
+
     @Test
     public void diagnosticsOrder() throws Exception {
         executeCompilerCompareOutputJVM();
diff --git a/compiler/tests/org/jetbrains/kotlin/cli/KotlincExecutableTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/cli/KotlincExecutableTestGenerated.java
index e05d7028713..c25dbf21b7c 100644
--- a/compiler/tests/org/jetbrains/kotlin/cli/KotlincExecutableTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/cli/KotlincExecutableTestGenerated.java
@@ -169,6 +169,18 @@ public class KotlincExecutableTestGenerated extends AbstractKotlincExecutableTes
             doJvmTest(fileName);
         }
 
+        @TestMetadata("nonexistentPathInModule.args")
+        public void testNonexistentPathInModule() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/cli/jvm/nonexistentPathInModule.args");
+            doJvmTest(fileName);
+        }
+
+        @TestMetadata("nonexistentScript.args")
+        public void testNonexistentScript() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/cli/jvm/nonexistentScript.args");
+            doJvmTest(fileName);
+        }
+
         @TestMetadata("pluginSimple.args")
         public void testPluginSimple() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/cli/jvm/pluginSimple.args");