diff --git a/idea/src/org/jetbrains/kotlin/idea/run/script/standalone/KotlinStandaloneScriptRunConfiguration.kt b/idea/src/org/jetbrains/kotlin/idea/run/script/standalone/KotlinStandaloneScriptRunConfiguration.kt
index e1e69887814..8263b160ef2 100644
--- a/idea/src/org/jetbrains/kotlin/idea/run/script/standalone/KotlinStandaloneScriptRunConfiguration.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/run/script/standalone/KotlinStandaloneScriptRunConfiguration.kt
@@ -158,15 +158,26 @@ class KotlinStandaloneScriptRunConfiguration(
 
         return object : RefactoringElementAdapter() {
             override fun undoElementMovedOrRenamed(newElement: PsiElement, oldQualifiedName: String) {
-                filePath = pathFromPsiElement(newElement)
+                setupFilePath(pathFromPsiElement(newElement) ?: return)
             }
 
             override fun elementRenamedOrMoved(newElement: PsiElement) {
-                filePath = pathFromPsiElement(newElement)
+                setupFilePath(pathFromPsiElement(newElement) ?: return)
             }
         }
     }
 
+    fun defaultWorkingDirectory(): String? {
+        return com.intellij.util.PathUtil.getParentPath(filePath ?: return null)
+    }
+
+    fun setupFilePath(filePath: String) {
+        val wasDefaultWorkingDirectory = workingDirectory == null || workingDirectory == defaultWorkingDirectory()
+        this.filePath = filePath
+        if (wasDefaultWorkingDirectory) {
+            this.workingDirectory = defaultWorkingDirectory()
+        }
+    }
 }
 
 private class ScriptCommandLineState(environment: ExecutionEnvironment, configuration: KotlinStandaloneScriptRunConfiguration) :
diff --git a/idea/src/org/jetbrains/kotlin/idea/run/script/standalone/KotlinStandaloneScriptRunConfigurationProducer.kt b/idea/src/org/jetbrains/kotlin/idea/run/script/standalone/KotlinStandaloneScriptRunConfigurationProducer.kt
index f30c2a7b2d2..54f33214a9b 100644
--- a/idea/src/org/jetbrains/kotlin/idea/run/script/standalone/KotlinStandaloneScriptRunConfigurationProducer.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/run/script/standalone/KotlinStandaloneScriptRunConfigurationProducer.kt
@@ -30,7 +30,7 @@ public class KotlinStandaloneScriptRunConfigurationProducer :
             context: ConfigurationContext?,
             sourceElement: Ref<PsiElement>?
     ): Boolean {
-        configuration.filePath = pathFromContext(context) ?: return false
+        configuration.setupFilePath(pathFromContext(context) ?: return false)
         configuration.setGeneratedName()
         return true
     }
diff --git a/idea/testData/run/StandaloneScript/move/a/script.kts b/idea/testData/run/StandaloneScript/move/a/script.kts
new file mode 100644
index 00000000000..4907ef4d993
--- /dev/null
+++ b/idea/testData/run/StandaloneScript/move/a/script.kts
@@ -0,0 +1,3 @@
+package foo
+
+println("Hello from script")
\ No newline at end of file
diff --git a/idea/testData/run/StandaloneScript/move/script.kts b/idea/testData/run/StandaloneScript/move/script.kts
new file mode 100644
index 00000000000..4907ef4d993
--- /dev/null
+++ b/idea/testData/run/StandaloneScript/move/script.kts
@@ -0,0 +1,3 @@
+package foo
+
+println("Hello from script")
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/run/StandaloneScriptRunConfigurationTest.kt b/idea/tests/org/jetbrains/kotlin/idea/run/StandaloneScriptRunConfigurationTest.kt
index 84a09a80804..1333f6dfaf9 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/run/StandaloneScriptRunConfigurationTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/idea/run/StandaloneScriptRunConfigurationTest.kt
@@ -16,12 +16,18 @@
 
 package org.jetbrains.kotlin.idea.run
 
+import com.intellij.openapi.vfs.VfsUtil
+import com.intellij.psi.JavaPsiFacade
+import com.intellij.psi.PsiFile
 import com.intellij.refactoring.RefactoringFactory
+import com.intellij.refactoring.move.moveFilesOrDirectories.MoveFilesOrDirectoriesProcessor
+import com.intellij.util.ActionRunner
 import org.jetbrains.kotlin.idea.run.script.standalone.KotlinStandaloneScriptRunConfiguration
 import org.jetbrains.kotlin.idea.search.allScope
 import org.jetbrains.kotlin.idea.stubindex.KotlinScriptFqnIndex
 import org.jetbrains.kotlin.idea.test.KotlinCodeInsightTestCase
 import org.jetbrains.kotlin.idea.test.PluginTestCaseBase
+import org.jetbrains.kotlin.psi.KtScript
 import org.junit.Assert
 import kotlin.test.assertNotEquals
 
@@ -48,16 +54,86 @@ class StandaloneScriptRunConfigurationTest : KotlinCodeInsightTestCase() {
         val runConfiguration = createConfigurationFromElement(script, save = true) as KotlinStandaloneScriptRunConfiguration
 
         Assert.assertEquals("SimpleScript", runConfiguration.name)
-        val originalPath = script.containingFile.virtualFile.canonicalPath
+        val scriptVirtualFileBefore = script.containingFile.virtualFile
+        val originalPath = scriptVirtualFileBefore.canonicalPath
+        val originalWorkingDirectory = scriptVirtualFileBefore.parent.canonicalPath
         assertEquals(originalPath, runConfiguration.filePath)
+        assertEquals(originalWorkingDirectory, runConfiguration.workingDirectory)
 
         RefactoringFactory.getInstance(project).createRename(script.containingFile, "renamedScript.kts").run()
 
         Assert.assertEquals("RenamedScript", runConfiguration.name)
-        assertEquals(script.containingFile.virtualFile.canonicalPath, runConfiguration.filePath)
+        val scriptVirtualFileAfter = script.containingFile.virtualFile
+
+        assertEquals(scriptVirtualFileAfter.canonicalPath, runConfiguration.filePath)
         assertNotEquals(originalPath, runConfiguration.filePath)
+
+        assertEquals(scriptVirtualFileAfter.parent.canonicalPath, runConfiguration.workingDirectory)
+        assertEquals(originalWorkingDirectory, runConfiguration.workingDirectory)
     }
 
+    fun testOnFileMoveWithDefaultWorkingDir() {
+        configureByFile("move/script.kts")
+        val script = KotlinScriptFqnIndex.instance.get("foo.Script", project, project.allScope()).single()
+        val runConfiguration = createConfigurationFromElement(script, save = true) as KotlinStandaloneScriptRunConfiguration
+
+        Assert.assertEquals("Script", runConfiguration.name)
+        val scriptVirtualFileBefore = script.containingFile.virtualFile
+        val originalPath = scriptVirtualFileBefore.canonicalPath
+        val originalWorkingDirectory = scriptVirtualFileBefore.parent.canonicalPath
+        assertEquals(originalPath, runConfiguration.filePath)
+        assertEquals(originalWorkingDirectory, runConfiguration.workingDirectory)
+
+        moveScriptFile(script.containingFile)
+
+        Assert.assertEquals("Script", runConfiguration.name)
+        val scriptVirtualFileAfter = script.containingFile.virtualFile
+
+        assertEquals(scriptVirtualFileAfter.canonicalPath, runConfiguration.filePath)
+        assertNotEquals(originalPath, runConfiguration.filePath)
+
+        assertEquals(scriptVirtualFileAfter.parent.canonicalPath, runConfiguration.workingDirectory)
+        assertNotEquals(originalWorkingDirectory, runConfiguration.workingDirectory)
+    }
+
+    fun testOnFileMoveWithNonDefaultWorkingDir() {
+        configureByFile("move/script.kts")
+        val script = KotlinScriptFqnIndex.instance.get("foo.Script", project, project.allScope()).single()
+        val runConfiguration = createConfigurationFromElement(script, save = true) as KotlinStandaloneScriptRunConfiguration
+
+        Assert.assertEquals("Script", runConfiguration.name)
+        runConfiguration.workingDirectory = runConfiguration.workingDirectory + "/customWorkingDirectory"
+        val scriptVirtualFileBefore = script.containingFile.virtualFile
+        val originalPath = scriptVirtualFileBefore.canonicalPath
+        val originalWorkingDirectory = scriptVirtualFileBefore.parent.canonicalPath + "/customWorkingDirectory"
+
+        assertEquals(originalPath, runConfiguration.filePath)
+        assertEquals(originalWorkingDirectory, runConfiguration.workingDirectory)
+
+        moveScriptFile(script.containingFile)
+
+        Assert.assertEquals("Script", runConfiguration.name)
+        val scriptVirtualFileAfter = script.containingFile.virtualFile
+
+        assertEquals(scriptVirtualFileAfter.canonicalPath, runConfiguration.filePath)
+        assertNotEquals(originalPath, runConfiguration.filePath)
+
+        assertNotEquals(scriptVirtualFileAfter.parent.canonicalPath, runConfiguration.workingDirectory)
+        assertEquals(originalWorkingDirectory, runConfiguration.workingDirectory)
+    }
+
+    fun moveScriptFile(scriptFile: PsiFile) {
+        ActionRunner.runInsideWriteAction { VfsUtil.createDirectoryIfMissing(scriptFile.virtualFile.parent, "dest") }
+
+        MoveFilesOrDirectoriesProcessor(
+                project,
+                arrayOf(scriptFile),
+                JavaPsiFacade.getInstance(project).findPackage("dest")!!.getDirectories()[0],
+                false, true, null, null
+        ).run()
+    }
+
+
     override fun getTestDataPath() = PluginTestCaseBase.getTestDataPathBase() + "/run/StandaloneScript/"
     override fun getTestProjectJdk() = PluginTestCaseBase.mockJdk()
 }