diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveFilesOrDirectories/MoveKotlinFileHandler.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveFilesOrDirectories/MoveKotlinFileHandler.kt
index 0bf63f8071d..a88f854314c 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveFilesOrDirectories/MoveKotlinFileHandler.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveFilesOrDirectories/MoveKotlinFileHandler.kt
@@ -132,7 +132,10 @@ class MoveKotlinFileHandler : MoveFileHandler() {
         val moveContext = MoveContext(file, moveProcessor)
         oldToNewMap[moveContext] = moveContext
         val packageNameInfo = file.getPackageNameInfo(moveDestination, true) ?: return
-        file.packageDirective?.fqName = packageNameInfo.newContainer.fqName!!.quoteIfNeeded()
+        val newFqName = packageNameInfo.newContainer.fqName
+        if (newFqName != null) {
+            file.packageDirective?.fqName = newFqName.quoteIfNeeded()
+        }
     }
 
     override fun updateMovedFile(file: PsiFile) {
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/A.iml b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/A.iml
new file mode 100644
index 00000000000..245d3429faa
--- /dev/null
+++ b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/A.iml
@@ -0,0 +1,12 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<module type="JAVA_MODULE" version="4">
+  <component name="NewModuleRootManager" inherit-compiler-output="true">
+    <exclude-output />
+    <content url="file://$MODULE_DIR$">
+      <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
+    </content>
+    <orderEntry type="inheritedJdk" />
+    <orderEntry type="sourceFolder" forTests="false" />
+    <orderEntry type="library" name="KotlinJavaRuntime" level="project" />
+  </component>
+</module>
\ No newline at end of file
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/notSrc/dummy.txt b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/notSrc/dummy.txt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/notSrc/foo.kt b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/notSrc/foo.kt
new file mode 100644
index 00000000000..8db7f19bc92
--- /dev/null
+++ b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/notSrc/foo.kt
@@ -0,0 +1,5 @@
+package test
+
+fun foo() {
+
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/src/test/dummy.txt b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/after/A/src/test/dummy.txt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/A.iml b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/A.iml
new file mode 100644
index 00000000000..245d3429faa
--- /dev/null
+++ b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/A.iml
@@ -0,0 +1,12 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<module type="JAVA_MODULE" version="4">
+  <component name="NewModuleRootManager" inherit-compiler-output="true">
+    <exclude-output />
+    <content url="file://$MODULE_DIR$">
+      <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
+    </content>
+    <orderEntry type="inheritedJdk" />
+    <orderEntry type="sourceFolder" forTests="false" />
+    <orderEntry type="library" name="KotlinJavaRuntime" level="project" />
+  </component>
+</module>
\ No newline at end of file
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/notSrc/dummy.txt b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/notSrc/dummy.txt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/src/test/dummy.txt b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/src/test/dummy.txt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/src/test/foo.kt b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/src/test/foo.kt
new file mode 100644
index 00000000000..8db7f19bc92
--- /dev/null
+++ b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/before/A/src/test/foo.kt
@@ -0,0 +1,5 @@
+package test
+
+fun foo() {
+
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/moveFileToNonSrc.test b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/moveFileToNonSrc.test
new file mode 100644
index 00000000000..22752136f05
--- /dev/null
+++ b/idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/moveFileToNonSrc.test
@@ -0,0 +1,5 @@
+{
+  "mainFile": "A/src/test/foo.kt",
+  "type": "MOVE_FILES",
+  "targetDirectory": "A/notSrc"
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/move/AbstractMoveTest.kt b/idea/tests/org/jetbrains/kotlin/idea/refactoring/move/AbstractMoveTest.kt
index d5f46cb3666..ee20a47dae7 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/move/AbstractMoveTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/move/AbstractMoveTest.kt
@@ -261,12 +261,19 @@ enum class MoveAction {
             val project = mainFile.project
 
             val targetPackage = config.getNullableString("targetPackage")
-            if (targetPackage != null) {
-                ActionRunner.runInsideWriteAction { VfsUtil.createDirectoryIfMissing(rootDir, targetPackage.replace('.', '/')) }
+            val targetDirPath = targetPackage?.replace('.', '/') ?: config.getNullableString("targetDirectory")
+            if (targetDirPath != null) {
+                ActionRunner.runInsideWriteAction { VfsUtil.createDirectoryIfMissing(rootDir, targetDirPath) }
+                val newParent = if (targetPackage != null) {
+                    JavaPsiFacade.getInstance(project).findPackage(targetPackage)!!.directories[0]
+                }
+                else {
+                    rootDir.findFileByRelativePath(targetDirPath)!!.toPsiDirectory(project)!!
+                }
                 MoveFilesOrDirectoriesProcessor(
                         project,
                         arrayOf(mainFile),
-                        JavaPsiFacade.getInstance(project).findPackage(targetPackage)!!.directories[0],
+                        newParent,
                         /* searchInComments = */ false,
                         /* searchInNonJavaFiles = */ true,
                         /* moveCallback = */ null,
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/move/MultiModuleMoveTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/refactoring/move/MultiModuleMoveTestGenerated.java
index 42215e7042c..7be9f39ada8 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/move/MultiModuleMoveTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/move/MultiModuleMoveTestGenerated.java
@@ -48,6 +48,12 @@ public class MultiModuleMoveTestGenerated extends AbstractMultiModuleMoveTest {
         doTest(fileName);
     }
 
+    @TestMetadata("moveFileToNonSrc/moveFileToNonSrc.test")
+    public void testMoveFileToNonSrc_MoveFileToNonSrc() throws Exception {
+        String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/moveMultiModule/moveFileToNonSrc/moveFileToNonSrc.test");
+        doTest(fileName);
+    }
+
     @TestMetadata("moveFileWithDeclarationsToUnrelatedModuleConflict/moveFileWithDeclarationsToUnrelatedModuleConflict.test")
     public void testMoveFileWithDeclarationsToUnrelatedModuleConflict_MoveFileWithDeclarationsToUnrelatedModuleConflict() throws Exception {
         String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/moveMultiModule/moveFileWithDeclarationsToUnrelatedModuleConflict/moveFileWithDeclarationsToUnrelatedModuleConflict.test");