diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/copy/CopyKotlinDeclarationsHandler.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/copy/CopyKotlinDeclarationsHandler.kt
index 9cda2eb287a..9ea11a45295 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/copy/CopyKotlinDeclarationsHandler.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/copy/CopyKotlinDeclarationsHandler.kt
@@ -19,14 +19,12 @@ package org.jetbrains.kotlin.idea.refactoring.copy
 import com.intellij.ide.util.EditorHelper
 import com.intellij.openapi.application.ApplicationManager
 import com.intellij.openapi.project.Project
-import com.intellij.openapi.roots.ProjectRootManager
 import com.intellij.openapi.ui.Messages
 import com.intellij.openapi.util.Key
 import com.intellij.openapi.vfs.VirtualFile
 import com.intellij.psi.PsiDirectory
 import com.intellij.psi.PsiElement
 import com.intellij.psi.PsiFile
-import com.intellij.psi.PsiNamedElement
 import com.intellij.refactoring.BaseRefactoringProcessor
 import com.intellij.refactoring.RefactoringBundle
 import com.intellij.refactoring.copy.CopyFilesOrDirectoriesDialog
@@ -74,7 +72,13 @@ class CopyKotlinDeclarationsHandler : CopyHandlerDelegateBase() {
     }
 
     override fun canCopy(elements: Array<out PsiElement>, fromUpdate: Boolean): Boolean {
-        return elements.flatMap { it.getElementsToCopy().ifEmpty { return false } }.distinctBy { it.containingFile }.size == 1
+        val containingFile =
+                elements
+                        .flatMap { it.getElementsToCopy().ifEmpty { return false } }
+                        .distinctBy { it.containingFile }
+                        .singleOrNull()
+                        ?.containingFile ?: return false
+        return containingFile.sourceRoot != null
     }
 
     enum class ExistingFilePolicy {
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/A.iml b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/A.iml
new file mode 100644
index 00000000000..c90834f2d60
--- /dev/null
+++ b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/A.iml
@@ -0,0 +1,11 @@
+<?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" />
+  </component>
+</module>
\ No newline at end of file
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/bar/dummy.txt b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/bar/dummy.txt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/bar/test.kt b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/bar/test.kt
new file mode 100644
index 00000000000..81faec63931
--- /dev/null
+++ b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/bar/test.kt
@@ -0,0 +1,5 @@
+package foo
+
+fun test() {
+
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/foo/test.kt b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/foo/test.kt
new file mode 100644
index 00000000000..81faec63931
--- /dev/null
+++ b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/foo/test.kt
@@ -0,0 +1,5 @@
+package foo
+
+fun test() {
+
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/src/dummy.kt b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/after/A/src/dummy.kt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/A.iml b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/A.iml
new file mode 100644
index 00000000000..c90834f2d60
--- /dev/null
+++ b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/A.iml
@@ -0,0 +1,11 @@
+<?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" />
+  </component>
+</module>
\ No newline at end of file
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/bar/dummy.txt b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/bar/dummy.txt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/foo/test.kt b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/foo/test.kt
new file mode 100644
index 00000000000..81faec63931
--- /dev/null
+++ b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/foo/test.kt
@@ -0,0 +1,5 @@
+package foo
+
+fun test() {
+
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/src/dummy.kt b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/before/A/src/dummy.kt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/fileNotUnderSourceRoot.test b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/fileNotUnderSourceRoot.test
new file mode 100644
index 00000000000..4808870688e
--- /dev/null
+++ b/idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/fileNotUnderSourceRoot.test
@@ -0,0 +1,4 @@
+{
+  "mainFile": "A/foo/test.kt",
+  "targetDirectory": "A/bar"
+}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/copy/MultiModuleCopyTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/refactoring/copy/MultiModuleCopyTestGenerated.java
index 5d9e2ef1dcf..c2de4b583f9 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/copy/MultiModuleCopyTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/copy/MultiModuleCopyTestGenerated.java
@@ -36,6 +36,12 @@ public class MultiModuleCopyTestGenerated extends AbstractMultiModuleCopyTest {
         KotlinTestUtils.assertAllTestsPresentInSingleGeneratedClass(this.getClass(), new File("idea/testData/refactoring/copyMultiModule"), Pattern.compile("^(.+)\\.test$"), TargetBackend.ANY);
     }
 
+    @TestMetadata("fileNotUnderSourceRoot/fileNotUnderSourceRoot.test")
+    public void testFileNotUnderSourceRoot_FileNotUnderSourceRoot() throws Exception {
+        String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/copyMultiModule/fileNotUnderSourceRoot/fileNotUnderSourceRoot.test");
+        doTest(fileName);
+    }
+
     @TestMetadata("internalReferencesToAnotherModule2/internalReferencesToAnotherModule.test")
     public void testInternalReferencesToAnotherModule2_InternalReferencesToAnotherModule() throws Exception {
         String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/copyMultiModule/internalReferencesToAnotherModule2/internalReferencesToAnotherModule.test");