diff --git a/idea/src/org/jetbrains/jet/plugin/sdk/KotlinSdkDescription.java b/idea/src/org/jetbrains/jet/plugin/sdk/KotlinSdkDescription.java
index 670db995111..9a675b349ae 100644
--- a/idea/src/org/jetbrains/jet/plugin/sdk/KotlinSdkDescription.java
+++ b/idea/src/org/jetbrains/jet/plugin/sdk/KotlinSdkDescription.java
@@ -68,11 +68,11 @@ public class KotlinSdkDescription extends CustomLibraryDescription {
         descriptor.setTitle("Kotlin SDK");
         descriptor.setDescription("Choose a directory containing Kotlin distribution");
 
-        final VirtualFile sdkHome = FileChooser.chooseFile(parentComponent, descriptor, initial);
-        if (sdkHome == null) return null;
+        final VirtualFile sdkHomeVFile = FileChooser.chooseFile(parentComponent, descriptor, initial);
+        if (sdkHomeVFile == null) return null;
 
-        final String sdkHomePath = sdkHome.getPath();
-        final String sdkVersion = KotlinSdkUtil.getSDKVersion(new File(sdkHomePath));
+        final File sdkHome = new File(sdkHomeVFile.getPath());
+        final String sdkVersion = KotlinSdkUtil.getSDKVersion(sdkHome);
         if (sdkVersion == null) {
             Messages.showErrorDialog(parentComponent,
                                      "Failed to find Kotlin SDK in the specified path: cannot determine Kotlin version.",
@@ -83,7 +83,7 @@ public class KotlinSdkDescription extends CustomLibraryDescription {
         return new NewLibraryConfiguration(KotlinSdkUtil.getSDKName(sdkVersion)) {
             @Override
             public void addRoots(@NotNull final LibraryEditor editor) {
-                addSDKRoots(editor, sdkHomePath);
+                addSDKRoots(editor, sdkHome);
             }
         };
     }
@@ -95,8 +95,8 @@ public class KotlinSdkDescription extends CustomLibraryDescription {
         return LocalFileSystem.getInstance().findFileByPath(FileUtil.toSystemIndependentName(path));
     }
 
-    private static void addSDKRoots(@NotNull final LibraryEditor editor, @NotNull final String sdkHomePath) {
-        final File libDir = new File(sdkHomePath, "lib");
+    public static void addSDKRoots(@NotNull final LibraryEditor editor, @NotNull final File sdkHome) {
+        final File libDir = new File(sdkHome, "lib");
         if (!libDir.isDirectory()) return;
 
         final List<File> jars = new ArrayList<File>();
diff --git a/idea/tests/org/jetbrains/jet/plugin/compilerMessages/IDECompilerMessagingTest.java b/idea/tests/org/jetbrains/jet/plugin/compilerMessages/IDECompilerMessagingTest.java
index abeec1abfad..17a6c285764 100644
--- a/idea/tests/org/jetbrains/jet/plugin/compilerMessages/IDECompilerMessagingTest.java
+++ b/idea/tests/org/jetbrains/jet/plugin/compilerMessages/IDECompilerMessagingTest.java
@@ -22,13 +22,19 @@ import com.intellij.openapi.compiler.TranslatingCompiler;
 import com.intellij.openapi.roots.ContentEntry;
 import com.intellij.openapi.roots.ModifiableRootModel;
 import com.intellij.openapi.roots.ModuleRootManager;
+import com.intellij.openapi.roots.libraries.Library;
+import com.intellij.openapi.roots.ui.configuration.libraryEditor.NewLibraryEditor;
+import com.intellij.openapi.roots.ui.configuration.projectRoot.LibrariesContainer;
+import com.intellij.openapi.roots.ui.configuration.projectRoot.LibrariesContainerFactory;
 import com.intellij.openapi.vfs.LocalFileSystem;
 import com.intellij.openapi.vfs.VirtualFile;
 import com.intellij.testFramework.PlatformTestCase;
 import jet.Function1;
 import junit.framework.Assert;
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.jet.plugin.sdk.KotlinSdkDescription;
 
+import java.io.File;
 import java.io.IOException;
 
 /**
@@ -49,6 +55,7 @@ public abstract class IDECompilerMessagingTest extends PlatformTestCase {
         MockCompileContext mockCompileContext = new MockCompileContext(myModule, outDirectory, root);
         MockModuleChunk mockModuleChunk = new MockModuleChunk(myModule);
         setSourceEntryForModule(root);
+        setKotlinSdkForModule();
         assert sampleFile != null;
         compile(compiler, sampleFile, mockCompileContext, mockModuleChunk);
         checkMessages(whatToExpect, mockCompileContext);
@@ -80,6 +87,25 @@ public abstract class IDECompilerMessagingTest extends PlatformTestCase {
         });
     }
 
+    private void setKotlinSdkForModule() {
+        ApplicationManager.getApplication().runWriteAction(new Runnable() {
+            @Override
+            public void run() {
+                final ModifiableRootModel model = ModuleRootManager.getInstance(myModule).getModifiableModel();
+                model.addLibraryEntry(createKotlinSdkLibrary());
+                model.commit();
+            }
+        });
+    }
+
+    @NotNull
+    private Library createKotlinSdkLibrary() {
+        final NewLibraryEditor editor = new NewLibraryEditor();
+        editor.setName("Kotlin SDK");
+        KotlinSdkDescription.addSDKRoots(editor, new File("dist/kotlinc"));
+        return LibrariesContainerFactory.createContainer(myModule).createLibrary(editor, LibrariesContainer.LibraryLevel.GLOBAL);
+    }
+
     protected abstract void checkHeader(@NotNull MessageChecker checker);
 
     @NotNull