diff --git a/jps/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilderModuleScriptGenerator.java b/jps/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilderModuleScriptGenerator.java
index 13c4b4f7cfe..af6e1488181 100644
--- a/jps/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilderModuleScriptGenerator.java
+++ b/jps/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilderModuleScriptGenerator.java
@@ -115,12 +115,12 @@ public class KotlinBuilderModuleScriptGenerator {
     }
 
     @Nullable
-    public static File getFriendDirSafe(@NotNull ModuleBuildTarget target) throws ProjectBuildException {
+    private static File getFriendDirSafe(@NotNull ModuleBuildTarget target) throws ProjectBuildException {
         if (!target.isTests()) return null;
 
         File outputDirForProduction = JpsJavaExtensionService.getInstance().getOutputDirectory(target.getModule(), false);
         if (outputDirForProduction == null) {
-            throw new ProjectBuildException("No output production directory found for " + target);
+            return null;
         }
         return outputDirForProduction;
     }
diff --git a/jps/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.kt b/jps/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.kt
index 491b2ab40a6..545ab9e091c 100644
--- a/jps/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.kt
+++ b/jps/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.kt
@@ -728,6 +728,10 @@ class KotlinJpsBuildTest : AbstractKotlinJpsBuildTestCase() {
         doTest()
     }
 
+    fun testKotlinProjectWithEmptyProductionOutputDirWithoutSrcDir() {
+        doTest()
+    }
+
     private fun BuildResult.checkErrors() {
         val actualErrors = getMessages(BuildMessage.Kind.ERROR)
                 .map { it as CompilerMessage }
diff --git a/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/kotlinProject.iml b/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/kotlinProject.iml
new file mode 100644
index 00000000000..43ffa57d1e2
--- /dev/null
+++ b/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/kotlinProject.iml
@@ -0,0 +1,14 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<module type="JAVA_MODULE" version="4">
+  <component name="NewModuleRootManager" inherit-compiler-output="false">
+    <output-test url="file://$MODULE_DIR$/out/test/kotlinProject" />
+    <exclude-output />
+    <content url="file://$MODULE_DIR$">
+      <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
+      <sourceFolder url="file://$MODULE_DIR$/test" isTestSource="true" />
+    </content>
+    <orderEntry type="jdk" jdkName="IDEA_JDK" jdkType="JavaSDK" />
+    <orderEntry type="sourceFolder" forTests="false" />
+    <orderEntry type="module" module-name="kotlinProject" />
+  </component>
+</module>
diff --git a/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/kotlinProject.ipr b/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/kotlinProject.ipr
new file mode 100644
index 00000000000..90747786771
--- /dev/null
+++ b/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/kotlinProject.ipr
@@ -0,0 +1,14 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<project version="4">
+  <component name="CompilerConfiguration">
+    <option name="DEFAULT_COMPILER" value="Javac" />
+  </component>
+  <component name="ProjectModuleManager">
+    <modules>
+      <module fileurl="file://$PROJECT_DIR$/kotlinProject.iml" filepath="$PROJECT_DIR$/kotlinProject.iml" />
+    </modules>
+  </component>
+  <component name="ProjectRootManager" version="2" languageLevel="JDK_1_6" assert-keyword="true" jdk-15="true" project-jdk-name="IDEA_JDK" project-jdk-type="JavaSDK">
+    <output url="file://$PROJECT_DIR$/out" />
+  </component>
+</project>
\ No newline at end of file
diff --git a/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/test/test.kt b/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/test/test.kt
new file mode 100644
index 00000000000..839220d1002
--- /dev/null
+++ b/jps/jps-plugin/testData/general/KotlinProjectWithEmptyProductionOutputDirWithoutSrcDir/test/test.kt
@@ -0,0 +1,3 @@
+fun test() {
+
+}