diff --git a/idea/idea-core/src/org/jetbrains/kotlin/idea/core/packageUtils.kt b/idea/idea-core/src/org/jetbrains/kotlin/idea/core/packageUtils.kt
index ee11a1b5345..aadd5dcb745 100644
--- a/idea/idea-core/src/org/jetbrains/kotlin/idea/core/packageUtils.kt
+++ b/idea/idea-core/src/org/jetbrains/kotlin/idea/core/packageUtils.kt
@@ -5,14 +5,25 @@
 
 package org.jetbrains.kotlin.idea.core
 
-import com.intellij.psi.JavaDirectoryService
-import com.intellij.psi.PsiDirectory
-import com.intellij.psi.PsiFile
-import com.intellij.psi.PsiPackage
+import com.intellij.ide.util.DirectoryChooserUtil
+import com.intellij.openapi.application.WriteAction
+import com.intellij.openapi.module.Module
+import com.intellij.openapi.module.ModuleUtil
+import com.intellij.openapi.roots.ModulePackageIndex
+import com.intellij.openapi.roots.ModuleRootManager
+import com.intellij.openapi.vfs.VirtualFile
+import com.intellij.psi.*
+import com.intellij.psi.search.GlobalSearchScope
+import com.intellij.util.Query
+import org.jetbrains.jps.model.java.JavaModuleSourceRootTypes
+import org.jetbrains.jps.model.java.JavaSourceRootProperties
+import org.jetbrains.jps.model.module.JpsModuleSourceRootType
+import org.jetbrains.kotlin.config.KotlinSourceRootType
 import org.jetbrains.kotlin.idea.caches.PerModulePackageCacheService
 import org.jetbrains.kotlin.idea.util.sourceRoot
 import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.psi.KtFile
+import java.io.File
 
 fun PsiDirectory.getPackage(): PsiPackage? = JavaDirectoryService.getInstance()!!.getPackage(this)
 
@@ -34,3 +45,98 @@ fun KtFile.packageMatchesDirectory(): Boolean = packageFqName == getFqNameByDire
 
 fun KtFile.packageMatchesDirectoryOrImplicit() =
     packageFqName == getFqNameByDirectory() || packageFqName == parent?.getFqNameWithImplicitPrefix()
+
+private fun getWritableModuleDirectory(vFiles: Query<VirtualFile>, module: Module, manager: PsiManager): PsiDirectory? {
+    for (vFile in vFiles) {
+        if (ModuleUtil.findModuleForFile(vFile, module.project) !== module) continue
+        val directory = manager.findDirectory(vFile)
+        if (directory != null && directory.isValid && directory.isWritable) {
+            return directory
+        }
+    }
+    return null
+}
+
+private fun findLongestExistingPackage(module: Module, packageName: String): PsiPackage? {
+    val manager = PsiManager.getInstance(module.project)
+
+    var nameToMatch = packageName
+    while (true) {
+        val vFiles = ModulePackageIndex.getInstance(module).getDirsByPackageName(nameToMatch, false)
+        val directory = getWritableModuleDirectory(vFiles, module, manager)
+        if (directory != null) return directory.getPackage()
+
+        val lastDotIndex = nameToMatch.lastIndexOf('.')
+        if (lastDotIndex < 0) {
+            return null
+        }
+        nameToMatch = nameToMatch.substring(0, lastDotIndex)
+    }
+}
+
+private val kotlinSourceRootTypes: Set<JpsModuleSourceRootType<JavaSourceRootProperties>> =
+    setOf(KotlinSourceRootType.Source, KotlinSourceRootType.TestSource) + JavaModuleSourceRootTypes.SOURCES
+
+private fun Module.getSourceRoots(): List<VirtualFile> =
+    ModuleRootManager.getInstance(this).getSourceRoots(kotlinSourceRootTypes)
+
+private fun getPackageDirectoriesInModule(rootPackage: PsiPackage, module: Module): Array<PsiDirectory> =
+    rootPackage.getDirectories(GlobalSearchScope.moduleScope(module))
+
+// This is Kotlin version of PackageUtil.findOrCreateDirectoryForPackage
+fun findOrCreateDirectoryForPackage(module: Module, packageName: String): PsiDirectory? {
+    val project = module.project
+    var existingDirectoryByPackage: PsiDirectory? = null
+    var restOfName = packageName
+    if (!packageName.isEmpty()) {
+        val rootPackage = findLongestExistingPackage(module, packageName)
+        if (rootPackage != null) {
+            val beginIndex = rootPackage.qualifiedName.length + 1
+            val subPackageName = if (beginIndex < packageName.length) packageName.substring(beginIndex) else ""
+            var postfixToShow = subPackageName.replace('.', File.separatorChar)
+            if (subPackageName.isNotEmpty()) {
+                postfixToShow = File.separatorChar + postfixToShow
+            }
+            val moduleDirectories = getPackageDirectoriesInModule(rootPackage, module)
+            existingDirectoryByPackage =
+                    DirectoryChooserUtil.selectDirectory(project, moduleDirectories, null, postfixToShow) ?: return null
+            restOfName = subPackageName
+        }
+    }
+
+    val existingDirectory = existingDirectoryByPackage ?: run {
+        val sourceRoots = module.getSourceRoots()
+        if (sourceRoots.isEmpty()) {
+            return null
+        }
+        val directoryList = mutableListOf<PsiDirectory>()
+        for (sourceRoot in sourceRoots) {
+            val directory = PsiManager.getInstance(project).findDirectory(sourceRoot) ?: continue
+            directoryList += directory
+        }
+        val sourceDirectories = directoryList.toTypedArray()
+        DirectoryChooserUtil.selectDirectory(
+            project, sourceDirectories, null,
+            File.separatorChar + packageName.replace('.', File.separatorChar)
+        ) ?: return null
+    }
+
+    fun getLeftPart(packageName: String): String {
+        val index = packageName.indexOf('.')
+        return if (index > -1) packageName.substring(0, index) else packageName
+    }
+
+    fun cutLeftPart(packageName: String): String {
+        val index = packageName.indexOf('.')
+        return if (index > -1) packageName.substring(index + 1) else ""
+    }
+
+    var psiDirectory = existingDirectory
+    while (restOfName.isNotEmpty()) {
+        val name = getLeftPart(restOfName)
+        val foundExistingDirectory = psiDirectory.findSubdirectory(name)
+        psiDirectory = foundExistingDirectory ?: WriteAction.compute<PsiDirectory, Exception> { psiDirectory.createSubdirectory(name) }
+        restOfName = cutLeftPart(restOfName)
+    }
+    return psiDirectory
+}
\ No newline at end of file
diff --git a/idea/src/org/jetbrains/kotlin/idea/quickfix/expectactual/CreateActualFix.kt b/idea/src/org/jetbrains/kotlin/idea/quickfix/expectactual/CreateActualFix.kt
index ecf6980d835..222a334e5a8 100644
--- a/idea/src/org/jetbrains/kotlin/idea/quickfix/expectactual/CreateActualFix.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/quickfix/expectactual/CreateActualFix.kt
@@ -18,7 +18,6 @@ package org.jetbrains.kotlin.idea.quickfix.expectactual
 
 import com.intellij.codeInsight.intention.IntentionAction
 import com.intellij.ide.util.EditorHelper
-import com.intellij.ide.util.PackageUtil
 import com.intellij.openapi.editor.Editor
 import com.intellij.openapi.module.Module
 import com.intellij.openapi.project.Project
@@ -112,8 +111,8 @@ sealed class CreateActualFix<out D : KtNamedDeclaration>(
         val expectedDir = declaration.containingFile.containingDirectory
         val expectedPackage = JavaDirectoryService.getInstance().getPackage(expectedDir)
 
-        val actualDirectory = PackageUtil.findOrCreateDirectoryForPackage(
-            actualModule, expectedPackage?.qualifiedName ?: "", null, false
+        val actualDirectory = findOrCreateDirectoryForPackage(
+            actualModule, expectedPackage?.qualifiedName ?: ""
         ) ?: return null
         return runWriteAction {
             val fileName = "$name.kt"