diff --git a/idea/src/org/jetbrains/jet/JetNodeType.java b/idea/src/org/jetbrains/jet/JetNodeType.java
index 1523bafe6c8..45efb206c69 100644
--- a/idea/src/org/jetbrains/jet/JetNodeType.java
+++ b/idea/src/org/jetbrains/jet/JetNodeType.java
@@ -3,15 +3,46 @@
  */
 package org.jetbrains.jet;
 
+import com.intellij.extapi.psi.ASTWrapperPsiElement;
+import com.intellij.lang.ASTNode;
 import com.intellij.lang.Language;
+import com.intellij.psi.PsiElement;
 import com.intellij.psi.tree.IElementType;
 import org.jetbrains.annotations.NonNls;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.lang.JetLanguage;
+import org.jetbrains.jet.lang.psi.JetElement;
+
+import java.lang.reflect.Constructor;
+import java.lang.reflect.InvocationTargetException;
 
 public class JetNodeType extends IElementType {
+    private Constructor<? extends JetElement> myPsiFactory;
+
     public JetNodeType(@NotNull @NonNls String debugName) {
+        this(debugName, null);
+    }
+
+    public JetNodeType(@NotNull @NonNls String debugName, Class<? extends JetElement> psiClass) {
         super(debugName, JetLanguage.INSTANCE);
+        try {
+            myPsiFactory = psiClass != null ? psiClass.getConstructor(ASTNode.class) : null;
+        } catch (NoSuchMethodException e) {
+            throw new RuntimeException("Must have a constructor with ASTNode");
+        }
+    }
+
+    public JetElement createPsi(ASTNode node) {
+        assert node.getElementType() == this;
+
+        try {
+            if (myPsiFactory == null) {
+                return new JetElement(node);
+            }
+            return myPsiFactory.newInstance(node);
+        } catch (Exception e) {
+            throw new RuntimeException("Error creating psi element for node", e);
+        }
     }
 }
diff --git a/idea/src/org/jetbrains/jet/JetNodeTypes.java b/idea/src/org/jetbrains/jet/JetNodeTypes.java
index cabdc22451a..a94f8a7607e 100644
--- a/idea/src/org/jetbrains/jet/JetNodeTypes.java
+++ b/idea/src/org/jetbrains/jet/JetNodeTypes.java
@@ -6,11 +6,12 @@ package org.jetbrains.jet;
 import com.intellij.psi.tree.IElementType;
 import com.intellij.psi.tree.IFileElementType;
 import org.jetbrains.jet.lang.JetLanguage;
+import org.jetbrains.jet.lang.psi.JetNamespace;
 
 public interface JetNodeTypes {
     IFileElementType JET_FILE = new IFileElementType(JetLanguage.INSTANCE);
 
-    JetNodeType NAMESPACE = new JetNodeType("NAMESPACE");
+    JetNodeType NAMESPACE = new JetNodeType("NAMESPACE", JetNamespace.class);
     JetNodeType CLASS = new JetNodeType("CLASS");
     JetNodeType PROPERTY = new JetNodeType("PROPERTY");
     JetNodeType FUN = new JetNodeType("FUN");
diff --git a/idea/src/org/jetbrains/jet/lang/parsing/JetParserDefinition.java b/idea/src/org/jetbrains/jet/lang/parsing/JetParserDefinition.java
index 88e207e0b48..317ad356d04 100644
--- a/idea/src/org/jetbrains/jet/lang/parsing/JetParserDefinition.java
+++ b/idea/src/org/jetbrains/jet/lang/parsing/JetParserDefinition.java
@@ -15,6 +15,7 @@ import com.intellij.psi.PsiFile;
 import com.intellij.psi.tree.IFileElementType;
 import com.intellij.psi.tree.TokenSet;
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.jet.JetNodeType;
 import org.jetbrains.jet.JetNodeTypes;
 import org.jetbrains.jet.lang.psi.JetFile;
 import org.jetbrains.jet.lexer.JetLexer;
@@ -51,8 +52,7 @@ public class JetParserDefinition implements ParserDefinition {
 
     @NotNull
     public PsiElement createElement(ASTNode astNode) {
-        // TODO
-        return new CompositeNode(astNode);
+        return ((JetNodeType) astNode.getElementType()).createPsi(astNode);
     }
 
     public PsiFile createFile(FileViewProvider fileViewProvider) {
@@ -62,15 +62,4 @@ public class JetParserDefinition implements ParserDefinition {
     public SpaceRequirements spaceExistanceTypeBetweenTokens(ASTNode astNode, ASTNode astNode1) {
         return SpaceRequirements.MAY;
     }
-
-    private static class CompositeNode extends ASTWrapperPsiElement {
-        private CompositeNode(@NotNull ASTNode node) {
-            super(node);
-        }
-
-        @Override
-        public String toString() {
-            return getNode().getElementType().toString();
-        }
-    }
 }
diff --git a/idea/src/org/jetbrains/jet/lang/psi/JetElement.java b/idea/src/org/jetbrains/jet/lang/psi/JetElement.java
new file mode 100644
index 00000000000..5cac4283aa5
--- /dev/null
+++ b/idea/src/org/jetbrains/jet/lang/psi/JetElement.java
@@ -0,0 +1,27 @@
+package org.jetbrains.jet.lang.psi;
+
+import com.intellij.extapi.psi.ASTWrapperPsiElement;
+import com.intellij.lang.ASTNode;
+import com.intellij.lang.Language;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.jet.lang.JetLanguage;
+
+/**
+ * @author max
+ */
+public class JetElement extends ASTWrapperPsiElement {
+    public JetElement(@NotNull ASTNode node) {
+        super(node);
+    }
+
+    @NotNull
+    @Override
+    public Language getLanguage() {
+        return JetLanguage.INSTANCE;
+    }
+
+    @Override
+    public String toString() {
+        return getNode().getElementType().toString();
+    }
+}
diff --git a/idea/src/org/jetbrains/jet/lang/psi/JetNamespace.java b/idea/src/org/jetbrains/jet/lang/psi/JetNamespace.java
new file mode 100644
index 00000000000..b6b26298762
--- /dev/null
+++ b/idea/src/org/jetbrains/jet/lang/psi/JetNamespace.java
@@ -0,0 +1,15 @@
+package org.jetbrains.jet.lang.psi;
+
+import com.intellij.lang.ASTNode;
+import org.jetbrains.annotations.NotNull;
+
+/**
+ * @author max
+ */
+public class JetNamespace extends JetElement {
+    public JetNamespace(@NotNull ASTNode node) {
+        super(node);
+    }
+
+
+}
diff --git a/idea/tests/org/jetbrains/jet/parsing/JetParsingTest.java b/idea/tests/org/jetbrains/jet/parsing/JetParsingTest.java
index 913876b4e1b..06235af3242 100644
--- a/idea/tests/org/jetbrains/jet/parsing/JetParsingTest.java
+++ b/idea/tests/org/jetbrains/jet/parsing/JetParsingTest.java
@@ -37,7 +37,7 @@ public class JetParsingTest extends ParsingTestCase {
     }
 
     private static String getHomeDirectory() {
-       return new File(PathManager.getResourceRoot(JetParsingTest.class, "/")).getParentFile().getParentFile().getParent();
+       return new File(PathManager.getResourceRoot(JetParsingTest.class, "/org/jetbrains/jet/parsing/JetParsingTest.class")).getParentFile().getParentFile().getParent();
     }
 
     @Override