diff --git a/sbt/sbt-api/src/org/jetbrains/sbt/project/settings/SbtProjectSettings.scala b/sbt/sbt-api/src/org/jetbrains/sbt/project/settings/SbtProjectSettings.scala
index 601024959c7..3b62f1ed9bf 100644
--- a/sbt/sbt-api/src/org/jetbrains/sbt/project/settings/SbtProjectSettings.scala
+++ b/sbt/sbt-api/src/org/jetbrains/sbt/project/settings/SbtProjectSettings.scala
@@ -117,6 +117,13 @@ object SbtProjectSettings {
     settings
   }
 
+  def default(separateProdAndTestSources: Boolean): SbtProjectSettings = {
+    val settings = new SbtProjectSettings()
+    settings.converterVersion = ConverterVersion
+    settings.separateProdAndTestSources = separateProdAndTestSources
+    settings
+  }
+
   def forProject(project: Project): Option[SbtProjectSettings] = {
     val settings = SbtSettings.getInstance(project)
     Option(project.getBasePath)
diff --git a/sbt/sbt-impl/src/org/jetbrains/sbt/project/template/SbtModuleBuilderBase.scala b/sbt/sbt-impl/src/org/jetbrains/sbt/project/template/SbtModuleBuilderBase.scala
index 1e5bc3ba361..84101d836b1 100644
--- a/sbt/sbt-impl/src/org/jetbrains/sbt/project/template/SbtModuleBuilderBase.scala
+++ b/sbt/sbt-impl/src/org/jetbrains/sbt/project/template/SbtModuleBuilderBase.scala
@@ -8,7 +8,7 @@ import org.jetbrains.sbt.project.settings.SbtProjectSettings
 @ApiStatus.Experimental
 abstract class SbtModuleBuilderBase extends ModuleBuilderBase[SbtProjectSettings](
   SbtProjectSystem.Id,
-  SbtProjectSettings.default
+  SbtProjectSettings.default(separateProdAndTestSources = true)
 ) {
   override protected def externalSystemConfigFile: String = Sbt.BuildFile
 }
diff --git a/sbt/sbt-impl/test/org/jetbrains/sbt/project/NewSbtProjectWizardTest.scala b/sbt/sbt-impl/test/org/jetbrains/sbt/project/NewSbtProjectWizardTest.scala
index b63bd3fce14..511dae47adc 100644
--- a/sbt/sbt-impl/test/org/jetbrains/sbt/project/NewSbtProjectWizardTest.scala
+++ b/sbt/sbt-impl/test/org/jetbrains/sbt/project/NewSbtProjectWizardTest.scala
@@ -36,13 +36,26 @@ class NewSbtProjectWizardTest extends NewScalaProjectWizardTestBase with ExactMa
       libraries := scalaLibraries
       libraries.exactMatch()
 
+      lazy val mainModule = new module(s"$projectName.main") {
+        libraryDependencies := scalaLibraries
+        sources := Seq("scala")
+      }
+
+      lazy val testModule = new module(s"$projectName.test") {
+        libraryDependencies := scalaLibraries
+        testSources := Seq("scala")
+        moduleDependencies += new dependency(mainModule) { isExported := false }
+      }
+
       modules := Seq(
         new module(projectName) {
-          libraryDependencies := scalaLibraries
-          sources := Seq("src/main/scala")
-          testSources := Seq("src/test/scala")
           excluded := Seq("target")
+          moduleDependencies:= Seq(
+            new dependency(mainModule) { isExported := false },
+            new dependency(testModule) { isExported := false }
+          )
         },
+        mainModule, testModule,
         new module(s"$projectName.$projectName-build") {
           // TODO: why `-build` module contains empty string? in UI the `project` folder is marked as `sources`.
           //  Is it some implicit IntelliJ behaviour?
@@ -84,6 +97,6 @@ class NewSbtProjectWizardTest extends NewScalaProjectWizardTestBase with ExactMa
       scalaSampleCodeData(step).setAddSampleCode(false)
     }
 
-    useProject(project, false, assertProjectsEqual(expectedProject, _: Project))
+    useProject(project, false, assertProjectsEqual(expectedProject, _: Project, singleContentRootModules = false))
   }
 }