diff --git a/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/model/CContainer.java b/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/model/CContainer.java
index abd45c46d34..93354258423 100644
--- a/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/model/CContainer.java
+++ b/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/model/CContainer.java
@@ -266,7 +266,7 @@ public class CContainer extends Openable implements ICContainer {
 				break;
 			}
 			case IResource.FOLDER:
-				if (sroot != null && sroot.isOnSourceEntry(res) || cproject.isOnOutputEntry(res)) {
+				if (sroot != null && sroot.isOnSourceEntry(res) || (sroot == null && cproject.isOnOutputEntry(res))) {
 					celement = new CContainer(this, res);
 				}
 				break;