diff --git a/org.eclipse.buildship.ui.test/Launch Buildship UI tests.launch b/org.eclipse.buildship.ui.test/Launch Buildship UI tests.launch
index 9cbf78cae..c9a6d6ce1 100644
--- a/org.eclipse.buildship.ui.test/Launch Buildship UI tests.launch	
+++ b/org.eclipse.buildship.ui.test/Launch Buildship UI tests.launch	
@@ -26,7 +26,7 @@
     <stringAttribute key="org.eclipse.jdt.junit.CONTAINER" value="=org.eclipse.buildship.ui.test/src\/main\/groovy"/>
     <booleanAttribute key="org.eclipse.jdt.junit.KEEPRUNNING_ATTR" value="false"/>
     <stringAttribute key="org.eclipse.jdt.junit.TESTNAME" value=""/>
-    <stringAttribute key="org.eclipse.jdt.junit.TEST_KIND" value="org.eclipse.jdt.junit.loader.junit4"/>
+    <stringAttribute key="org.eclipse.jdt.junit.TEST_KIND" value="org.eclipse.jdt.junit.loader.junit5"/>
     <booleanAttribute key="org.eclipse.jdt.launching.ATTR_ATTR_USE_ARGFILE" value="false"/>
     <booleanAttribute key="org.eclipse.jdt.launching.ATTR_USE_START_ON_FIRST_THREAD" value="true"/>
     <stringAttribute key="org.eclipse.jdt.launching.JRE_CONTAINER" value="org.eclipse.jdt.launching.JRE_CONTAINER/org.eclipse.jdt.internal.debug.ui.launcher.StandardVMType/JavaSE-11"/>
diff --git a/org.eclipse.buildship.ui.test/src/main/groovy/org/eclipse/buildship/ui/internal/wizard/project/ProjectImportWizardUiTest.groovy b/org.eclipse.buildship.ui.test/src/main/groovy/org/eclipse/buildship/ui/internal/wizard/project/ProjectImportWizardUiTest.groovy
index 520f01213..63b71a10a 100644
--- a/org.eclipse.buildship.ui.test/src/main/groovy/org/eclipse/buildship/ui/internal/wizard/project/ProjectImportWizardUiTest.groovy
+++ b/org.eclipse.buildship.ui.test/src/main/groovy/org/eclipse/buildship/ui/internal/wizard/project/ProjectImportWizardUiTest.groovy
@@ -11,6 +11,8 @@ package org.eclipse.buildship.ui.internal.wizard.project
 
 import org.eclipse.core.resources.IProject
 import org.eclipse.core.runtime.IProgressMonitor
+import org.eclipse.core.runtime.jobs.Job
+import org.eclipse.jdt.core.JavaCore
 import org.eclipse.jface.dialogs.IDialogConstants
 import org.eclipse.swtbot.eclipse.finder.waits.Conditions
 import org.eclipse.swtbot.swt.finder.widgets.SWTBotShell
@@ -72,6 +74,28 @@ class ProjectImportWizardUiTest extends SwtBotSpecification {
         bot.button("Cancel").click()
     }
 
+    def "import project from folder does not include Java resources of subprojects in the root project"() {
+        given:
+        def rootDir = dir('rootProject') {
+            file 'settings.gradle', 'include "subProject"'
+            dir('subProject') {
+                file 'build.gradle', 'plugins { id "java-library" }'
+                dir('src/main/java') {
+                    file 'Foobar.java', 'class Foobar { }'
+                }
+            }
+        }
+
+        when:
+        importProjectFromFolder rootDir
+        waitForImportJobsToFinish()
+        waitForGradleJobsToFinish()
+
+        then:
+        findProject('rootProject').hasNature(JavaCore.NATURE_ID) == false
+        findProject('subProject').hasNature(JavaCore.NATURE_ID) == true
+    }
+
     private static SWTBotShell openGradleImportWizard() {
         bot.menu("File").menu("Import...").click()
         SWTBotShell shell = bot.shell("Import")
@@ -82,6 +106,21 @@ class ProjectImportWizardUiTest extends SwtBotSpecification {
         bot.shell(ProjectWizardMessages.Title_GradleProjectWizardPage)
     }
 
+    private void importProjectFromFolder(File projectDir) {
+        bot.menu("File").menu("Import...").click()
+        bot.shell("Import").activate()
+        bot.waitUntil(Conditions.shellIsActive("Import"))
+        bot.tree().expandNode("General").select("Projects from Folder or Archive")
+        bot.button("Next >").click()
+        bot.comboBoxWithLabel("Import source:").setText(projectDir.canonicalPath)
+        bot.button(IDialogConstants.FINISH_LABEL).click()
+    }
+
+    private void waitForImportJobsToFinish() {
+        def jobFamily = Class.forName("org.eclipse.ui.internal.wizards.datatransfer.SmartImportJob")
+        Job.getJobManager().join(jobFamily, null)
+    }
+
     class FaultyWorkspaceOperations {
         @Delegate WorkspaceOperations delegate = CorePlugin.workspaceOperations()
 
diff --git a/org.eclipse.buildship.ui/src/main/java/org/eclipse/buildship/ui/internal/project/GradleProjectConfigurator.java b/org.eclipse.buildship.ui/src/main/java/org/eclipse/buildship/ui/internal/project/GradleProjectConfigurator.java
index a4dbaf223..588100b71 100644
--- a/org.eclipse.buildship.ui/src/main/java/org/eclipse/buildship/ui/internal/project/GradleProjectConfigurator.java
+++ b/org.eclipse.buildship.ui/src/main/java/org/eclipse/buildship/ui/internal/project/GradleProjectConfigurator.java
@@ -78,7 +78,8 @@ private boolean isGradleRoot(File root) {
 
   @Override
   public boolean shouldBeAnEclipseProject(IContainer container, IProgressMonitor monitor) {
-    return false;
+    IPath location = container.getLocation();
+    return location != null && isGradleRoot(location.toFile());
   }
 
   @Override
@@ -88,11 +89,7 @@ public Set<IFolder> getFoldersToIgnore(IProject project, IProgressMonitor monito
 
   @Override
   public boolean canConfigure(IProject project, Set<IPath> ignoredPaths, IProgressMonitor monitor) {
-    IPath location = project.getLocation();
-    if(location != null) {
-      return isGradleRoot(location.toFile());
-    }
-    return false;
+    return shouldBeAnEclipseProject(project, monitor);
   }
 
   @Override