diff --git a/src/it/java/org/jboss/tools/intellij/quarkus/tests/BasicTest.java b/src/it/java/org/jboss/tools/intellij/quarkus/tests/BasicTest.java
index 3d59e1467..6e2dc119c 100644
--- a/src/it/java/org/jboss/tools/intellij/quarkus/tests/BasicTest.java
+++ b/src/it/java/org/jboss/tools/intellij/quarkus/tests/BasicTest.java
@@ -37,6 +37,12 @@
 import org.junit.jupiter.api.AfterEach;
 import org.junit.jupiter.api.Test;
 
+
+import java.io.File;
+import java.io.IOException;
+import java.nio.file.Files;
+import java.nio.file.Path;
+import java.nio.file.Paths;
 import java.time.Duration;
 
 import static com.intellij.remoterobot.search.locators.Locators.byXpath;
@@ -115,6 +121,20 @@ private void createQuarkusProject(RemoteRobot remoteRobot, String projectName, B
 
         QuarkusNewProjectFinalPage quarkusNewProjectFinalPage = newProjectDialogWizard.find(QuarkusNewProjectFinalPage.class, Duration.ofSeconds(10));
         quarkusNewProjectFinalPage.setProjectName(projectName);
+
+        String QUARKUS_PROJECT_LOCATION = CreateCloseUtils.PROJECT_LOCATION + File.separator + projectName;
+        Path quarkusProjectDir = Paths.get(QUARKUS_PROJECT_LOCATION);
+        boolean doesProjectDirExists = Files.exists(quarkusProjectDir);
+        if (!doesProjectDirExists) {
+            try {
+                Files.createDirectories(quarkusProjectDir); // create project directory with project name to prevent "Directory does not exist. It will be created by Intellij. Create/Cancel" popup
+            } catch (IOException e) {
+                throw new RuntimeException(e);
+            }
+        }
+
+        quarkusNewProjectFinalPage.setProjectLocation(QUARKUS_PROJECT_LOCATION);
+
         newProjectDialogWizard.finish();
 
         minimizeProjectImportPopupIfItAppears();