diff --git a/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/adt/wizards/newproject/NewProjectCreationPage.java b/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/adt/wizards/newproject/NewProjectCreationPage.java
index 6e8ff47fe..61b15346e 100644
--- a/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/adt/wizards/newproject/NewProjectCreationPage.java
+++ b/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/adt/wizards/newproject/NewProjectCreationPage.java
@@ -661,7 +661,7 @@ public class NewProjectCreationPage extends WizardPage {
                                                  abs_dir.equals(sCustomLocationOsPath);
                     sCustomLocationOsPath = TextProcessor.process(abs_dir);
                 } else  if (sAutoComputeCustomLocation ||
-                            !new File(sCustomLocationOsPath).isDirectory()) {
+                            (!is_new_project && !new File(sCustomLocationOsPath).isDirectory())) {
                     // By default select the samples directory of the current target
                     IAndroidTarget target = getSdkTarget();
                     if (target != null) {