diff --git a/plugins/org.python.pydev/src/org/python/pydev/ui/wizards/project/NewProjectNameAndLocationWizardPage.java b/plugins/org.python.pydev/src/org/python/pydev/ui/wizards/project/NewProjectNameAndLocationWizardPage.java
index 46c8e0575..45daac464 100644
--- a/plugins/org.python.pydev/src/org/python/pydev/ui/wizards/project/NewProjectNameAndLocationWizardPage.java
+++ b/plugins/org.python.pydev/src/org/python/pydev/ui/wizards/project/NewProjectNameAndLocationWizardPage.java
@@ -44,6 +44,7 @@
 import org.eclipse.ui.IWorkingSet;
 import org.eclipse.ui.dialogs.WorkingSetConfigurationBlock;
 import org.python.pydev.core.IPythonNature;
+import org.python.pydev.editor.codecompletion.revisited.PythonPathHelper;
 import org.python.pydev.plugin.PyStructureConfigHelpers;
 import org.python.pydev.plugin.PydevPlugin;
 import org.python.pydev.plugin.preferences.PydevPrefs;
@@ -703,7 +704,7 @@ protected boolean validatePage() {
                 File[] listFiles = locPath.toFile().listFiles();
                 boolean foundInit = false;
                 for (File file : listFiles) {
-                    if (file.getName().equals("__init__.py")) {
+                    if (PythonPathHelper.isValidInitFile(file.getName())) {
                         foundInit = true;
                         setMessage("Project location contains an __init__.py file. Consider using the location's parent folder instead.");
                         break;
@@ -732,7 +733,7 @@ private boolean hasPyFile(File file) {
             return false;
         }
         else {
-            return file.getName().endsWith(".py");
+            return PythonPathHelper.isValidSourceFile(file.getName());
         }
     }
 
diff --git a/plugins/org.python.pydev/src_completions/org/python/pydev/editor/codecompletion/revisited/PythonPathHelper.java b/plugins/org.python.pydev/src_completions/org/python/pydev/editor/codecompletion/revisited/PythonPathHelper.java
index 8abfb03d8..c9860b0ba 100644
--- a/plugins/org.python.pydev/src_completions/org/python/pydev/editor/codecompletion/revisited/PythonPathHelper.java
+++ b/plugins/org.python.pydev/src_completions/org/python/pydev/editor/codecompletion/revisited/PythonPathHelper.java
@@ -187,7 +187,6 @@ protected static ModulesFoundStructure.ZipContents getFromZip(File root, IProgre
      * @return if the path passed belongs to a valid python source file (checks for the extension)
      */
     public static boolean isValidSourceFile(String path) {
-        path = path.toLowerCase();
         for (String end : FileTypesPreferencesPage.getDottedValidSourceFiles()) {
             if (path.endsWith(end)) {
                 return true;
@@ -422,8 +421,16 @@ public boolean accept(File dir, String name) {
      * @param item the file we want to check
      * @return true if the file is a valid __init__ file
      */
-    public static boolean isValidInitFile(String item) {
-        return item.toLowerCase().indexOf("__init__.") != -1 && isValidSourceFile(item);
+    public static boolean isValidInitFile(String path) {
+        for (String end : FileTypesPreferencesPage.getDottedValidSourceFiles()) {
+            if (path.endsWith(end)) {
+                if (path.lastIndexOf("__init__") == path.length() - 8 - end.length()) {
+                    return true;
+                }
+            }
+        }
+
+        return false;
     }
 
     /**
@@ -549,7 +556,8 @@ public void loadFromFile(File pythonpatHelperFile) throws IOException {
      * @param pythonpatHelperFile
      */
     public void saveToFile(File pythonpatHelperFile) {
-        FileUtils.writeStrToFile(org.python.pydev.shared_core.string.StringUtils.join("\n", this.pythonpath), pythonpatHelperFile);
+        FileUtils.writeStrToFile(org.python.pydev.shared_core.string.StringUtils.join("\n", this.pythonpath),
+                pythonpatHelperFile);
     }
 
     public static boolean canAddAstInfoFor(ModulesKey key) {
diff --git a/plugins/org.python.pydev/tests_completions/org/python/pydev/editor/codecompletion/revisited/PythonPathHelperTest.java b/plugins/org.python.pydev/tests_completions/org/python/pydev/editor/codecompletion/revisited/PythonPathHelperTest.java
index c20877ede..16d939a48 100644
--- a/plugins/org.python.pydev/tests_completions/org/python/pydev/editor/codecompletion/revisited/PythonPathHelperTest.java
+++ b/plugins/org.python.pydev/tests_completions/org/python/pydev/editor/codecompletion/revisited/PythonPathHelperTest.java
@@ -55,6 +55,7 @@ public static void main(String[] args) {
     /**
      * @see junit.framework.TestCase#setUp()
      */
+    @Override
     public void setUp() throws Exception {
         super.setUp();
         CompiledModule.COMPILED_MODULES_ENABLED = false;
@@ -64,6 +65,7 @@ public void setUp() throws Exception {
     /**
      * @see junit.framework.TestCase#tearDown()
      */
+    @Override
     public void tearDown() throws Exception {
         CompiledModule.COMPILED_MODULES_ENABLED = true;
         super.tearDown();
@@ -125,7 +127,7 @@ public void testModuleCompletion() {
 
     private IToken[] getComps(Document doc, ICompletionState state) {
         try {
-            return ((ICodeCompletionASTManager) nature.getAstManager()).getCompletionsForToken(doc, state);
+            return nature.getAstManager().getCompletionsForToken(doc, state);
         } catch (CompletionRecursionException e) {
             throw new RuntimeException(e);
         }
@@ -141,7 +143,7 @@ public void testRecursionModuleCompletion() throws CompletionRecursionException
         IToken[] comps = null;
         Document doc = new Document(sDoc);
         ICompletionState state = new CompletionState(line, col, token, nature, "");
-        ICodeCompletionASTManager a = (ICodeCompletionASTManager) nature.getAstManager();
+        ICodeCompletionASTManager a = nature.getAstManager();
         comps = a.getCompletionsForToken(doc, state);
         assertFalse(comps.length == 0);
 
@@ -157,7 +159,7 @@ public void testRecursion2() throws CompletionRecursionException {
         IToken[] comps = null;
         Document doc = new Document(sDoc);
         ICompletionState state = new CompletionState(line, col, token, nature, "");
-        ICodeCompletionASTManager a = (ICodeCompletionASTManager) nature.getAstManager();
+        ICodeCompletionASTManager a = nature.getAstManager();
         comps = a.getCompletionsForToken(doc, state);
         assertEquals(0, comps.length);
 
@@ -368,4 +370,14 @@ public void testGetEncoding() {
         String encoding = FileUtils.getPythonFileEncoding(new File(loc));
         assertEquals("UTF-8", encoding);
     }
+
+    public void testValidInitFile() throws Exception {
+        assertTrue(PythonPathHelper.isValidInitFile("a/__init__.py"));
+        assertTrue(PythonPathHelper.isValidInitFile("a/__init__/a/__init__.py"));
+
+        assertFalse(PythonPathHelper.isValidInitFile("a/__init__.bar.py"));
+        assertFalse(PythonPathHelper.isValidInitFile("a/__init__..py"));
+        assertFalse(PythonPathHelper.isValidInitFile("a/__init__/a/.py"));
+        assertFalse(PythonPathHelper.isValidInitFile("a/__init__/a/__init__ .py"));
+    }
 }