diff --git a/resources/magento2/validation.properties b/resources/magento2/validation.properties
index 7e06c555b..293df9366 100644
--- a/resources/magento2/validation.properties
+++ b/resources/magento2/validation.properties
@@ -1,6 +1,8 @@
 validator.notEmpty=The {0} field must not be empty
 validator.box.notEmpty=The {0} field must contain a valid selection from the dropdown
 validator.package.validPath=Please specify a valid Magento 2 installation path
+validator.package.validPathComposerFiles=File composer.json is missing in the current Magento 2 installation path
+validator.package.validPathVendor=Vendor dir is corrupt or missing in the current Magento 2 installation path
 validator.properties.notEmpty=The properties must not be empty
 validator.alphaNumericCharacters=The {0} field must contain letters and numbers only
 validator.alphaNumericAndUnderscoreCharacters={0} must contain letters, numbers and underscores only
diff --git a/src/com/magento/idea/magento2plugin/project/validator/SettingsFormValidator.java b/src/com/magento/idea/magento2plugin/project/validator/SettingsFormValidator.java
index 6c59ad314..8d0fdeffc 100644
--- a/src/com/magento/idea/magento2plugin/project/validator/SettingsFormValidator.java
+++ b/src/com/magento/idea/magento2plugin/project/validator/SettingsFormValidator.java
@@ -28,14 +28,30 @@ public SettingsFormValidator(
      *
      * @throws ConfigurationException Exception
      */
+    @SuppressWarnings({"PMD.CyclomaticComplexity", "PMD.AvoidDeeplyNestedIfStmts"})
     public void validate() throws ConfigurationException {
         if (form.isBeingUsed()) {
-            if (!MagentoBasePathUtil.isMagentoFolderValid(form.getMagentoPath())) {
+            final String magentoRootPath = form.getMagentoPath();
+            final boolean isMagentoFrameworkDirExist =
+                    MagentoBasePathUtil.isMagentoFolderValid(magentoRootPath);
+
+            if (!MagentoBasePathUtil.isComposerJsonExists(magentoRootPath)) {
+                if (isMagentoFrameworkDirExist) {
+                    throw new ConfigurationException(
+                            validatorBundle.message("validator.package.validPathComposerFiles")
+                    );
+                }
                 throw new ConfigurationException(
                         validatorBundle.message("validator.package.validPath")
                 );
             }
 
+            if (!isMagentoFrameworkDirExist) {
+                throw new ConfigurationException(
+                        validatorBundle.message("validator.package.validPathVendor")
+                );
+            }
+
             final String magentoVersion = form.getMagentoVersion();
             if (magentoVersion.length() == 0) {
                 throw new ConfigurationException(
diff --git a/src/com/magento/idea/magento2plugin/util/magento/MagentoBasePathUtil.java b/src/com/magento/idea/magento2plugin/util/magento/MagentoBasePathUtil.java
index c2d9c52f6..66a7924ff 100644
--- a/src/com/magento/idea/magento2plugin/util/magento/MagentoBasePathUtil.java
+++ b/src/com/magento/idea/magento2plugin/util/magento/MagentoBasePathUtil.java
@@ -9,6 +9,7 @@
 import com.intellij.openapi.vfs.LocalFileSystem;
 import com.intellij.openapi.vfs.VfsUtil;
 import com.intellij.openapi.vfs.VirtualFile;
+import com.magento.idea.magento2plugin.magento.files.ComposerJson;
 import com.magento.idea.magento2plugin.magento.packages.Package;
 import java.util.Arrays;
 import org.jetbrains.annotations.NotNull;
@@ -18,7 +19,7 @@ public final class MagentoBasePathUtil {
     private MagentoBasePathUtil() {}
 
     /**
-     * Method detects Magento Framework Root.
+     * Method detects Magento Framework Root (check if magento framework exists).
      *
      * @param path String
      * @return boolean
@@ -42,6 +43,25 @@ public static boolean isMagentoFolderValid(final String path) {
         return false;
     }
 
+    /**
+     * Check if composer.json exists in directory.
+     *
+     * @param path String
+     * @return boolean
+     */
+    public static Boolean isComposerJsonExists(final String path) {
+        if (StringUtil.isEmptyOrSpaces(path)) {
+            return false;
+        }
+        final VirtualFile magentoRoot = LocalFileSystem.getInstance().findFileByPath(path);
+
+        if (magentoRoot == null || !magentoRoot.isDirectory()) {
+            return false;
+        }
+
+        return magentoRoot.findChild(ComposerJson.FILE_NAME) != null;
+    }
+
     /**
      * Check if specified path belongs to the correct vendor name.
      *