diff --git a/third_party/src/main/java/com/jetbrains/lang/dart/projectWizard/DartGeneratorPeer.java b/third_party/src/main/java/com/jetbrains/lang/dart/projectWizard/DartGeneratorPeer.java
index 52c420f4e..0001b0c28 100644
--- a/third_party/src/main/java/com/jetbrains/lang/dart/projectWizard/DartGeneratorPeer.java
+++ b/third_party/src/main/java/com/jetbrains/lang/dart/projectWizard/DartGeneratorPeer.java
@@ -56,6 +56,7 @@ public class DartGeneratorPeer implements ProjectGeneratorPeer<DartProjectWizard
 
   private boolean myDartCreateCalcStarted;
   private List<DartProjectTemplate> myDartCreateTemplates;// not-null means that it's been already calculated
+  private String myDartCreateTemplatesSdkPath; //used to expire the above cache if the sdk is changed an alternative would be to use the same cache method as com.jetbrains.lang.dart.sdk.DartSdkUtil.getSdkVersion
 
   public DartGeneratorPeer() {
     // set initial values before initDartSdkControls() because listeners should not be triggered on initialization
@@ -95,9 +96,7 @@ public Component getListCellRendererComponent(JList list, Object value, int inde
     editorComponent.getDocument().addDocumentListener(new DocumentAdapter() {
       @Override
       protected void textChanged(final @NotNull DocumentEvent e) {
-        final String sdkPath = mySdkPathComboWithBrowse.getComboBox().getEditor().getItem().toString().trim();
-        final String message = DartSdkUtil.getErrorMessageIfWrongSdkRootPath(sdkPath);
-        if (message == null) {
+        if(e.getType() == DocumentEvent.EventType.INSERT){
           onSdkPathChanged();
         }
       }
@@ -108,10 +107,13 @@ protected void textChanged(final @NotNull DocumentEvent e) {
 
   private void onSdkPathChanged() {
     String sdkPath = mySdkPathComboWithBrowse.getComboBox().getEditor().getItem().toString().trim();
+    // If the sdk path has changed, recalculate the create template options
+    if (myDartCreateTemplatesSdkPath != null && !myDartCreateTemplatesSdkPath.equals(sdkPath)) {
+      clearTemplates();
+    }
     String errorMessage = DartSdkUtil.getErrorMessageIfWrongSdkRootPath(sdkPath);
     if (errorMessage != null) {
-      myLoadingTemplatesPanel.setVisible(false);
-      myTemplatesPanel.setVisible(false);
+      clearTemplates();
       return;
     }
 
@@ -131,6 +133,21 @@ private void onSdkPathChanged() {
     }
   }
 
+  // Clears myTemplateList which is required when an invalid Dart SDK directory
+  // is selected
+  private void clearTemplates() {
+    myDartCreateTemplates = null;
+    myDartCreateTemplatesSdkPath = null;
+    myDartCreateCalcStarted = false;
+
+    myLoadingTemplatesPanel.setVisible(false);
+    // myLoadedTemplatesPanel should be visible to show the default text
+    myLoadedTemplatesPanel.setVisible(true);
+    myCreateSampleProjectCheckBox.setEnabled(false);
+    myTemplatesList.setEnabled(false);
+    myTemplatesList.setModel(new DefaultListModel<>());
+  }
+
   private void startLoadingTemplates() {
     myLoadingTemplatesPanel.setVisible(true);
     myLoadingTemplatesPanel.setPreferredSize(myLoadedTemplatesPanel.getPreferredSize());
@@ -142,14 +159,16 @@ private void startLoadingTemplates() {
     asyncProcessIcon.resume();
 
     ApplicationManager.getApplication().executeOnPooledThread(() -> {
+      final String comboSdkPath = mySdkPathComboWithBrowse.getComboBox().getEditor().getItem().toString().trim();
       final String sdkPath =
-        FileUtil.toSystemIndependentName(mySdkPathComboWithBrowse.getComboBox().getEditor().getItem().toString().trim());
+        FileUtil.toSystemIndependentName(comboSdkPath);
       DartProjectTemplate.loadTemplatesAsync(sdkPath, templates -> {
         asyncProcessIcon.suspend();
         myLoadingTemplatesPanel.remove(asyncProcessIcon);
         Disposer.dispose(asyncProcessIcon);
 
         myDartCreateTemplates = templates;
+        myDartCreateTemplatesSdkPath = comboSdkPath;
 
         // it's better to call onSdkPathChanged() but not showTemplates() directly as sdk path could have been changed during this long calculation
         onSdkPathChanged();
diff --git a/third_party/src/main/java/com/jetbrains/lang/dart/projectWizard/DartProjectTemplate.java b/third_party/src/main/java/com/jetbrains/lang/dart/projectWizard/DartProjectTemplate.java
index 3acc1a435..9c826c865 100644
--- a/third_party/src/main/java/com/jetbrains/lang/dart/projectWizard/DartProjectTemplate.java
+++ b/third_party/src/main/java/com/jetbrains/lang/dart/projectWizard/DartProjectTemplate.java
@@ -32,6 +32,7 @@ public abstract class DartProjectTemplate {
 
   private static final DartCreate DART_CREATE = new DartCreate();
   private static List<DartProjectTemplate> ourDartCreateTemplateCache;
+  private static String ourDartCreateTemplateCacheSdkPath; //used to expire the above cache if the sdk is changed, an alternative would be to use the same cache method as com.jetbrains.lang.dart.sdk.DartSdkUtil.getSdkVersion
 
   private static final Logger LOG = PluginLogger.INSTANCE.createLogger(DartProjectTemplate.class);
 
@@ -79,13 +80,14 @@ public static void loadTemplatesAsync(@NotNull String sdkRoot, @NotNull Consumer
   }
 
   private static @NotNull List<DartProjectTemplate> getDartCreateTemplates(@NotNull String sdkRoot) {
-    if (ourDartCreateTemplateCache != null) {
+    if (ourDartCreateTemplateCache != null && sdkRoot.equals(ourDartCreateTemplateCacheSdkPath)) {
       return ourDartCreateTemplateCache;
     }
 
     final List<DartCreateTemplate> templates = DART_CREATE.getAvailableTemplates(sdkRoot);
 
     ourDartCreateTemplateCache = new ArrayList<>();
+    ourDartCreateTemplateCacheSdkPath = sdkRoot;
     for (DartCreateTemplate template : templates) {
       ourDartCreateTemplateCache.add(new DartCreateProjectTemplate(DART_CREATE, template));
     }
diff --git a/third_party/src/main/java/com/jetbrains/lang/dart/sdk/DartSdkUtil.java b/third_party/src/main/java/com/jetbrains/lang/dart/sdk/DartSdkUtil.java
index d25c48ae0..95bb21340 100644
--- a/third_party/src/main/java/com/jetbrains/lang/dart/sdk/DartSdkUtil.java
+++ b/third_party/src/main/java/com/jetbrains/lang/dart/sdk/DartSdkUtil.java
@@ -51,7 +51,8 @@ public final class DartSdkUtil {
 
     final String version = FileUtil.loadFileOrNull(versionFile);
     if (version != null) {
-      return ourVersions.put(versionPair, version);
+      ourVersions.put(versionPair, version);
+      return version;
     }
 
     return null;
@@ -81,7 +82,8 @@ public static void initDartSdkControls(final @Nullable Project project,
     }
 
     final String sdkHomePath = getItemFromCombo(dartSdkPathComponent.getComboBox());
-    versionLabel.setText(sdkHomePath.isEmpty() ? "" : getSdkVersion(sdkHomePath));
+    final String sdkVersion = getSdkVersion(sdkHomePath);
+    versionLabel.setText(sdkVersion == null ? "" : sdkVersion);
 
     final TextComponentAccessor<JComboBox> textComponentAccessor = new TextComponentAccessor<>() {
       @Override
@@ -112,7 +114,10 @@ public void setText(final @NotNull JComboBox component, final @NotNull String te
       @Override
       protected void textChanged(final @NotNull DocumentEvent e) {
         final String sdkHomePath = getItemFromCombo(dartSdkPathComponent.getComboBox());
-        versionLabel.setText(sdkHomePath.isEmpty() ? "" : getSdkVersion(sdkHomePath));
+        if(e.getType() == DocumentEvent.EventType.INSERT){
+          final String sdkVersion = getSdkVersion(sdkHomePath);
+          versionLabel.setText(sdkVersion == null ? "" : sdkVersion);
+        }
       }
     });
   }