diff --git a/dvc/project.py b/dvc/project.py
index c9242551f..90110200f 100644
--- a/dvc/project.py
+++ b/dvc/project.py
@@ -308,7 +308,7 @@ class Project(object):
             os.unlink(stage.path)
 
             stage.path = os.path.join(
-                os.path.dirname(stage.path),
+                os.path.dirname(to_out.path),
                 os.path.basename(to_path) + Stage.STAGE_FILE_SUFFIX
             )
 
diff --git a/tests/test_move.py b/tests/test_move.py
index ab43f623e..088eaa07c 100644
--- a/tests/test_move.py
+++ b/tests/test_move.py
@@ -2,6 +2,7 @@ import os
 
 from dvc.main import main
 from dvc.exceptions import DvcException, MoveNotDataSourceError
+from dvc.stage import Stage
 
 from tests.basic_env import TestDvc
 from tests.test_repro import TestRepro
@@ -76,3 +77,21 @@ class TestMoveFileWithExtension(TestDvc):
         self.assertFalse(os.path.exists('file.csv.dvc'))
         self.assertTrue(os.path.exists('other_name.csv'))
         self.assertTrue(os.path.exists('other_name.csv.dvc'))
+
+
+class TestMoveFileToDirectory(TestDvc):
+    def test(self):
+        foo_dvc_file = self.FOO + Stage.STAGE_FILE_SUFFIX
+        ret = main(["add", self.FOO])
+        self.assertEqual(ret, 0)
+        self.assertTrue(os.path.exists(foo_dvc_file))
+
+        new_foo_path = self.DATA_DIR+"/"+self.FOO
+        new_foo_dvc_path = new_foo_path + Stage.STAGE_FILE_SUFFIX
+        ret = main(["move", self.FOO, new_foo_path])
+        self.assertEqual(ret, 0)
+
+        self.assertFalse(os.path.exists(self.FOO))
+        self.assertFalse(os.path.exists(foo_dvc_file))
+        self.assertTrue(os.path.exists(new_foo_path))
+        self.assertTrue(os.path.exists(new_foo_dvc_path))