diff --git a/wsmaster/che-core-api-factory-gitlab/src/main/java/org/eclipse/che/api/factory/server/gitlab/GitlabAuthorizingFileContentProvider.java b/wsmaster/che-core-api-factory-gitlab/src/main/java/org/eclipse/che/api/factory/server/gitlab/GitlabAuthorizingFileContentProvider.java
index 1137407b94..86241a46c8 100644
--- a/wsmaster/che-core-api-factory-gitlab/src/main/java/org/eclipse/che/api/factory/server/gitlab/GitlabAuthorizingFileContentProvider.java
+++ b/wsmaster/che-core-api-factory-gitlab/src/main/java/org/eclipse/che/api/factory/server/gitlab/GitlabAuthorizingFileContentProvider.java
@@ -29,7 +29,7 @@ class GitlabAuthorizingFileContentProvider extends AuthorizingFileContentProvide
   @Override
   protected boolean isPublicRepository(GitlabUrl remoteFactoryUrl) {
     try {
-      urlFetcher.fetch(remoteFactoryUrl.getHostName() + '/' + remoteFactoryUrl.getSubGroups());
+      urlFetcher.fetch(remoteFactoryUrl.getProviderUrl() + '/' + remoteFactoryUrl.getSubGroups());
       return true;
     } catch (IOException e) {
       return false;
diff --git a/wsmaster/che-core-api-factory-gitlab/src/test/java/org/eclipse/che/api/factory/server/gitlab/GitlabAuthorizingFileContentProviderTest.java b/wsmaster/che-core-api-factory-gitlab/src/test/java/org/eclipse/che/api/factory/server/gitlab/GitlabAuthorizingFileContentProviderTest.java
index 0ba01840d0..796223a47f 100644
--- a/wsmaster/che-core-api-factory-gitlab/src/test/java/org/eclipse/che/api/factory/server/gitlab/GitlabAuthorizingFileContentProviderTest.java
+++ b/wsmaster/che-core-api-factory-gitlab/src/test/java/org/eclipse/che/api/factory/server/gitlab/GitlabAuthorizingFileContentProviderTest.java
@@ -15,8 +15,10 @@
 import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.when;
 
+import java.io.FileNotFoundException;
 import org.eclipse.che.api.factory.server.scm.PersonalAccessToken;
 import org.eclipse.che.api.factory.server.scm.PersonalAccessTokenManager;
+import org.eclipse.che.api.factory.server.scm.exception.UnknownScmProviderException;
 import org.eclipse.che.api.workspace.server.devfile.FileContentProvider;
 import org.eclipse.che.api.workspace.server.devfile.URLFetcher;
 import org.mockito.Mock;
@@ -59,4 +61,23 @@ public void shouldPreserveAbsolutePaths() throws Exception {
     fileContentProvider.fetchContent(url);
     verify(urlFetcher).fetch(eq(url), eq("Bearer my-token"));
   }
+
+  @Test(expectedExceptions = FileNotFoundException.class)
+  public void shouldThrowFileNotFoundException() throws Exception {
+    // given
+    URLFetcher urlFetcher = Mockito.mock(URLFetcher.class);
+    when(urlFetcher.fetch(
+            eq(
+                "https://gitlab.com/api/v4/projects/eclipse%2Fche/repository/files/devfile.yaml/raw?ref=HEAD")))
+        .thenThrow(new FileNotFoundException());
+    when(urlFetcher.fetch(eq("https://gitlab.com/eclipse/che"))).thenReturn("content");
+    when(personalAccessTokenManager.getAndStore(anyString()))
+        .thenThrow(new UnknownScmProviderException("", ""));
+    GitlabUrl gitlabUrl = new GitlabUrl().withHostName("gitlab.com").withSubGroups("eclipse/che");
+    FileContentProvider fileContentProvider =
+        new GitlabAuthorizingFileContentProvider(gitlabUrl, urlFetcher, personalAccessTokenManager);
+
+    // when
+    fileContentProvider.fetchContent("devfile.yaml");
+  }
 }