diff --git a/ghcide/src/Development/IDE/Core/Rules.hs b/ghcide/src/Development/IDE/Core/Rules.hs
index 6240eada6b..949d326509 100644
--- a/ghcide/src/Development/IDE/Core/Rules.hs
+++ b/ghcide/src/Development/IDE/Core/Rules.hs
@@ -151,6 +151,7 @@ import           Ide.Plugin.Properties                        (HasProperty,
 import           Ide.PluginUtils                              (configForPlugin)
 import           Ide.Types                                    (DynFlagsModifications (dynFlagsModifyGlobal, dynFlagsModifyParser),
                                                                PluginId)
+import qualified Data.HashSet as HS
 
 -- | This is useful for rules to convert rules that can only produce errors or
 -- a result into the more general IdeResult type that supports producing
@@ -311,6 +312,7 @@ getLocatedImportsRule =
     define $ \GetLocatedImports file -> do
         ModSummaryResult{msrModSummary = ms} <- use_ GetModSummaryWithoutTimestamps file
         targets <- useNoFile_ GetKnownTargets
+        let targetsMap = HM.mapWithKey const targets
         let imports = [(False, imp) | imp <- ms_textual_imps ms] ++ [(True, imp) | imp <- ms_srcimps ms]
         env_eq <- use_ GhcSession file
         let env = hscEnvWithImportPaths env_eq
@@ -321,14 +323,24 @@ getLocatedImportsRule =
                     then addRelativeImport file (moduleName $ ms_mod ms) dflags
                     else dflags
         opt <- getIdeOptions
-        let getTargetExists modName nfp
-                | isImplicitCradle = getFileExists nfp
-                | HM.member (TargetModule modName) targets
-                || HM.member (TargetFile nfp) targets
-                = getFileExists nfp
-                | otherwise = return False
+        let getTargetFor modName nfp
+                | isImplicitCradle = do
+                    itExists <- getFileExists nfp
+                    return $ if itExists then Just nfp else Nothing
+                | Just (TargetFile nfp') <- HM.lookup (TargetFile nfp) targetsMap = do
+                    -- reuse the existing NormalizedFilePath in order to maximize sharing
+                    itExists <- getFileExists nfp'
+                    return $ if itExists then Just nfp' else Nothing
+                | Just tt <- HM.lookup (TargetModule modName) targets = do
+                    -- reuse the existing NormalizedFilePath in order to maximize sharing
+                    let ttmap = HM.mapWithKey const (HS.toMap tt)
+                        nfp' = HM.lookupDefault nfp nfp ttmap
+                    itExists <- getFileExists nfp'
+                    return $ if itExists then Just nfp' else Nothing
+                | otherwise
+                = return Nothing
         (diags, imports') <- fmap unzip $ forM imports $ \(isSource, (mbPkgName, modName)) -> do
-            diagOrImp <- locateModule dflags import_dirs (optExtensions opt) getTargetExists modName mbPkgName isSource
+            diagOrImp <- locateModule dflags import_dirs (optExtensions opt) getTargetFor modName mbPkgName isSource
             case diagOrImp of
                 Left diags              -> pure (diags, Just (modName, Nothing))
                 Right (FileImport path) -> pure ([], Just (modName, Just path))
diff --git a/ghcide/src/Development/IDE/Import/FindImports.hs b/ghcide/src/Development/IDE/Import/FindImports.hs
index c5ab02a312..572a17c569 100644
--- a/ghcide/src/Development/IDE/Import/FindImports.hs
+++ b/ghcide/src/Development/IDE/Import/FindImports.hs
@@ -69,15 +69,15 @@ modSummaryToArtifactsLocation nfp ms = ArtifactsLocation nfp (ms_location <$> ms
 locateModuleFile :: MonadIO m
              => [[FilePath]]
              -> [String]
-             -> (ModuleName -> NormalizedFilePath -> m Bool)
+             -> (ModuleName -> NormalizedFilePath -> m (Maybe NormalizedFilePath))
              -> Bool
              -> ModuleName
              -> m (Maybe NormalizedFilePath)
-locateModuleFile import_dirss exts doesExist isSource modName = do
+locateModuleFile import_dirss exts targetFor isSource modName = do
   let candidates import_dirs =
         [ toNormalizedFilePath' (prefix </> M.moduleNameSlashes modName <.> maybeBoot ext)
            | prefix <- import_dirs , ext <- exts]
-  findM (doesExist modName) (concatMap candidates import_dirss)
+  firstJustM (targetFor modName) (concatMap candidates import_dirss)
   where
     maybeBoot ext
       | isSource = ext ++ "-boot"
@@ -97,12 +97,12 @@ locateModule
     => DynFlags
     -> [(Compat.InstalledUnitId, DynFlags)] -- ^ Import directories
     -> [String]                        -- ^ File extensions
-    -> (ModuleName -> NormalizedFilePath -> m Bool)  -- ^ does file exist predicate
+    -> (ModuleName -> NormalizedFilePath -> m (Maybe NormalizedFilePath))  -- ^ does file exist predicate
     -> Located ModuleName              -- ^ Module name
     -> Maybe FastString                -- ^ Package name
     -> Bool                            -- ^ Is boot module
     -> m (Either [FileDiagnostic] Import)
-locateModule dflags comp_info exts doesExist modName mbPkgName isSource = do
+locateModule dflags comp_info exts targetFor modName mbPkgName isSource = do
   case mbPkgName of
     -- "this" means that we should only look in the current package
     Just "this" -> do
@@ -118,7 +118,7 @@ locateModule dflags comp_info exts doesExist modName mbPkgName isSource = do
       -- Here the importPaths for the current modules are added to the front of the import paths from the other components.
       -- This is particularly important for Paths_* modules which get generated for every component but unless you use it in
       -- each component will end up being found in the wrong place and cause a multi-cradle match failure.
-      mbFile <- locateModuleFile (importPaths dflags : map snd import_paths) exts doesExist isSource $ unLoc modName
+      mbFile <- locateModuleFile (importPaths dflags : map snd import_paths) exts targetFor isSource $ unLoc modName
       case mbFile of
         Nothing   -> lookupInPackageDB dflags
         Just file -> toModLocation file
@@ -129,7 +129,7 @@ locateModule dflags comp_info exts doesExist modName mbPkgName isSource = do
         return $ Right $ FileImport $ ArtifactsLocation file (Just loc) (not isSource)
 
     lookupLocal dirs = do
-      mbFile <- locateModuleFile dirs exts doesExist isSource $ unLoc modName
+      mbFile <- locateModuleFile dirs exts targetFor isSource $ unLoc modName
       case mbFile of
         Nothing -> return $ Left $ notFoundErr dflags modName $ LookupNotFound []
         Just file -> toModLocation file