diff --git a/idea/src/mill/idea/GenIdeaImpl.scala b/idea/src/mill/idea/GenIdeaImpl.scala
index 14d6094d123..7d9d891a556 100755
--- a/idea/src/mill/idea/GenIdeaImpl.scala
+++ b/idea/src/mill/idea/GenIdeaImpl.scala
@@ -786,6 +786,11 @@ case class GenIdeaImpl(
       </library>
     </component>
   }
+
+  /**
+   * @param libNames The library dependencies (external dependencies)
+   * @param depNames The dependency modules (internal dependencies)
+   */
   def moduleXmlTemplate(
       basePath: os.Path,
       scalaVersionOpt: Option[String],
@@ -871,14 +876,6 @@ case class GenIdeaImpl(
         <orderEntry type="inheritedJdk" />
         <orderEntry type="sourceFolder" forTests="false" />
 
-        {
-      for (dep <- depNames.sorted)
-        yield dep.scope match {
-          case None => <orderEntry type="module" module-name={dep.value} exported="" />
-          case Some(scope) =>
-            <orderEntry type="module" module-name={dep.value} exported="" scope={scope} />
-        }
-    }
         {
       for (name <- libNames.sorted)
         yield name.scope match {
@@ -886,7 +883,17 @@ case class GenIdeaImpl(
           case Some(scope) =>
             <orderEntry type="library" scope={scope} name={name.value} level="project" />
         }
-
+    }
+        {
+      // we place the module dependencies after the library dependencies, as IJ is leaking the (transitive)
+      // library dependencies of the module dependencies, even if they are not exported.
+      // This can result in wrong classpath when lib dependencies are refined.
+      for (dep <- depNames.sorted)
+        yield dep.scope match {
+          case None => <orderEntry type="module" module-name={dep.value} exported="" />
+          case Some(scope) =>
+            <orderEntry type="module" module-name={dep.value} exported="" scope={scope} />
+        }
     }
       </component>
       {
diff --git a/integration/feature/gen-idea/repo/extended/idea/mill_modules/helloworld.test.iml b/integration/feature/gen-idea/repo/extended/idea/mill_modules/helloworld.test.iml
index bc388953e1e..9320333ee26 100644
--- a/integration/feature/gen-idea/repo/extended/idea/mill_modules/helloworld.test.iml
+++ b/integration/feature/gen-idea/repo/extended/idea/mill_modules/helloworld.test.iml
@@ -8,7 +8,7 @@
         </content>
         <orderEntry type="inheritedJdk"/>
         <orderEntry type="sourceFolder" forTests="false"/>
-        <orderEntry type="module" module-name="helloworld" exported=""/>
         <orderEntry type="library" name="scala-library-2.13.6.jar" level="project"/>
+        <orderEntry type="module" module-name="helloworld" exported=""/>
     </component>
 </module>
diff --git a/integration/feature/gen-idea/repo/hello-world/idea/mill_modules/helloworld.test.iml b/integration/feature/gen-idea/repo/hello-world/idea/mill_modules/helloworld.test.iml
index 708183f9e8a..ee320609f2f 100644
--- a/integration/feature/gen-idea/repo/hello-world/idea/mill_modules/helloworld.test.iml
+++ b/integration/feature/gen-idea/repo/hello-world/idea/mill_modules/helloworld.test.iml
@@ -8,11 +8,11 @@
         </content>
         <orderEntry type="inheritedJdk"/>
         <orderEntry type="sourceFolder" forTests="false"/>
-        <orderEntry type="module" module-name="helloworld" exported=""/>
         <orderEntry type="library" scope="PROVIDED" name="jcl-over-slf4j-1.7.25.jar" level="project"/>
         <orderEntry type="library" scope="RUNTIME" name="logback-classic-1.2.3.jar" level="project"/>
         <orderEntry type="library" name="logback-core-1.2.3.jar" level="project"/>
         <orderEntry type="library" name="scala-library-2.12.5.jar" level="project"/>
         <orderEntry type="library" name="slf4j-api-1.7.25.jar" level="project"/>
+        <orderEntry type="module" module-name="helloworld" exported=""/>
     </component>
 </module>