diff --git a/tycho-its/projects/linked-resources/.project b/tycho-its/projects/linked-resources/.project
new file mode 100644
index 0000000000..920f119665
--- /dev/null
+++ b/tycho-its/projects/linked-resources/.project
@@ -0,0 +1,11 @@
+
+
+ linked-resources
+
+
+
+
+
+
+
+
diff --git a/tycho-its/projects/linked-resources/.settings/org.eclipse.core.resources.prefs b/tycho-its/projects/linked-resources/.settings/org.eclipse.core.resources.prefs
new file mode 100644
index 0000000000..99f26c0203
--- /dev/null
+++ b/tycho-its/projects/linked-resources/.settings/org.eclipse.core.resources.prefs
@@ -0,0 +1,2 @@
+eclipse.preferences.version=1
+encoding/=UTF-8
diff --git a/tycho-its/projects/linked-resources/.settings/org.eclipse.jdt.core.prefs b/tycho-its/projects/linked-resources/.settings/org.eclipse.jdt.core.prefs
new file mode 100644
index 0000000000..9478cb1653
--- /dev/null
+++ b/tycho-its/projects/linked-resources/.settings/org.eclipse.jdt.core.prefs
@@ -0,0 +1,15 @@
+eclipse.preferences.version=1
+org.eclipse.jdt.core.compiler.codegen.inlineJsrBytecode=enabled
+org.eclipse.jdt.core.compiler.codegen.methodParameters=do not generate
+org.eclipse.jdt.core.compiler.codegen.targetPlatform=17
+org.eclipse.jdt.core.compiler.codegen.unusedLocal=preserve
+org.eclipse.jdt.core.compiler.compliance=17
+org.eclipse.jdt.core.compiler.debug.lineNumber=generate
+org.eclipse.jdt.core.compiler.debug.localVariable=generate
+org.eclipse.jdt.core.compiler.debug.sourceFile=generate
+org.eclipse.jdt.core.compiler.problem.assertIdentifier=error
+org.eclipse.jdt.core.compiler.problem.enablePreviewFeatures=disabled
+org.eclipse.jdt.core.compiler.problem.enumIdentifier=error
+org.eclipse.jdt.core.compiler.problem.reportPreviewFeatures=warning
+org.eclipse.jdt.core.compiler.release=enabled
+org.eclipse.jdt.core.compiler.source=17
diff --git a/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/.classpath b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/.classpath
new file mode 100644
index 0000000000..81fe078c20
--- /dev/null
+++ b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/.classpath
@@ -0,0 +1,7 @@
+
+
+
+
+
+
+
diff --git a/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/.project b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/.project
new file mode 100644
index 0000000000..6dbbd57497
--- /dev/null
+++ b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/.project
@@ -0,0 +1,35 @@
+
+
+ org.eclipse.tycho.test.linked.resources
+
+
+
+
+
+ org.eclipse.jdt.core.javabuilder
+
+
+
+
+ org.eclipse.pde.ManifestBuilder
+
+
+
+
+ org.eclipse.pde.SchemaBuilder
+
+
+
+
+
+ org.eclipse.pde.PluginNature
+ org.eclipse.jdt.core.javanature
+
+
+
+ .settings
+ 2
+ $%7BPARENT-1-PROJECT_LOC%7D/.settings
+
+
+
diff --git a/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/META-INF/MANIFEST.MF b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/META-INF/MANIFEST.MF
new file mode 100644
index 0000000000..9351cd72c4
--- /dev/null
+++ b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/META-INF/MANIFEST.MF
@@ -0,0 +1,7 @@
+Manifest-Version: 1.0
+Bundle-ManifestVersion: 2
+Bundle-Name: Resources
+Bundle-SymbolicName: org.eclipse.tycho.test.linked.resources
+Bundle-Version: 1.0.0.qualifier
+Automatic-Module-Name: org.eclipse.tycho.test.linked.resources
+Bundle-RequiredExecutionEnvironment: JavaSE-17
diff --git a/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/build.properties b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/build.properties
new file mode 100644
index 0000000000..34d2e4d2da
--- /dev/null
+++ b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/build.properties
@@ -0,0 +1,4 @@
+source.. = src/
+output.. = bin/
+bin.includes = META-INF/,\
+ .
diff --git a/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/pom.xml b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/pom.xml
new file mode 100644
index 0000000000..221a602813
--- /dev/null
+++ b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/pom.xml
@@ -0,0 +1,16 @@
+
+
+ 4.0.0
+ linked-resources
+ org.eclipse.tycho.test.linked.resources
+ 1.0.0-SNAPSHOT
+ eclipse-plugin
+
+
+ linked-resources
+ linked-resources.build
+ 1.0.0-SNAPSHOT
+
+
+
diff --git a/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/src/org/eclipse/tycho/test/linked/resources/Dummy.java b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/src/org/eclipse/tycho/test/linked/resources/Dummy.java
new file mode 100644
index 0000000000..8d9d08369e
--- /dev/null
+++ b/tycho-its/projects/linked-resources/org.eclipse.tycho.test.linked.resources/src/org/eclipse/tycho/test/linked/resources/Dummy.java
@@ -0,0 +1,5 @@
+package org.eclipse.tycho.test.linked.resources;
+
+public class Dummy {
+
+}
diff --git a/tycho-its/projects/linked-resources/pom.xml b/tycho-its/projects/linked-resources/pom.xml
new file mode 100644
index 0000000000..df8c21c91b
--- /dev/null
+++ b/tycho-its/projects/linked-resources/pom.xml
@@ -0,0 +1,34 @@
+
+
+ 4.0.0
+ linked-resources
+ linked-resources.build
+ 1.0.0-SNAPSHOT
+ linked-resources.build
+ pom
+
+
+ org.eclipse.tycho.test.linked.resources
+
+
+
+
+
+ org.eclipse.tycho
+ tycho-maven-plugin
+ ${tycho-version}
+ true
+
+
+ org.eclipse.tycho
+ tycho-compiler-plugin
+ ${tycho-version}
+
+ true
+
+
+
+
+
+
diff --git a/tycho-its/src/test/java/org/eclipse/tycho/test/linkedResources/LinkedResourcesTest.java b/tycho-its/src/test/java/org/eclipse/tycho/test/linkedResources/LinkedResourcesTest.java
new file mode 100644
index 0000000000..a0b5b765a6
--- /dev/null
+++ b/tycho-its/src/test/java/org/eclipse/tycho/test/linkedResources/LinkedResourcesTest.java
@@ -0,0 +1,32 @@
+package org.eclipse.tycho.test.linkedResources;
+
+import static org.hamcrest.MatcherAssert.assertThat;
+import static org.hamcrest.Matchers.containsString;
+import static org.hamcrest.Matchers.hasItem;
+import static org.hamcrest.Matchers.not;
+
+import java.util.List;
+
+import org.apache.maven.it.VerificationException;
+import org.apache.maven.it.Verifier;
+import org.eclipse.tycho.test.AbstractTychoIntegrationTest;
+import org.junit.jupiter.api.Test;
+
+public class LinkedResourcesTest extends AbstractTychoIntegrationTest {
+
+ @Test
+ public void testLinkedSettingsFolder() throws Exception {
+ Verifier verifier = getVerifier("linked-resources", false);
+ verifier.executeGoals(List.of("verify"));
+
+ verifyNoUseProjectSettingsWarning(verifier);
+ }
+
+ private void verifyNoUseProjectSettingsWarning(Verifier verifier) throws VerificationException {
+ List lines = verifier.loadFile(verifier.getBasedir(), verifier.getLogFileName(), false);
+
+ String warningMsg = "[WARNING] Parameter 'useProjectSettings' is set to true, but preferences file";
+
+ assertThat(lines, not(hasItem(containsString(warningMsg))));
+ }
+}