diff --git a/parity/configuration.rs b/parity/configuration.rs
index 6185d2cf7..30d77c35d 100644
--- a/parity/configuration.rs
+++ b/parity/configuration.rs
@@ -285,8 +285,10 @@ impl Configuration {
 		cors.map_or_else(Vec::new, |c| c.split(',').map(|s| s.to_owned()).collect())
 	}
 
-	fn geth_ipc_path() -> String {
-		path::ethereum::with_default("geth.ipc").to_str().unwrap().to_owned()
+	fn geth_ipc_path(&self) -> String {
+		if self.args.flag_testnet { path::ethereum::with_testnet("geth.ipc") }
+		else { path::ethereum::with_default("geth.ipc") }
+			.to_str().unwrap().to_owned()
 	}
 
 	pub fn keys_iterations(&self) -> u32 {
@@ -350,7 +352,7 @@ impl Configuration {
 	}
 
 	fn ipc_path(&self) -> String {
-		if self.args.flag_geth { Self::geth_ipc_path() }
+		if self.args.flag_geth { self.geth_ipc_path() }
 		else { Configuration::replace_home(&self.args.flag_ipcpath.clone().unwrap_or(self.args.flag_ipc_path.clone())) }
 	}
 }
diff --git a/util/src/path.rs b/util/src/path.rs
index 3a8dcaaae..899650149 100644
--- a/util/src/path.rs
+++ b/util/src/path.rs
@@ -53,4 +53,12 @@ pub mod ethereum {
 		pth.push(s);
 		pth
 	}
+
+	/// Get the specific folder inside default ethereum installation configured for testnet
+	pub fn with_testnet(s: &str) -> PathBuf {
+		let mut pth = default();
+		pth.push("testnet");
+		pth.push(s);
+		pth
+	}
 }