diff --git a/wsmaster/che-core-api-factory-github/src/main/java/org/eclipse/che/api/factory/server/github/GithubFactoryParametersResolver.java b/wsmaster/che-core-api-factory-github/src/main/java/org/eclipse/che/api/factory/server/github/GithubFactoryParametersResolver.java
index 0ceae8d521..7db755b18c 100644
--- a/wsmaster/che-core-api-factory-github/src/main/java/org/eclipse/che/api/factory/server/github/GithubFactoryParametersResolver.java
+++ b/wsmaster/che-core-api-factory-github/src/main/java/org/eclipse/che/api/factory/server/github/GithubFactoryParametersResolver.java
@@ -16,6 +16,7 @@ import static org.eclipse.che.api.factory.shared.Constants.URL_PARAMETER_NAME;
 import static org.eclipse.che.dto.server.DtoFactory.newDto;
 
 import java.util.Collections;
+import java.util.List;
 import java.util.Map;
 import javax.inject.Inject;
 import javax.inject.Singleton;
@@ -115,8 +116,13 @@ public class GithubFactoryParametersResolver extends DefaultFactoryParameterReso
                 .withPath("/".concat(githubUrl.getRepository()));
           });
     } else if (factory.getDevfile() == null) {
-      // initialize default devfile and github project
+      // initialize default devfile
       factory.setDevfile(urlFactoryBuilder.buildDefaultDevfile(githubUrl.getRepository()));
+    }
+
+    List<ProjectDto> projects = factory.getDevfile().getProjects();
+    // if no projects set, set the default one from GitHub url
+    if (projects.isEmpty()) {
       factory
           .getDevfile()
           .setProjects(
@@ -124,6 +130,16 @@ public class GithubFactoryParametersResolver extends DefaultFactoryParameterReso
                   newDto(ProjectDto.class)
                       .withSource(githubSourceStorageBuilder.buildDevfileSource(githubUrl))
                       .withName(githubUrl.getRepository())));
+    } else {
+      // update existing project with same repository, set current branch if needed
+      projects.forEach(
+          project -> {
+            final String location = project.getSource().getLocation();
+            if (location.equals(githubUrl.repositoryLocation())
+                || location.equals(githubUrl.repositoryLocation() + ".git")) {
+              project.getSource().setBranch(githubUrl.getBranch());
+            }
+          });
     }
     return factory;
   }
diff --git a/wsmaster/che-core-api-factory-github/src/main/java/org/eclipse/che/api/factory/server/github/GithubSourceStorageBuilder.java b/wsmaster/che-core-api-factory-github/src/main/java/org/eclipse/che/api/factory/server/github/GithubSourceStorageBuilder.java
index cc68d21ac2..a211361c10 100644
--- a/wsmaster/che-core-api-factory-github/src/main/java/org/eclipse/che/api/factory/server/github/GithubSourceStorageBuilder.java
+++ b/wsmaster/che-core-api-factory-github/src/main/java/org/eclipse/che/api/factory/server/github/GithubSourceStorageBuilder.java
@@ -57,7 +57,7 @@ public class GithubSourceStorageBuilder {
    */
   public SourceDto buildDevfileSource(GithubUrl githubUrl) {
     return newDto(SourceDto.class)
-        .withLocation(githubUrl.repositoryLocation())
+        .withLocation(githubUrl.repositoryLocation() + ".git")
         .withType("github")
         .withBranch(githubUrl.getBranch())
         .withSparseCheckoutDir(githubUrl.getSubfolder());
diff --git a/wsmaster/che-core-api-factory-github/src/test/java/org/eclipse/che/api/factory/server/github/GithubFactoryParametersResolverTest.java b/wsmaster/che-core-api-factory-github/src/test/java/org/eclipse/che/api/factory/server/github/GithubFactoryParametersResolverTest.java
index 3939fae952..8f2e30c82e 100644
--- a/wsmaster/che-core-api-factory-github/src/test/java/org/eclipse/che/api/factory/server/github/GithubFactoryParametersResolverTest.java
+++ b/wsmaster/che-core-api-factory-github/src/test/java/org/eclipse/che/api/factory/server/github/GithubFactoryParametersResolverTest.java
@@ -39,6 +39,8 @@ import org.eclipse.che.api.workspace.server.devfile.FileContentProvider;
 import org.eclipse.che.api.workspace.shared.dto.WorkspaceConfigDto;
 import org.eclipse.che.api.workspace.shared.dto.devfile.DevfileDto;
 import org.eclipse.che.api.workspace.shared.dto.devfile.MetadataDto;
+import org.eclipse.che.api.workspace.shared.dto.devfile.ProjectDto;
+import org.eclipse.che.api.workspace.shared.dto.devfile.SourceDto;
 import org.mockito.ArgumentCaptor;
 import org.mockito.Captor;
 import org.mockito.InjectMocks;
@@ -126,6 +128,9 @@ public class GithubFactoryParametersResolverTest {
     // then
     verify(urlFactoryBuilder).buildDefaultDevfile(eq("che"));
     assertEquals(factory, computedFactory);
+    SourceDto source = factory.getDevfile().getProjects().get(0).getSource();
+    assertEquals(source.getLocation(), githubUrl + ".git");
+    assertEquals(source.getBranch(), "master");
   }
 
   @Test
@@ -156,6 +161,52 @@ public class GithubFactoryParametersResolverTest {
     assertEquals(factoryUrlArgumentCaptor.getValue().getDevfileFilename(), "devfile.yaml");
   }
 
+  @Test
+  public void shouldSetDefaultProjectIntoDevfileIfNotSpecified() throws Exception {
+
+    String githubUrl = "https://github.com/eclipse/che/tree/foobar";
+
+    FactoryDto computedFactory = generateDevfileFactory();
+
+    when(urlFactoryBuilder.createFactoryFromDevfile(any(RemoteFactoryUrl.class), any(), anyMap()))
+        .thenReturn(Optional.of(computedFactory));
+
+    Map<String, String> params = ImmutableMap.of(URL_PARAMETER_NAME, githubUrl);
+    // when
+    FactoryDto factory = githubFactoryParametersResolver.createFactory(params);
+    // then
+    assertNotNull(factory.getDevfile());
+    SourceDto source = factory.getDevfile().getProjects().get(0).getSource();
+    assertEquals(source.getLocation(), "https://github.com/eclipse/che.git");
+    assertEquals(source.getBranch(), "foobar");
+  }
+
+  @Test
+  public void shouldSetBranchIntoDevfileIfNotMatchesCurrent() throws Exception {
+
+    String githubUrl = "https://github.com/eclipse/che/tree/foobranch";
+
+    FactoryDto computedFactory = generateDevfileFactory();
+    computedFactory
+        .getDevfile()
+        .getProjects()
+        .add(
+            newDto(ProjectDto.class)
+                .withSource(
+                    newDto(SourceDto.class).withLocation("https://github.com/eclipse/che.git")));
+
+    when(urlFactoryBuilder.createFactoryFromDevfile(any(RemoteFactoryUrl.class), any(), anyMap()))
+        .thenReturn(Optional.of(computedFactory));
+
+    Map<String, String> params = ImmutableMap.of(URL_PARAMETER_NAME, githubUrl);
+    // when
+    FactoryDto factory = githubFactoryParametersResolver.createFactory(params);
+    // then
+    assertNotNull(factory.getDevfile());
+    SourceDto source = factory.getDevfile().getProjects().get(0).getSource();
+    assertEquals(source.getBranch(), "foobranch");
+  }
+
   @Test
   public void shouldReturnFactoryFromRepositoryWithFactoryJson() throws Exception {