diff -r c108bc96aec6 Lib/importlib/_bootstrap.py
--- a/Lib/importlib/_bootstrap.py	Fri Jun 01 22:48:32 2012 +1000
+++ b/Lib/importlib/_bootstrap.py	Fri Jun 01 21:23:04 2012 +0100
@@ -578,7 +578,8 @@
         """Concrete implementation of InspectLoader.is_package by checking if
         the path returned by get_filename has a filename of '__init__.py'."""
         filename = _path_split(self.get_filename(fullname))[1]
-        return filename.rsplit('.', 1)[0] == '__init__'
+        return (filename.rsplit('.', 1)[0] == '__init__' and
+                fullname.rpartition('.')[2] != '__init__')
 
     def _bytes_from_bytecode(self, fullname, data, bytecode_path, source_stats):
         """Return the marshalled bytes from bytecode, verifying the magic
diff -r c108bc96aec6 Lib/importlib/test/import_/test_packages.py
--- a/Lib/importlib/test/import_/test_packages.py	Fri Jun 01 22:48:32 2012 +1000
+++ b/Lib/importlib/test/import_/test_packages.py	Fri Jun 01 21:23:04 2012 +0100
@@ -4,6 +4,8 @@
 import unittest
 import importlib
 from test import support
+import tempfile
+import os
 
 
 class ParentModuleTests(unittest.TestCase):
@@ -102,6 +104,28 @@
                 finally:
                     support.unload(subname)
 
+    def test___init__(self):
+        # #14938: importing pkg.__init__ should create pkg as a package and
+        # pkg.__init__ as a module.
+        try:
+            tempdir = tempfile.mkdtemp()
+            pkgdir = os.path.join(tempdir, 'pkg')
+            os.mkdir(pkgdir)
+            with open(os.path.join(pkgdir, '__init__.py'), 'w') as f:
+                f.write('')
+
+            with util.import_state(path=[tempdir], meta_path=sys.meta_path,
+                    path_hooks=sys.path_hooks):
+                with util.uncache('pkg', 'pkg.__util__'):
+                    import_util.import_('pkg.__init__')
+                    self.assertTrue('pkg' in sys.modules)
+                    self.assertTrue('pkg.__init__' in sys.modules)
+                    init = sys.modules['pkg.__init__']
+                    self.assertEqual(init.__package__, 'pkg')
+                    self.assertFalse(hasattr(init, '__path__'))
+        finally:
+            support.rmtree(tempdir)
+
 
 def test_main():
     from test.support import run_unittest
diff -r c108bc96aec6 Python/importlib.h
Binary file Python/importlib.h has changed