diff --git a/docs/pages/release_notes.md b/docs/pages/release_notes.md
index 7719b5d2a3..2da4e9bbde 100644
--- a/docs/pages/release_notes.md
+++ b/docs/pages/release_notes.md
@@ -20,6 +20,8 @@ This is a minor release.
 ### New and noteworthy
 
 ### Fixed Issues
+*   xml
+    *   [#715](https://github.com/pmd/pmd/issues/715): \[xml] ProjectVersionAsDependencyVersion false positive
 
 ### API Changes
 
diff --git a/pmd-xml/src/main/resources/category/pom/errorprone.xml b/pmd-xml/src/main/resources/category/pom/errorprone.xml
index 65dd9bd49c..952298ee5d 100644
--- a/pmd-xml/src/main/resources/category/pom/errorprone.xml
+++ b/pmd-xml/src/main/resources/category/pom/errorprone.xml
@@ -61,7 +61,7 @@ The following types are considered valid: pom, jar, maven-plugin, ejb, war, ear,
     <rule name="ProjectVersionAsDependencyVersion"
           language="pom"
           since="5.4"
-          message="Do not use project's version to express a dependency's version."
+          message="Do not use project.version to express a dependency version."
           class="net.sourceforge.pmd.lang.rule.XPathRule"
           externalInfoUrl="${pmd.website.baseurl}/pmd_rules_pom_errorprone.html#projectversionasdependencyversion">
         <description>
@@ -73,7 +73,13 @@ By far the most common problem is the use of &#x24;{project.version} in a BOM or
             <property name="xpath">
                 <value>
 <![CDATA[
-//dependency/version/text[contains(@Image,'{project.version}')]
+//dependencies/dependency
+    [contains(version/text/@Image,'{project.version}')]
+    [
+        (/project/parent/groupId and groupId/text/@Image != /project/parent/groupId/text/@Image)
+        or
+        (/project/groupId and groupId/text/@Image != /project/groupId/text/@Image)
+    ]/version
 ]]>
                 </value>
             </property>
diff --git a/pmd-xml/src/test/resources/net/sourceforge/pmd/lang/pom/rule/errorprone/xml/ProjectVersionAsDependencyVersion.xml b/pmd-xml/src/test/resources/net/sourceforge/pmd/lang/pom/rule/errorprone/xml/ProjectVersionAsDependencyVersion.xml
index 0c1f0b7e8a..2f13256ca6 100644
--- a/pmd-xml/src/test/resources/net/sourceforge/pmd/lang/pom/rule/errorprone/xml/ProjectVersionAsDependencyVersion.xml
+++ b/pmd-xml/src/test/resources/net/sourceforge/pmd/lang/pom/rule/errorprone/xml/ProjectVersionAsDependencyVersion.xml
@@ -45,4 +45,34 @@
      ]]></code>
         <source-type>pom</source-type>
     </test-code>
+    <test-code>
+        <description>#715 [xml] ProjectVersionAsDependencyVersion false positive: Valid usage child modules</description>
+        <expected-problems>1</expected-problems>
+        <expected-linenumbers>20</expected-linenumbers>
+        <code><![CDATA[
+<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
+    <modelVersion>4.0.0</modelVersion>
+    <artifactId>a-child</artifactId>
+
+    <parent>
+        <groupId>net.sourceforge.pmd</groupId>
+        <artifactId>parent</artifactId>
+        <version>1.0.0-SNAPSHOT</version>
+    </parent>
+
+    <dependencies>
+        <dependency>
+            <groupId>net.sourceforge.pmd</groupId>
+            <artifactId>a-different-child</artifactId>
+            <version>${project.version}</version>
+        </dependency>
+        <dependency>
+            <groupId>unrelated.group</groupId>
+            <artifactId>unrelated-artifact</artifactId>
+            <version>${project.version}</version> <!-- here is the violation -->
+        </dependency>
+    </dependencies>
+</project>
+        ]]></code>
+    </test-code>
 </test-data>