diff --git a/compiler/android-tests/android-module/AndroidManifest.xml b/compiler/android-tests/android-module/AndroidManifest.xml
deleted file mode 100644
index de6be785e87..00000000000
--- a/compiler/android-tests/android-module/AndroidManifest.xml
+++ /dev/null
@@ -1,17 +0,0 @@
-<?xml version="1.0" encoding="utf-8"?>
-<manifest xmlns:android="http://schemas.android.com/apk/res/android"
-          package="org.jetbrains.kotlin.android.tests"
-          android:versionCode="1"
-          android:versionName="1.0">
-  <application>
-    <uses-library android:name="android.test.runner" />
-  </application>
-  <!--
-  This declares that this application uses the instrumentation test runner targeting
-  the package of com.example.  To execute the tests use the command:
-  "adb shell am instrument -w com.example.tests/android.test.InstrumentationTestRunner"
-  -->
-  <instrumentation android:name="android.test.InstrumentationTestRunner"
-                   android:targetPackage="org.jetbrains.kotlin.android.tests"
-                   android:label="Tests for org.jetbrains.kotlin.android.tests"/>
-</manifest>
diff --git a/compiler/android-tests/android-module/build.gradle b/compiler/android-tests/android-module/build.gradle
index f1702c3a2c8..04c9148d3e0 100644
--- a/compiler/android-tests/android-module/build.gradle
+++ b/compiler/android-tests/android-module/build.gradle
@@ -7,7 +7,7 @@ buildscript {
 
     }
     dependencies {
-        classpath 'com.android.tools.build:gradle:3.0.1'
+        classpath 'com.android.tools.build:gradle:3.2.1'
 
         // NOTE: Do not place your application dependencies here; they belong
         // in the individual module build.gradle files
@@ -22,7 +22,7 @@ repositories {
 
 android {
     compileSdkVersion 19
-    buildToolsVersion "27.0.3"
+    buildToolsVersion "28.0.3"
 
     defaultConfig {
         applicationId "org.jetbrains.kotlin.android.tests"
@@ -31,7 +31,7 @@ android {
         versionCode 1
         versionName "1.0"
         testApplicationId "org.jetbrains.kotlin.android.tests.gradle"
-        testInstrumentationRunner "android.test.InstrumentationTestRunner"
+        testInstrumentationRunner "android.support.test.runner.AndroidJUnitRunner"
         multiDexEnabled true
     }
     buildTypes {
@@ -41,20 +41,6 @@ android {
         }
     }
 
-    sourceSets {
-        main {
-            manifest.srcFile 'AndroidManifest.xml'
-            java {
-                srcDirs = ['src']
-            }
-            res.srcDirs = ['res']
-        }
-        androidTest {
-            java {
-                srcDirs = ['src']
-            }
-        }
-    }
     packagingOptions { exclude 'META-INF/build.txt' }
 
     //TODO run under java 6, cause there is error on implicit 'stream' import in 'asWithMutable' test
@@ -72,6 +58,11 @@ android {
         maxProcessCount 4
         additionalParameters "--debug"
     }
+
+    testOptions {
+        resultsDir = "build/test/results"
+    }
+
 }
 
 task jarTestFolders() {
@@ -89,7 +80,8 @@ tasks.withType(JavaCompile) {
 }
 
 dependencies {
-    compile fileTree(dir: 'libs', include: ['*.jar'])
-    androidTestCompile 'junit:junit:4.12'
-    compile 'com.android.support:multidex:1.0.1'
+    implementation fileTree(dir: 'libs', include: ['*.jar'])
+    androidTestImplementation 'junit:junit:4.12'
+    implementation 'com.android.support:multidex:1.0.3'
+    androidTestImplementation 'com.android.support.test:runner:1.0.2'
 }
diff --git a/compiler/android-tests/android-module/gradle.properties b/compiler/android-tests/android-module/gradle.properties
index 75e39fe7d17..56e25b9919c 100644
--- a/compiler/android-tests/android-module/gradle.properties
+++ b/compiler/android-tests/android-module/gradle.properties
@@ -1,4 +1,3 @@
 #don't try to download android specific tools within gradle: licence acceptance will be required
 android.builder.sdkDownload=false
-android.enableAapt2=false
 android.enableD8=false
\ No newline at end of file
diff --git a/compiler/android-tests/android-module/src/main/AndroidManifest.xml b/compiler/android-tests/android-module/src/main/AndroidManifest.xml
new file mode 100644
index 00000000000..8b7f6ac94b8
--- /dev/null
+++ b/compiler/android-tests/android-module/src/main/AndroidManifest.xml
@@ -0,0 +1,9 @@
+<?xml version="1.0" encoding="utf-8"?>
+<manifest xmlns:android="http://schemas.android.com/apk/res/android"
+          package="org.jetbrains.kotlin.android.tests"
+          android:versionCode="1"
+          android:versionName="1.0">
+  <application>
+    <uses-library android:name="android.test.runner" />
+  </application>
+</manifest>
diff --git a/compiler/android-tests/android-module/src/org/jetbrains/kotlin/android/tests/AbstractCodegenTestCaseOnAndroid.java b/compiler/android-tests/android-module/src/main/java/org/jetbrains/kotlin/android/tests/AbstractCodegenTestCaseOnAndroid.java
similarity index 100%
rename from compiler/android-tests/android-module/src/org/jetbrains/kotlin/android/tests/AbstractCodegenTestCaseOnAndroid.java
rename to compiler/android-tests/android-module/src/main/java/org/jetbrains/kotlin/android/tests/AbstractCodegenTestCaseOnAndroid.java
diff --git a/compiler/android-tests/android-module/src/org/jetbrains/kotlin/android/tests/MyActivity.java b/compiler/android-tests/android-module/src/main/java/org/jetbrains/kotlin/android/tests/MyActivity.java
similarity index 100%
rename from compiler/android-tests/android-module/src/org/jetbrains/kotlin/android/tests/MyActivity.java
rename to compiler/android-tests/android-module/src/main/java/org/jetbrains/kotlin/android/tests/MyActivity.java
diff --git a/compiler/android-tests/android-module/res/values/strings.xml b/compiler/android-tests/android-module/src/main/res/values/strings.xml
similarity index 100%
rename from compiler/android-tests/android-module/res/values/strings.xml
rename to compiler/android-tests/android-module/src/main/res/values/strings.xml
diff --git a/compiler/android-tests/android-module/tested-module/AndroidManifest.xml b/compiler/android-tests/android-module/tested-module/AndroidManifest.xml
deleted file mode 100644
index 62a659797e9..00000000000
--- a/compiler/android-tests/android-module/tested-module/AndroidManifest.xml
+++ /dev/null
@@ -1,6 +0,0 @@
-<?xml version="1.0" encoding="utf-8"?>
-<manifest xmlns:android="http://schemas.android.com/apk/res/android"
-          package="">
-    <application>
-    </application>
-</manifest>
diff --git a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/CodegenTestsOnAndroidRunner.kt b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/CodegenTestsOnAndroidRunner.kt
index b26199a1a02..74927c98736 100644
--- a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/CodegenTestsOnAndroidRunner.kt
+++ b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/CodegenTestsOnAndroidRunner.kt
@@ -54,6 +54,7 @@ class CodegenTestsOnAndroidRunner private constructor(private val pathManager: P
                     rootSuite.addTest(this)
                 }
 
+                renameReport()
                 enableD8(true)
                 runTestsOnEmulator(gradleRunner, TestSuite("D8")).apply {
                     (0 until this.countTestCases()).forEach {
@@ -94,18 +95,23 @@ class CodegenTestsOnAndroidRunner private constructor(private val pathManager: P
     }
 
     private fun processReport(suite: TestSuite, resultOutput: String) {
-        val reportFolder = pathManager.tmpFolder + "/build/outputs/androidTest-results/connected"
+        val reportFolder = reportFolder()
         try {
             val testCases = parseSingleReportInFolder(reportFolder)
             testCases.forEach { aCase -> suite.addTest(aCase) }
             Assert.assertNotEquals("There is no test results in report", 0, testCases.size.toLong())
+        } catch (e: Exception) {
+            throw RuntimeException("Can't parse test results in $reportFolder\n$resultOutput", e)
         }
-        catch (e: Exception) {
-            throw RuntimeException("Can't parse test results in " + reportFolder + "\n" + resultOutput)
-        }
-
     }
 
+    private fun renameReport() {
+        val reportFolder = File(reportFolder())
+        reportFolder.renameTo(File(reportFolder.parentFile, reportFolder.name + "_dex"))
+    }
+
+    private fun reportFolder() = pathManager.tmpFolder + "/build/test/results/connected/"
+
     private fun runTestsOnEmulator(gradleRunner: GradleRunner, suite: TestSuite): TestSuite {
         val platformPrefixProperty = System.setProperty(PlatformUtils.PLATFORM_PREFIX_KEY, "Idea")
         try {
diff --git a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/download/SDKDownloader.java b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/download/SDKDownloader.java
index 6e8d6480f98..4a6d5ebc1f4 100644
--- a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/download/SDKDownloader.java
+++ b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/download/SDKDownloader.java
@@ -38,11 +38,11 @@ public class SDKDownloader {
 
     private final PathManager pathManager;
 
-    private static final String PLATFORM_TOOLS = "27.0.1";
-    private static final String SDK_TOOLS = "25.1.6";
-    public static final String BUILD_TOOLS = "27.0.3";
+    private static final String PLATFORM_TOOLS = "28.0.1";
+    private static final String SDK_TOOLS = "25.2.5";
+    public static final String BUILD_TOOLS = "28.0.3";
     private static final int ANDROID_VERSION = 19;
-    public static final String GRADLE_VERSION = "4.5.1";
+    public static final String GRADLE_VERSION = "4.6";
 
 
     public SDKDownloader(PathManager pathManager) {
@@ -126,7 +126,7 @@ public class SDKDownloader {
         String buildToolsFolder = buildTools + BUILD_TOOLS + "/";
         new File(buildToolsFolder).delete();
         unzip(buildToolsZipPath, buildTools);
-        new File(buildTools + "/android-8.1.0").renameTo(new File(buildToolsFolder));
+        new File(buildTools + "/android-9").renameTo(new File(buildToolsFolder));
     }
 
     public void deleteAll() {
diff --git a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/gradle/GradleRunner.java b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/gradle/GradleRunner.java
index d8c100636f4..0f3b7d9d680 100644
--- a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/gradle/GradleRunner.java
+++ b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/gradle/GradleRunner.java
@@ -49,6 +49,7 @@ public class GradleRunner {
         System.out.println("Building gradle project...");
         GeneralCommandLine build = generateCommandLine("build");
         build.addParameter("--stacktrace");
+        build.addParameter("--warn");
         RunResult result = RunUtils.execute(build);
         OutputUtils.checkResult(result);
     }
@@ -67,8 +68,11 @@ public class GradleRunner {
 
     public String connectedDebugAndroidTest() {
         System.out.println("Starting tests...");
-        RunResult result = RunUtils.execute(generateCommandLine("connectedAndroidTest"));
-        return result.getOutput();
+        GeneralCommandLine test = generateCommandLine("connectedAndroidTest");
+        test.addParameters("--stacktrace");
+        //To avoid problem with discovering tests on Android in multidex build
+        test.addParameters("-Pandroid.testInstrumentationRunnerArguments.class=org.jetbrains.kotlin.android.tests.CodegenTestCaseOnAndroid");
+        return RunUtils.execute(test).getOutput();
     }
 
     private GeneralCommandLine generateCommandLine(String taskName) {
diff --git a/compiler/android-tests/tests/org/jetbrains/kotlin/android/tests/CodegenTestsOnAndroidGenerator.kt b/compiler/android-tests/tests/org/jetbrains/kotlin/android/tests/CodegenTestsOnAndroidGenerator.kt
index ea0e3dfafb9..8d0547f4cdb 100644
--- a/compiler/android-tests/tests/org/jetbrains/kotlin/android/tests/CodegenTestsOnAndroidGenerator.kt
+++ b/compiler/android-tests/tests/org/jetbrains/kotlin/android/tests/CodegenTestsOnAndroidGenerator.kt
@@ -76,9 +76,9 @@ class CodegenTestsOnAndroidGenerator private constructor(private val pathManager
     private fun generateAndSave() {
         println("Generating test files...")
         val testSourceFilePath =
-            pathManager.srcFolderInAndroidTmpFolder + "/" + testClassPackage.replace(".", "/") + "/" + testClassName + ".java"
+            pathManager.srcFolderInAndroidTmpFolder + "/androidTest/java/" + testClassPackage.replace(".", "/") + "/" + testClassName + ".java"
 
-        FileWriter(File(testSourceFilePath)).use {
+        FileWriter(File(testSourceFilePath).also { it.parentFile.mkdirs() }).use {
             val p = Printer(it)
             p.print(FileUtil.loadFile(File("license/LICENSE.txt")))
             p.println(