diff --git a/libraries/tools/kotlin-annotation-processing-embeddable/build.gradle.kts b/prepare/kotlin-annotation-processing-embeddable/build.gradle.kts
similarity index 100%
rename from libraries/tools/kotlin-annotation-processing-embeddable/build.gradle.kts
rename to prepare/kotlin-annotation-processing-embeddable/build.gradle.kts
diff --git a/settings.gradle b/settings.gradle
index 46d8c28f73b..74b55ca8ae5 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -213,7 +213,7 @@ project(':kotlin-gradle-subplugin-example').projectDir = "$rootDir/libraries/exa
 project(':examples:annotation-processor-example').projectDir = "$rootDir/libraries/examples/annotation-processor-example" as File
 project(':kotlin-script-util').projectDir = "$rootDir/libraries/tools/kotlin-script-util" as File
 project(':kotlin-annotation-processing-gradle').projectDir = "$rootDir/libraries/tools/kotlin-annotation-processing" as File
-project(':kotlin-annotation-processing-embeddable').projectDir = "$rootDir/libraries/tools/kotlin-annotation-processing-embeddable" as File
+project(':kotlin-annotation-processing-embeddable').projectDir = "$rootDir/prepare/kotlin-annotation-processing-embeddable" as File
 project(':kotlin-annotation-processing').projectDir = "$rootDir/plugins/kapt3" as File
 project(':examples:kotlin-jsr223-local-example').projectDir = "$rootDir/libraries/examples/kotlin-jsr223-local-example" as File
 project(':examples:kotlin-jsr223-daemon-local-eval-example').projectDir = "$rootDir/libraries/examples/kotlin-jsr223-daemon-local-eval-example" as File