diff --git a/buildSrc/src/main/kotlin/gradle-plugin-common-configuration.gradle.kts b/buildSrc/src/main/kotlin/gradle-plugin-common-configuration.gradle.kts
new file mode 100644
index 00000000000..10bb1d84bb2
--- /dev/null
+++ b/buildSrc/src/main/kotlin/gradle-plugin-common-configuration.gradle.kts
@@ -0,0 +1,51 @@
+/*
+ * Copyright 2010-2021 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
+
+plugins {
+    kotlin("jvm")
+}
+
+publish()
+standardPublicJars()
+
+extensions.extraProperties["kotlin.stdlib.default.dependency"] = "false"
+
+dependencies {
+    compileOnly(kotlinStdlib())
+    compileOnly(gradleApi())
+}
+
+// These dependencies will be provided by Gradle and we should prevent version conflict
+fun Configuration.excludeGradleCommonDependencies() {
+    exclude(group = "org.jetbrains.kotlin", module = "kotlin-stdlib")
+    exclude(group = "org.jetbrains.kotlin", module = "kotlin-stdlib-jdk7")
+    exclude(group = "org.jetbrains.kotlin", module = "kotlin-stdlib-jdk8")
+    exclude(group = "org.jetbrains.kotlin", module = "kotlin-stdlib-common")
+    exclude(group = "org.jetbrains.kotlin", module = "kotlin-reflect")
+    exclude(group = "org.jetbrains.kotlin", module = "kotlin-script-runtime")
+}
+configurations {
+    "implementation" {
+        excludeGradleCommonDependencies()
+    }
+    "api" {
+        excludeGradleCommonDependencies()
+    }
+}
+
+tasks.withType<KotlinCompile> {
+    kotlinOptions.languageVersion = "1.3"
+    kotlinOptions.apiVersion = "1.3"
+    kotlinOptions.freeCompilerArgs += listOf(
+        "-Xskip-prerelease-check",
+        "-Xskip-runtime-version-check",
+        "-Xsuppress-version-warnings"
+    )
+}
+
+tasks.named<Jar>("jar") {
+    callGroovy("manifestAttributes", manifest, project)
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/code/CodeConformanceTest.kt b/compiler/tests/org/jetbrains/kotlin/code/CodeConformanceTest.kt
index 299a5db958c..184b01829df 100644
--- a/compiler/tests/org/jetbrains/kotlin/code/CodeConformanceTest.kt
+++ b/compiler/tests/org/jetbrains/kotlin/code/CodeConformanceTest.kt
@@ -72,6 +72,7 @@ class CodeConformanceTest : TestCase() {
             File("."),
             listOf(
                 "build",
+                "buildSrc/build/generated-sources",
                 "buildSrc/prepare-deps/build",
                 "compiler/ir/serialization.js/build/fullRuntime",
                 "compiler/ir/serialization.js/build/reducedRuntime/src/libraries/stdlib/js-ir/runtime/longjs.kt",
@@ -97,6 +98,7 @@ class CodeConformanceTest : TestCase() {
                 "libraries/stdlib/js-v1/node_modules",
                 "libraries/stdlib/wasm/build",
                 "libraries/tools/kotlin-gradle-plugin-integration-tests/build",
+                "libraries/tools/kotlin-gradle-plugin-integration-tests/.testKitDir",
                 "libraries/tools/kotlin-maven-plugin-test/target",
                 "libraries/tools/kotlin-test-js-runner/.gradle",
                 "libraries/tools/kotlin-test-js-runner/lib",
diff --git a/compiler/util-io/build.gradle.kts b/compiler/util-io/build.gradle.kts
index fbe57abeef5..d0b2a2cd6a3 100644
--- a/compiler/util-io/build.gradle.kts
+++ b/compiler/util-io/build.gradle.kts
@@ -4,7 +4,7 @@ plugins {
 }
 
 dependencies {
-    compile(kotlinStdlib())
+    implementation(kotlinStdlib())
     testImplementation(commonDep("junit:junit"))
 }
 
diff --git a/libraries/tools/kotlin-gradle-build-metrics/build.gradle.kts b/libraries/tools/kotlin-gradle-build-metrics/build.gradle.kts
index 23ab92f255c..18ceba29f1d 100644
--- a/libraries/tools/kotlin-gradle-build-metrics/build.gradle.kts
+++ b/libraries/tools/kotlin-gradle-build-metrics/build.gradle.kts
@@ -1,13 +1,11 @@
 description = "kotlin-gradle-statistics"
 
 plugins {
-    kotlin("jvm")
+    id("gradle-plugin-common-configuration")
     id("jps-compatible")
 }
 
 dependencies {
-    compileOnly(kotlinStdlib())
-
     testImplementation(project(":kotlin-test:kotlin-test-junit"))
     testImplementation("junit:junit:4.12")
 }
@@ -20,8 +18,3 @@ sourceSets {
 projectTest {
     workingDir = rootDir
 }
-
-publish()
-
-sourcesJar()
-javadocJar()
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-api/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin-api/build.gradle.kts
index dc68ce1e4a5..cb2c26d4e1b 100644
--- a/libraries/tools/kotlin-gradle-plugin-api/build.gradle.kts
+++ b/libraries/tools/kotlin-gradle-plugin-api/build.gradle.kts
@@ -1,20 +1,13 @@
-import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 import org.jetbrains.kotlin.pill.PillExtension
 
 plugins {
-    kotlin("jvm")
+    id("gradle-plugin-common-configuration")
     id("jps-compatible")
 }
 
-publish()
-
-standardPublicJars()
-
 dependencies {
-    implementation(kotlinStdlib())
-    implementation(project(":native:kotlin-native-utils"))
+    api(project(":native:kotlin-native-utils"))
 
-    compileOnly(gradleApi())
     compileOnly("com.android.tools.build:gradle:3.4.0")
     compileOnly(project(":kotlin-project-model"))
 }
@@ -22,19 +15,3 @@ dependencies {
 pill {
     variant = PillExtension.Variant.FULL
 }
-
-tasks {
-    withType<KotlinCompile> {
-        kotlinOptions.languageVersion = "1.3"
-        kotlinOptions.apiVersion = "1.3"
-        kotlinOptions.freeCompilerArgs += listOf(
-            "-Xskip-prerelease-check",
-            "-Xskip-runtime-version-check",
-            "-Xsuppress-version-warnings"
-        )
-    }
-
-    named<Jar>("jar") {
-        callGroovy("manifestAttributes", manifest, project)
-    }
-}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/SimpleKotlinGradleIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/SimpleKotlinGradleIT.kt
index a22ae64f1b6..a8b495dd57d 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/SimpleKotlinGradleIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/SimpleKotlinGradleIT.kt
@@ -178,4 +178,33 @@ class SimpleKotlinGradleIT : KGPBaseTest() {
             }
         }
     }
+
+    @GradleTest
+    @DisplayName("Should not produce kotlin-stdlib version conflict on Kotlin files compilation in 'buildSrc' module")
+    internal fun testKotlinDslStdlibVersionConflict(gradleVersion: GradleVersion) {
+        project(
+            projectName = "buildSrcUsingKotlinCompilationAndKotlinPlugin",
+            gradleVersion,
+            forceOutput = true
+        ) {
+            listOf(
+                "compileClasspath",
+                "compileOnly",
+                "runtimeClasspath"
+            ).forEach { configuration ->
+                build("-p", "buildSrc", "dependencies", "--configuration", configuration) {
+                    listOf(
+                        "org.jetbrains.kotlin:kotlin-stdlib:${buildOptions.kotlinVersion}",
+                        "org.jetbrains.kotlin:kotlin-stdlib-jdk7:${buildOptions.kotlinVersion}",
+                        "org.jetbrains.kotlin:kotlin-stdlib-jdk8:${buildOptions.kotlinVersion}",
+                        "org.jetbrains.kotlin:kotlin-stdlib-common:${buildOptions.kotlinVersion}",
+                        "org.jetbrains.kotlin:kotlin-reflect:${buildOptions.kotlinVersion}",
+                        "org.jetbrains.kotlin:kotlin-script-runtime:${buildOptions.kotlinVersion}"
+                    ).forEach { assertOutputDoesNotContain(it) }
+                }
+            }
+
+            build("assemble")
+        }
+    }
 }
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/build.gradle.kts
new file mode 100644
index 00000000000..274be350f5a
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/build.gradle.kts
@@ -0,0 +1,8 @@
+plugins {
+    kotlin("jvm")
+}
+
+repositories {
+    mavenLocal()
+    mavenCentral()
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/buildSrc/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/buildSrc/build.gradle.kts
new file mode 100644
index 00000000000..f23198d0617
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/buildSrc/build.gradle.kts
@@ -0,0 +1,12 @@
+plugins {
+    `kotlin-dsl`
+}
+
+repositories {
+    mavenLocal()
+    mavenCentral()
+}
+
+dependencies {
+    implementation("org.jetbrains.kotlin:kotlin-gradle-plugin:${property("kotlin_version")}")
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/buildSrc/src/main/kotlin/ProjectExt.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/buildSrc/src/main/kotlin/ProjectExt.kt
new file mode 100644
index 00000000000..0f5e46e6410
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/buildSrc/src/main/kotlin/ProjectExt.kt
@@ -0,0 +1,3 @@
+import org.gradle.api.Project
+
+fun Project.nameLength() = name.length
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/src/main/kotlin/main.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/src/main/kotlin/main.kt
new file mode 100644
index 00000000000..0f4f205330f
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/buildSrcUsingKotlinCompilationAndKotlinPlugin/src/main/kotlin/main.kt
@@ -0,0 +1,8 @@
+/*
+ * Copyright 2010-2021 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+fun main() {
+    println("Hello World!")
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-model/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin-model/build.gradle.kts
index 4ce6cbf8cd5..3baa3c8c19f 100644
--- a/libraries/tools/kotlin-gradle-plugin-model/build.gradle.kts
+++ b/libraries/tools/kotlin-gradle-plugin-model/build.gradle.kts
@@ -1,33 +1,10 @@
-import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 import org.jetbrains.kotlin.pill.PillExtension
 
 plugins {
-    kotlin("jvm")
+    id("gradle-plugin-common-configuration")
     id("jps-compatible")
 }
 
-publish()
-
-standardPublicJars()
-
-dependencies {
-    compile(kotlinStdlib())
-}
-
 pill {
     variant = PillExtension.Variant.FULL
 }
-
-tasks {
-    withType<KotlinCompile> {
-        kotlinOptions.languageVersion = "1.3"
-        kotlinOptions.apiVersion = "1.3"
-        kotlinOptions.freeCompilerArgs += listOf(
-            "-Xskip-prerelease-check", "-Xsuppress-version-warnings"
-        )
-    }
-
-    named<Jar>("jar") {
-        callGroovy("manifestAttributes", manifest, project)
-    }
-}
diff --git a/libraries/tools/kotlin-gradle-plugin/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin/build.gradle.kts
index f36f55a6f47..ee85b4a1478 100644
--- a/libraries/tools/kotlin-gradle-plugin/build.gradle.kts
+++ b/libraries/tools/kotlin-gradle-plugin/build.gradle.kts
@@ -1,11 +1,10 @@
 import org.jetbrains.dokka.gradle.DokkaTask
-import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 import org.jetbrains.kotlin.pill.PillExtension
 
 plugins {
     java
-    kotlin("jvm")
     `java-gradle-plugin`
+    id("gradle-plugin-common-configuration")
     id("org.jetbrains.dokka")
     id("jps-compatible")
 }
@@ -17,13 +16,8 @@ configure<GradlePluginDevelopmentExtension> {
     isAutomatedPublishing = false
 }
 
-publish()
-
 val jarContents by configurations.creating
 
-sourcesJar()
-javadocJar()
-
 repositories {
     google()
     maven("https://plugins.gradle.org/m2/")
@@ -40,7 +34,6 @@ dependencies {
     compileOnly(project(":compiler:incremental-compilation-impl"))
     compileOnly(project(":daemon-common"))
 
-    implementation(kotlinStdlib())
     implementation(project(":kotlin-util-klib"))
     implementation(project(":native:kotlin-klib-commonizer-api"))
     implementation(project(":kotlin-tooling-metadata"))
@@ -70,8 +63,7 @@ dependencies {
     compileOnly("com.android.tools.build:builder:3.4.0")
     compileOnly("com.android.tools.build:builder-model:3.4.0")
     compileOnly("org.codehaus.groovy:groovy-all:2.4.12")
-    compileOnly(gradleApi())
-
+    compileOnly(project(":kotlin-reflect"))
     compileOnly(intellijCoreDep()) { includeJars("intellij-core") }
 
     runtimeOnly(projectRuntimeJar(":kotlin-compiler-embeddable"))
@@ -80,7 +72,6 @@ dependencies {
     runtimeOnly(projectRuntimeJar(":kotlin-compiler-runner"))
     runtimeOnly(projectRuntimeJar(":kotlin-scripting-compiler-embeddable"))
     runtimeOnly(projectRuntimeJar(":kotlin-scripting-compiler-impl-embeddable"))
-    runtimeOnly(project(":kotlin-reflect"))
 
     jarContents(compileOnly(intellijDep()) {
         includeJars("asm-all", "gson", "guava", "serviceMessages", rootProject = rootProject)
@@ -124,17 +115,6 @@ runtimeJar(rewriteDefaultJarDepsToShadedCompiler()).configure {
 }
 
 tasks {
-    withType<KotlinCompile> {
-        kotlinOptions.jdkHome = rootProject.extra["JDK_18"] as String
-        kotlinOptions.languageVersion = "1.3"
-        kotlinOptions.apiVersion = "1.3"
-        kotlinOptions.freeCompilerArgs += listOf(
-            "-Xskip-prerelease-check",
-            "-Xskip-runtime-version-check",
-            "-Xsuppress-version-warnings"
-        )
-    }
-
     named<ProcessResources>("processResources") {
         val propertiesToExpand = mapOf(
             "projectVersion" to project.version,
@@ -148,10 +128,6 @@ tasks {
         }
     }
 
-    named<Jar>("jar") {
-        callGroovy("manifestAttributes", manifest, project)
-    }
-
     withType<ValidatePlugins>().configureEach {
         failOnWarning.set(true)
         enableStricterValidation.set(true)
diff --git a/libraries/tools/kotlin-gradle-statistics/build.gradle.kts b/libraries/tools/kotlin-gradle-statistics/build.gradle.kts
index 87462cdb2da..18ceba29f1d 100644
--- a/libraries/tools/kotlin-gradle-statistics/build.gradle.kts
+++ b/libraries/tools/kotlin-gradle-statistics/build.gradle.kts
@@ -1,15 +1,13 @@
 description = "kotlin-gradle-statistics"
 
 plugins {
-    kotlin("jvm")
+    id("gradle-plugin-common-configuration")
     id("jps-compatible")
 }
 
 dependencies {
-    compileOnly(kotlinStdlib())
-
-    testCompile(project(":kotlin-test:kotlin-test-junit"))
-    testCompile("junit:junit:4.12")
+    testImplementation(project(":kotlin-test:kotlin-test-junit"))
+    testImplementation("junit:junit:4.12")
 }
 
 sourceSets {
diff --git a/native/utils/build.gradle.kts b/native/utils/build.gradle.kts
index 3ff3a832b60..94f1259ade0 100644
--- a/native/utils/build.gradle.kts
+++ b/native/utils/build.gradle.kts
@@ -7,11 +7,11 @@ description = "Kotlin/Native utils"
 
 dependencies {
     compileOnly(kotlinStdlib())
-    compile(project(":kotlin-util-io"))
+    api(project(":kotlin-util-io"))
 
-    testCompile(commonDep("junit:junit"))
+    testImplementation(commonDep("junit:junit"))
     testCompileOnly(project(":kotlin-reflect-api"))
-    testRuntime(project(":kotlin-reflect"))
+    testImplementation(project(":kotlin-reflect"))
 }
 
 sourceSets {