diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/AssociatedCompilationIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/AssociatedCompilationIT.kt
new file mode 100644
index 00000000000..28ebce8bfe7
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/AssociatedCompilationIT.kt
@@ -0,0 +1,93 @@
+/*
+ * Copyright 2010-2023 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.
+ */
+
+package org.jetbrains.kotlin.gradle
+
+import org.gradle.api.logging.LogLevel
+import org.gradle.util.GradleVersion
+import org.jetbrains.kotlin.gradle.testbase.*
+import org.jetbrains.kotlin.gradle.util.replaceFirst
+import org.jetbrains.kotlin.gradle.util.replaceText
+import org.junit.jupiter.api.DisplayName
+
+@DisplayName("Incremental scenarios with associated compilation")
+class AssociatedCompilationIT : KGPBaseTest() {
+    override val defaultBuildOptions: BuildOptions
+        get() = super.defaultBuildOptions.copy(logLevel = LogLevel.DEBUG)
+
+    @JvmGradlePluginTests
+    @DisplayName("Rebuild forced if associated compilation changes")
+    @GradleTest
+    fun testRebuildOnAssociatedCompilationChange(gradleVersion: GradleVersion) {
+        val project = getBaseProject(gradleVersion)
+
+        val testSrc = project.kotlinSourcesDir("integrationTest").resolve("test.kt")
+        val utilSrc = project.kotlinSourcesDir("main").resolve("util.kt")
+
+        project.build("compileIntegrationTestKotlin") {
+            assertCompiledKotlinSources(listOf(testSrc, utilSrc).relativizeTo(project.projectPath), output)
+        }
+
+        project.buildGradle.replaceFirst("associateWith(getByName(\"main\"))", "")
+
+        project.buildAndFail("compileIntegrationTestKotlin") {
+            assertTasksFailed(":compileIntegrationTestKotlin")
+            assertOutputContains("Cannot access 'fun doWork(): Int': it is internal in file")
+        }
+    }
+
+    @JvmGradlePluginTests
+    @DisplayName("Rebuild after used internal ABI change in associated compilation")
+    @GradleTest
+    fun testRebuildOnUsedApiChangeInAssociatedCompilation(gradleVersion: GradleVersion) {
+        val project = getBaseProject(gradleVersion)
+
+        val testSrc = project.kotlinSourcesDir("integrationTest").resolve("test.kt")
+        val utilSrc = project.kotlinSourcesDir("main").resolve("util.kt")
+
+        project.build("compileIntegrationTestKotlin")
+        utilSrc.replaceFirst("fun doWork() = 4", "fun doWork() = \"okay\"")
+
+        project.build("compileIntegrationTestKotlin") {
+            assertCompiledKotlinSources(listOf(testSrc, utilSrc).relativizeTo(project.projectPath), output)
+        }
+    }
+
+    @JvmGradlePluginTests
+    @DisplayName("No rebuild after private ABI change in associated compilation")
+    @GradleTest
+    fun testNoRebuildOnPrivateChangeInAssociatedCompilation(gradleVersion: GradleVersion) {
+        val project = getBaseProject(gradleVersion)
+
+        val utilSrc = project.kotlinSourcesDir("main").resolve("util.kt")
+
+        project.build("compileIntegrationTestKotlin")
+        utilSrc.append("private val bar = 2")
+
+        project.build("compileIntegrationTestKotlin") {
+            assertCompiledKotlinSources(listOf(utilSrc).relativizeTo(project.projectPath), output)
+        }
+    }
+
+    @JvmGradlePluginTests
+    @DisplayName("No rebuild after unused ABI change in associated compilation")
+    @GradleTest
+    fun testNoRebuildOnUnusedInternalChangeInAssociatedCompilation(gradleVersion: GradleVersion) {
+        val project = getBaseProject(gradleVersion)
+
+        val utilSrc = project.kotlinSourcesDir("main").resolve("util.kt")
+
+        project.build("compileIntegrationTestKotlin")
+        utilSrc.append("internal val bar = 2")
+
+        project.build("compileIntegrationTestKotlin") {
+            assertCompiledKotlinSources(listOf(utilSrc).relativizeTo(project.projectPath), output)
+        }
+    }
+
+    private fun getBaseProject(gradleVersion: GradleVersion): TestProject {
+        return project("kt-61918-associate-with-incremental", gradleVersion)
+    }
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/build.gradle b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/build.gradle
new file mode 100644
index 00000000000..275f5040253
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/build.gradle
@@ -0,0 +1,23 @@
+plugins {
+    id "org.jetbrains.kotlin.jvm"
+}
+
+repositories {
+    mavenLocal()
+    mavenCentral()
+}
+
+kotlin.target.compilations {
+    create("integrationTest") {
+        defaultSourceSet {
+            dependencies {
+                implementation(getByName("main").compileDependencyFiles + getByName("main").output.classesDirs)
+            }
+        }
+    }
+
+    //force task instantiation:
+    tasks.getByName("compileIntegrationTestKotlin")
+
+    named("integrationTest").configure { associateWith(getByName("main")) }
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/src/integrationTest/kotlin/test.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/src/integrationTest/kotlin/test.kt
new file mode 100644
index 00000000000..7786a948206
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/src/integrationTest/kotlin/test.kt
@@ -0,0 +1 @@
+val result = doWork()
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/src/main/kotlin/util.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/src/main/kotlin/util.kt
new file mode 100644
index 00000000000..c711cf15947
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-61918-associate-with-incremental/src/main/kotlin/util.kt
@@ -0,0 +1 @@
+internal fun doWork() = 4
diff --git a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/tasks/AbstractKotlinCompile.kt b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/tasks/AbstractKotlinCompile.kt
index 2f4cd49390b..18a1eb68c95 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/tasks/AbstractKotlinCompile.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/tasks/AbstractKotlinCompile.kt
@@ -102,6 +102,16 @@ abstract class AbstractKotlinCompile<T : CommonCompilerArguments> @Inject constr
     internal open fun isIncrementalCompilationEnabled(): Boolean =
         incremental
 
+    // This allows us to treat friendPaths as Input rather than InputFiles
+    @get:Input
+    internal val friendPathsSet: Set<String>
+        get() {
+            val buildDirFile = projectLayout.buildDirectory.asFile.get()
+            return friendPaths
+                .filter { it.exists() }
+                .map { it.normalize().relativeTo(buildDirFile).path }.toSet()
+        }
+
     @Deprecated("Scheduled for removal with Kotlin 2.0", ReplaceWith("moduleName"))
     @get:Input
     abstract val ownModuleName: Property<String>