diff --git a/build-common/src/org/jetbrains/kotlin/build/JvmBuildMetaInfo.kt b/build-common/src/org/jetbrains/kotlin/build/JvmBuildMetaInfo.kt
index 2a9d3f53840..d327ebd045e 100644
--- a/build-common/src/org/jetbrains/kotlin/build/JvmBuildMetaInfo.kt
+++ b/build-common/src/org/jetbrains/kotlin/build/JvmBuildMetaInfo.kt
@@ -61,8 +61,8 @@ data class JvmBuildMetaInfo(
 fun JvmBuildMetaInfo(args: CommonCompilerArguments): JvmBuildMetaInfo =
         JvmBuildMetaInfo(isEAP = KotlinCompilerVersion.isPreRelease(),
                          compilerBuildVersion = KotlinCompilerVersion.VERSION,
-                         languageVersionString = args.languageVersion ?: LanguageVersion.LATEST.versionString,
-                         apiVersionString = args.apiVersion ?: ApiVersion.LATEST.versionString,
+                         languageVersionString = args.languageVersion ?: LanguageVersion.LATEST_STABLE.versionString,
+                         apiVersionString = args.apiVersion ?: ApiVersion.LATEST_STABLE.versionString,
                          coroutinesEnable = args.coroutinesEnable,
                          coroutinesWarn = args.coroutinesWarn,
                          coroutinesError = args.coroutinesError,
@@ -72,4 +72,4 @@ fun JvmBuildMetaInfo(args: CommonCompilerArguments): JvmBuildMetaInfo =
                          metadataVersionPatch = JvmMetadataVersion.INSTANCE.patch,
                          bytecodeVersionMajor = JvmBytecodeBinaryVersion.INSTANCE.major,
                          bytecodeVersionMinor = JvmBytecodeBinaryVersion.INSTANCE.minor,
-                         bytecodeVersionPatch = JvmBytecodeBinaryVersion.INSTANCE.patch)
+                         bytecodeVersionPatch = JvmBytecodeBinaryVersion.INSTANCE.patch)
\ No newline at end of file
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/writeAnnotationUtil.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/writeAnnotationUtil.kt
index d0b1c01c10c..0aae2d1e590 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/writeAnnotationUtil.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/writeAnnotationUtil.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2015 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -37,7 +37,7 @@ fun writeKotlinMetadata(
     av.visit(JvmAnnotationNames.BYTECODE_VERSION_FIELD_NAME, JvmBytecodeBinaryVersion.INSTANCE.toArray())
     av.visit(JvmAnnotationNames.KIND_FIELD_NAME, kind.id)
     var flags = extraFlags
-    if (KotlinCompilerVersion.isPreRelease() && state.languageVersionSettings.languageVersion == LanguageVersion.LATEST) {
+    if (KotlinCompilerVersion.isPreRelease() && state.languageVersionSettings.languageVersion == LanguageVersion.LATEST_STABLE) {
         flags = flags or JvmAnnotationNames.METADATA_PRE_RELEASE_FLAG
     }
     if (flags != 0) {
@@ -51,4 +51,4 @@ fun writeSyntheticClassMetadata(cb: ClassBuilder, state: GenerationState) {
     writeKotlinMetadata(cb, state, KotlinClassHeader.Kind.SYNTHETIC_CLASS, 0) { _ ->
         // Do nothing
     }
-}
+}
\ No newline at end of file
diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/DefaultValues.kt b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/DefaultValues.kt
index 805a41557c0..3f6f073269a 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/DefaultValues.kt
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/DefaultValues.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -29,7 +29,7 @@ open class DefaultValues(val defaultValue: String, val possibleValues: List<Stri
     object StringNullDefault : DefaultValues("null")
 
     object LanguageVersions : DefaultValues(
-            "\"" + LanguageVersion.LATEST.versionString + "\"",
+            "\"" + LanguageVersion.LATEST_STABLE.versionString + "\"",
             LanguageVersion.values().map { "\"${it.versionString}\"" }
     )
 
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/common/CLICompiler.java b/compiler/cli/src/org/jetbrains/kotlin/cli/common/CLICompiler.java
index dcf21e6eb6a..a3c63f9344d 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/common/CLICompiler.java
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/common/CLICompiler.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -231,8 +231,8 @@ public abstract class CLICompiler<A extends CommonCompilerArguments> {
         LanguageVersion apiVersion = parseVersion(configuration, arguments.apiVersion, "API");
 
         if (languageVersion == null) {
-            // If only "-api-version" is specified, language version is assumed to be the latest
-            languageVersion = LanguageVersion.LATEST;
+            // If only "-api-version" is specified, language version is assumed to be the latest stable
+            languageVersion = LanguageVersion.LATEST_STABLE;
         }
 
         if (apiVersion == null) {
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/JvmRuntimeVersionsConsistencyChecker.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/JvmRuntimeVersionsConsistencyChecker.kt
index 8891546216b..a3c214cc6d4 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/JvmRuntimeVersionsConsistencyChecker.kt
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/JvmRuntimeVersionsConsistencyChecker.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -199,10 +199,10 @@ object JvmRuntimeVersionsConsistencyChecker {
     }
 
     private fun checkNotNewerThanCompiler(messageCollector: MessageCollector, jar: KotlinLibraryFile): Boolean {
-        if (jar.version > ApiVersion.LATEST.version) {
+        if (jar.version > ApiVersion.LATEST_STABLE.version) {
             messageCollector.issue(
                     jar.file,
-                    "Runtime JAR file has version ${jar.version} which is newer than compiler version ${ApiVersion.LATEST.version}",
+                    "Runtime JAR file has version ${jar.version} which is newer than compiler version ${ApiVersion.LATEST_STABLE.version}",
                     CompilerMessageSeverity.ERROR
             )
             return true
diff --git a/compiler/daemon/src/org/jetbrains/kotlin/daemon/KotlinRemoteReplService.kt b/compiler/daemon/src/org/jetbrains/kotlin/daemon/KotlinRemoteReplService.kt
index ff9b44a6ab6..f507a7703c9 100644
--- a/compiler/daemon/src/org/jetbrains/kotlin/daemon/KotlinRemoteReplService.kt
+++ b/compiler/daemon/src/org/jetbrains/kotlin/daemon/KotlinRemoteReplService.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -52,7 +52,7 @@ open class KotlinJvmReplService(
         addJvmClasspathRoots(PathUtil.getKotlinPathsForCompiler().let { listOf(it.runtimePath, it.reflectPath, it.scriptRuntimePath) })
         addJvmClasspathRoots(templateClasspath)
         put(CommonConfigurationKeys.MODULE_NAME, "kotlin-script")
-        languageVersionSettings = LanguageVersionSettingsImpl(LanguageVersion.LATEST, ApiVersion.LATEST).apply {
+        languageVersionSettings = LanguageVersionSettingsImpl(LanguageVersion.LATEST_STABLE, ApiVersion.LATEST_STABLE).apply {
             switchFlag(AnalysisFlags.skipMetadataVersionCheck, true)
         }
     }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/analyzer/common/DefaultAnalyzerFacade.kt b/compiler/frontend/src/org/jetbrains/kotlin/analyzer/common/DefaultAnalyzerFacade.kt
index 5da707aa6d3..8f380db1142 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/analyzer/common/DefaultAnalyzerFacade.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/analyzer/common/DefaultAnalyzerFacade.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -49,7 +49,7 @@ import org.jetbrains.kotlin.serialization.deserialization.MetadataPackageFragmen
  */
 object DefaultAnalyzerFacade : AnalyzerFacade<PlatformAnalysisParameters>() {
     private val languageVersionSettings = LanguageVersionSettingsImpl(
-            LanguageVersion.LATEST, ApiVersion.LATEST,
+            LanguageVersion.LATEST_STABLE, ApiVersion.LATEST_STABLE,
             specificFeatures = mapOf(LanguageFeature.MultiPlatformProjects to LanguageFeature.State.ENABLED)
     )
 
diff --git a/compiler/testData/cli/jvm/apiVersionInvalid.out b/compiler/testData/cli/jvm/apiVersionInvalid.out
index e0ff180c445..2589d801af6 100644
--- a/compiler/testData/cli/jvm/apiVersionInvalid.out
+++ b/compiler/testData/cli/jvm/apiVersionInvalid.out
@@ -1,3 +1,3 @@
 error: unknown API version: 239.42
-Supported API versions: 1.0, 1.1
-COMPILATION_ERROR
+Supported API versions: 1.0, 1.1, 1.2
+COMPILATION_ERROR
\ No newline at end of file
diff --git a/compiler/testData/cli/jvm/languageVersionInvalid.out b/compiler/testData/cli/jvm/languageVersionInvalid.out
index 309af4defbb..2f527e6532e 100644
--- a/compiler/testData/cli/jvm/languageVersionInvalid.out
+++ b/compiler/testData/cli/jvm/languageVersionInvalid.out
@@ -1,3 +1,3 @@
 error: unknown language version: 239.42
-Supported language versions: 1.0, 1.1
+Supported language versions: 1.0, 1.1, 1.2
 COMPILATION_ERROR
\ No newline at end of file
diff --git a/compiler/tests-common/org/jetbrains/kotlin/checkers/BaseDiagnosticsTest.kt b/compiler/tests-common/org/jetbrains/kotlin/checkers/BaseDiagnosticsTest.kt
index 5e196059ac7..4d25012280a 100644
--- a/compiler/tests-common/org/jetbrains/kotlin/checkers/BaseDiagnosticsTest.kt
+++ b/compiler/tests-common/org/jetbrains/kotlin/checkers/BaseDiagnosticsTest.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -314,12 +314,12 @@ abstract class BaseDiagnosticsTest : KotlinMultiFileTestWithJava<TestModule, Tes
             val languageVersionDirective = directiveMap[LANGUAGE_VERSION]
             if (apiVersionString == null && directives == null && languageVersionDirective == null) return null
 
-            val apiVersion = (if (apiVersionString != null) ApiVersion.parse(apiVersionString) else ApiVersion.LATEST)
+            val apiVersion = (if (apiVersionString != null) ApiVersion.parse(apiVersionString) else ApiVersion.LATEST_STABLE)
                              ?: error("Unknown API version: $apiVersionString")
 
             val languageFeatures = directives?.let(this::collectLanguageFeatureMap).orEmpty()
 
-            val languageVersion: LanguageVersion = languageVersionDirective?.let { LanguageVersion.fromVersionString(it) } ?: LanguageVersion.LATEST
+            val languageVersion: LanguageVersion = languageVersionDirective?.let { LanguageVersion.fromVersionString(it) } ?: LanguageVersion.LATEST_STABLE
 
             return DiagnosticTestLanguageVersionSettings(languageFeatures, apiVersion, languageVersion)
         }
diff --git a/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstCustomBinariesTest.java b/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstCustomBinariesTest.java
index 88af79c3d0f..34ab751ceec 100644
--- a/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstCustomBinariesTest.java
+++ b/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstCustomBinariesTest.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2015 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -681,4 +681,4 @@ public class CompileKotlinAgainstCustomBinariesTest extends TestCaseWithTmpdir {
                 new File(getTestDataDirectory(), "output.txt"), normalizeOutput(outputMain)
         );
     }
-}
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/util/KotlinVersionsTest.kt b/compiler/tests/org/jetbrains/kotlin/util/KotlinVersionsTest.kt
index 99b3c8e72c8..a45074e20da 100644
--- a/compiler/tests/org/jetbrains/kotlin/util/KotlinVersionsTest.kt
+++ b/compiler/tests/org/jetbrains/kotlin/util/KotlinVersionsTest.kt
@@ -85,7 +85,7 @@ class KotlinVersionsTest : KtUsefulTestCase() {
         )
 
         versions.add(
-                LanguageVersion.LATEST.versionString.toVersion("LanguageVersion.LATEST")
+                LanguageVersion.LATEST_STABLE.versionString.toVersion("LanguageVersion.LATEST_STABLE")
         )
 
         if (versions.any { v1 -> versions.any { v2 -> !v1.isConsistentWith(v2) } }) {
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/ApiVersion.kt b/compiler/util/src/org/jetbrains/kotlin/config/ApiVersion.kt
index 4e857fbde08..1a2a2e89632 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/ApiVersion.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/ApiVersion.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -41,7 +41,10 @@ class ApiVersion private constructor(
         val KOTLIN_1_1 = createByLanguageVersion(LanguageVersion.KOTLIN_1_1)
 
         @JvmField
-        val LATEST: ApiVersion = createByLanguageVersion(LanguageVersion.LATEST)
+        val KOTLIN_1_2 = createByLanguageVersion(LanguageVersion.KOTLIN_1_2)
+
+        @JvmField
+        val LATEST_STABLE: ApiVersion = createByLanguageVersion(LanguageVersion.LATEST_STABLE)
 
         @JvmStatic
         fun createByLanguageVersion(version: LanguageVersion): ApiVersion = parse(version.versionString)!!
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
index 8b2395eb875..d016f9da99c 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
@@ -79,13 +79,14 @@ enum class LanguageFeature(
 
 enum class LanguageVersion(val major: Int, val minor: Int) : DescriptionAware {
     KOTLIN_1_0(1, 0),
-    KOTLIN_1_1(1, 1);
+    KOTLIN_1_1(1, 1),
+    KOTLIN_1_2(1, 2);
 
     val versionString: String
         get() = "$major.$minor"
 
     override val description: String
-        get() = versionString
+        get() = if (this > LATEST_STABLE) "$versionString (EXPERIMENTAL)" else versionString
 
     override fun toString() = versionString
 
@@ -97,7 +98,7 @@ enum class LanguageVersion(val major: Int, val minor: Int) : DescriptionAware {
         fun fromFullVersionString(str: String) = str.split(".", "-").let { if (it.size >= 2) fromVersionString("${it[0]}.${it[1]}") else null }
 
         @JvmField
-        val LATEST = values().last()
+        val LATEST_STABLE = KOTLIN_1_1
     }
 }
 
@@ -158,6 +159,6 @@ class LanguageVersionSettingsImpl @JvmOverloads constructor(
 
     companion object {
         @JvmField
-        val DEFAULT = LanguageVersionSettingsImpl(LanguageVersion.LATEST, ApiVersion.LATEST)
+        val DEFAULT = LanguageVersionSettingsImpl(LanguageVersion.LATEST_STABLE, ApiVersion.LATEST_STABLE)
     }
 }
diff --git a/core/util.runtime/src/org/jetbrains/kotlin/config/KotlinCompilerVersion.java b/core/util.runtime/src/org/jetbrains/kotlin/config/KotlinCompilerVersion.java
index 97123d1fe7f..a521acbc44f 100644
--- a/core/util.runtime/src/org/jetbrains/kotlin/config/KotlinCompilerVersion.java
+++ b/core/util.runtime/src/org/jetbrains/kotlin/config/KotlinCompilerVersion.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/compiler/configuration/KotlinCommonCompilerArgumentsHolder.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/compiler/configuration/KotlinCommonCompilerArgumentsHolder.kt
index 205be15b671..87ce69a7850 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/compiler/configuration/KotlinCommonCompilerArgumentsHolder.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/compiler/configuration/KotlinCommonCompilerArgumentsHolder.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -58,7 +58,7 @@ class KotlinCommonCompilerArgumentsHolder : BaseKotlinCompilerSettings<CommonCom
     override fun createSettings() = CommonCompilerArguments.createDefaultInstance()
 
     companion object {
-        private val DEFAULT_LANGUAGE_VERSION = LanguageVersion.LATEST.versionString
+        private val DEFAULT_LANGUAGE_VERSION = LanguageVersion.LATEST_STABLE.versionString
 
         fun getInstance(project: Project) =
                 ServiceManager.getService<KotlinCommonCompilerArgumentsHolder>(project, KotlinCommonCompilerArgumentsHolder::class.java)!!
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/facet/KotlinVersionInfoProvider.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/facet/KotlinVersionInfoProvider.kt
index b3cda46a5b2..1e0a5324607 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/facet/KotlinVersionInfoProvider.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/facet/KotlinVersionInfoProvider.kt
@@ -20,7 +20,6 @@ import com.intellij.openapi.extensions.ExtensionPointName
 import com.intellij.openapi.module.Module
 import com.intellij.openapi.roots.ModuleRootModel
 import com.intellij.util.text.VersionComparatorUtil
-import org.jetbrains.kotlin.config.JvmTarget
 import org.jetbrains.kotlin.config.KotlinFacetSettingsProvider
 import org.jetbrains.kotlin.config.LanguageVersion
 import org.jetbrains.kotlin.config.TargetPlatformKind
@@ -67,10 +66,12 @@ fun getDefaultLanguageLevel(
                      ?: KotlinVersionInfoProvider.EP_NAME.extensions
                              .mapNotNull { it.getCompilerVersion(module) }
                              .minWith(VersionComparatorUtil.COMPARATOR)
-                     ?: return LanguageVersion.LATEST
+                     ?: return LanguageVersion.LATEST_STABLE
     return when {
+        libVersion.startsWith("1.2") -> LanguageVersion.KOTLIN_1_2
+        libVersion.startsWith("1.1") -> LanguageVersion.KOTLIN_1_1
         libVersion.startsWith("1.0") -> LanguageVersion.KOTLIN_1_0
-        else -> LanguageVersion.KOTLIN_1_1
+        else -> LanguageVersion.LATEST_STABLE
     }
 }
 
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/project/Platform.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/project/Platform.kt
index 1b8c3ddc077..fd3d51d1e3b 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/project/Platform.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/project/Platform.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -77,7 +77,7 @@ fun Project.getLanguageVersionSettings(contextModule: Module? = null): LanguageV
     val languageVersion =
             LanguageVersion.fromVersionString(arguments.languageVersion)
             ?: contextModule?.getAndCacheLanguageLevelByDependencies()
-            ?: LanguageVersion.LATEST
+            ?: LanguageVersion.LATEST_STABLE
     val apiVersion = ApiVersion.createByLanguageVersion(LanguageVersion.fromVersionString(arguments.apiVersion) ?: languageVersion)
     val compilerSettings = KotlinCompilerSettings.getInstance(this).settings
     val extraLanguageFeatures = getExtraLanguageFeatures(
diff --git a/idea/idea-maven/src/org/jetbrains/kotlin/idea/maven/KotlinMavenImporter.kt b/idea/idea-maven/src/org/jetbrains/kotlin/idea/maven/KotlinMavenImporter.kt
index d1ac960713f..c6b7b6b73f6 100644
--- a/idea/idea-maven/src/org/jetbrains/kotlin/idea/maven/KotlinMavenImporter.kt
+++ b/idea/idea-maven/src/org/jetbrains/kotlin/idea/maven/KotlinMavenImporter.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -146,7 +146,7 @@ class KotlinMavenImporter : MavenImporter(KOTLIN_PLUGIN_GROUP_ID, KOTLIN_PLUGIN_
 
     private fun configureFacet(mavenProject: MavenProject, modifiableModelsProvider: IdeModifiableModelsProvider, module: Module) {
         val mavenPlugin = mavenProject.findPlugin(KotlinMavenConfigurator.GROUP_ID, KotlinMavenConfigurator.MAVEN_PLUGIN_ID) ?: return
-        val compilerVersion = mavenPlugin.version ?: LanguageVersion.LATEST.versionString
+        val compilerVersion = mavenPlugin.version ?: LanguageVersion.LATEST_STABLE.versionString
         val kotlinFacet = module.getOrCreateFacet(modifiableModelsProvider, false)
         val platform = detectPlatformByExecutions(mavenProject) ?: detectPlatformByLibraries(mavenProject)
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/compiler/configuration/KotlinCompilerConfigurableTab.java b/idea/src/org/jetbrains/kotlin/idea/compiler/configuration/KotlinCompilerConfigurableTab.java
index 687cb891ac0..b174c0a034c 100644
--- a/idea/src/org/jetbrains/kotlin/idea/compiler/configuration/KotlinCompilerConfigurableTab.java
+++ b/idea/src/org/jetbrains/kotlin/idea/compiler/configuration/KotlinCompilerConfigurableTab.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -272,7 +272,7 @@ public class KotlinCompilerConfigurableTab implements SearchableConfigurable, Co
     }
 
     private static String getLanguageVersionOrDefault(@Nullable String languageVersion) {
-        return languageVersion != null ? languageVersion : LanguageVersion.LATEST.getVersionString();
+        return languageVersion != null ? languageVersion : LanguageVersion.LATEST_STABLE.getVersionString();
     }
 
     private static void setupFileChooser(
diff --git a/idea/src/org/jetbrains/kotlin/idea/facet/facetUtils.kt b/idea/src/org/jetbrains/kotlin/idea/facet/facetUtils.kt
index 1608f12dd4d..e6ff9d27b42 100644
--- a/idea/src/org/jetbrains/kotlin/idea/facet/facetUtils.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/facet/facetUtils.kt
@@ -122,7 +122,7 @@ fun KotlinFacet.configureFacet(
         compilerArguments = null
         compilerSettings = null
         initializeIfNeeded(module, modelsProvider.getModifiableRootModel(module), platformKind)
-        languageLevel = LanguageVersion.fromFullVersionString(compilerVersion) ?: LanguageVersion.LATEST
+        languageLevel = LanguageVersion.fromFullVersionString(compilerVersion) ?: LanguageVersion.LATEST_STABLE
         // Both apiLevel and languageLevel should be initialized in the lines above
         if (apiLevel!! > languageLevel!!) {
             apiLevel = languageLevel
diff --git a/idea/src/org/jetbrains/kotlin/idea/quickfix/EnableUnsupportedFeatureFix.kt b/idea/src/org/jetbrains/kotlin/idea/quickfix/EnableUnsupportedFeatureFix.kt
index 9141fe35e6b..8dace522426 100644
--- a/idea/src/org/jetbrains/kotlin/idea/quickfix/EnableUnsupportedFeatureFix.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/quickfix/EnableUnsupportedFeatureFix.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -55,7 +55,7 @@ sealed class EnableUnsupportedFeatureFix(
         override fun getText() = if (apiVersionOnly)
             "Set module API version to ${feature.sinceApiVersion.versionString}"
         else
-            "Set module language version to ${feature.sinceVersion!!.versionString}"
+            "Set module language version to ${feature.sinceVersion!!.description}"
 
         override fun invoke(project: Project, editor: Editor?, file: KtFile) {
             val module = ModuleUtilCore.findModuleForPsiElement(file) ?: return
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinCommonOptions.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinCommonOptions.kt
index ee729528836..34e905c2954 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinCommonOptions.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinCommonOptions.kt
@@ -6,14 +6,14 @@ interface KotlinCommonOptions {
 
     /**
      * Allow to use declarations only from the specified version of bundled libraries
-     * Possible values: "1.0", "1.1"
+     * Possible values: "1.0", "1.1", "1.2"
      * Default value: "1.1"
      */
      var apiVersion: kotlin.String
 
     /**
      * Provide source compatibility with specified language version
-     * Possible values: "1.0", "1.1"
+     * Possible values: "1.0", "1.1", "1.2"
      * Default value: "1.1"
      */
      var languageVersion: kotlin.String