diff --git a/backend.native/cli.bc/src/org/jetbrains/kotlin/cli/bc/K2Native.kt b/backend.native/cli.bc/src/org/jetbrains/kotlin/cli/bc/K2Native.kt
index abca7b02a30..988539cec82 100644
--- a/backend.native/cli.bc/src/org/jetbrains/kotlin/cli/bc/K2Native.kt
+++ b/backend.native/cli.bc/src/org/jetbrains/kotlin/cli/bc/K2Native.kt
@@ -70,11 +70,6 @@ class K2Native : CLICompiler<K2NativeCompilerArguments>() {
             configuration.put(CommonConfigurationKeys.METADATA_VERSION, KonanMetadataVersion.INSTANCE)
         }
 
-        if (konanConfig.linkOnly) {
-            configuration.report(WARNING, "You have not specified any source files. " +
-                    "Only libraries will be used to produce the output binary.")
-        }
-
         try {
             runTopLevelPhases(konanConfig, environment)
         } catch (e: KonanCompilationException) {
@@ -95,7 +90,7 @@ class K2Native : CLICompiler<K2NativeCompilerArguments>() {
     }
 
     val K2NativeCompilerArguments.isUsefulWithoutFreeArgs: Boolean
-        get() = this.listTargets || this.listPhases || this.checkDependencies || this.libraries?.isNotEmpty() ?: false
+        get() = listTargets || listPhases || checkDependencies || !sourceLibraries.isNullOrEmpty()
 
     fun Array<String>?.toNonNullList(): List<String> {
         return this?.asList<String>() ?: listOf<String>()
@@ -195,7 +190,7 @@ class K2Native : CLICompiler<K2NativeCompilerArguments>() {
                     else -> put(GENERATE_TEST_RUNNER, TestRunnerKind.NONE)
                 }
                 // We need to download dependencies only if we use them ( = there are files to compile).
-                put(CHECK_DEPENDENCIES, if (configuration.kotlinSourceRoots.isNotEmpty()) {
+                put(CHECK_DEPENDENCIES, if (configuration.kotlinSourceRoots.isNotEmpty() || !arguments.sourceLibraries.isNullOrEmpty()) {
                     true
                 } else {
                     arguments.checkDependencies
@@ -204,6 +199,7 @@ class K2Native : CLICompiler<K2NativeCompilerArguments>() {
                     put(FRIEND_MODULES, arguments.friendModules!!.split(File.pathSeparator).filterNot(String::isEmpty))
 
                 put(EXPORTED_LIBRARIES, selectExportedLibraries(configuration, arguments, outputKind))
+                put(SOURCE_LIBRARIES, selectSourceLibraries(configuration, arguments, outputKind))
                 put(FRAMEWORK_IMPORT_HEADERS, arguments.frameworkImportHeaders.toNonNullList())
                 arguments.emitLazyObjCHeader?.let { put(EMIT_LAZY_OBJC_HEADER_FILE, it) }
 
@@ -305,5 +301,22 @@ private fun selectExportedLibraries(
     }
 }
 
+private fun selectSourceLibraries(
+    configuration: CompilerConfiguration,
+    arguments: K2NativeCompilerArguments,
+    outputKind: CompilerOutputKind
+): List<String> {
+    val sourceLibraries = arguments.sourceLibraries?.toList().orEmpty()
+    val produceBinaryOrBitcode = outputKind.let { it.isNativeBinary || it == CompilerOutputKind.BITCODE }
+
+    return if (sourceLibraries.isNotEmpty() && !produceBinaryOrBitcode) {
+        configuration.report(ERROR, "The $SOURCE_LIBRARY_ARG flag is only supported when producing native binaries or bitcode files, " +
+                "but the compiler is producing ${outputKind.name.toLowerCase()}")
+        emptyList()
+    } else {
+        sourceLibraries
+    }
+}
+
 fun main(args: Array<String>) = K2Native.main(args)
 
diff --git a/backend.native/cli.bc/src/org/jetbrains/kotlin/cli/bc/K2NativeCompilerArguments.kt b/backend.native/cli.bc/src/org/jetbrains/kotlin/cli/bc/K2NativeCompilerArguments.kt
index 20bf4a8fb7d..77930c5780f 100644
--- a/backend.native/cli.bc/src/org/jetbrains/kotlin/cli/bc/K2NativeCompilerArguments.kt
+++ b/backend.native/cli.bc/src/org/jetbrains/kotlin/cli/bc/K2NativeCompilerArguments.kt
@@ -157,6 +157,15 @@ class K2NativeCompilerArguments : CommonCompilerArguments() {
     @Argument(value = "-Xruntime", deprecatedName = "--runtime", valueDescription = "<path>", description = "Override standard 'runtime.bc' location")
     var runtimeFile: String? = null
 
+    // TODO: Rename?
+    // TODO: Improve description
+    @Argument(
+        value = SOURCE_LIBRARY_ARG,
+        valueDescription = "<path>",
+        description = "Produce an output binary from a klibrary instead of source files"
+    )
+    var sourceLibraries: Array<String>? = null
+
     @Argument(value = STATIC_FRAMEWORK_FLAG, description = "Create a framework with a static library instead of a dynamic one")
     var staticFramework: Boolean = false
 
@@ -208,3 +217,4 @@ class K2NativeCompilerArguments : CommonCompilerArguments() {
 const val EMBED_BITCODE_FLAG = "-Xembed-bitcode"
 const val EMBED_BITCODE_MARKER_FLAG = "-Xembed-bitcode-marker"
 const val STATIC_FRAMEWORK_FLAG = "-Xstatic-framework"
+const val SOURCE_LIBRARY_ARG = "-Xsource-library"
diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanConfig.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanConfig.kt
index 42af8378942..2f4fbf11707 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanConfig.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanConfig.kt
@@ -39,10 +39,7 @@ class KonanConfig(val project: Project, val configuration: CompilerConfiguration
     internal val target = targetManager.target
     internal val phaseConfig = configuration.get(CLIConfigurationKeys.PHASE_CONFIG)!!
 
-    val linkOnly: Boolean =
-            configuration.kotlinSourceRoots.isEmpty() && libraryNames.isNotEmpty() && produce.isNativeBinary
-
-    val infoArgsOnly = configuration.kotlinSourceRoots.isEmpty() && !linkOnly
+    val infoArgsOnly = configuration.kotlinSourceRoots.isEmpty() && configuration[KonanConfigKeys.SOURCE_LIBRARIES].isNullOrEmpty()
 
     // TODO: debug info generation mode and debug/release variant selection probably requires some refactoring.
     val debug: Boolean get() = configuration.getBoolean(KonanConfigKeys.DEBUG)
diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanConfigurationKeys.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanConfigurationKeys.kt
index afd35a32ab8..d4a9949f27b 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanConfigurationKeys.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanConfigurationKeys.kt
@@ -94,10 +94,12 @@ class KonanConfigKeys {
                 = CompilerConfigurationKey.create("library search path repositories")
         val RUNTIME_FILE: CompilerConfigurationKey<String?> 
                 = CompilerConfigurationKey.create("override default runtime file path")
+        val SOURCE_LIBRARIES: CompilerConfigurationKey<List<String>>
+                = CompilerConfigurationKey("a klibraries used to produce the final binaries instead of source code") // TODO: Better description.
         val SOURCE_MAP: CompilerConfigurationKey<List<String>> 
                 = CompilerConfigurationKey.create("generate source map")
         val STATIC_FRAMEWORK: CompilerConfigurationKey<Boolean>
-                = CompilerConfigurationKey.create("Produce a static library for a framework")
+                = CompilerConfigurationKey.create("produce a static library for a framework")
         val TARGET: CompilerConfigurationKey<String?>
                 = CompilerConfigurationKey.create("target we compile for")
         val TEMPORARY_FILES_DIR: CompilerConfigurationKey<String?>