diff --git a/build.xml b/build.xml
index 059f7c8af97..786bca41db7 100644
--- a/build.xml
+++ b/build.xml
@@ -345,6 +345,7 @@
                 <arg value="-kjsm"/>
                 <arg line="-main noCall"/>
                 <arg line="-module-kind commonjs"/>
+                <arg value="-Xallow-kotlin-package"/>
             </java>
         </sequential>
     </macrodef>
@@ -1121,6 +1122,7 @@
             <arg line="-main noCall"/>
             <arg line="-module-kind umd"/>
             <arg value="-Xmulti-platform"/>
+            <arg value="-Xallow-kotlin-package"/>
             <arg value="libraries/kotlin.test/common/src/main/kotlin"/>
             <arg value="libraries/kotlin.test/js/src/main/kotlin"/>
         </java>
diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.java b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.java
index 0cf6eff824f..4d022f9fbfb 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.java
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.java
@@ -63,6 +63,9 @@ public abstract class CommonCompilerArguments implements Serializable {
     @ValueDescription("<count>")
     public String repeat;
 
+    @Argument(value = "Xallow-kotlin-package", description = "Allow compiling code in package 'kotlin'")
+    public boolean allowKotlinPackage;
+
     @Argument(value = "Xplugin", description = "Load plugins from the given classpath")
     @ValueDescription("<path>")
     public String[] pluginClasspaths;
diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/K2JVMCompilerArguments.java b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/K2JVMCompilerArguments.java
index b15448ef959..69c5a995ba3 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/K2JVMCompilerArguments.java
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/K2JVMCompilerArguments.java
@@ -94,9 +94,6 @@ public class K2JVMCompilerArguments extends CommonCompilerArguments {
     @Argument(value = "Xmultifile-parts-inherit", description = "Compile multifile classes as a hierarchy of parts and facade")
     public boolean inheritMultifileParts;
 
-    @Argument(value = "Xallow-kotlin-package", description = "Allow compiling code in package 'kotlin'")
-    public boolean allowKotlinPackage;
-
     @Argument(value = "Xskip-metadata-version-check", description = "Load classes with bad metadata version anyway (incl. pre-release classes)")
     public boolean skipMetadataVersionCheck;
 
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/common/utils.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/common/utils.kt
new file mode 100644
index 00000000000..a8a36483eea
--- /dev/null
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/common/utils.kt
@@ -0,0 +1,44 @@
+/*
+ * 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.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.cli.common
+
+import org.jetbrains.kotlin.cli.common.messages.CompilerMessageSeverity
+import org.jetbrains.kotlin.cli.common.messages.MessageCollector
+import org.jetbrains.kotlin.cli.common.messages.MessageUtil
+import org.jetbrains.kotlin.cli.jvm.compiler.KotlinCoreEnvironment
+import org.jetbrains.kotlin.name.FqName
+import org.jetbrains.kotlin.name.Name
+import org.jetbrains.kotlin.name.isSubpackageOf
+import org.jetbrains.kotlin.psi.KtFile
+
+fun checkKotlinPackageUsage(environment: KotlinCoreEnvironment, files: Collection<KtFile>): Boolean {
+    if (environment.configuration.getBoolean(CLIConfigurationKeys.ALLOW_KOTLIN_PACKAGE)) {
+        return true
+    }
+    val messageCollector = environment.configuration.get(CLIConfigurationKeys.MESSAGE_COLLECTOR_KEY, MessageCollector.NONE)
+    val kotlinPackage = FqName.topLevel(Name.identifier("kotlin"))
+    files.forEach {
+        if (it.packageFqName.isSubpackageOf(kotlinPackage)) {
+            messageCollector.report(CompilerMessageSeverity.ERROR,
+                                    "Only the Kotlin standard library is allowed to use the 'kotlin' package",
+                                    MessageUtil.psiElementToMessageLocation(it.packageDirective!!))
+            return false
+        }
+    }
+    return true
+}
+
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/js/K2JSCompiler.java b/compiler/cli/src/org/jetbrains/kotlin/cli/js/K2JSCompiler.java
index 2478aff6063..25751bb660e 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/js/K2JSCompiler.java
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/js/K2JSCompiler.java
@@ -68,6 +68,7 @@ import java.util.Map;
 
 import static org.jetbrains.kotlin.cli.common.ExitCode.COMPILATION_ERROR;
 import static org.jetbrains.kotlin.cli.common.ExitCode.OK;
+import static org.jetbrains.kotlin.cli.common.UtilsKt.checkKotlinPackageUsage;
 import static org.jetbrains.kotlin.cli.common.messages.CompilerMessageLocation.NO_LOCATION;
 
 public class K2JSCompiler extends CLICompiler<K2JSCompilerArguments> {
@@ -112,6 +113,10 @@ public class K2JSCompiler extends CLICompiler<K2JSCompilerArguments> {
         Project project = environmentForJS.getProject();
         List<KtFile> sourcesFiles = environmentForJS.getSourceFiles();
 
+        environmentForJS.getConfiguration().put(CLIConfigurationKeys.ALLOW_KOTLIN_PACKAGE, arguments.allowKotlinPackage);
+
+        if (!checkKotlinPackageUsage(environmentForJS, sourcesFiles)) return ExitCode.COMPILATION_ERROR;
+
         if (arguments.outputFile == null) {
             messageCollector.report(CompilerMessageSeverity.ERROR, "Specify output file via -output", CompilerMessageLocation.NO_LOCATION);
             return ExitCode.COMPILATION_ERROR;
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.kt
index 06a437fdfb6..db52f85d751 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.kt
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.kt
@@ -16,8 +16,8 @@
 
 package org.jetbrains.kotlin.cli.jvm.compiler
 
-import com.intellij.openapi.project.Project
 import com.intellij.openapi.application.ApplicationManager
+import com.intellij.openapi.project.Project
 import com.intellij.openapi.util.io.JarUtil
 import com.intellij.openapi.vfs.VfsUtilCore
 import com.intellij.openapi.vfs.VirtualFile
@@ -25,16 +25,15 @@ import com.intellij.psi.PsiManager
 import com.intellij.psi.impl.PsiModificationTrackerImpl
 import com.intellij.psi.search.DelegatingGlobalSearchScope
 import com.intellij.psi.search.GlobalSearchScope
-import org.jetbrains.annotations.TestOnly
 import org.jetbrains.kotlin.analyzer.AnalysisResult
 import org.jetbrains.kotlin.asJava.FilteredJvmDiagnostics
 import org.jetbrains.kotlin.backend.common.output.OutputFileCollection
 import org.jetbrains.kotlin.backend.common.output.SimpleOutputFileCollection
 import org.jetbrains.kotlin.cli.common.CLIConfigurationKeys
 import org.jetbrains.kotlin.cli.common.ExitCode
+import org.jetbrains.kotlin.cli.common.checkKotlinPackageUsage
 import org.jetbrains.kotlin.cli.common.messages.*
 import org.jetbrains.kotlin.cli.common.output.outputUtils.writeAll
-import org.jetbrains.kotlin.utils.tryConstructClassFromStringArgs
 import org.jetbrains.kotlin.cli.jvm.K2JVMCompiler
 import org.jetbrains.kotlin.cli.jvm.config.*
 import org.jetbrains.kotlin.codegen.ClassBuilderFactories
@@ -52,8 +51,6 @@ import org.jetbrains.kotlin.load.kotlin.ModuleVisibilityManager
 import org.jetbrains.kotlin.modules.Module
 import org.jetbrains.kotlin.modules.TargetId
 import org.jetbrains.kotlin.name.FqName
-import org.jetbrains.kotlin.name.Name
-import org.jetbrains.kotlin.name.isSubpackageOf
 import org.jetbrains.kotlin.progress.ProgressIndicatorAndCompilationCanceledStatus
 import org.jetbrains.kotlin.psi.KtFile
 import org.jetbrains.kotlin.resolve.jvm.TopDownAnalyzerFacadeForJVM
@@ -61,6 +58,7 @@ import org.jetbrains.kotlin.util.PerformanceCounter
 import org.jetbrains.kotlin.utils.KotlinPaths
 import org.jetbrains.kotlin.utils.PathUtil
 import org.jetbrains.kotlin.utils.newLinkedHashMapWithExpectedSize
+import org.jetbrains.kotlin.utils.tryConstructClassFromStringArgs
 import java.io.File
 import java.io.IOException
 import java.lang.reflect.InvocationTargetException
@@ -154,7 +152,7 @@ object KotlinToJVMBytecodeCompiler {
         }
 
         try {
-            for ((module, state) in outputs) {
+            for ((_, state) in outputs) {
                 ProgressIndicatorAndCompilationCanceledStatus.checkCanceled()
                 writeOutput(state.configuration, state.factory, null)
             }
@@ -445,23 +443,6 @@ object KotlinToJVMBytecodeCompiler {
         return generationState
     }
 
-    private fun checkKotlinPackageUsage(environment: KotlinCoreEnvironment, files: Collection<KtFile>): Boolean {
-        if (environment.configuration.getBoolean(CLIConfigurationKeys.ALLOW_KOTLIN_PACKAGE)) {
-            return true
-        }
-        val messageCollector = environment.configuration.get(CLIConfigurationKeys.MESSAGE_COLLECTOR_KEY, MessageCollector.NONE)
-        val kotlinPackage = FqName.topLevel(Name.identifier("kotlin"))
-        files.forEach {
-            if (it.packageFqName.isSubpackageOf(kotlinPackage)) {
-                messageCollector.report(CompilerMessageSeverity.ERROR,
-                                        "Only the Kotlin standard library is allowed to use the 'kotlin' package",
-                                        MessageUtil.psiElementToMessageLocation(it.packageDirective!!))
-                return false
-            }
-        }
-        return true
-    }
-
     private val KotlinCoreEnvironment.messageCollector: MessageCollector
         get() = configuration.getNotNull(CLIConfigurationKeys.MESSAGE_COLLECTOR_KEY)
 
diff --git a/compiler/testData/cli/js/jsExtraHelp.out b/compiler/testData/cli/js/jsExtraHelp.out
index c1b07ed5a62..0747d3bc3c2 100644
--- a/compiler/testData/cli/js/jsExtraHelp.out
+++ b/compiler/testData/cli/js/jsExtraHelp.out
@@ -2,6 +2,7 @@ Usage: kotlinc-js <options> <source files>
 where advanced options include:
   -Xno-inline                Disable method inlining
   -Xrepeat <count>           Repeat compilation (for performance analysis)
+  -Xallow-kotlin-package     Allow compiling code in package 'kotlin'
   -Xplugin <path>            Load plugins from the given classpath
   -Xmulti-platform           Enable experimental language support for multi-platform projects
   -Xno-check-impl            Do not check presence of 'impl' modifier in multi-platform projects
diff --git a/compiler/testData/cli/js/kotlinPackage.args b/compiler/testData/cli/js/kotlinPackage.args
new file mode 100644
index 00000000000..24abc1a4d02
--- /dev/null
+++ b/compiler/testData/cli/js/kotlinPackage.args
@@ -0,0 +1,4 @@
+$TESTDATA_DIR$/../kotlinPackage.kt
+-no-stdlib
+-output
+$TEMP_DIR$/out.js
diff --git a/compiler/testData/cli/js/kotlinPackage.out b/compiler/testData/cli/js/kotlinPackage.out
new file mode 100644
index 00000000000..8c98d2dfb61
--- /dev/null
+++ b/compiler/testData/cli/js/kotlinPackage.out
@@ -0,0 +1,4 @@
+compiler/testData/cli/kotlinPackage.kt:1:1: error: only the Kotlin standard library is allowed to use the 'kotlin' package
+package kotlin.mylibrary
+^
+COMPILATION_ERROR
\ No newline at end of file
diff --git a/compiler/testData/cli/jvm/extraHelp.out b/compiler/testData/cli/jvm/extraHelp.out
index bb7a096058a..dca6fa9f4cc 100644
--- a/compiler/testData/cli/jvm/extraHelp.out
+++ b/compiler/testData/cli/jvm/extraHelp.out
@@ -5,7 +5,6 @@ where advanced options include:
   -Xno-optimize              Disable optimizations
   -Xreport-perf              Report detailed performance statistics
   -Xmultifile-parts-inherit  Compile multifile classes as a hierarchy of parts and facade
-  -Xallow-kotlin-package     Allow compiling code in package 'kotlin'
   -Xskip-metadata-version-check Load classes with bad metadata version anyway (incl. pre-release classes)
   -Xskip-runtime-version-check Allow Kotlin runtime libraries of incompatible versions in the classpath
   -Xdump-declarations-to <path> Path to JSON file to dump Java to Kotlin declaration mappings
@@ -15,6 +14,7 @@ where advanced options include:
                              Load definitions of built-in declarations from module dependencies, instead of from the compiler
   -Xno-inline                Disable method inlining
   -Xrepeat <count>           Repeat compilation (for performance analysis)
+  -Xallow-kotlin-package     Allow compiling code in package 'kotlin'
   -Xplugin <path>            Load plugins from the given classpath
   -Xmulti-platform           Enable experimental language support for multi-platform projects
   -Xno-check-impl            Do not check presence of 'impl' modifier in multi-platform projects
diff --git a/compiler/testData/cli/jvm/kotlinPackage.args b/compiler/testData/cli/jvm/kotlinPackage.args
index 61d00a6b529..306fba0cf08 100644
--- a/compiler/testData/cli/jvm/kotlinPackage.args
+++ b/compiler/testData/cli/jvm/kotlinPackage.args
@@ -1,3 +1,3 @@
-$TESTDATA_DIR$/kotlinPackage.kt
+$TESTDATA_DIR$/../kotlinPackage.kt
 -d
 $TEMP_DIR$
diff --git a/compiler/testData/cli/jvm/kotlinPackage.out b/compiler/testData/cli/jvm/kotlinPackage.out
index b2770332251..8c98d2dfb61 100644
--- a/compiler/testData/cli/jvm/kotlinPackage.out
+++ b/compiler/testData/cli/jvm/kotlinPackage.out
@@ -1,4 +1,4 @@
-compiler/testData/cli/jvm/kotlinPackage.kt:1:1: error: only the Kotlin standard library is allowed to use the 'kotlin' package
+compiler/testData/cli/kotlinPackage.kt:1:1: error: only the Kotlin standard library is allowed to use the 'kotlin' package
 package kotlin.mylibrary
 ^
 COMPILATION_ERROR
\ No newline at end of file
diff --git a/compiler/testData/cli/jvm/kotlinPackage.kt b/compiler/testData/cli/kotlinPackage.kt
similarity index 100%
rename from compiler/testData/cli/jvm/kotlinPackage.kt
rename to compiler/testData/cli/kotlinPackage.kt
diff --git a/compiler/tests/org/jetbrains/kotlin/cli/CliTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/cli/CliTestGenerated.java
index 88f6a642bcc..f0a55897740 100644
--- a/compiler/tests/org/jetbrains/kotlin/cli/CliTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/cli/CliTestGenerated.java
@@ -443,6 +443,12 @@ public class CliTestGenerated extends AbstractCliTest {
             doJsTest(fileName);
         }
 
+        @TestMetadata("kotlinPackage.args")
+        public void testKotlinPackage() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/cli/js/kotlinPackage.args");
+            doJsTest(fileName);
+        }
+
         @TestMetadata("languageVersion.args")
         public void testLanguageVersion() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/cli/js/languageVersion.args");
diff --git a/libraries/kotlin.test/js/pom.xml b/libraries/kotlin.test/js/pom.xml
index c4e568ea8f3..1fd84e2e349 100644
--- a/libraries/kotlin.test/js/pom.xml
+++ b/libraries/kotlin.test/js/pom.xml
@@ -34,7 +34,7 @@
 
                 <configuration>
                     <args>
-                        <!--<arg>-Xallow-kotlin-package</arg>-->
+                        <arg>-Xallow-kotlin-package</arg>
                         <arg>-Xmulti-platform</arg>
                     </args>
                     <moduleKind>umd</moduleKind>
diff --git a/libraries/tools/kotlin-js-tests/pom.xml b/libraries/tools/kotlin-js-tests/pom.xml
index ccfa57d6d86..d8cc326d8ca 100644
--- a/libraries/tools/kotlin-js-tests/pom.xml
+++ b/libraries/tools/kotlin-js-tests/pom.xml
@@ -79,6 +79,13 @@
                 <groupId>org.jetbrains.kotlin</groupId>
                 <artifactId>kotlin-maven-plugin</artifactId>
                 <version>${project.version}</version>
+
+                <configuration>
+                    <args>
+                        <arg>-Xallow-kotlin-package</arg>
+                    </args>
+                </configuration>
+
                 <executions>
                     <execution>
                         <id>js</id>