diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.java b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.java
index 68d15b34b68..6fa552c886a 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.java
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.java
@@ -170,15 +170,21 @@ public class KotlinToJVMBytecodeCompiler {
 
         for (Module module : chunk) {
             addKotlinSourceRoots(configuration, getAbsolutePaths(directory, module));
+        }
 
+        for (Module module : chunk) {
             for (String javaSourceRoot : module.getJavaSourceRoots()) {
                 addJavaSourceRoot(configuration, new File(javaSourceRoot));
             }
+        }
 
+        for (Module module : chunk) {
             for (String classpathRoot : module.getClasspathRoots()) {
                 addJvmClasspathRoot(configuration, new File(classpathRoot));
             }
+        }
 
+        for (Module module : chunk) {
             for (String annotationsRoot : module.getAnnotationsRoots()) {
                 configuration.add(JVMConfigurationKeys.ANNOTATIONS_PATH_KEY, new File(annotationsRoot));
             }
diff --git a/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.java b/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.java
index b3fb579cc09..39a4728acb3 100644
--- a/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.java
+++ b/jps-plugin/test/org/jetbrains/kotlin/jps/build/KotlinJpsBuildTest.java
@@ -16,6 +16,7 @@
 
 package org.jetbrains.kotlin.jps.build;
 
+import com.google.common.collect.Lists;
 import com.intellij.openapi.util.Condition;
 import com.intellij.openapi.util.io.FileUtil;
 import com.intellij.testFramework.LightVirtualFile;
@@ -33,6 +34,7 @@ import org.jetbrains.jps.util.JpsPathUtil;
 import org.jetbrains.kotlin.codegen.AsmUtil;
 import org.jetbrains.kotlin.load.kotlin.PackagePartClassUtils;
 import org.jetbrains.kotlin.name.FqName;
+import org.jetbrains.kotlin.test.MockLibraryUtil;
 import org.jetbrains.kotlin.utils.PathUtil;
 import org.jetbrains.org.objectweb.asm.ClassReader;
 import org.jetbrains.org.objectweb.asm.ClassVisitor;
@@ -258,7 +260,7 @@ public class KotlinJpsBuildTest extends AbstractKotlinJpsBuildTestCase {
         assertFilesExistInOutput(module, "Foo.class", "Bar.class");
         assertFilesNotExistInOutput(module, EXCLUDE_FILES);
 
-        checkWhen(touch("src/foo.kt"), null, new String[] { klass("kotlinProject", "Foo")} );
+        checkWhen(touch("src/foo.kt"), null, new String[] {klass("kotlinProject", "Foo")});
         checkWhen(touch("src/Excluded.kt"), null, NOTHING );
         checkWhen(touch("src/dir/YetAnotherExcluded.kt"), null, NOTHING);
     }
@@ -270,7 +272,7 @@ public class KotlinJpsBuildTest extends AbstractKotlinJpsBuildTestCase {
         assertFilesExistInOutput(module, "Foo.class", "Bar.class");
         assertFilesNotExistInOutput(module, EXCLUDE_FILES);
 
-        checkWhen(touch("src/foo.kt"), null, new String[] { klass("kotlinProject", "Foo")} );
+        checkWhen(touch("src/foo.kt"), null, new String[] {klass("kotlinProject", "Foo")});
         checkWhen(touch("src/dir/subdir/bar.kt"), null, new String[] { klass("kotlinProject", "Bar")} );
 
         checkWhen(touch("src/dir/Excluded.kt"), null, NOTHING );
@@ -284,7 +286,7 @@ public class KotlinJpsBuildTest extends AbstractKotlinJpsBuildTestCase {
         assertFilesExistInOutput(module, "Foo.class", "Bar.class");
         assertFilesNotExistInOutput(module, EXCLUDE_FILES);
 
-        checkWhen(touch("src/foo.kt"), null, new String[] { klass("kotlinProject", "Foo")} );
+        checkWhen(touch("src/foo.kt"), null, new String[] {klass("kotlinProject", "Foo")});
 
         checkWhen(touch("src/exclude/Excluded.kt"), null, NOTHING);
         checkWhen(touch("src/exclude/YetAnotherExcluded.kt"), null, NOTHING);
@@ -416,6 +418,19 @@ public class KotlinJpsBuildTest extends AbstractKotlinJpsBuildTestCase {
         checkWhen(touch("module2/src/b.kt"), null, packageClasses("module2", "module2/src/b.kt", "test.TestPackage"));
     }
 
+    public void testCircularDependencyWithReferenceToOldVersionLib() throws IOException {
+        initProject();
+
+        File libraryJar = MockLibraryUtil.compileLibraryToJar(
+                workDir.getAbsolutePath() + File.separator + "oldModuleLib/src", "module-lib", false);
+
+        addDependency(JpsJavaDependencyScope.COMPILE, Lists.newArrayList(findModule("module1"), findModule("module2")), false,
+                      "module-lib", libraryJar);
+
+        BuildResult result = makeAll();
+        result.assertSuccessful();
+    }
+
     private void createKotlinJavaScriptLibraryArchive() {
         File jarFile = new File(workDir, KOTLIN_JS_LIBRARY_JAR);
         try {
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/kotlinProject.ipr b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/kotlinProject.ipr
new file mode 100644
index 00000000000..c1a403dd047
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/kotlinProject.ipr
@@ -0,0 +1,32 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<project version="4">
+  <component name="CompilerConfiguration">
+    <option name="DEFAULT_COMPILER" value="Javac" />
+    <resourceExtensions />
+    <annotationProcessing>
+      <profile default="true" name="Default" enabled="false">
+        <processorPath useClasspath="true" />
+      </profile>
+    </annotationProcessing>
+  </component>
+  <component name="CopyrightManager" default="">
+    <module2copyright />
+  </component>
+  <component name="DependencyValidationManager">
+    <option name="SKIP_IMPORT_STATEMENTS" value="false" />
+  </component>
+  <component name="Encoding" useUTFGuessing="true" native2AsciiForPropertiesFiles="false" />
+  <component name="ProjectModuleManager">
+    <modules>
+      <module fileurl="file://$PROJECT_DIR$/module1/module1.iml" filepath="$PROJECT_DIR$/module1/module1.iml" />
+      <module fileurl="file://$PROJECT_DIR$/module2/module2.iml" filepath="$PROJECT_DIR$/module2/module2.iml" />
+    </modules>
+  </component>
+  <component name="ProjectRootManager" version="2" languageLevel="JDK_1_6" assert-keyword="true" jdk-15="true" project-jdk-name="IDEA_JDK" project-jdk-type="JavaSDK">
+    <output url="file://$PROJECT_DIR$/out" />
+  </component>
+  <component name="VcsDirectoryMappings">
+    <mapping directory="" vcs="" />
+  </component>
+</project>
+
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/module1.iml b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/module1.iml
new file mode 100644
index 00000000000..f8d6a06273d
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/module1.iml
@@ -0,0 +1,12 @@
+<?xml version="1.0" encoding="xUTF-8"?>
+<module type="JAVA_MODULE" version="4">
+  <component name="NewModuleRootManager" inherit-compiler-output="true">
+    <exclude-output />
+    <content url="file://$MODULE_DIR$">
+      <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
+    </content>
+    <orderEntry type="jdk" jdkName="IDEA_JDK" jdkType="JavaSDK" />
+    <orderEntry type="module" module-name="module2" />
+  </component>
+</module>
+
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/src/module1/JavaClass.java b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/src/module1/JavaClass.java
new file mode 100644
index 00000000000..6bec9cbc7a6
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/src/module1/JavaClass.java
@@ -0,0 +1,6 @@
+package module1;
+
+public class JavaClass {
+    public static void newJavaMethod() {}
+    public static void oldJavaMethod() {}
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/src/module1/b.kt b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/src/module1/b.kt
new file mode 100644
index 00000000000..eed0941fbaf
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module1/src/module1/b.kt
@@ -0,0 +1,11 @@
+package module1
+
+import module2.*
+
+fun foo() {
+    JavaClass.oldJavaMethod()
+    JavaClass.newJavaMethod()
+
+    KotlinObject.oldKotlinMethod()
+    KotlinObject.newKotlinMethod()
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/module2.iml b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/module2.iml
new file mode 100644
index 00000000000..c21105b2c24
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/module2.iml
@@ -0,0 +1,12 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<module type="JAVA_MODULE" version="4">
+  <component name="NewModuleRootManager" inherit-compiler-output="true">
+    <exclude-output />
+    <content url="file://$MODULE_DIR$">
+      <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
+    </content>
+    <orderEntry type="jdk" jdkName="IDEA_JDK" jdkType="JavaSDK" />
+    <orderEntry type="module" module-name="module1" />
+  </component>
+</module>
+
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/src/module2/KotlinObject.kt b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/src/module2/KotlinObject.kt
new file mode 100644
index 00000000000..fa757e1de93
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/src/module2/KotlinObject.kt
@@ -0,0 +1,9 @@
+package module2
+
+public object KotlinObject {
+    public fun oldKotlinMethod() {
+    }
+
+    public fun newKotlinMethod() {
+    }
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/src/module2/a.kt b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/src/module2/a.kt
new file mode 100644
index 00000000000..10ecb462c1d
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/module2/src/module2/a.kt
@@ -0,0 +1,11 @@
+package module2
+
+import module1.*
+
+fun bar() {
+    JavaClass.oldJavaMethod()
+    JavaClass.newJavaMethod()
+
+    KotlinObject.oldKotlinMethod()
+    KotlinObject.newKotlinMethod()
+}
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module1/JavaClass.java b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module1/JavaClass.java
new file mode 100644
index 00000000000..695f1f369ac
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module1/JavaClass.java
@@ -0,0 +1,5 @@
+package module1;
+
+public class JavaClass {
+    public static void oldJavaMethod() {}
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module1/b.kt b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module1/b.kt
new file mode 100644
index 00000000000..f849db6dc81
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module1/b.kt
@@ -0,0 +1,9 @@
+package module1
+
+import module2.*
+
+fun foo() {
+    JavaClass.oldJavaMethod()
+
+    KotlinObject.oldKotlinMethod()
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module2/KotlinObject.kt b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module2/KotlinObject.kt
new file mode 100644
index 00000000000..9abb5fd9320
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module2/KotlinObject.kt
@@ -0,0 +1,6 @@
+package module2
+
+public object KotlinObject {
+    public fun oldKotlinMethod() {
+    }
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module2/a.kt b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module2/a.kt
new file mode 100644
index 00000000000..c595a192cad
--- /dev/null
+++ b/jps-plugin/testData/general/CircularDependencyWithReferenceToOldVersionLib/oldModuleLib/src/module2/a.kt
@@ -0,0 +1,9 @@
+package module2
+
+import module1.*
+
+fun bar() {
+    JavaClass.oldJavaMethod()
+
+    KotlinObject.oldKotlinMethod()
+}