diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinGradlePluginIT.kt b/libraries/tools/kotlin-gradle-plugin/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinGradlePluginIT.kt
index 13a6221dabc..a13cf0e0893 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinGradlePluginIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinGradlePluginIT.kt
@@ -3,6 +3,8 @@ package org.jetbrains.kotlin.gradle
 import org.gradle.api.logging.LogLevel
 import org.jetbrains.kotlin.gradle.plugin.CleanUpBuildListener
 import org.junit.Test
+import java.io.File
+import kotlin.test.assertTrue
 
 class KotlinGradleIT: BaseGradleIT() {
 
@@ -123,6 +125,41 @@ class KotlinGradleIT: BaseGradleIT() {
         }
     }
 
+    @Test
+    fun testSimpleMultiprojectIncremental() {
+
+        fun Project.modify(body: Project.() -> Unit): Project {
+            this.body()
+            return this
+        }
+
+        Project("multiprojectWithDependency", "1.6").build("-PincrementalOption=true", "assemble") {
+            assertSuccessful()
+            assertReportExists("projA")
+            assertContains(":projA:compileKotlin")
+            assertNotContains("projA:compileKotlin UP-TO-DATE")
+            assertReportExists("projB")
+            assertContains(":projB:compileKotlin")
+            assertNotContains("projB:compileKotlin UP-TO-DATE")
+        }
+        Project("multiprojectWithDependency", "1.6").modify {
+            val oldSrc = File(this.projectDir, "projA/src/main/kotlin/a.kt")
+            val newSrc = File(this.projectDir, "projA/src/main/kotlin/a.kt.new")
+            assertTrue { oldSrc.exists() }
+            assertTrue { newSrc.exists() }
+            newSrc.copyTo(oldSrc, overwrite = true)
+        }.build("-PincrementalOption=true", "assemble") {
+            assertSuccessful()
+            assertReportExists("projA")
+            assertContains(":projA:compileKotlin")
+            assertContains("[KOTLIN] is incremental == true")
+            assertNotContains("projA:compileKotlin UP-TO-DATE")
+            assertReportExists("projB")
+            assertContains(":projB:compileKotlin")
+            assertNotContains("projB:compileKotlin UP-TO-DATE")
+        }
+    }
+
     @Test
     fun testKotlinInJavaRoot() {
         Project("kotlinInJavaRoot", "1.6").build("build") {
diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/build.gradle b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/build.gradle
new file mode 100644
index 00000000000..01963240935
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/build.gradle
@@ -0,0 +1,11 @@
+buildscript {
+  repositories {
+    mavenCentral()
+    maven {
+        url 'file://' + pathToKotlinPlugin
+    }
+  }
+  dependencies {
+    classpath 'org.jetbrains.kotlin:kotlin-gradle-plugin:0.1-SNAPSHOT'
+  }
+}
diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/build.gradle b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/build.gradle
new file mode 100644
index 00000000000..e34e4a3ccbb
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/build.gradle
@@ -0,0 +1,13 @@
+apply plugin: "kotlin"
+
+repositories {
+  mavenCentral()
+  maven {
+    url 'file://' + pathToKotlinPlugin
+  }
+}
+
+compileKotlin {
+  experimentalIncremental = incrementalOption
+}
+
diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/src/main/kotlin/a.kt b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/src/main/kotlin/a.kt
new file mode 100644
index 00000000000..3e99f8f60fb
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/src/main/kotlin/a.kt
@@ -0,0 +1,4 @@
+package projA
+
+fun getInfo(): String = "s1"
+
diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/src/main/kotlin/a.kt.new b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/src/main/kotlin/a.kt.new
new file mode 100644
index 00000000000..ccbd2e88f2a
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projA/src/main/kotlin/a.kt.new
@@ -0,0 +1,4 @@
+package projA
+
+fun getInfo(): String = "s1_changed"
+
diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projB/build.gradle b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projB/build.gradle
new file mode 100644
index 00000000000..239cabdaa45
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projB/build.gradle
@@ -0,0 +1,16 @@
+apply plugin: "kotlin"
+
+repositories {
+  mavenCentral()
+  maven {
+    url 'file://' + pathToKotlinPlugin
+  }
+}
+
+dependencies {
+    compile project(':projA')
+}
+
+compileKotlin {
+    experimentalIncremental = incrementalOption
+}
diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projB/src/main/kotlin/helloWorld.kt b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projB/src/main/kotlin/helloWorld.kt
new file mode 100644
index 00000000000..e42a373a7b1
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/projB/src/main/kotlin/helloWorld.kt
@@ -0,0 +1,7 @@
+package projB
+
+fun main(vararg args: String) {
+    System.out.println(projA.getInfo())
+}
+
+
diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/settings.gradle b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/settings.gradle
new file mode 100644
index 00000000000..7b2cd064ed6
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin/src/test/resources/testProject/multiprojectWithDependency/settings.gradle
@@ -0,0 +1,2 @@
+include 'projA'
+include 'projB'