diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/native/CocoaPodsIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/native/CocoaPodsIT.kt
index ea7a2d8ffb0..8a2c2fbf419 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/native/CocoaPodsIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/native/CocoaPodsIT.kt
@@ -17,6 +17,7 @@ import org.jetbrains.kotlin.gradle.plugin.cocoapods.KotlinCocoapodsPlugin.Compan
 import org.jetbrains.kotlin.gradle.plugin.cocoapods.KotlinCocoapodsPlugin.Companion.POD_SETUP_BUILD_TASK_NAME
 import org.jetbrains.kotlin.gradle.plugin.cocoapods.KotlinCocoapodsPlugin.Companion.POD_SPEC_TASK_NAME
 import org.jetbrains.kotlin.gradle.transformProjectWithPluginsDsl
+import org.jetbrains.kotlin.gradle.util.createTempDir
 import org.jetbrains.kotlin.gradle.util.modify
 import org.jetbrains.kotlin.gradle.util.runProcess
 import org.jetbrains.kotlin.konan.target.HostManager
@@ -26,6 +27,7 @@ import org.junit.Before
 import org.junit.BeforeClass
 import org.junit.Test
 import java.io.File
+import java.io.IOException
 import java.nio.file.Files
 import java.nio.file.Path
 import java.util.concurrent.TimeUnit
@@ -50,7 +52,7 @@ class CocoaPodsIT : BaseGradleIT() {
     private val gradleVersion = GradleVersionRequired.FOR_MPP_SUPPORT
 
     override fun defaultBuildOptions(): BuildOptions =
-        super.defaultBuildOptions().copy(customEnvironmentVariables = mapOf("PATH" to getPathEnv()))
+        super.defaultBuildOptions().copy(customEnvironmentVariables = getPathEnvs())
 
     val PODFILE_IMPORT_DIRECTIVE_PLACEHOLDER = "<import_mode_directive>"
 
@@ -770,8 +772,7 @@ class CocoaPodsIT : BaseGradleIT() {
             hooks.addHook {
                 // Check that a built universal framework includes both device and simulator architectures.
                 val framework = fileInWorkingDir("build/cocoapods/framework/cocoapods.framework/cocoapods")
-                val env = mapOf("PATH" to getPathEnv())
-                with(runProcess(listOf("file", framework.absolutePath), projectDir, environmentVariables = env)) {
+                with(runProcess(listOf("file", framework.absolutePath), projectDir, environmentVariables = getPathEnvs())) {
                     assertTrue(isSuccessful)
                     assertTrue(output.contains("\\(for architecture x86_64\\):\\s+current ar archive".toRegex()))
                     assertTrue(output.contains("\\(for architecture arm64\\):\\s+current ar archive".toRegex()))
@@ -1220,7 +1221,7 @@ class CocoaPodsIT : BaseGradleIT() {
     ) {
         val process = ProcessBuilder(command, *args).apply {
             directory(workingDir)
-            environment()["PATH"] = getPathEnv()
+            environment().putAll(getPathEnvs())
             if (inheritIO) {
                 inheritIO()
             }
@@ -1405,8 +1406,7 @@ class CocoaPodsIT : BaseGradleIT() {
             if (cocoapodsInstallationRequired) {
                 if (cocoapodsInstallationAllowed) {
                     WorkaroundForXcode12_3.apply()
-                    gem("install", "--user-install", "cocoapods", "cocoapods-generate")
-                    cocoapodsInstallationPath = File(getGemUserInstallationPath()).resolve("bin")
+                    gem("install", "--install-dir", cocoapodsInstallationRoot.absolutePath, "cocoapods", "cocoapods-generate")
                 } else {
                     fail(
                         """
@@ -1422,65 +1422,52 @@ class CocoaPodsIT : BaseGradleIT() {
 
         @AfterClass
         @JvmStatic
-        fun uninstallPodGen() {
-            // Do not remove CocoaPods if we didn't install it.
+        fun disposeWorkarounds() {
             if (cocoapodsInstallationRequired && cocoapodsInstallationAllowed) {
-                val packagesToRemove = gem("list", "--no-versions").lineSequence().filter {
-                    it.startsWith("cocoapods")
-                }.toList()
-                try {
-                    gem("uninstall", "--user-install", "-x", *packagesToRemove.toTypedArray())
-                } finally {
-                    WorkaroundForXcode12_3.dispose()
-                }
+                WorkaroundForXcode12_3.dispose()
             }
         }
 
-        private val cocoapodsInstallationRequired: Boolean = !isCocoapodsInstalled()
+        private val cocoapodsInstallationRequired: Boolean by lazy {
+            !isCocoapodsInstalled() || !isPodGenInstalled()
+        }
         private val cocoapodsInstallationAllowed: Boolean = System.getProperty("installCocoapods").toBoolean()
-        private var cocoapodsInstallationPath: File? = null
+        private val cocoapodsInstallationRoot: File by lazy { createTempDir("cocoapods") }
 
-        private fun getPathEnv(): String {
-            val oldPath = System.getenv("PATH")
-            return cocoapodsInstallationPath?.let {
-                it.absolutePath + File.pathSeparator + oldPath
-            } ?: oldPath
+        private fun getPathEnvs(): Map<String, String> {
+            val path = cocoapodsInstallationRoot.resolve("bin").absolutePath + File.pathSeparator + System.getenv("PATH")
+            val gemPath = System.getenv("GEM_PATH")?.let {
+                cocoapodsInstallationRoot.absolutePath + File.pathSeparator + it
+            } ?: cocoapodsInstallationRoot.absolutePath
+            return mapOf("PATH" to path, "GEM_PATH" to gemPath)
         }
 
         private fun isCocoapodsInstalled(): Boolean {
-            val installed = gem("list", "--no-versions").lines()
-            return "cocoapods-generate" in installed && "cocoapods" in installed
+            // Do not use 'gem list' because the gem may be installed but PATH may miss its executables.
+            // Try to access the pod executable directly instead
+            return try {
+                val result = runProcess(
+                    listOf("pod", "--version"),
+                    File("."),
+                    environmentVariables = getPathEnvs()
+                )
+                result.isSuccessful
+            } catch (e: IOException) {
+                false
+            }
         }
 
-        private fun getGemUserInstallationPath(): String {
-            val installationDirLine = gem("environment").lineSequence().first {
-                it.contains("USER INSTALLATION DIRECTORY:")
-            }
-            return installationDirLine.substringAfter("USER INSTALLATION DIRECTORY:").trim()
+        private fun isPodGenInstalled(): Boolean {
+            val installed = gem("list", "--no-versions").lines()
+            return "cocoapods-generate" in installed
         }
 
         private fun gem(vararg args: String): String {
-            val process = ProcessBuilder("gem", *args).start()
-            val finished = process.waitFor(30, TimeUnit.MINUTES)
-            val output = process.inputStream.use { it.reader().readText() }
-
-            check(finished && process.exitValue() == 0) {
-                if (!finished) {
-                    process.destroyForcibly()
-                }
-
-                val argsString = args.joinToString(separator = " ")
-                val errors = process.errorStream.use { it.reader().readText() }
-                println("'gem $argsString' stdout:\n$errors")
-                println("'gem $argsString' stderr:\n$output")
-
-                if (finished) {
-                    "Process 'gem $argsString' exited with error code ${process.exitValue()}. See log for details."
-                } else {
-                    "Process 'gem $argsString ' killed by timeout. See log for details"
-                }
+            val result = runProcess(listOf("gem", *args), File("."))
+            check(result.isSuccessful) {
+                "Process 'gem ${args.joinToString(separator = " ")}' exited with error code ${result.exitCode}. See log for details."
             }
-            return output
+            return result.output
         }
 
         // Workaround the issue with Ruby paths for Xcode 12.3.