diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/BuildCacheIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/BuildCacheIT.kt
index c39157cfdc0..b6ff82643bf 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/BuildCacheIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/BuildCacheIT.kt
@@ -22,6 +22,7 @@ import org.jetbrains.kotlin.gradle.testbase.*
 import org.junit.jupiter.api.DisplayName
 import kotlin.io.path.ExperimentalPathApi
 import kotlin.io.path.readText
+import kotlin.io.path.relativeTo
 import kotlin.io.path.writeText
 
 @ExperimentalPathApi
@@ -147,4 +148,29 @@ class BuildCacheIT : KGPBaseTest() {
             }
         }
     }
+
+    //doesn't work for build history files approach
+    @DisplayName("Restore from build cache should not break incremental compilation")
+    @GradleTest
+    fun testIncrementalCompilationAfterCacheHit(gradleVersion: GradleVersion) {
+        val withSnapshotProperty = "-Dkotlin.incremental.classpath.snapshot.enabled=true"
+        project("incrementalMultiproject", gradleVersion) {
+            enableLocalBuildCache(localBuildCacheDir)
+            build("assemble", withSnapshotProperty)
+            build("clean", "assemble", withSnapshotProperty) {
+                assertTasksFromCache(":lib:compileKotlin")
+                assertTasksFromCache(":app:compileKotlin")
+            }
+            val bKtSourceFile = projectPath.resolve("lib/src/main/kotlin/bar/B.kt")
+
+            bKtSourceFile.modify { it.replace("fun b() {}", "fun b() {}\nfun b2() {}") }
+
+            build("assemble", withSnapshotProperty, buildOptions = defaultBuildOptions.copy(logLevel = LogLevel.DEBUG)) {
+                assertOutputDoesNotContain("[KOTLIN] [IC] Non-incremental compilation will be performed")
+                assertCompiledKotlinSources(setOf(bKtSourceFile).map { it.relativeTo(projectPath)}, output)
+            }
+
+        }
+    }
+
 }
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/compilerRunner/GradleKotlinCompilerRunner.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/compilerRunner/GradleKotlinCompilerRunner.kt
index fe7ee4c75a1..3c42fcfad8d 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/compilerRunner/GradleKotlinCompilerRunner.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/compilerRunner/GradleKotlinCompilerRunner.kt
@@ -309,15 +309,6 @@ internal open class GradleCompilerRunner(
                             jarToModule[it] = module
                         }
                     }
-//                    for (target in task.targets) {
-//                        if (target is KotlinWithJavaTarget<*>) {
-//                            val jar = project.tasks.getByName(target.artifactsTaskName) as Jar
-//                            jarToClassListFile[jar.archivePathCompatible.canonicalFile] = target.defaultArtifactClassesListFile.get()
-//                            //configure abiSnapshot mapping for jars
-//                            jarToAbiSnapshot[jar.archivePathCompatible.canonicalFile] =
-//                                target.buildDir.get().file(task.abiSnapshotRelativePath).asFile
-//                        }
-//                    }
                 } else if (task is InspectClassesForMultiModuleIC) {
                     jarToClassListFile[File(task.archivePath.get())] = task.classesListFile
                 }
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/tasks/Tasks.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/tasks/Tasks.kt
index 511d9b054ff..eecad7c7e42 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/tasks/Tasks.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/tasks/Tasks.kt
@@ -199,8 +199,10 @@ abstract class AbstractKotlinCompile<T : CommonCompilerArguments> : AbstractKotl
                     project.plugins.any { it is KotlinPlatformPluginBase || it is KotlinMultiplatformPluginWrapper || it is KotlinPm20PluginWrapper }
                 }
             ).disallowChanges()
-            task.taskBuildDirectory.value(getKotlinBuildDir(task)).disallowChanges()
-            task.localStateDirectories.from(task.taskBuildDirectory).disallowChanges()
+            task.taskBuildCacheableOutputDirectory.value(getKotlinBuildDir(task).map { it.dir("cacheable") }).disallowChanges()
+            task.taskBuildLocalStateDirectory.value(getKotlinBuildDir(task).map { it.dir("localstate") }).disallowChanges()
+
+            task.localStateDirectories.from(task.taskBuildLocalStateDirectory, task.taskBuildCacheableOutputDirectory).disallowChanges()
 
             PropertiesProvider(task.project).mapKotlinDaemonProperties(task)
         }
@@ -224,13 +226,17 @@ abstract class AbstractKotlinCompile<T : CommonCompilerArguments> : AbstractKotl
     @get:Internal
     protected val objects: ObjectFactory = project.objects
 
+    // avoid creating directory in getter: this can lead to failure in parallel build
+    @get:OutputDirectory
+    internal val taskBuildCacheableOutputDirectory: DirectoryProperty = objects.directoryProperty()
+
     // avoid creating directory in getter: this can lead to failure in parallel build
     @get:LocalState
-    internal val taskBuildDirectory: DirectoryProperty = objects.directoryProperty()
+    internal val taskBuildLocalStateDirectory: DirectoryProperty = objects.directoryProperty()
 
     @get:Internal
     internal val buildHistoryFile
-        get() = taskBuildDirectory.file("build-history.bin")
+        get() = taskBuildLocalStateDirectory.file("build-history.bin")
 
     // indicates that task should compile kotlin incrementally if possible
     // it's not possible when IncrementalTaskInputs#isIncremental returns false (i.e first build)
@@ -300,7 +306,7 @@ abstract class AbstractKotlinCompile<T : CommonCompilerArguments> : AbstractKotl
 
     @get:Internal
     val abiSnapshotFile
-        get() = taskBuildDirectory.file(IncrementalCompilerRunner.ABI_SNAPSHOT_FILE_NAME)
+        get() = taskBuildCacheableOutputDirectory.file(IncrementalCompilerRunner.ABI_SNAPSHOT_FILE_NAME)
 
     @get:Input
     val abiSnapshotRelativePath: Property<String> = objects.property(String::class.java).value(
@@ -419,7 +425,8 @@ abstract class AbstractKotlinCompile<T : CommonCompilerArguments> : AbstractKotl
 
         sourceRoots.log(this.name, logger)
         val args = prepareCompilerArguments()
-        taskBuildDirectory.get().asFile.mkdirs()
+        taskBuildCacheableOutputDirectory.get().asFile.mkdirs()
+        taskBuildLocalStateDirectory.get().asFile.mkdirs()
         callCompilerAsync(
             args,
             sourceRoots,
@@ -758,7 +765,7 @@ abstract class KotlinCompile @Inject constructor(
             IncrementalCompilationEnvironment(
                 changedFiles = getChangedFiles(inputChanges, incrementalProps),
                 classpathChanges = getClasspathChanges(inputChanges),
-                workingDir = taskBuildDirectory.get().asFile,
+                workingDir = taskBuildCacheableOutputDirectory.get().asFile,
                 usePreciseJavaTracking = usePreciseJavaTracking,
                 disableMultiModuleIC = disableMultiModuleIC,
                 multiModuleICSettings = multiModuleICSettings
@@ -1129,7 +1136,7 @@ abstract class Kotlin2JsCompile @Inject constructor(
             IncrementalCompilationEnvironment(
                 getChangedFiles(inputChanges, incrementalProps),
                 ClasspathChanges.NotAvailableForJSCompiler,
-                taskBuildDirectory.get().asFile,
+                taskBuildCacheableOutputDirectory.get().asFile,
                 multiModuleICSettings = multiModuleICSettings
             )
         } else null