diff --git a/compiler/build-tools/kotlin-build-tools-api/api/kotlin-build-tools-api.api b/compiler/build-tools/kotlin-build-tools-api/api/kotlin-build-tools-api.api
index ca7a66f553f..4abc73abcb5 100644
--- a/compiler/build-tools/kotlin-build-tools-api/api/kotlin-build-tools-api.api
+++ b/compiler/build-tools/kotlin-build-tools-api/api/kotlin-build-tools-api.api
@@ -1,13 +1,21 @@
 public abstract interface class org/jetbrains/kotlin/buildtools/api/CompilationService {
 	public static final field Companion Lorg/jetbrains/kotlin/buildtools/api/CompilationService$Companion;
-	public abstract fun compile ()V
+	public abstract fun calculateClasspathSnapshot (Ljava/io/File;)Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathEntrySnapshot;
+	public abstract fun compileJvm (Lorg/jetbrains/kotlin/buildtools/api/CompilerExecutionStrategyConfiguration;Lorg/jetbrains/kotlin/buildtools/api/jvm/JvmCompilationConfiguration;Ljava/util/List;Ljava/util/List;)V
 	public static fun loadImplementation (Ljava/lang/ClassLoader;)Lorg/jetbrains/kotlin/buildtools/api/CompilationService;
+	public abstract fun makeCompilerExecutionStrategyConfiguration ()Lorg/jetbrains/kotlin/buildtools/api/CompilerExecutionStrategyConfiguration;
+	public abstract fun makeJvmCompilationConfiguration ()Lorg/jetbrains/kotlin/buildtools/api/jvm/JvmCompilationConfiguration;
 }
 
 public final class org/jetbrains/kotlin/buildtools/api/CompilationService$Companion {
 	public final fun loadImplementation (Ljava/lang/ClassLoader;)Lorg/jetbrains/kotlin/buildtools/api/CompilationService;
 }
 
+public abstract interface class org/jetbrains/kotlin/buildtools/api/CompilerExecutionStrategyConfiguration {
+	public abstract fun useDaemonStrategy (Ljava/io/File;Ljava/util/List;)Lorg/jetbrains/kotlin/buildtools/api/CompilerExecutionStrategyConfiguration;
+	public abstract fun useInProcessStrategy ()Lorg/jetbrains/kotlin/buildtools/api/CompilerExecutionStrategyConfiguration;
+}
+
 public abstract interface class org/jetbrains/kotlin/buildtools/api/KotlinLogger {
 	public abstract fun debug (Ljava/lang/String;)V
 	public abstract fun error (Ljava/lang/String;Ljava/lang/Throwable;)V
@@ -22,3 +30,71 @@ public final class org/jetbrains/kotlin/buildtools/api/SharedApiClassesClassLoad
 	public static final fun newInstance ()Ljava/lang/ClassLoader;
 }
 
+public abstract interface class org/jetbrains/kotlin/buildtools/api/SourcesChanges {
+}
+
+public final class org/jetbrains/kotlin/buildtools/api/SourcesChanges$Known : org/jetbrains/kotlin/buildtools/api/SourcesChanges {
+	public fun <init> (Ljava/util/List;Ljava/util/List;)V
+	public final fun getModifiedFiles ()Ljava/util/List;
+	public final fun getRemovedFiles ()Ljava/util/List;
+}
+
+public final class org/jetbrains/kotlin/buildtools/api/SourcesChanges$ToBeCalculated : org/jetbrains/kotlin/buildtools/api/SourcesChanges {
+	public static final field INSTANCE Lorg/jetbrains/kotlin/buildtools/api/SourcesChanges$ToBeCalculated;
+}
+
+public final class org/jetbrains/kotlin/buildtools/api/SourcesChanges$Unknown : org/jetbrains/kotlin/buildtools/api/SourcesChanges {
+	public static final field INSTANCE Lorg/jetbrains/kotlin/buildtools/api/SourcesChanges$Unknown;
+}
+
+public abstract interface class org/jetbrains/kotlin/buildtools/api/jvm/ClassSnapshot {
+}
+
+public abstract interface class org/jetbrains/kotlin/buildtools/api/jvm/ClasspathEntrySnapshot {
+	public abstract fun getClassSnapshots ()Ljava/util/LinkedHashMap;
+	public abstract fun saveSnapshot (Ljava/io/File;)V
+}
+
+public final class org/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalCompilationApproachParameters : org/jetbrains/kotlin/buildtools/api/jvm/IncrementalCompilationApproachParameters {
+	public fun <init> (Ljava/util/List;Ljava/io/File;)V
+	public final fun getNewClasspathSnapshotFiles ()Ljava/util/List;
+	public final fun getShrunkClasspathSnapshot ()Ljava/io/File;
+}
+
+public abstract interface class org/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration : org/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration {
+	public abstract fun assureNoClasspathSnapshotsChanges (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;
+	public static synthetic fun assureNoClasspathSnapshotsChanges$default (Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;ZILjava/lang/Object;)Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;
+	public abstract fun forceNonIncrementalMode (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;
+	public abstract fun getAssuredNoClasspathSnapshotsChanges ()Z
+	public abstract fun keepIncrementalCompilationCachesInMemory (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;
+	public abstract fun usePreciseCompilationResultsBackup (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;
+	public abstract fun usePreciseJavaTracking (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;
+	public abstract fun useProjectDir (Ljava/io/File;)Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;
+}
+
+public abstract interface class org/jetbrains/kotlin/buildtools/api/jvm/IncrementalCompilationApproachParameters {
+}
+
+public abstract interface class org/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration {
+	public abstract fun forceNonIncrementalMode (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration;
+	public static synthetic fun forceNonIncrementalMode$default (Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration;ZILjava/lang/Object;)Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration;
+	public abstract fun getForcedNonIncrementalMode ()Z
+	public abstract fun getIncrementalCompilationCachesKeptInMemory ()Z
+	public abstract fun getPreciseCompilationResultsBackupEnabled ()Z
+	public abstract fun getPreciseJavaTrackingEnabled ()Z
+	public abstract fun getProjectDir ()Ljava/io/File;
+	public abstract fun keepIncrementalCompilationCachesInMemory (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration;
+	public abstract fun usePreciseCompilationResultsBackup (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration;
+	public abstract fun usePreciseJavaTracking (Z)Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration;
+	public abstract fun useProjectDir (Ljava/io/File;)Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration;
+}
+
+public abstract interface class org/jetbrains/kotlin/buildtools/api/jvm/JvmCompilationConfiguration {
+	public abstract fun getKotlinScriptFilenameExtensions ()Ljava/util/Set;
+	public abstract fun getLogger ()Lorg/jetbrains/kotlin/buildtools/api/KotlinLogger;
+	public abstract fun makeClasspathSnapshotBasedIncrementalCompilationConfiguration ()Lorg/jetbrains/kotlin/buildtools/api/jvm/ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration;
+	public fun useIncrementalCompilation (Ljava/io/File;Lorg/jetbrains/kotlin/buildtools/api/SourcesChanges;Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalCompilationApproachParameters;Lorg/jetbrains/kotlin/buildtools/api/jvm/IncrementalJvmCompilationConfiguration;)V
+	public abstract fun useKotlinScriptFilenameExtensions (Ljava/util/Collection;)Lorg/jetbrains/kotlin/buildtools/api/jvm/JvmCompilationConfiguration;
+	public abstract fun useLogger (Lorg/jetbrains/kotlin/buildtools/api/KotlinLogger;)Lorg/jetbrains/kotlin/buildtools/api/jvm/JvmCompilationConfiguration;
+}
+
diff --git a/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/CompilationService.kt b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/CompilationService.kt
index 5b2cf758d16..fff42737669 100644
--- a/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/CompilationService.kt
+++ b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/CompilationService.kt
@@ -5,12 +5,54 @@
 
 package org.jetbrains.kotlin.buildtools.api
 
+import org.jetbrains.kotlin.buildtools.api.jvm.ClasspathEntrySnapshot
+import org.jetbrains.kotlin.buildtools.api.jvm.JvmCompilationConfiguration
+import java.io.File
+
 /**
- * A facade for invoking compilation in Kotlin compiler. It allows to use compiler in different modes.
- * TODO: add a mention where to see the available modes after implementing them
+ * A facade for invoking compilation and related stuff (such as [calculateClasspathSnapshot]) in Kotlin compiler.
+ *
+ * An example of the basic usage is:
+ * ```
+ *  val service = CompilationService.loadImplementation(ClassLoader.getSystemClassLoader())
+ *  val executionConfig = service.makeCompilerExecutionStrategyConfiguration()
+ *  val compilationConfig = service.makeJvmCompilationConfiguration()
+ *  service.compileJvm(executionConfig, compilationConfig, listOf(File("src/a.kt")), listOf("-Xexplicit-api=strict"))
+ * ```
+ *
+ * This interface is not intended to be implemented by the API consumers. An instance of [CompilationService] is expected to be obtained from [loadImplementation].
  */
 public interface CompilationService {
-    public fun compile()
+    /**
+     * TODO KT-57565
+     */
+    public fun calculateClasspathSnapshot(classpathEntry: File): ClasspathEntrySnapshot
+
+    /**
+     * Provides a default [CompilerExecutionStrategyConfiguration] allowing to use it as is or customizing for specific requirements.
+     * Could be used as an overview to default values of the options (as they are implementation-specific).
+     */
+    public fun makeCompilerExecutionStrategyConfiguration(): CompilerExecutionStrategyConfiguration
+
+    /**
+     * Provides a default [CompilerExecutionStrategyConfiguration] allowing to use it as is or customizing for specific requirements.
+     * Could be used as an overview to default values of the options (as they are implementation-specific).
+     */
+    public fun makeJvmCompilationConfiguration(): JvmCompilationConfiguration
+
+    /**
+     * Compiles Kotlin code targeting JVM platform and using specified options.
+     * @param strategyConfig an instance of [CompilerExecutionStrategyConfiguration] initially obtained from [makeCompilerExecutionStrategyConfiguration]
+     * @param compilationConfig an instance of [JvmCompilationConfiguration] initially obtained from [makeJvmCompilationConfiguration]
+     * @param sources a list of all sources of the compilation unit
+     * @param arguments a list of Kotlin JVM compiler arguments
+     */
+    public fun compileJvm(
+        strategyConfig: CompilerExecutionStrategyConfiguration,
+        compilationConfig: JvmCompilationConfiguration,
+        sources: List<File>,
+        arguments: List<String>
+    )
 
     public companion object {
         @JvmStatic
diff --git a/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/CompilerExecutionStrategyConfiguration.kt b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/CompilerExecutionStrategyConfiguration.kt
new file mode 100644
index 00000000000..e4da82ae0fd
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/CompilerExecutionStrategyConfiguration.kt
@@ -0,0 +1,32 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api
+
+import java.io.File
+
+/**
+ * Allows users to customize the compiler execution strategy.
+ *
+ * This interface is not intended to be implemented by the API consumers.
+ */
+public interface CompilerExecutionStrategyConfiguration {
+    /**
+     * Marks the compilation to be run inside the same JVM as the caller.
+     * The default strategy.
+     */
+    public fun useInProcessStrategy(): CompilerExecutionStrategyConfiguration
+
+    /**
+     * Marks the compilation to be run in Kotlin daemon launched as a separate process and shared across similar compilation requests.
+     * See Kotlin daemon documentation here: https://kotlinlang.org/docs/gradle-compilation-and-caches.html#the-kotlin-daemon-and-how-to-use-it-with-gradle
+     * @param sessionDir a directory for storing data related to the daemon work session (should not be shared with other compilations)
+     * @param jvmArguments a list of JVM startup arguments for the daemon
+     */
+    public fun useDaemonStrategy(
+        sessionDir: File,
+        jvmArguments: List<String>,
+    ): CompilerExecutionStrategyConfiguration
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/KotlinLogger.kt b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/KotlinLogger.kt
index d35693037ab..6283e116f4e 100644
--- a/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/KotlinLogger.kt
+++ b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/KotlinLogger.kt
@@ -5,6 +5,9 @@
 
 package org.jetbrains.kotlin.buildtools.api
 
+/**
+ * A logger object used to log messages from the Build Tools API.
+ */
 public interface KotlinLogger {
     public val isDebugEnabled: Boolean
     public fun error(msg: String, throwable: Throwable? = null)
diff --git a/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/SourcesChanges.kt b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/SourcesChanges.kt
new file mode 100644
index 00000000000..63a40878197
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/SourcesChanges.kt
@@ -0,0 +1,33 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api
+
+import java.io.File
+
+/**
+ * A hierarchy representing source files changes for incremental compilation
+ */
+public sealed interface SourcesChanges {
+    /**
+     * A marker object stating that the API consumer cannot calculate changes (either because it's an initial build or for some other reason).
+     * The Build Tools API will not enable its source file changes detector in this mode, expecting the API consumer to provide file changes as [Known] for the consequent builds.
+     */
+    public object Unknown : SourcesChanges
+
+    /**
+     * A marker object stating that the API consumer is not capable of calculating source file changes.
+     * In this mode, the Build Tools API will enable its source file changes detector and detect changes itself.
+     */
+    public object ToBeCalculated : SourcesChanges
+
+    /**
+     * A class containing [modifiedFiles] and [removedFiles] calculated from source file changes by the API consumer.
+     */
+    public class Known(
+        public val modifiedFiles: List<File>,
+        public val removedFiles: List<File>,
+    ) : SourcesChanges
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/jvm/ClasspathEntrySnapshot.kt b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/jvm/ClasspathEntrySnapshot.kt
new file mode 100644
index 00000000000..f62d3b4a1cb
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/jvm/ClasspathEntrySnapshot.kt
@@ -0,0 +1,28 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.jvm
+
+import java.io.File
+
+/**
+ * TODO add docs KT-57565
+ *
+ * This interface is not intended to be implemented by the API consumers.
+ */
+public interface ClasspathEntrySnapshot {
+    public val classSnapshots: LinkedHashMap<String, ClassSnapshot>
+
+    public fun saveSnapshot(path: File)
+}
+
+/**
+ * TODO add docs KT-57565
+ *
+ * This interface is not intended to be implemented by the API consumers.
+ */
+public interface ClassSnapshot {
+    // ... TODO: KT-57565, it will expose some part of org.jetbrains.kotlin.incremental.classpathDiff.ClassSnapshot hierarchy
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/jvm/JvmCompilationConfiguration.kt b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/jvm/JvmCompilationConfiguration.kt
new file mode 100644
index 00000000000..4ce005bca16
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api/src/main/kotlin/org/jetbrains/kotlin/buildtools/api/jvm/JvmCompilationConfiguration.kt
@@ -0,0 +1,199 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.jvm
+
+import org.jetbrains.kotlin.buildtools.api.KotlinLogger
+import org.jetbrains.kotlin.buildtools.api.SourcesChanges
+import java.io.File
+
+/**
+ * Allows users to customize the compilation process and to observe the configured settings (or the default ones).
+ *
+ * This interface defines a set of properties and methods that allow users to customize the compilation process.
+ * It provides control over various aspects of compilation, such as incremental compilation, logging customization and other.
+ *
+ * This interface is not intended to be implemented by the API consumers.
+ */
+public interface JvmCompilationConfiguration {
+    /**
+     * A logger used during the compilation.
+     *
+     * Managed by [useLogger]
+     * Default logger is a logger just printing messages to stdin and stderr.
+     */
+    public val logger: KotlinLogger
+
+    /**
+     * @see [JvmCompilationConfiguration.logger]
+     */
+    public fun useLogger(logger: KotlinLogger): JvmCompilationConfiguration
+
+    /**
+     * A set of additional to the `.kt` and `.kts` Kotlin script extensions.
+     *
+     * Managed by [useKotlinScriptFilenameExtensions]
+     * Default value is an empty set.
+     */
+    public val kotlinScriptFilenameExtensions: Set<String>
+
+    /**
+     * @see [JvmCompilationConfiguration.kotlinScriptFilenameExtensions]
+     */
+    public fun useKotlinScriptFilenameExtensions(kotlinScriptExtensions: Collection<String>): JvmCompilationConfiguration
+
+    /**
+     * Provides a default [ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration] allowing to use it as is or customizing for specific requirements.
+     * Could be used as an overview to default values of the options (as they are implementation-specific).
+     * @see [useIncrementalCompilation]
+     */
+    public fun makeClasspathSnapshotBasedIncrementalCompilationConfiguration(): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration
+
+    /**
+     * Configures usage of incremental compilation.
+     * @param workingDirectory a working directory for incremental compilation internal state
+     * @param sourcesChanges an instance of [SourcesChanges]
+     * @param approachParameters an object representing mandatory parameters specific for the selected incremental compilation approach
+     * @param options an object representing optional parameters and handles specific for the selected incremental compilation approach
+     * @see [makeClasspathSnapshotBasedIncrementalCompilationConfiguration]
+     */
+    public fun <P : IncrementalCompilationApproachParameters> useIncrementalCompilation(
+        workingDirectory: File,
+        sourcesChanges: SourcesChanges,
+        approachParameters: P,
+        options: IncrementalJvmCompilationConfiguration<P>,
+    ) {
+        error("This version of the Build Tools API does not support incremental compilation")
+    }
+}
+
+/**
+ * Allows to observe and customize general JVM incremental compilation settings.
+ *
+ * This interface is not intended to be implemented by the API consumers.
+ */
+public interface IncrementalJvmCompilationConfiguration<P : IncrementalCompilationApproachParameters> {
+    /**
+     * A directory used as a base path for computing relative paths in the incremental compilation caches.
+     *
+     * If is not specified, incremental compilation caches will be non-relocatable
+     *
+     * Managed by [useProjectDir]
+     * Default values is `null`
+     */
+    public val projectDir: File?
+
+    /**
+     * @see [IncrementalJvmCompilationConfiguration.projectDir]
+     */
+    public fun useProjectDir(projectDir: File): IncrementalJvmCompilationConfiguration<P>
+
+    /**
+     * An indicator whether incremental compilation will analyze Java files precisely for better changes detection
+     *
+     * Managed by [usePreciseJavaTracking]
+     * Default value is defined by implementation of the API
+     */
+    public val preciseJavaTrackingEnabled: Boolean
+
+    /**
+     * @see [IncrementalJvmCompilationConfiguration.preciseJavaTrackingEnabled]
+     */
+    public fun usePreciseJavaTracking(value: Boolean): IncrementalJvmCompilationConfiguration<P>
+
+    /**
+     * An indicator whether incremental compilation should perform file-by-file backup of files and revert them in the case of a failure
+     *
+     * Managed by [usePreciseCompilationResultsBackup]
+     * Default value is defined by implementation of the API
+     */
+    public val preciseCompilationResultsBackupEnabled: Boolean
+
+    /**
+     * @see [IncrementalJvmCompilationConfiguration.preciseCompilationResultsBackupEnabled]
+     */
+    public fun usePreciseCompilationResultsBackup(value: Boolean): IncrementalJvmCompilationConfiguration<P>
+
+    /**
+     * Incremental compilation uses the PersistentHashMap of the intellij platform for storing caches.
+     * An indicator whether the changes should remain in memory and not being flushed to the disk until we could mark the compilation as successful.
+     *
+     * Managed by [keepIncrementalCompilationCachesInMemory]
+     * Default value is defined by implementation of the API
+     */
+    public val incrementalCompilationCachesKeptInMemory: Boolean
+
+    /**
+     * @see [IncrementalJvmCompilationConfiguration.incrementalCompilationCachesKeptInMemory]
+     */
+    public fun keepIncrementalCompilationCachesInMemory(value: Boolean): IncrementalJvmCompilationConfiguration<P>
+
+    /**
+     * An indicator whether the non-incremental mode of the incremental compiler is forced.
+     * The non-incremental mode of the incremental compiler means that during the non-incremental compilation
+     * the compiler will collect enough information to perform the following builds incrementally.
+     *
+     * Manager by [forceNonIncrementalMode]
+     * By default, the compilation is considered incremental
+     */
+    public val forcedNonIncrementalMode: Boolean
+
+    /**
+     * @see [forcedNonIncrementalMode]
+     */
+    public fun forceNonIncrementalMode(value: Boolean = true): IncrementalJvmCompilationConfiguration<P>
+}
+
+/**
+ * Allows to observe and customize JVM incremental compilation settings specific to the classpath snapshots based approach.
+ *
+ * This interface is not intended to be implemented by the API consumers.
+ */
+public interface ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration :
+    IncrementalJvmCompilationConfiguration<ClasspathSnapshotBasedIncrementalCompilationApproachParameters> {
+    /**
+     * An indicator whether classpath snapshots comparing should be avoided.
+     * Could be used if the check is already performed by the API consumer for the sake of optimization
+     *
+     * Managed by [assureNoClasspathSnapshotsChanges]
+     * By default, the incremental compiler will compare the snapshots itself.
+     */
+    public val assuredNoClasspathSnapshotsChanges: Boolean
+
+    /**
+     * @see [assuredNoClasspathSnapshotsChanges]
+     */
+    public fun assureNoClasspathSnapshotsChanges(value: Boolean = true): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration
+
+    override fun useProjectDir(projectDir: File): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration
+
+    override fun usePreciseJavaTracking(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration
+
+    override fun usePreciseCompilationResultsBackup(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration
+
+    override fun keepIncrementalCompilationCachesInMemory(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration
+
+    override fun forceNonIncrementalMode(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration
+}
+
+/**
+ * Mandatory parameters for an incremental compilation approach
+ */
+public sealed interface IncrementalCompilationApproachParameters
+
+/**
+ * Mandatory parameters of the classpath snapshots based incremental compilation approach
+ */
+public class ClasspathSnapshotBasedIncrementalCompilationApproachParameters(
+    /**
+     * The classpath snapshots files actual at the moment of compilation
+     */
+    public val newClasspathSnapshotFiles: List<File>,
+    /**
+     * The shrunk classpath snapshot, a result of the previous compilation. Could point to a non-existent file.
+     * At the successful end of the compilation, the shrunk version of the [newClasspathSnapshotFiles] will be stored at this path.
+     */
+    public val shrunkClasspathSnapshot: File,
+) : IncrementalCompilationApproachParameters
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/CompilationServiceImpl.kt b/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/CompilationServiceImpl.kt
index fc2ba32c439..bfd58cfe75b 100644
--- a/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/CompilationServiceImpl.kt
+++ b/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/CompilationServiceImpl.kt
@@ -6,9 +6,25 @@
 package org.jetbrains.kotlin.buildtools.internal
 
 import org.jetbrains.kotlin.buildtools.api.CompilationService
+import org.jetbrains.kotlin.buildtools.api.CompilerExecutionStrategyConfiguration
+import org.jetbrains.kotlin.buildtools.api.jvm.*
+import java.io.File
 
 internal class CompilationServiceImpl : CompilationService {
-    override fun compile() {
+    override fun calculateClasspathSnapshot(classpathEntry: File): ClasspathEntrySnapshot {
+        TODO("Calculating classpath snapshots via the Build Tools API is not yet implemented: KT-57565")
+    }
+
+    override fun makeCompilerExecutionStrategyConfiguration() = CompilerExecutionStrategyConfigurationImpl()
+
+    override fun makeJvmCompilationConfiguration() = JvmCompilationConfigurationImpl()
+
+    override fun compileJvm(
+        strategyConfig: CompilerExecutionStrategyConfiguration,
+        compilationConfig: JvmCompilationConfiguration,
+        sources: List<File>,
+        arguments: List<String>
+    ) {
         println("I'm simulating compilation, nothing more yet")
     }
 }
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/CompilerExecutionStrategyConfigurationImpl.kt b/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/CompilerExecutionStrategyConfigurationImpl.kt
new file mode 100644
index 00000000000..41b82a5b176
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/CompilerExecutionStrategyConfigurationImpl.kt
@@ -0,0 +1,19 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.internal
+
+import org.jetbrains.kotlin.buildtools.api.CompilerExecutionStrategyConfiguration
+import java.io.File
+
+class CompilerExecutionStrategyConfigurationImpl : CompilerExecutionStrategyConfiguration {
+    override fun useInProcessStrategy(): CompilerExecutionStrategyConfiguration {
+        return this
+    }
+
+    override fun useDaemonStrategy(sessionDir: File, jvmArguments: List<String>): CompilerExecutionStrategyConfiguration {
+        TODO("Daemon strategy is not yet supported in the Build Tools API")
+    }
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/DefaultKotlinLogger.kt b/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/DefaultKotlinLogger.kt
new file mode 100644
index 00000000000..2c182768b94
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/DefaultKotlinLogger.kt
@@ -0,0 +1,33 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.internal
+
+import org.jetbrains.kotlin.buildtools.api.KotlinLogger
+
+internal object DefaultKotlinLogger : KotlinLogger {
+    override val isDebugEnabled: Boolean
+        get() = TODO("Default KotlinLogger is not yet implemented in the Build Tools API")
+
+    override fun error(msg: String, throwable: Throwable?) {
+        TODO("Default KotlinLogger is not yet implemented in the Build Tools API")
+    }
+
+    override fun warn(msg: String) {
+        TODO("Default KotlinLogger is not yet implemented in the Build Tools API")
+    }
+
+    override fun info(msg: String) {
+        TODO("Default KotlinLogger is not yet implemented in the Build Tools API")
+    }
+
+    override fun debug(msg: String) {
+        TODO("Default KotlinLogger is not yet implemented in the Build Tools API")
+    }
+
+    override fun lifecycle(msg: String) {
+        TODO("Default KotlinLogger is not yet implemented in the Build Tools API")
+    }
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/JvmCompilationConfigurationImpl.kt b/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/JvmCompilationConfigurationImpl.kt
new file mode 100644
index 00000000000..be29f295a20
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-impl/src/main/kotlin/org/jetbrains/kotlin/buildtools/internal/JvmCompilationConfigurationImpl.kt
@@ -0,0 +1,104 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.internal
+
+import org.jetbrains.kotlin.buildtools.api.KotlinLogger
+import org.jetbrains.kotlin.buildtools.api.SourcesChanges
+import org.jetbrains.kotlin.buildtools.api.jvm.*
+import java.io.File
+
+internal class JvmCompilationConfigurationImpl(
+    override var kotlinScriptFilenameExtensions: Set<String> = emptySet(),
+    override var logger: KotlinLogger = DefaultKotlinLogger,
+) : JvmCompilationConfiguration {
+    override fun useLogger(logger: KotlinLogger): JvmCompilationConfiguration {
+        this.logger = logger
+        return this
+    }
+
+    override fun useKotlinScriptFilenameExtensions(kotlinScriptExtensions: Collection<String>): JvmCompilationConfiguration {
+        this.kotlinScriptFilenameExtensions = kotlinScriptExtensions.toSet()
+        return this
+    }
+
+    override fun makeClasspathSnapshotBasedIncrementalCompilationConfiguration() = ClasspathSnapshotBasedIncrementalJvmCompilationConfigurationImpl()
+
+    override fun <P : IncrementalCompilationApproachParameters> useIncrementalCompilation(
+        workingDirectory: File,
+        sourcesChanges: SourcesChanges,
+        approachParameters: P,
+        options: IncrementalJvmCompilationConfiguration<P>,
+    ) = TODO("Incremental compilation is not yet supported to run via the Build Tools API")
+}
+
+internal abstract class JvmIncrementalCompilationConfigurationImpl<P : IncrementalCompilationApproachParameters>(
+    override var preciseJavaTrackingEnabled: Boolean = true,
+    override var preciseCompilationResultsBackupEnabled: Boolean = false,
+    override var incrementalCompilationCachesKeptInMemory: Boolean = false,
+    override var projectDir: File? = null,
+    override var forcedNonIncrementalMode: Boolean = false,
+) : IncrementalJvmCompilationConfiguration<P> {
+    override fun useProjectDir(projectDir: File): IncrementalJvmCompilationConfiguration<P> {
+        this.projectDir = projectDir
+        return this
+    }
+
+    override fun usePreciseJavaTracking(value: Boolean): IncrementalJvmCompilationConfiguration<P> {
+        preciseJavaTrackingEnabled = value
+        return this
+    }
+
+    override fun usePreciseCompilationResultsBackup(value: Boolean): IncrementalJvmCompilationConfiguration<P> {
+        preciseCompilationResultsBackupEnabled = value
+        return this
+    }
+
+    override fun keepIncrementalCompilationCachesInMemory(value: Boolean): IncrementalJvmCompilationConfiguration<P> {
+        incrementalCompilationCachesKeptInMemory = value
+        return this
+    }
+
+    override fun forceNonIncrementalMode(value: Boolean): IncrementalJvmCompilationConfiguration<P> {
+        forcedNonIncrementalMode = value
+        return this
+    }
+}
+
+internal class ClasspathSnapshotBasedIncrementalJvmCompilationConfigurationImpl(
+    override var assuredNoClasspathSnapshotsChanges: Boolean = false,
+) :
+    JvmIncrementalCompilationConfigurationImpl<ClasspathSnapshotBasedIncrementalCompilationApproachParameters>(),
+    ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration {
+    override fun useProjectDir(projectDir: File): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration {
+        super.useProjectDir(projectDir)
+        return this
+    }
+
+    override fun usePreciseJavaTracking(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration {
+        super.usePreciseJavaTracking(value)
+        return this
+    }
+
+    override fun usePreciseCompilationResultsBackup(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration {
+        super.usePreciseCompilationResultsBackup(value)
+        return this
+    }
+
+    override fun keepIncrementalCompilationCachesInMemory(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration {
+        super.keepIncrementalCompilationCachesInMemory(value)
+        return this
+    }
+
+    override fun forceNonIncrementalMode(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration {
+        super.forceNonIncrementalMode(value)
+        return this
+    }
+
+    override fun assureNoClasspathSnapshotsChanges(value: Boolean): ClasspathSnapshotBasedIncrementalJvmCompilationConfiguration {
+        assuredNoClasspathSnapshotsChanges = value
+        return this
+    }
+}
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/compilerRunner/btapi/BuildToolsApiCompilationWork.kt b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/compilerRunner/btapi/BuildToolsApiCompilationWork.kt
index e110ffae0af..d2d48c4eec2 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/compilerRunner/btapi/BuildToolsApiCompilationWork.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/compilerRunner/btapi/BuildToolsApiCompilationWork.kt
@@ -17,7 +17,6 @@ import org.jetbrains.kotlin.compilerRunner.GradleKotlinCompilerWorkArguments
 import org.jetbrains.kotlin.gradle.internal.ClassLoadersCachingBuildService
 import org.jetbrains.kotlin.gradle.internal.ParentClassLoaderProvider
 import java.io.File
-import java.util.*
 
 internal abstract class BuildToolsApiCompilationWork : WorkAction<BuildToolsApiCompilationWork.BuildToolsApiCompilationParameters> {
     internal interface BuildToolsApiCompilationParameters : WorkParameters {
@@ -36,7 +35,16 @@ internal abstract class BuildToolsApiCompilationWork : WorkAction<BuildToolsApiC
         val classLoader = parameters.classLoadersCachingService.get()
             .getClassLoader(workArguments.compilerFullClasspath, SharedApiClassesClassLoaderProvider)
         val compilationService = CompilationService.loadImplementation(classLoader)
-        compilationService.compile()
+        val executionConfig = compilationService.makeCompilerExecutionStrategyConfiguration().apply {
+            useInProcessStrategy()
+        }
+        val jvmCompilationConfig = compilationService.makeJvmCompilationConfiguration()
+        compilationService.compileJvm(
+            executionConfig,
+            jvmCompilationConfig,
+            emptyList(),
+            emptyList(),
+        )
     }
 }