diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/mpp/MppCompositeBuildIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/mpp/MppCompositeBuildIT.kt
index fa7e9e29033..437e96af9a4 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/mpp/MppCompositeBuildIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/mpp/MppCompositeBuildIT.kt
@@ -5,6 +5,7 @@
 
 package org.jetbrains.kotlin.gradle.mpp
 
+import org.gradle.api.logging.configuration.WarningMode
 import org.gradle.util.GradleVersion
 import org.jetbrains.kotlin.gradle.KOTLIN_VERSION
 import org.jetbrains.kotlin.gradle.idea.tcs.IdeaKotlinSourceDependency.Type.Regular
@@ -235,4 +236,21 @@ class MppCompositeBuildIT : KGPBaseTest() {
             }
         }
     }
+
+    @GradleTest
+    fun `test - sample4-KT-37051-withCInterop`(gradleVersion: GradleVersion) {
+        val producer = project("mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild", gradleVersion)
+
+        project(
+            "mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild", gradleVersion,
+            buildOptions = defaultBuildOptions.copy(warningMode = WarningMode.Fail)
+        ) {
+            settingsGradleKts.toFile().replaceText("<producer_path>", producer.projectPath.toUri().path)
+
+            build(":consumerA:assemble") {
+                assertTasksExecuted(":consumerA:compileKotlinLinuxX64")
+                assertOutputDoesNotContain("w: duplicate library")
+            }
+        }
+    }
 }
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/build.gradle.kts
new file mode 100644
index 00000000000..246a8cf901e
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/build.gradle.kts
@@ -0,0 +1,24 @@
+@file:Suppress("OPT_IN_USAGE")
+
+plugins {
+    kotlin("multiplatform")
+}
+
+kotlin {
+    targetHierarchy.default()
+    jvm()
+    linuxX64()
+    linuxArm64()
+
+    sourceSets.commonMain.get().dependencies {
+        implementation("org.jetbrains.sample:producerA:1.0.0-SNAPSHOT")
+    }
+
+    targets.all {
+        compilations.all {
+            compilerOptions.configure {
+                allWarningsAsErrors.set(true)
+            }
+        }
+    }
+}
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/commonMain/kotlin/ConsumerACommon.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/commonMain/kotlin/ConsumerACommon.kt
new file mode 100644
index 00000000000..800fcda56bf
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/commonMain/kotlin/ConsumerACommon.kt
@@ -0,0 +1,10 @@
+/*
+ * 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.
+ */
+
+object ConsumerACommon {
+    init {
+        ProducerACommonX
+    }
+}
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/linuxX64Main/kotlin/ConsumerALinuxX64.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/linuxX64Main/kotlin/ConsumerALinuxX64.kt
new file mode 100644
index 00000000000..68b3ac37a17
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/linuxX64Main/kotlin/ConsumerALinuxX64.kt
@@ -0,0 +1,16 @@
+/*
+ * 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.
+ */
+
+import clib.myCFunction
+
+object ConsumerALinuxX64 {
+    init {
+        ProducerACommonX
+        ProducerANative
+        ProducerALinuxX64
+
+        myCFunction()
+    }
+}
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/nativeMain/kotlin/ConsumerANative.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/nativeMain/kotlin/ConsumerANative.kt
new file mode 100644
index 00000000000..67236db2c1c
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/nativeMain/kotlin/ConsumerANative.kt
@@ -0,0 +1,15 @@
+/*
+ * 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.
+ */
+
+import kotlinx.cinterop.memScoped
+import platform.posix.fopen
+
+object ConsumerANative {
+    init {
+        memScoped {  }
+        fopen("", "")
+        ProducerANative
+    }
+}
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/commonMain/kotlin/ConsumerACommon.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/commonMain/kotlin/ConsumerACommon.kt
new file mode 100644
index 00000000000..800fcda56bf
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/commonMain/kotlin/ConsumerACommon.kt
@@ -0,0 +1,10 @@
+/*
+ * 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.
+ */
+
+object ConsumerACommon {
+    init {
+        ProducerACommonX
+    }
+}
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/linuxX64Main/kotlin/ConsumerALinuxX64.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/linuxX64Main/kotlin/ConsumerALinuxX64.kt
new file mode 100644
index 00000000000..68b3ac37a17
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/linuxX64Main/kotlin/ConsumerALinuxX64.kt
@@ -0,0 +1,16 @@
+/*
+ * 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.
+ */
+
+import clib.myCFunction
+
+object ConsumerALinuxX64 {
+    init {
+        ProducerACommonX
+        ProducerANative
+        ProducerALinuxX64
+
+        myCFunction()
+    }
+}
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/nativeMain/kotlin/ConsumerANative.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/nativeMain/kotlin/ConsumerANative.kt
new file mode 100644
index 00000000000..67236db2c1c
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/consumerA/src/src/nativeMain/kotlin/ConsumerANative.kt
@@ -0,0 +1,15 @@
+/*
+ * 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.
+ */
+
+import kotlinx.cinterop.memScoped
+import platform.posix.fopen
+
+object ConsumerANative {
+    init {
+        memScoped {  }
+        fopen("", "")
+        ProducerANative
+    }
+}
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/settings.gradle.kts b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/settings.gradle.kts
new file mode 100644
index 00000000000..51772eedeb2
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/consumerBuild/settings.gradle.kts
@@ -0,0 +1,14 @@
+dependencyResolutionManagement {
+    repositories {
+        mavenLocal()
+        mavenCentral()
+    }
+}
+
+include(":consumerA")
+
+includeBuild("<producer_path>") {
+    dependencySubstitution {
+        substitute(module("org.jetbrains.sample:producerA")).using(project(":producerA"))
+    }
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/build.gradle.kts
new file mode 100644
index 00000000000..eab1742b20a
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/build.gradle.kts
@@ -0,0 +1,25 @@
+@file:Suppress("OPT_IN_USAGE")
+
+import org.jetbrains.kotlin.gradle.plugin.mpp.KotlinNativeTarget
+
+plugins {
+    kotlin("multiplatform")
+    `maven-publish`
+}
+
+
+group = "org.jetbrains.sample"
+version = "1.0.0-SNAPSHOT"
+
+kotlin {
+    targetHierarchy.default()
+    jvm()
+    linuxX64()
+    linuxArm64()
+
+    targets.withType<KotlinNativeTarget>().all {
+        compilations.getByName("main").cinterops.create("clib") {
+            header("src/clib.h")
+        }
+    }
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/clib.h b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/clib.h
new file mode 100644
index 00000000000..3cc79e26967
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/clib.h
@@ -0,0 +1 @@
+int myCFunction();
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/commonMain/kotlin/ProducerACommonX.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/commonMain/kotlin/ProducerACommonX.kt
new file mode 100644
index 00000000000..aa2c6b4da2a
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/commonMain/kotlin/ProducerACommonX.kt
@@ -0,0 +1,7 @@
+/*
+ * 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.
+ */
+
+object ProducerACommonX
+object A
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/linuxX64Main/kotlin/ProducerALinuxX64.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/linuxX64Main/kotlin/ProducerALinuxX64.kt
new file mode 100644
index 00000000000..0282269b0e4
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/linuxX64Main/kotlin/ProducerALinuxX64.kt
@@ -0,0 +1,6 @@
+/*
+ * 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.
+ */
+
+object ProducerALinuxX64
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/nativeInterop/cinterop/clib.def b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/nativeInterop/cinterop/clib.def
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/nativeMain/kotlin/ProducerANative.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/nativeMain/kotlin/ProducerANative.kt
new file mode 100644
index 00000000000..19462abeda4
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/producerA/src/nativeMain/kotlin/ProducerANative.kt
@@ -0,0 +1,6 @@
+/*
+ * 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.
+ */
+
+object ProducerANative
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/settings.gradle.kts b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/settings.gradle.kts
new file mode 100644
index 00000000000..dd20205742e
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/mpp-composite-build/sample4-KT-37051-withCInterop/producerBuild/settings.gradle.kts
@@ -0,0 +1,8 @@
+dependencyResolutionManagement {
+    repositories {
+        mavenLocal()
+        mavenCentral()
+    }
+}
+
+include(":producerA")