diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/HierarchicalMppIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/HierarchicalMppIT.kt
index a1758472d9f..7aa7a70732c 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/HierarchicalMppIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/HierarchicalMppIT.kt
@@ -167,14 +167,14 @@ class HierarchicalMppIT : BaseGradleIT() {
             publishedMetadataJar.checkAllEntryNamesArePresent(
                 "META-INF/$MULTIPLATFORM_PROJECT_METADATA_FILE_NAME",
 
-                "commonMain/META-INF/my-lib-foo_commonMain.kotlin_module",
-                "commonMain/com/example/foo/FooKt.kotlin_metadata",
+                "commonMain/manifest",
+                "commonMain/linkdata/package_com.example/",
 
-                "jvmAndJsMain/META-INF/my-lib-foo_jvmAndJsMain.kotlin_module",
-                "jvmAndJsMain/com/example/foo/FooJvmAndJsKt.kotlin_metadata",
+                "jvmAndJsMain/manifest",
+                "jvmAndJsMain/linkdata/package_com.example/",
 
-                "linuxAndJsMain/META-INF/my-lib-foo_linuxAndJsMain.kotlin_module",
-                "linuxAndJsMain/com/example/foo/FooLinuxAndJsKt.kotlin_metadata"
+                "linuxAndJsMain/manifest",
+                "linuxAndJsMain/linkdata/package_com.example/"
             )
 
             val parsedProjectStructureMetadata: KotlinProjectStructureMetadata = publishedMetadataJar.getProjectStructureMetadata()
@@ -205,14 +205,14 @@ class HierarchicalMppIT : BaseGradleIT() {
             publishedMetadataJar.checkAllEntryNamesArePresent(
                 "META-INF/$MULTIPLATFORM_PROJECT_METADATA_FILE_NAME",
 
-                "commonMain/META-INF/my-lib-bar_commonMain.kotlin_module",
-                "commonMain/com/example/bar/BarKt.kotlin_metadata",
+                "commonMain/manifest",
+                "commonMain/linkdata/package_com.example.bar/",
 
-                "jvmAndJsMain/META-INF/my-lib-bar_jvmAndJsMain.kotlin_module",
-                "jvmAndJsMain/com/example/bar/BarJvmAndJsKt.kotlin_metadata",
+                "jvmAndJsMain/manifest",
+                "jvmAndJsMain/linkdata/package_com.example.bar/",
 
-                "linuxAndJsMain/META-INF/my-lib-bar_linuxAndJsMain.kotlin_module",
-                "linuxAndJsMain/com/example/bar/BarLinuxAndJsKt.kotlin_metadata"
+                "linuxAndJsMain/manifest",
+                "linuxAndJsMain/linkdata/package_com.example.bar/"
             )
 
             val parsedProjectStructureMetadata: KotlinProjectStructureMetadata = publishedMetadataJar.getProjectStructureMetadata()
@@ -376,7 +376,7 @@ class HierarchicalMppIT : BaseGradleIT() {
                     ModuleDependencyIdentifier(it.first, it.second)
                 }.toSet()
             },
-            sourceSetBinaryLayout = sourceSetModuleDependencies.mapValues { SourceSetMetadataLayout.METADATA }
+            sourceSetBinaryLayout = sourceSetModuleDependencies.mapValues { SourceSetMetadataLayout.KLIB }
         )
     }
 
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/common-klib-lib-and-app/gradle.properties b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/common-klib-lib-and-app/gradle.properties
index 96d28f62e25..2a391fe78b0 100755
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/common-klib-lib-and-app/gradle.properties
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/common-klib-lib-and-app/gradle.properties
@@ -1,2 +1 @@
-kotlin.mpp.enableGranularSourceSetsMetadata=true
-kotlin.mpp.enableCommonKlibs=true
\ No newline at end of file
+kotlin.mpp.enableGranularSourceSetsMetadata=true
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/KotlinProperties.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/KotlinProperties.kt
index c337bff5fd8..5a1b9b2bd6d 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/KotlinProperties.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/KotlinProperties.kt
@@ -94,9 +94,6 @@ internal class PropertiesProvider private constructor(private val project: Proje
     val enableGranularSourceSetsMetadata: Boolean?
         get() = booleanProperty("kotlin.mpp.enableGranularSourceSetsMetadata")
 
-    val enableCommonKlibs: Boolean?
-        get() = booleanProperty("kotlin.mpp.enableCommonKlibs")
-
     val enableCompatibilityMetadataVariant: Boolean?
         get() = booleanProperty("kotlin.mpp.enableCompatibilityMetadataVariant")
 
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/KotlinCommonCompilation.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/KotlinCommonCompilation.kt
index 704c94e6faf..928c499c1b9 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/KotlinCommonCompilation.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/KotlinCommonCompilation.kt
@@ -24,7 +24,7 @@ class KotlinCommonCompilation(
         get() = super.compileKotlinTask as KotlinCompileCommon
 
     internal val isKlibCompilation: Boolean
-        get() = PropertiesProvider(target.project).enableCommonKlibs == true && !forceCompilationToKotlinMetadata
+        get() = PropertiesProvider(target.project).enableGranularSourceSetsMetadata == true && !forceCompilationToKotlinMetadata
 
     internal var forceCompilationToKotlinMetadata: Boolean = false
 }
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/KotlinProjectStructureMetadata.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/KotlinProjectStructureMetadata.kt
index a02ee35a907..28327ea60c0 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/KotlinProjectStructureMetadata.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/KotlinProjectStructureMetadata.kt
@@ -41,10 +41,8 @@ sealed class SourceSetMetadataLayout(
         fun byName(name: String): SourceSetMetadataLayout? = values.firstOrNull { it.name == name }
 
         fun chooseForProducingProject(project: Project) =
-            if (PropertiesProvider(project.rootProject).enableCommonKlibs == true)
-                KLIB
-            else
-                METADATA
+            /** A producing project will now only generate Granular source sets metadata as a KLIB */
+            KLIB
     }
 }