diff --git a/libraries/scripting/common/src/kotlin/script/experimental/host/configurationFromTemplate.kt b/libraries/scripting/common/src/kotlin/script/experimental/host/configurationFromTemplate.kt
index 84dc8516b27..64803ec82cb 100644
--- a/libraries/scripting/common/src/kotlin/script/experimental/host/configurationFromTemplate.kt
+++ b/libraries/scripting/common/src/kotlin/script/experimental/host/configurationFromTemplate.kt
@@ -157,7 +157,8 @@ private fun ScriptCompilationConfiguration.Builder.propertiesFromTemplate(
     baseClass.replaceOnlyDefault(if (templateClass == baseClassType.fromClass) baseClassType else KotlinType(templateClass))
     fileExtension.replaceOnlyDefault(mainAnnotation.fileExtension)
     // TODO: remove this exception when gradle switches to the new definitions and sets the property accordingly
-    if (get(fileExtension) == "gradle.kts") {
+    // possible gradle script extensions - see PrecompiledScriptTemplates.kt in the gradle repository
+    if (get(fileExtension) in arrayOf("gradle.kts", "init.gradle.kts", "settings.gradle.kts")) {
         isStandalone(false)
     }
     filePathPattern.replaceOnlyDefault(mainAnnotation.filePathPattern)
diff --git a/plugins/scripting/scripting-compiler-impl/src/org/jetbrains/kotlin/scripting/definitions/ScriptCompilationConfigurationFromDefinition.kt b/plugins/scripting/scripting-compiler-impl/src/org/jetbrains/kotlin/scripting/definitions/ScriptCompilationConfigurationFromDefinition.kt
index c4668bad307..8e873163447 100644
--- a/plugins/scripting/scripting-compiler-impl/src/org/jetbrains/kotlin/scripting/definitions/ScriptCompilationConfigurationFromDefinition.kt
+++ b/plugins/scripting/scripting-compiler-impl/src/org/jetbrains/kotlin/scripting/definitions/ScriptCompilationConfigurationFromDefinition.kt
@@ -37,7 +37,8 @@ class ScriptCompilationConfigurationFromDefinition(
         @Suppress("DEPRECATION")
         compilerOptions.putIfAny(scriptDefinition.additionalCompilerArguments)
         // TODO: remove this exception when gradle switches to the new definitions and sets the property accordingly
-        if (scriptDefinition.fileExtension == "gradle.kts") {
+        // possible gradle script extensions - see PrecompiledScriptTemplates.kt in the gradle repository
+        if (get(fileExtension) in arrayOf("gradle.kts", "init.gradle.kts", "settings.gradle.kts")) {
             isStandalone(false)
         }
         ide {