diff --git a/libraries/tools/kotlin-annotation-processing-embeddable/build.gradle.kts b/libraries/tools/kotlin-annotation-processing-embeddable/build.gradle.kts
new file mode 100644
index 00000000000..9d871b21061
--- /dev/null
+++ b/libraries/tools/kotlin-annotation-processing-embeddable/build.gradle.kts
@@ -0,0 +1,23 @@
+
+import com.github.jengelman.gradle.plugins.shadow.tasks.ShadowJar
+import org.gradle.jvm.tasks.Jar
+
+description = "Annotation Processor for Kotlin (for using with embeddable compiler)"
+
+plugins { base }
+
+val packedJars by configurations.creating
+
+dependencies {
+    packedJars(project(":kotlin-annotation-processing")) { isTransitive = false }
+}
+
+runtimeJar(rewriteDepsToShadedCompiler(
+        task<ShadowJar>("shadowJar")  {
+            from(packedJars)
+        }
+))
+sourcesJar()
+javadocJar()
+
+publish()
diff --git a/plugins/kapt3/build.gradle.kts b/plugins/kapt3/build.gradle.kts
index 46e6c18f642..6e0bf046eff 100644
--- a/plugins/kapt3/build.gradle.kts
+++ b/plugins/kapt3/build.gradle.kts
@@ -31,3 +31,5 @@ sourcesJar()
 javadocJar()
 
 dist()
+
+publish()
diff --git a/settings.gradle b/settings.gradle
index 98ff6431510..46d8c28f73b 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -136,6 +136,7 @@ include ":kotlin-build-common",
         ":kotlin-script-util",
         ":kotlin-annotation-processing",
         ":kotlin-annotation-processing-gradle",
+        ":kotlin-annotation-processing-embeddable",
         ":examples:kotlin-jsr223-local-example",
         ":examples:kotlin-jsr223-daemon-local-eval-example",
         ":ultimate",
@@ -212,6 +213,7 @@ project(':kotlin-gradle-subplugin-example').projectDir = "$rootDir/libraries/exa
 project(':examples:annotation-processor-example').projectDir = "$rootDir/libraries/examples/annotation-processor-example" as File
 project(':kotlin-script-util').projectDir = "$rootDir/libraries/tools/kotlin-script-util" as File
 project(':kotlin-annotation-processing-gradle').projectDir = "$rootDir/libraries/tools/kotlin-annotation-processing" as File
+project(':kotlin-annotation-processing-embeddable').projectDir = "$rootDir/libraries/tools/kotlin-annotation-processing-embeddable" as File
 project(':kotlin-annotation-processing').projectDir = "$rootDir/plugins/kapt3" as File
 project(':examples:kotlin-jsr223-local-example').projectDir = "$rootDir/libraries/examples/kotlin-jsr223-local-example" as File
 project(':examples:kotlin-jsr223-daemon-local-eval-example').projectDir = "$rootDir/libraries/examples/kotlin-jsr223-daemon-local-eval-example" as File