diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/AbstractKotlinAndroidGradleTests.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/AbstractKotlinAndroidGradleTests.kt
index e89944f64f4..a38ad7b2e0f 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/AbstractKotlinAndroidGradleTests.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/AbstractKotlinAndroidGradleTests.kt
@@ -21,6 +21,8 @@ class KotlinAndroid32GradleIT : KotlinAndroid3GradleIT(androidGradlePluginVersio
         build("assemble", "compileDebugUnitTestJavaWithJavac", "printCompilerPluginOptions") {
             assertSuccessful()
 
+            assertContains("KT-29964 OK") // Output from lib/build.gradle
+
             assertTasksExecuted(
                 ":lib:compileDebugKotlinAndroidLib",
                 ":lib:compileReleaseKotlinAndroidLib",
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/new-mpp-android/lib/build.gradle b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/new-mpp-android/lib/build.gradle
index 70703d9f6f8..64d315c00a4 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/new-mpp-android/lib/build.gradle
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/new-mpp-android/lib/build.gradle
@@ -36,6 +36,21 @@ dependencies {
     androidTestImplementation 'com.android.support.test.espresso:espresso-core:3.0.2'
 }
 
+kotlin.targets.all {
+    compilations.all {
+        // KT-29964: check that Android compilations can be configured with an `all { ... }` handler:
+        kotlinOptions { 
+            verbose = true
+        }
+        compileKotlinTask.doFirst {
+            if (!compileKotlinTask.kotlinOptions.verbose) {
+                throw new AssertionError("kotlinOptions were not configured properly")
+            }
+            println "KT-29964 OK"
+        }
+    }
+}
+
 kotlin {
     sourceSets {
         jvmLibMain {
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/KotlinPlugin.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/KotlinPlugin.kt
index 930d03d64b1..0f494fd5f09 100755
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/KotlinPlugin.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/plugin/KotlinPlugin.kt
@@ -727,44 +727,48 @@ abstract class AbstractAndroidProjectHandler<V>(private val kotlinConfigurationT
         kotlinOptions.noJdk = true
         ext.addExtension(KOTLIN_OPTIONS_DSL_NAME, kotlinOptions)
 
-        project.afterEvaluate { project ->
-        forEachVariant(project) { variant ->
-            val variantName = getVariantName(variant)
-            val compilation = kotlinAndroidTarget.compilations.create(variantName)
-            setUpDependencyResolution(variant, compilation)
-        }
+        val androidPluginIds = listOf(
+            "android", "com.android.application", "android-library", "com.android.library",
+            "com.android.test", "com.android.feature", "com.android.dynamic-feature", "com.android.instantapp"
+        )
 
-            val androidPluginIds = listOf(
-                "android", "com.android.application", "android-library", "com.android.library",
-                "com.android.test", "com.android.feature", "com.android.dynamic-feature", "com.android.instantapp"
-            )
-            val plugin = androidPluginIds.asSequence()
+        val plugin by lazy {
+            androidPluginIds.asSequence()
                 .mapNotNull { project.plugins.findPlugin(it) as? BasePlugin }
                 .firstOrNull()
                 ?: throw InvalidPluginException("'kotlin-android' expects one of the Android Gradle " +
                                                         "plugins to be applied to the project:\n\t" +
                                                         androidPluginIds.joinToString("\n\t") { "* $it" })
+        }
 
-            checkAndroidAnnotationProcessorDependencyUsage(project)
+        forEachVariant(project) { variant ->
+            val variantName = getVariantName(variant)
 
-            forEachVariant(project) {
-                processVariant(
-                    it, kotlinAndroidTarget, project, ext, plugin, kotlinOptions, kotlinConfigurationTools.kotlinTasksProvider
-                )
+            // Create the compilation and configure it first, then add to the compilations container. As this code is executed
+            // in afterEvaluate, a user's build script might have already attached item handlers to the compilations container, and those
+            // handlers might break when fired on a compilation that is not yet properly configured (e.g. KT-29964):
+            kotlinAndroidTarget.compilationFactory.create(variantName).let { compilation ->
+                setUpDependencyResolution(variant, compilation)
+
+                processVariant(variant, compilation, project, ext, plugin, kotlinOptions, kotlinConfigurationTools.kotlinTasksProvider)
+
+                @Suppress("UNCHECKED_CAST")
+                (kotlinAndroidTarget.compilations as NamedDomainObjectCollection<in KotlinJvmAndroidCompilation>).add(compilation)
             }
 
             val subpluginEnvironment = SubpluginEnvironment.loadSubplugins(project, kotlinConfigurationTools.kotlinPluginVersion)
+            val compilation = kotlinAndroidTarget.compilations.getByName(getVariantName(variant))
+            applySubplugins(project, compilation, variant, subpluginEnvironment)
+        }
 
-            forEachVariant(project) { variant ->
-                val compilation = kotlinAndroidTarget.compilations.getByName(getVariantName(variant))
-                applySubplugins(project, compilation, variant, subpluginEnvironment)
-            }
+        project.whenEvaluated {
+            checkAndroidAnnotationProcessorDependencyUsage(project)
         }
     }
 
     private fun processVariant(
         variantData: V,
-        target: KotlinAndroidTarget,
+        compilation: KotlinJvmAndroidCompilation,
         project: Project,
         androidExt: BaseExtension,
         androidPlugin: BasePlugin,
@@ -782,7 +786,6 @@ abstract class AbstractAndroidProjectHandler<V>(private val kotlinConfigurationT
             return
         }
 
-        val compilation = target.compilations.getByName(variantDataName)
         val defaultSourceSet = project.kotlinExtension.sourceSets.maybeCreate(compilation.defaultSourceSetName)
 
         val kotlinTaskName = compilation.compileKotlinTaskName
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/targets/android/KotlinAndroidTarget.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/targets/android/KotlinAndroidTarget.kt
index a8f8d7b8706..830de45e83e 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/targets/android/KotlinAndroidTarget.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/targets/android/KotlinAndroidTarget.kt
@@ -26,7 +26,7 @@ open class KotlinAndroidTarget(
     override val platformType: KotlinPlatformType
         get() = KotlinPlatformType.androidJvm
 
-    private val compilationFactory = KotlinJvmAndroidCompilationFactory(project, this)
+    internal val compilationFactory = KotlinJvmAndroidCompilationFactory(project, this)
 
     override val compilations: NamedDomainObjectContainer<out KotlinJvmAndroidCompilation> =
         project.container(compilationFactory.itemClass, compilationFactory)