diff --git a/compiler/android-tests/android-module/build.gradle b/compiler/android-tests/android-module/build.gradle
index af9ce31474a..22d1ed98398 100644
--- a/compiler/android-tests/android-module/build.gradle
+++ b/compiler/android-tests/android-module/build.gradle
@@ -3,9 +3,11 @@
 buildscript {
     repositories {
         jcenter()
+        google()
+
     }
     dependencies {
-        classpath 'com.android.tools.build:gradle:2.2.3'
+        classpath 'com.android.tools.build:gradle:3.0.0-beta4'
 
         // NOTE: Do not place your application dependencies here; they belong
         // in the individual module build.gradle files
@@ -15,11 +17,12 @@ apply plugin: 'com.android.application'
 
 repositories {
     jcenter()
+    google()
 }
 
 android {
     compileSdkVersion 19
-    buildToolsVersion "23.0.3"
+    buildToolsVersion "26.0.1"
 
     defaultConfig {
         applicationId "org.jetbrains.kotlin.android.tests"
@@ -64,7 +67,7 @@ android {
 
     dexOptions {
         dexInProcess false
-        javaMaxHeapSize "300m"
+        javaMaxHeapSize "600m"
         //default is 4 and Total Memory = maxProcessCount * javaMaxHeapSize
         maxProcessCount 1
         additionalParameters "--debug"
diff --git a/compiler/android-tests/android-module/gradle.properties b/compiler/android-tests/android-module/gradle.properties
index 2d32c803a44..75e39fe7d17 100644
--- a/compiler/android-tests/android-module/gradle.properties
+++ b/compiler/android-tests/android-module/gradle.properties
@@ -1,2 +1,4 @@
 #don't try to download android specific tools within gradle: licence acceptance will be required
-android.builder.sdkDownload=false
\ No newline at end of file
+android.builder.sdkDownload=false
+android.enableAapt2=false
+android.enableD8=false
\ No newline at end of file
diff --git a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/download/SDKDownloader.java b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/download/SDKDownloader.java
index f86a69f277d..1f89d8fdf59 100644
--- a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/download/SDKDownloader.java
+++ b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/download/SDKDownloader.java
@@ -41,19 +41,19 @@ public class SDKDownloader {
     //NOTE: PLATFORM_TOOLS 23.1.0 requires only 64 bit build agents
     private static final String PLATFORM_TOOLS = "23.0.1";
     private static final String SDK_TOOLS = "25.1.1";
-    public static final String BUILD_TOOLS = "23.0.3";
+    public static final String BUILD_TOOLS = "26.0.1";
     private static final int ANDROID_VERSION = 19;
-    public static final String GRADLE_VERSION = "2.14.1";
+    public static final String GRADLE_VERSION = "4.1";
 
 
     public SDKDownloader(PathManager pathManager) {
         this.pathManager = pathManager;
-        platformZipPath = pathManager.getRootForDownload() + "/platforms.zip";
+        platformZipPath = pathManager.getRootForDownload() + "/platform" + ANDROID_VERSION + ".zip";
         armImage = pathManager.getRootForDownload() + "/arm-image.zip";
         x86Image = pathManager.getRootForDownload() + "/x86-image.zip";
-        platformToolsZipPath = pathManager.getRootForDownload() + "/platform-tools.zip";
-        skdToolsZipPath = pathManager.getRootForDownload() + "/tools.zip";
-        buildToolsZipPath = pathManager.getRootForDownload() + "/build-tools.zip";
+        platformToolsZipPath = pathManager.getRootForDownload() + "/platform-tools" + PLATFORM_TOOLS + ".zip";
+        skdToolsZipPath = pathManager.getRootForDownload() + "/tools" + SDK_TOOLS + ".zip";
+        buildToolsZipPath = pathManager.getRootForDownload() + "/build-tools" + BUILD_TOOLS + ".zip";
         gradleZipPath = pathManager.getRootForDownload() + "/gradle" + GRADLE_VERSION + ".zip";
     }
 
@@ -127,7 +127,7 @@ public class SDKDownloader {
         String buildToolsFolder = buildTools + BUILD_TOOLS + "/";
         new File(buildToolsFolder).delete();
         unzip(buildToolsZipPath, buildTools);
-        new File(buildTools + "/android-6.0").renameTo(new File(buildToolsFolder));
+        new File(buildTools + "/android-8.0.0").renameTo(new File(buildToolsFolder));
     }
 
     public void deleteAll() {
diff --git a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/gradle/GradleRunner.java b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/gradle/GradleRunner.java
index 2d6ca8fdffa..d8c100636f4 100644
--- a/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/gradle/GradleRunner.java
+++ b/compiler/android-tests/src/org/jetbrains/kotlin/android/tests/gradle/GradleRunner.java
@@ -33,6 +33,7 @@ public class GradleRunner {
         listOfCommands = new ArrayList<>();
         String cmdName = SystemInfo.isWindows ? "gradle.bat" : "gradle";
         listOfCommands.add(pathManager.getGradleBinFolder() + "/" + cmdName);
+        listOfCommands.add("--no-daemon");
         listOfCommands.add("--build-file");
         listOfCommands.add(pathManager.getTmpFolder() + "/build.gradle");
     }
diff --git a/compiler/android-tests/tests/org/jetbrains/kotlin/android/tests/SpecialFiles.java b/compiler/android-tests/tests/org/jetbrains/kotlin/android/tests/SpecialFiles.java
index 87f72177f8b..827ec65eadb 100644
--- a/compiler/android-tests/tests/org/jetbrains/kotlin/android/tests/SpecialFiles.java
+++ b/compiler/android-tests/tests/org/jetbrains/kotlin/android/tests/SpecialFiles.java
@@ -122,6 +122,7 @@ public class SpecialFiles {
         // KT-8120
         excludedFiles.add("closureOfInnerLocalClass.kt");
         excludedFiles.add("closureWithSelfInstantiation.kt");
+        excludedFiles.add("quotedClassName.kt");
     }
 
     private SpecialFiles() {