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 f4fe4ecd421..492681bdb72 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
@@ -784,6 +784,31 @@ open class KotlinAndroid71GradleIT : KotlinAndroid70GradleIT() {
             }
         }
     }
+
+    @Test
+    fun `test associate compilation dependencies are passed correctly to android test compilations`() {
+        with(Project("kt-49877")) {
+            build("allTests") {
+                assertSuccessful()
+                assertTasksExecuted(
+                    ":compileDebugKotlinAndroid",
+                    ":compileReleaseKotlinAndroid",
+                    ":compileDebugUnitTestKotlinAndroid",
+                    ":compileReleaseUnitTestKotlinAndroid",
+                    ":testDebugUnitTest",
+                    ":testReleaseUnitTest",
+                )
+            }
+
+            // instrumented tests don't work without a device, so we only compile them
+            build("packageDebugAndroidTest") {
+                assertSuccessful()
+                assertTasksExecuted(
+                    ":compileDebugAndroidTestKotlinAndroid",
+                )
+            }
+        }
+    }
 }
 
 abstract class KotlinAndroid3GradleIT : AbstractKotlinAndroidGradleTests() {
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/BaseGradleIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/BaseGradleIT.kt
index e5f953b725e..c01e0493b5d 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/BaseGradleIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/BaseGradleIT.kt
@@ -955,6 +955,7 @@ Finished executing task ':$taskName'|
             options.androidHome?.let { sdkDir ->
                 sdkDir.parentFile.mkdirs()
                 put("ANDROID_HOME", sdkDir.canonicalPath)
+                put("ANDROID_SDK_ROOT", sdkDir.canonicalPath)
             }
 
             options.javaHome?.let {
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/build.gradle.kts
new file mode 100644
index 00000000000..4934fedc981
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/build.gradle.kts
@@ -0,0 +1,27 @@
+plugins {
+    kotlin("multiplatform")
+    id("com.android.library")
+}
+
+repositories {
+    mavenLocal()
+    mavenCentral()
+    google()
+}
+
+android {
+    compileSdk = 30
+}
+
+kotlin {
+    android()
+    linuxX64()
+
+    sourceSets {
+        getByName("commonMain") {
+            dependencies {
+                implementation("com.squareup.okio:okio:3.2.0")
+            }
+        }
+    }
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/settings.gradle.kts b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/settings.gradle.kts
new file mode 100644
index 00000000000..049b3d5325c
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/settings.gradle.kts
@@ -0,0 +1 @@
+rootProject.name = "kt-49877"
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/androidAndroidTest/kotlin/aTest.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/androidAndroidTest/kotlin/aTest.kt
new file mode 100644
index 00000000000..5cee5cbeb7b
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/androidAndroidTest/kotlin/aTest.kt
@@ -0,0 +1,3 @@
+private fun test() {
+    val sink: okio.Sink = null!!
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/androidMain/kotlin/aMain.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/androidMain/kotlin/aMain.kt
new file mode 100644
index 00000000000..5cee5cbeb7b
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/androidMain/kotlin/aMain.kt
@@ -0,0 +1,3 @@
+private fun test() {
+    val sink: okio.Sink = null!!
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/commonMain/kotlin/pkg/test.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/commonMain/kotlin/pkg/test.kt
new file mode 100644
index 00000000000..5cee5cbeb7b
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/commonMain/kotlin/pkg/test.kt
@@ -0,0 +1,3 @@
+private fun test() {
+    val sink: okio.Sink = null!!
+}
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/main/AndroidManifest.xml b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/main/AndroidManifest.xml
new file mode 100644
index 00000000000..b6961a87161
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/main/AndroidManifest.xml
@@ -0,0 +1 @@
+<manifest package="foo.bar"></manifest>
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/test/kotlin/aTest.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/test/kotlin/aTest.kt
new file mode 100644
index 00000000000..5cee5cbeb7b
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kt-49877/src/test/kotlin/aTest.kt
@@ -0,0 +1,3 @@
+private fun test() {
+    val sink: okio.Sink = null!!
+}
diff --git a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/CompilationDetails.kt b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/CompilationDetails.kt
index e5573dd18c3..bfb4a073ea7 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/CompilationDetails.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/plugin/mpp/CompilationDetails.kt
@@ -251,7 +251,7 @@ open class DefaultCompilationDetails<T : KotlinCommonOptions>(
      * Adds `allDependencies` of configurations mentioned in `configurationNames` to configuration named [this] in
      * a lazy manner
      */
-    private fun String.addAllDependenciesFromOtherConfigurations(project: Project, vararg configurationNames: String) {
+    protected fun String.addAllDependenciesFromOtherConfigurations(project: Project, vararg configurationNames: String) {
         project.configurations.named(this).configure { receiverConfiguration ->
             receiverConfiguration.dependencies.addAllLater(
                 project.objects.listProperty(Dependency::class.java).apply {
@@ -528,10 +528,29 @@ class AndroidCompilationDetails(
     override val friendArtifacts: FileCollection
         get() = target.project.files(super.friendArtifacts, compilation.testedVariantArtifacts)
 
+    /*
+    * Example of how multiplatform dependencies from common would get to Android test classpath:
+    * commonMainImplementation -> androidDebugImplementation -> debugImplementation -> debugAndroidTestCompileClasspath
+    * After the fix for KT-35916 MPP compilation configurations receive a 'compilation' postfix for disambiguation.
+    * androidDebugImplementation remains a source set configuration, but no longer contains compilation dependencies.
+    * Therefore, it doesn't get dependencies from common source sets.
+    * We now explicitly add associate compilation dependencies to the Kotlin test compilation configurations (test classpaths).
+    * This helps, because the Android test classpath configurations extend from the Kotlin test compilations' directly.
+    */
     override fun addAssociateCompilationDependencies(other: KotlinCompilation<*>) {
-        if ((other as? KotlinJvmAndroidCompilation)?.androidVariant != getTestedVariantData(androidVariant)) {
-            super.addAssociateCompilationDependencies(other)
-        } // otherwise, do nothing: the Android Gradle plugin adds these dependencies for us, we don't need to add them to the classpath
+        compilation.compileDependencyConfigurationName.addAllDependenciesFromOtherConfigurations(
+            project,
+            other.apiConfigurationName,
+            other.implementationConfigurationName,
+            other.compileOnlyConfigurationName
+        )
+
+        compilation.runtimeDependencyConfigurationName.addAllDependenciesFromOtherConfigurations(
+            project,
+            other.apiConfigurationName,
+            other.implementationConfigurationName,
+            other.runtimeOnlyConfigurationName
+        )
     }
 
     override val kotlinDependenciesHolder: HasKotlinDependencies