diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.java b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.java
index cee6029fad8..7f4aebb69c5 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.java
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/CommonCompilerArguments.java
@@ -109,6 +109,8 @@ public abstract class CommonCompilerArguments implements Serializable {
 
     public List<String> freeArgs = new SmartList<>();
 
+    public List<String> unknownArgs = new SmartList<>();
+
     public List<String> unknownExtraFlags = new SmartList<>();
 
     // Names of extra (-X...) arguments which have been passed in an obsolete form ("-Xaaa bbb", instead of "-Xaaa=bbb")
diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/argumentUtils.kt b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/argumentUtils.kt
index 829df083d99..2325c0824c1 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/argumentUtils.kt
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/argumentUtils.kt
@@ -24,14 +24,9 @@ import java.util.*
 fun <A : CommonCompilerArguments> parseArguments(args: Array<String>, arguments: A, ignoreInvalidArguments: Boolean = false) {
     parseCommandLineArguments(args, arguments)
 
-    if (ignoreInvalidArguments) {
-        arguments.freeArgs.removeAll { it.startsWith("-") }
-    }
-
-    for (argument in arguments.freeArgs) {
-        if (argument.startsWith("-")) {
-            throw IllegalArgumentException("Invalid argument: " + argument)
-        }
+    val invalidArgument = arguments.unknownArgs.firstOrNull()?.takeUnless { ignoreInvalidArguments }
+    if (invalidArgument != null) {
+        throw IllegalArgumentException("Invalid argument: $invalidArgument")
     }
 }
 
diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/parseCommandLineArguments.kt b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/parseCommandLineArguments.kt
index 7cdf188f19e..d10cfed91d6 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/parseCommandLineArguments.kt
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/parseCommandLineArguments.kt
@@ -30,6 +30,7 @@ val Argument.isAdvanced: Boolean
     get() = value.startsWith(ADVANCED_ARGUMENT_PREFIX) && value.length > ADVANCED_ARGUMENT_PREFIX.length
 
 private val ADVANCED_ARGUMENT_PREFIX = "-X"
+private val FREE_ARGS_DELIMITER = "--"
 
 // Parses arguments in the passed [result] object, or throws an [IllegalArgumentException] with the message to be displayed to the user
 fun <A : CommonCompilerArguments> parseCommandLineArguments(args: Array<String>, result: A) {
@@ -41,10 +42,21 @@ fun <A : CommonCompilerArguments> parseCommandLineArguments(args: Array<String>,
     }
 
     val visitedArgs = mutableSetOf<String>()
+    var freeArgsStarted = false
 
     var i = 0
     while (i < args.size) {
         val arg = args[i++]
+
+        if (freeArgsStarted) {
+            result.freeArgs.add(arg)
+            continue
+        }
+        if (arg == FREE_ARGS_DELIMITER) {
+            freeArgsStarted = true
+            continue
+        }
+
         val argumentField = fields.firstOrNull { (_, argument) ->
             argument.value == arg ||
             argument.shortName.takeUnless(String::isEmpty) == arg ||
@@ -52,11 +64,10 @@ fun <A : CommonCompilerArguments> parseCommandLineArguments(args: Array<String>,
         }
 
         if (argumentField == null) {
-            if (arg.startsWith(ADVANCED_ARGUMENT_PREFIX)) {
-                result.unknownExtraFlags.add(arg)
-            }
-            else {
-                result.freeArgs.add(arg)
+            when {
+                arg.startsWith(ADVANCED_ARGUMENT_PREFIX) -> result.unknownExtraFlags.add(arg)
+                arg.startsWith("-") -> result.unknownArgs.add(arg)
+                else -> result.freeArgs.add(arg)
             }
             continue
         }
diff --git a/compiler/testData/integration/smoke/scriptDashedArgs/script.expected b/compiler/testData/integration/smoke/scriptDashedArgs/script.expected
new file mode 100644
index 00000000000..86c60cc9c31
--- /dev/null
+++ b/compiler/testData/integration/smoke/scriptDashedArgs/script.expected
@@ -0,0 +1,8 @@
+OUT:
+hi
+-name
+Marty
+--
+there
+
+Return code: 0
diff --git a/compiler/testData/integration/smoke/scriptDashedArgs/script.kts b/compiler/testData/integration/smoke/scriptDashedArgs/script.kts
new file mode 100644
index 00000000000..9ebde070775
--- /dev/null
+++ b/compiler/testData/integration/smoke/scriptDashedArgs/script.kts
@@ -0,0 +1,3 @@
+for (arg in args) {
+    println(arg)
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/integration/CompilerSmokeTest.java b/compiler/tests/org/jetbrains/kotlin/integration/CompilerSmokeTest.java
index c59a2dbf926..77609afe98b 100644
--- a/compiler/tests/org/jetbrains/kotlin/integration/CompilerSmokeTest.java
+++ b/compiler/tests/org/jetbrains/kotlin/integration/CompilerSmokeTest.java
@@ -57,6 +57,10 @@ public class CompilerSmokeTest extends CompilerSmokeTestBase {
         runCompiler("script", "-script", "script.kts", "hi", "there");
     }
 
+    public void testScriptDashedArgs() throws Exception {
+        runCompiler("script", "-script", "script.kts", "--", "hi", "-name", "Marty", "--", "there");
+    }
+
     public void testScriptWithClasspath() throws Exception {
         runCompiler("script", "-cp", new File("lib/javax.inject.jar").getAbsolutePath(), "-script", "script.kts");
     }