diff --git a/idea/src/org/jetbrains/kotlin/idea/framework/CustomLibraryDescriptorWithDeferredConfig.kt b/idea/src/org/jetbrains/kotlin/idea/framework/CustomLibraryDescriptorWithDeferredConfig.kt
index c85edb079a2..75a143ddf65 100644
--- a/idea/src/org/jetbrains/kotlin/idea/framework/CustomLibraryDescriptorWithDeferredConfig.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/framework/CustomLibraryDescriptorWithDeferredConfig.kt
@@ -20,6 +20,7 @@ import com.google.common.collect.Lists
 import com.intellij.framework.library.LibraryVersionProperties
 import com.intellij.openapi.module.Module
 import com.intellij.openapi.project.Project
+import com.intellij.openapi.projectRoots.Sdk
 import com.intellij.openapi.roots.ModifiableRootModel
 import com.intellij.openapi.roots.OrderRootType
 import com.intellij.openapi.roots.libraries.Library
@@ -93,6 +94,9 @@ abstract class CustomLibraryDescriptorWithDeferredConfig
                     configurator.configureLibraryJar(model, jarState, copyToPath, jarDescriptor, collector)
                 }
             }
+
+            configureKotlinSettings(module.project, rootModel.sdk)
+
             collector.showNotification()
         }
         finally {
@@ -100,6 +104,9 @@ abstract class CustomLibraryDescriptorWithDeferredConfig
         }
     }
 
+    protected open fun configureKotlinSettings(project: Project, sdk: Sdk?) {
+    }
+
     class DeferredCopyFileRequests(private val configurator: KotlinWithLibraryConfigurator) {
         private val copyFilesRequests = Lists.newArrayList<CopyFileRequest>()
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/framework/JavaRuntimeLibraryDescription.kt b/idea/src/org/jetbrains/kotlin/idea/framework/JavaRuntimeLibraryDescription.kt
index 97ee8057485..c57bdf8b400 100644
--- a/idea/src/org/jetbrains/kotlin/idea/framework/JavaRuntimeLibraryDescription.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/framework/JavaRuntimeLibraryDescription.kt
@@ -17,8 +17,12 @@
 package org.jetbrains.kotlin.idea.framework
 
 import com.intellij.openapi.project.Project
+import com.intellij.openapi.projectRoots.Sdk
 import com.intellij.openapi.roots.libraries.LibraryKind
+import org.jetbrains.kotlin.idea.compiler.configuration.Kotlin2JvmCompilerArgumentsHolder
 import org.jetbrains.kotlin.idea.configuration.KotlinJavaModuleConfigurator
+import org.jetbrains.kotlin.idea.versions.bundledRuntimeVersion
+import org.jetbrains.kotlin.idea.versions.getDefaultJvmTarget
 
 /**
  * @param project null when project doesn't exist yet (called from project wizard)
@@ -32,6 +36,15 @@ class JavaRuntimeLibraryDescription(project: Project?) :
                                                   KOTLIN_JAVA_RUNTIME_KIND,
                                                   SUITABLE_LIBRARY_KINDS) {
 
+    override fun configureKotlinSettings(project: Project, sdk: Sdk?) {
+        val defaultJvmTarget = getDefaultJvmTarget(sdk, bundledRuntimeVersion())
+        if (defaultJvmTarget != null) {
+            Kotlin2JvmCompilerArgumentsHolder.getInstance(project).update {
+                jvmTarget = defaultJvmTarget.description
+            }
+        }
+    }
+
     companion object {
         val KOTLIN_JAVA_RUNTIME_KIND = LibraryKind.create("kotlin-java-runtime")
         val LIBRARY_NAME = "KotlinJavaRuntime"