diff --git a/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/util/lifecycleUtils.kt b/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/util/lifecycleUtils.kt
index a44e86eec28..74424c075d4 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/util/lifecycleUtils.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/util/lifecycleUtils.kt
@@ -8,8 +8,17 @@ package org.jetbrains.kotlin.gradle.util
 import org.gradle.api.Project
 import org.gradle.api.internal.project.ProjectInternal
 import org.jetbrains.kotlin.gradle.plugin.kotlinPluginLifecycle
+import org.jetbrains.kotlin.tooling.core.withLinearClosure
+import java.lang.AssertionError
 
 fun Project.runLifecycleAwareTest(block: suspend Project.() -> Unit) {
     kotlinPluginLifecycle.launch { block() }
-    (this as ProjectInternal).evaluate()
+    try {
+        (this as ProjectInternal).evaluate()
+    } catch (t: Throwable) {
+        /* Prefer throwing AssertionError directly, if possible */
+        val allCauses = t.withLinearClosure { it.cause }
+        allCauses.find { it is AssertionError }?.let { throw it }
+        throw t
+    }
 }
\ No newline at end of file