diff --git a/compiler/rmi/kotlinr/kotlinr.iml b/compiler/rmi/kotlinr/kotlinr.iml
index 240b6471a57..36eff60cdf2 100644
--- a/compiler/rmi/kotlinr/kotlinr.iml
+++ b/compiler/rmi/kotlinr/kotlinr.iml
@@ -9,5 +9,6 @@
     <orderEntry type="sourceFolder" forTests="false" />
     <orderEntry type="library" name="kotlin-runtime" level="project" />
     <orderEntry type="module" module-name="rmi-interface" />
+    <orderEntry type="module" module-name="frontend.java" />
   </component>
 </module>
\ No newline at end of file
diff --git a/compiler/rmi/kotlinr/src/KotlinCompilerClient.kt b/compiler/rmi/kotlinr/src/KotlinCompilerClient.kt
index e37a030ec69..e8be605c362 100644
--- a/compiler/rmi/kotlinr/src/KotlinCompilerClient.kt
+++ b/compiler/rmi/kotlinr/src/KotlinCompilerClient.kt
@@ -16,14 +16,17 @@
 
 package org.jetbrains.kotlin.rmi.kotlinr
 
+import org.jetbrains.kotlin.load.kotlin.incremental.components.IncrementalCache
 import org.jetbrains.kotlin.rmi.CompilerFacade
+import java.io.OutputStream
 import java.rmi.registry.LocateRegistry
 import kotlin.platform.platformStatic
 
 public class KotlinCompilerClient {
 
     companion object {
-        platformStatic public fun main(vararg args: String) {
+
+        public fun connectToCompilerServer(): CompilerFacade? {
             val compilerObj = LocateRegistry.getRegistry("localhost", 17031).lookup("KotlinJvmCompilerService")
             if (compilerObj == null)
                 println("Unable to find compiler service")
@@ -31,19 +34,39 @@ public class KotlinCompilerClient {
                 val compiler = compilerObj as? CompilerFacade
                 if (compiler == null)
                     println("Unable to cast compiler service: ${compilerObj.javaClass}")
-                else {
+                return compiler
+            }
+            return null
+        }
+
+        public fun incrementalCompile(compiler: CompilerFacade, args: Array<String>, caches: Map<String, IncrementalCache>, out: OutputStream): Int {
+
+            val outStrm = RemoteOutputStreamServer(out)
+            val cacheServers = hashMapOf<String, RemoteIncrementalCacheServer>()
+            try {
+                caches.forEach { cacheServers.put( it.getKey(), RemoteIncrementalCacheServer( it.getValue())) }
+                val res = compiler.remoteIncrementalCompile(args, cacheServers, outStrm, CompilerFacade.OutputFormat.XML)
+                return res
+            }
+            finally {
+                cacheServers.forEach { it.getValue().disconnect() }
+                outStrm.disconnect()
+            }
+        }
+
+        platformStatic public fun main(vararg args: String) {
+            connectToCompilerServer()?.let {
                     println("Executing daemon compilation with args: " + args.joinToString(" "))
                     val outStrm = RemoteOutputStreamServer(System.out)
                     try {
-                        val res = compiler.remoteCompile(args, outStrm, CompilerFacade.OutputFormat.PLAIN)
+                        val res = it.remoteCompile(args, outStrm, CompilerFacade.OutputFormat.PLAIN)
                         println("Compilation result code: $res")
                     }
                     finally {
-                        outStrm.close()
+                        outStrm.disconnect()
                     }
                 }
             }
-        }
     }
 }
 
diff --git a/compiler/rmi/kotlinr/src/RemoteIncrementalCacheServer.kt b/compiler/rmi/kotlinr/src/RemoteIncrementalCacheServer.kt
new file mode 100644
index 00000000000..a924ad64f40
--- /dev/null
+++ b/compiler/rmi/kotlinr/src/RemoteIncrementalCacheServer.kt
@@ -0,0 +1,41 @@
+/*
+ * Copyright 2010-2015 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.rmi.kotlinr
+
+import org.jetbrains.kotlin.rmi.CompilerFacade
+import org.jetbrains.kotlin.load.kotlin.incremental.components.IncrementalCache;
+import java.rmi.server.UnicastRemoteObject
+
+
+public class RemoteIncrementalCacheServer(val cache: IncrementalCache) : CompilerFacade.RemoteIncrementalCache {
+
+    init {
+        UnicastRemoteObject.exportObject(this, 0)
+    }
+
+    override fun getObsoletePackageParts(): Collection<String> = cache.getObsoletePackageParts()
+
+    override fun getPackageData(fqName: String): ByteArray? = cache.getPackageData(fqName)
+
+    override fun close() {
+        cache.close()
+    }
+
+    public fun disconnect() {
+        UnicastRemoteObject.unexportObject(this, true)
+    }
+}
\ No newline at end of file
diff --git a/compiler/rmi/kotlinr/src/RemoteOutputStreamServer.kt b/compiler/rmi/kotlinr/src/RemoteOutputStreamServer.kt
index 9e3ed540291..7a96d0dc927 100644
--- a/compiler/rmi/kotlinr/src/RemoteOutputStreamServer.kt
+++ b/compiler/rmi/kotlinr/src/RemoteOutputStreamServer.kt
@@ -27,9 +27,12 @@ class RemoteOutputStreamServer(val out: OutputStream) : RemoteOutputStream {
         UnicastRemoteObject.exportObject(this, 0)
     }
 
+    public fun disconnect() {
+        UnicastRemoteObject.unexportObject(this, true)
+    }
+
     override fun close() {
         out.close()
-        UnicastRemoteObject.unexportObject(this, true)
     }
 
     override fun write(data: ByteArray, start: Int, length: Int) {
diff --git a/compiler/rmi/rmi-interface/rmi-interface.iml b/compiler/rmi/rmi-interface/rmi-interface.iml
index 0bd974ce23a..50c2d073f1a 100644
--- a/compiler/rmi/rmi-interface/rmi-interface.iml
+++ b/compiler/rmi/rmi-interface/rmi-interface.iml
@@ -7,6 +7,7 @@
     </content>
     <orderEntry type="inheritedJdk" />
     <orderEntry type="sourceFolder" forTests="false" />
+    <orderEntry type="library" name="kotlin-runtime" level="project" />
     <orderEntry type="module" module-name="cli-common" />
     <orderEntry type="module" module-name="frontend.java" />
   </component>
diff --git a/jps-plugin/jps-plugin.iml b/jps-plugin/jps-plugin.iml
index bae91cce456..e092109dfa7 100644
--- a/jps-plugin/jps-plugin.iml
+++ b/jps-plugin/jps-plugin.iml
@@ -21,5 +21,7 @@
     <orderEntry type="library" name="asm" level="project" />
     <orderEntry type="module" module-name="util" />
     <orderEntry type="module" module-name="preloader" />
+    <orderEntry type="module" module-name="kotlinr" />
+    <orderEntry type="module" module-name="rmi-interface" />
   </component>
 </module>
\ No newline at end of file
diff --git a/jps-plugin/src/org/jetbrains/kotlin/compilerRunner/KotlinCompilerRunner.java b/jps-plugin/src/org/jetbrains/kotlin/compilerRunner/KotlinCompilerRunner.java
index 887f515087a..5da5119d20a 100644
--- a/jps-plugin/src/org/jetbrains/kotlin/compilerRunner/KotlinCompilerRunner.java
+++ b/jps-plugin/src/org/jetbrains/kotlin/compilerRunner/KotlinCompilerRunner.java
@@ -30,6 +30,9 @@ import org.jetbrains.kotlin.cli.common.arguments.K2JVMCompilerArguments;
 import org.jetbrains.kotlin.cli.common.messages.MessageCollector;
 import org.jetbrains.kotlin.cli.common.messages.MessageCollectorUtil;
 import org.jetbrains.kotlin.config.CompilerSettings;
+import org.jetbrains.kotlin.load.kotlin.incremental.components.IncrementalCache;
+import org.jetbrains.kotlin.rmi.CompilerFacade;
+import org.jetbrains.kotlin.rmi.kotlinr.KotlinCompilerClient;
 import org.jetbrains.kotlin.utils.UtilsPackage;
 
 import java.io.*;
@@ -38,6 +41,7 @@ import java.lang.reflect.Modifier;
 import java.util.ArrayList;
 import java.util.Collection;
 import java.util.List;
+import java.util.Map;
 
 import static org.jetbrains.kotlin.cli.common.messages.CompilerMessageLocation.NO_LOCATION;
 import static org.jetbrains.kotlin.cli.common.messages.CompilerMessageSeverity.ERROR;
@@ -54,13 +58,14 @@ public class KotlinCompilerRunner {
             CompilerSettings compilerSettings,
             MessageCollector messageCollector,
             CompilerEnvironment environment,
-            File moduleFile,
+            Map<String, IncrementalCache> incrementalCaches, File moduleFile,
             OutputItemsCollector collector
     ) {
         K2JVMCompilerArguments arguments = mergeBeans(commonArguments, k2jvmArguments);
         setupK2JvmArguments(moduleFile, arguments);
 
-        runCompiler(K2JVM_COMPILER, arguments, compilerSettings.getAdditionalArguments(), messageCollector, collector, environment);
+        runCompiler(K2JVM_COMPILER, arguments, compilerSettings.getAdditionalArguments(), messageCollector, collector, environment,
+                    incrementalCaches);
     }
 
     public static void runK2JsCompiler(
@@ -69,7 +74,7 @@ public class KotlinCompilerRunner {
             @NotNull CompilerSettings compilerSettings,
             @NotNull MessageCollector messageCollector,
             @NotNull CompilerEnvironment environment,
-            @NotNull OutputItemsCollector collector,
+            Map<String, IncrementalCache> incrementalCaches, @NotNull OutputItemsCollector collector,
             @NotNull Collection<File> sourceFiles,
             @NotNull List<String> libraryFiles,
             @NotNull File outputFile
@@ -77,7 +82,8 @@ public class KotlinCompilerRunner {
         K2JSCompilerArguments arguments = mergeBeans(commonArguments, k2jsArguments);
         setupK2JsArguments(outputFile, sourceFiles, libraryFiles, arguments);
 
-        runCompiler(K2JS_COMPILER, arguments, compilerSettings.getAdditionalArguments(), messageCollector, collector, environment);
+        runCompiler(K2JS_COMPILER, arguments, compilerSettings.getAdditionalArguments(), messageCollector, collector, environment,
+                    incrementalCaches);
     }
 
     private static void runCompiler(
@@ -86,12 +92,13 @@ public class KotlinCompilerRunner {
             String additionalArguments,
             MessageCollector messageCollector,
             OutputItemsCollector collector,
-            CompilerEnvironment environment
+            CompilerEnvironment environment,
+            Map<String, IncrementalCache> incrementalCaches
     ) {
         ByteArrayOutputStream stream = new ByteArrayOutputStream();
         PrintStream out = new PrintStream(stream);
 
-        String exitCode = execCompiler(compilerClassName, arguments, additionalArguments, environment, out, messageCollector);
+        String exitCode = execCompiler(compilerClassName, arguments, additionalArguments, environment, incrementalCaches, out, messageCollector);
 
         BufferedReader reader = new BufferedReader(new StringReader(stream.toString()));
         CompilerOutputParser.parseCompilerMessagesFromReader(messageCollector, reader, collector);
@@ -107,6 +114,7 @@ public class KotlinCompilerRunner {
             CommonCompilerArguments arguments,
             String additionalArguments,
             CompilerEnvironment environment,
+            Map<String, IncrementalCache> incrementalCaches,
             PrintStream out,
             MessageCollector messageCollector
     ) {
@@ -116,13 +124,27 @@ public class KotlinCompilerRunner {
             List<String> argumentsList = ArgumentUtils.convertArgumentsToStringList(arguments);
             argumentsList.addAll(StringUtil.split(additionalArguments, " "));
 
+            String[] argsArray = ArrayUtil.toStringArray(argumentsList);
+
+            // trying the daemon first
+            if (incrementalCaches != null) {
+                CompilerFacade daemon = KotlinCompilerClient.Companion.connectToCompilerServer();
+                if (daemon != null) {
+                    Integer res = KotlinCompilerClient.Companion.incrementalCompile(daemon, argsArray, incrementalCaches, out);
+                    return res.toString();
+                }
+            }
+
+            // otherwise fallback to in-process
+
             Object rc = CompilerRunnerUtil.invokeExecMethod(
-                    compilerClassName, ArrayUtil.toStringArray(argumentsList), environment, messageCollector, out
+                    compilerClassName, argsArray, environment, messageCollector, out
             );
 
             // exec() returns an ExitCode object, class of which is loaded with a different class loader,
             // so we take it's contents through reflection
             return getReturnCodeFromObject(rc);
+
         }
         catch (Throwable e) {
             MessageCollectorUtil.reportException(messageCollector, e);
diff --git a/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilder.kt b/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilder.kt
index 4606b72da80..e207b2e7200 100644
--- a/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilder.kt
+++ b/jps-plugin/src/org/jetbrains/kotlin/jps/build/KotlinBuilder.kt
@@ -247,9 +247,10 @@ public class KotlinBuilder : ModuleLevelBuilder(BuilderCategory.SOURCE_PROCESSOR
             filesToCompile: MultiMap<ModuleBuildTarget, File>, incrementalCaches: Map<ModuleBuildTarget, IncrementalCacheImpl>,
             messageCollector: MessageCollectorAdapter, project: JpsProject
     ): OutputItemsCollectorImpl? {
+
         if (JpsUtils.isJsKotlinModule(chunk.representativeTarget())) {
             LOG.debug("Compiling to JS ${filesToCompile.values().size()} files in " + filesToCompile.keySet().map { it.getPresentableName() }.join())
-            return compileToJs(chunk, commonArguments, environment, messageCollector, project)
+            return compileToJs(chunk, commonArguments, environment, null, messageCollector, project)
         }
 
         if (IncrementalCompilation.ENABLED) {
@@ -279,7 +280,9 @@ public class KotlinBuilder : ModuleLevelBuilder(BuilderCategory.SOURCE_PROCESSOR
             )
         }
 
-        return compileToJvm(allCompiledFiles, chunk, commonArguments, context, dirtyFilesHolder, environment, filesToCompile, messageCollector)
+        return compileToJvm(allCompiledFiles, chunk, commonArguments, context, dirtyFilesHolder, environment,
+                            incrementalCaches.mapKeysTo(HashMap<String, IncrementalCache>(incrementalCaches.size()), { it.getKey().id }),
+                            filesToCompile, messageCollector)
     }
 
     private fun createCompileEnvironment(
@@ -436,8 +439,8 @@ public class KotlinBuilder : ModuleLevelBuilder(BuilderCategory.SOURCE_PROCESSOR
     private fun compileToJs(chunk: ModuleChunk,
                             commonArguments: CommonCompilerArguments,
                             environment: CompilerEnvironment,
-                            messageCollector: KotlinBuilder.MessageCollectorAdapter,
-                            project: JpsProject
+                            incrementalCaches: MutableMap<String, IncrementalCache>?,
+                            messageCollector: MessageCollectorAdapter, project: JpsProject
     ): OutputItemsCollectorImpl? {
         val outputItemCollector = OutputItemsCollectorImpl()
 
@@ -468,7 +471,7 @@ public class KotlinBuilder : ModuleLevelBuilder(BuilderCategory.SOURCE_PROCESSOR
         val compilerSettings = JpsKotlinCompilerSettings.getCompilerSettings(project)
         val k2JsArguments = JpsKotlinCompilerSettings.getK2JsCompilerArguments(project)
 
-        runK2JsCompiler(commonArguments, k2JsArguments, compilerSettings, messageCollector, environment, outputItemCollector, sourceFiles, libraryFiles, outputFile)
+        runK2JsCompiler(commonArguments, k2JsArguments, compilerSettings, messageCollector, environment, incrementalCaches, outputItemCollector, sourceFiles, libraryFiles, outputFile)
         return outputItemCollector
     }
 
@@ -491,8 +494,8 @@ public class KotlinBuilder : ModuleLevelBuilder(BuilderCategory.SOURCE_PROCESSOR
                              context: CompileContext,
                              dirtyFilesHolder: DirtyFilesHolder<JavaSourceRootDescriptor, ModuleBuildTarget>,
                              environment: CompilerEnvironment,
-                             filesToCompile: MultiMap<ModuleBuildTarget, File>,
-                             messageCollector: KotlinBuilder.MessageCollectorAdapter
+                             incrementalCaches: MutableMap<String, IncrementalCache>?,
+                             filesToCompile: MultiMap<ModuleBuildTarget, File>, messageCollector: MessageCollectorAdapter
     ): OutputItemsCollectorImpl? {
         val outputItemCollector = OutputItemsCollectorImpl()
 
@@ -535,7 +538,7 @@ public class KotlinBuilder : ModuleLevelBuilder(BuilderCategory.SOURCE_PROCESSOR
                                 + (if (totalRemovedFiles == 0) "" else " ($totalRemovedFiles removed files)")
                                 + " in " + filesToCompile.keySet().map { it.getPresentableName() }.join())
 
-        runK2JvmCompiler(commonArguments, k2JvmArguments, compilerSettings, messageCollector, environment, moduleFile, outputItemCollector)
+        runK2JvmCompiler(commonArguments, k2JvmArguments, compilerSettings, messageCollector, environment, incrementalCaches, moduleFile, outputItemCollector)
         moduleFile.delete()
 
         return outputItemCollector