diff --git a/buildSrc/gradle.properties b/buildSrc/gradle.properties
index 1ffc5d36fd6..a375736226d 100644
--- a/buildSrc/gradle.properties
+++ b/buildSrc/gradle.properties
@@ -1,6 +1,4 @@
 org.gradle.jvmargs=-Duser.country=US -Dfile.encoding=UTF-8
-# Should be the same as in the root gradle.properties to avoid spawning second daemon
-kotlin.daemon.jvmargs=-Xmx3g -Dkotlin.js.compiler.legacy.force_enabled=true
 
 cacheRedirectorEnabled=true
 
diff --git a/buildSrc/settings.gradle b/buildSrc/settings.gradle
index 48edac30b0b..ff66d2dc985 100644
--- a/buildSrc/settings.gradle
+++ b/buildSrc/settings.gradle
@@ -19,6 +19,7 @@ plugins {
     id "build-cache"
     id "gradle-enterprise"
     id "jvm-toolchain-provisioning"
+    id "kotlin-daemon-config"
 }
 
 File versionPropertiesFile = new File(rootProject.projectDir.parentFile, "gradle/versions.properties")
diff --git a/gradle.properties b/gradle.properties
index 7b606afb726..036313b4393 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -1,8 +1,5 @@
 org.gradle.jvmargs=-Duser.country=US -Dfile.encoding=UTF-8 -Dorg.gradle.internal.publish.checksums.insecure=true
 
-#!!! It should be uniform across the project to avoid multiple daemons spawning during the build, which often leads to OOM on build server
-kotlin.daemon.jvmargs=-Xmx3g -Dkotlin.js.compiler.legacy.force_enabled=true
-
 systemProp.file.encoding=UTF-8
 systemProp.user.country=US
 # Enable new incremental compiation
diff --git a/kotlin-native/build-tools/settings.gradle.kts b/kotlin-native/build-tools/settings.gradle.kts
index 5d9f86bd782..52b429e8a74 100644
--- a/kotlin-native/build-tools/settings.gradle.kts
+++ b/kotlin-native/build-tools/settings.gradle.kts
@@ -16,6 +16,7 @@ pluginManagement {
 plugins {
     id("jvm-toolchain-provisioning")
     id("build-cache")
+    id("kotlin-daemon-config")
 }
 
 buildscript {
diff --git a/repo/gradle-settings-conventions/Readme.md b/repo/gradle-settings-conventions/Readme.md
index 2b8064b7a98..96c184e6ae8 100644
--- a/repo/gradle-settings-conventions/Readme.md
+++ b/repo/gradle-settings-conventions/Readme.md
@@ -7,3 +7,4 @@ Provides common settings convention plugins for the repo.
 - "build-cache" - local and remote build cache configuration
 - "gradle-enterprise" - configures build scans upload
 - "jvm-toolchain-provisioning" - configures JVM toolchain to download project JDKs via Disco API
+- "kotlin-daemon-config" - common project JVM arguments for Kotlin daemon
diff --git a/repo/gradle-settings-conventions/gradle.properties b/repo/gradle-settings-conventions/gradle.properties
index 7d0e0c48377..c8206c92d36 100644
--- a/repo/gradle-settings-conventions/gradle.properties
+++ b/repo/gradle-settings-conventions/gradle.properties
@@ -1,5 +1,5 @@
 kotlin.build.gradlePlugin.version=0.0.39
 kotlin.options.suppressFreeCompilerArgsModificationWarning=true
 cacheRedirectorEnabled=true
-# Should be the same as in the root gradle.properties to avoid spawning second daemon
+# Should be in sync with ":kotlin-daemon-config" project convention script configuration
 kotlin.daemon.jvmargs=-Xmx3g -Dkotlin.js.compiler.legacy.force_enabled=true
\ No newline at end of file
diff --git a/repo/gradle-settings-conventions/kotlin-daemon-config/build.gradle.kts b/repo/gradle-settings-conventions/kotlin-daemon-config/build.gradle.kts
new file mode 100644
index 00000000000..9159aaa74f4
--- /dev/null
+++ b/repo/gradle-settings-conventions/kotlin-daemon-config/build.gradle.kts
@@ -0,0 +1,16 @@
+plugins {
+    `kotlin-dsl`
+    id("org.jetbrains.kotlin.jvm")
+}
+
+repositories {
+    mavenCentral()
+    gradlePluginPortal()
+}
+
+dependencies {
+    // TODO: migrate to api only dependency once Kotlin daemon configuration will be available there (Yahor)
+    implementation("org.jetbrains.kotlin:kotlin-gradle-plugin")
+}
+
+kotlin.jvmToolchain(8)
diff --git a/repo/gradle-settings-conventions/kotlin-daemon-config/src/main/kotlin/kotlin-daemon-config.settings.gradle.kts b/repo/gradle-settings-conventions/kotlin-daemon-config/src/main/kotlin/kotlin-daemon-config.settings.gradle.kts
new file mode 100644
index 00000000000..7f70b7f7010
--- /dev/null
+++ b/repo/gradle-settings-conventions/kotlin-daemon-config/src/main/kotlin/kotlin-daemon-config.settings.gradle.kts
@@ -0,0 +1,14 @@
+import org.jetbrains.kotlin.gradle.dsl.KotlinTopLevelExtension
+import org.jetbrains.kotlin.gradle.plugin.KotlinBasePlugin
+
+gradle.afterProject {
+    plugins.withType<KotlinBasePlugin> {
+        extensions.configure<KotlinTopLevelExtension> {
+            // Should be in sync with 'gradle-settings-conventions/gradle.properties'
+            kotlinDaemonJvmArgs = listOf(
+                "-Xmx3g",
+                "-Dkotlin.js.compiler.legacy.force_enabled=true"
+            )
+        }
+    }
+}
diff --git a/repo/gradle-settings-conventions/settings.gradle.kts b/repo/gradle-settings-conventions/settings.gradle.kts
index ea26bbacd03..4dbb9dd9a18 100644
--- a/repo/gradle-settings-conventions/settings.gradle.kts
+++ b/repo/gradle-settings-conventions/settings.gradle.kts
@@ -23,6 +23,7 @@ plugins {
 include(":build-cache")
 include(":gradle-enterprise")
 include(":jvm-toolchain-provisioning")
+include(":kotlin-daemon-config")
 
 // Unfortunately it is not possible to apply build-cache.settings.gradle.kts as script compilation
 // could not then find types from "kotlin-build-gradle-plugin"
diff --git a/settings.gradle b/settings.gradle
index 3cbf33bb026..86d2a26f635 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -19,6 +19,7 @@ plugins {
     id "build-cache"
     id "gradle-enterprise"
     id "jvm-toolchain-provisioning"
+    id "kotlin-daemon-config"
 }
 
 def buildProperties = BuildPropertiesKt.getKotlinBuildPropertiesForSettings(settings)