diff --git a/plugins/pill/pill-importer/src/JpsCompatiblePluginTasks.kt b/plugins/pill/pill-importer/src/JpsCompatiblePluginTasks.kt
index 83c7581c0ee..59a9c621be6 100644
--- a/plugins/pill/pill-importer/src/JpsCompatiblePluginTasks.kt
+++ b/plugins/pill/pill-importer/src/JpsCompatiblePluginTasks.kt
@@ -103,9 +103,22 @@ class JpsCompatiblePluginTasks(private val rootProject: Project, private val pla
         removeJpsAndPillRunConfigurations()
         removeAllArtifactConfigurations()
 
-        val artifactDependencyMapper = object : OpaqueDependencyMapper {
+        val artifactDependencyMapper = object : ArtifactDependencyMapper {
             override fun map(dependency: PDependency): List<PDependency> {
-                return jpsProject.mapDependency(dependency, dependencyMappers)
+                val result = mutableListOf<PDependency>()
+
+                for (mappedDependency in jpsProject.mapDependency(dependency, dependencyMappers)) {
+                    result += mappedDependency
+
+                    if (mappedDependency is PDependency.Module) {
+                        val module = jpsProject.modules.find { it.name == mappedDependency.name }
+                        if (module != null) {
+                            result += module.embeddedDependencies
+                        }
+                    }
+                }
+
+                return result
             }
         }
 
diff --git a/plugins/pill/pill-importer/src/kotlinPluginArtifact.kt b/plugins/pill/pill-importer/src/kotlinPluginArtifact.kt
index 040c2db2c38..0d7c356eb2b 100644
--- a/plugins/pill/pill-importer/src/kotlinPluginArtifact.kt
+++ b/plugins/pill/pill-importer/src/kotlinPluginArtifact.kt
@@ -23,7 +23,7 @@ class PArtifact(val artifactName: String, private val outputDir: File, private v
     }
 }
 
-interface OpaqueDependencyMapper {
+interface ArtifactDependencyMapper {
     fun map(dependency: PDependency): List<PDependency>
 }
 
@@ -88,7 +88,7 @@ sealed class ArtifactElement {
     }
 }
 
-fun generateKotlinPluginArtifactFile(rootProject: Project, dependencyMapper: OpaqueDependencyMapper): PFile {
+fun generateKotlinPluginArtifactFile(rootProject: Project, dependencyMapper: ArtifactDependencyMapper): PFile {
     val root = Root()
 
     fun Project.getProject(name: String) = findProject(name) ?: error("Cannot find project $name")
@@ -107,7 +107,7 @@ fun generateKotlinPluginArtifactFile(rootProject: Project, dependencyMapper: Opa
         add(Directory("jps").apply {
             val prepareJpsPluginProject = rootProject.getProject(":kotlin-jps-plugin")
             add(Archive(prepareJpsPluginProject.name + ".jar").apply {
-                val jpsPluginConfiguration = prepareIdeaPluginProject.configurations.getByName("jpsPlugin")
+                val jpsPluginConfiguration = prepareJpsPluginProject.configurations.getByName(EMBEDDED_CONFIGURATION_NAME)
                 add(getArtifactElements(jpsPluginConfiguration, dependencyMapper, true))
             })
         })
@@ -129,14 +129,12 @@ fun generateKotlinPluginArtifactFile(rootProject: Project, dependencyMapper: Opa
 
 private fun getArtifactElements(
     configuration: Configuration,
-    dependencyMapper: OpaqueDependencyMapper,
+    dependencyMapper: ArtifactDependencyMapper,
     extractDependencies: Boolean
 ): List<ArtifactElement> {
-    val dependencies = parseDependencies(configuration, dependencyMapper)
-
     val artifacts = mutableListOf<ArtifactElement>()
 
-    for (dependency in dependencies) {
+    fun process(dependency: PDependency) {
         when (dependency) {
             is PDependency.Module -> {
                 val moduleOutput = ModuleOutput(dependency.name)
@@ -161,10 +159,11 @@ private fun getArtifactElements(
         }
     }
 
+    parseDependencies(configuration, dependencyMapper).forEach(::process)
     return artifacts
 }
 
-private fun parseDependencies(configuration: Configuration, dependencyMapper: OpaqueDependencyMapper): List<PDependency> {
+private fun parseDependencies(configuration: Configuration, dependencyMapper: ArtifactDependencyMapper): List<PDependency> {
     val dependencies = mutableListOf<PDependency>()
     for (file in configuration.resolve()) {
         val library = PLibrary(file.name, listOf(file))
diff --git a/plugins/pill/pill-importer/src/parser.kt b/plugins/pill/pill-importer/src/parser.kt
index 3298258c19a..1eb83cb30f8 100644
--- a/plugins/pill/pill-importer/src/parser.kt
+++ b/plugins/pill/pill-importer/src/parser.kt
@@ -6,6 +6,7 @@
 package org.jetbrains.kotlin.pill
 
 import org.gradle.api.Project
+import org.gradle.api.artifacts.Configuration
 import org.gradle.api.tasks.*
 import org.gradle.api.plugins.JavaPlugin
 import org.gradle.api.plugins.JavaPluginConvention
@@ -43,7 +44,8 @@ data class PModule(
     val contentRoots: List<PContentRoot>,
     val orderRoots: List<POrderRoot>,
     val kotlinOptions: PSourceRootKotlinOptions?,
-    val moduleForProductionSources: PModule? = null
+    val moduleForProductionSources: PModule? = null,
+    val embeddedDependencies: List<PDependency>
 )
 
 data class PContentRoot(
@@ -192,6 +194,9 @@ private fun parseModules(project: Project, excludedProjects: List<Project>): Lis
         return File(project.rootProject.projectDir, ".idea/modules/$relativePath")
     }
 
+    val embeddedDependencies = project.configurations.findByName(EMBEDDED_CONFIGURATION_NAME)
+        ?.let { parseDependencies(it) } ?: emptyList()
+
     val sourceSets = parseSourceSets(project).sortedBy { it.forTests }
     for (sourceSet in sourceSets) {
         val sourceRoots = mutableListOf<PSourceRoot>()
@@ -229,7 +234,8 @@ private fun parseModules(project: Project, excludedProjects: List<Project>): Lis
             contentRoots = contentRoots,
             orderRoots = orderRoots,
             kotlinOptions = sourceSet.kotlinOptions,
-            moduleForProductionSources = productionModule
+            moduleForProductionSources = productionModule,
+            embeddedDependencies = embeddedDependencies
         )
     }
 
@@ -247,7 +253,8 @@ private fun parseModules(project: Project, excludedProjects: List<Project>): Lis
         contentRoots = listOf(PContentRoot(project.projectDir, listOf(), getExcludedDirs(project, excludedProjects))),
         orderRoots = emptyList(),
         kotlinOptions = null,
-        moduleForProductionSources = null
+        moduleForProductionSources = null,
+        embeddedDependencies = emptyList()
     )
 
     return modules
@@ -376,11 +383,7 @@ private fun parseDependencies(project: Project, sourceSet: PSourceSet): List<POr
 
     fun process(name: String, scope: Scope) {
         val configuration = project.configurations.findByName(name) ?: return
-        for (file in configuration.resolve()) {
-            val library = PLibrary(file.name, listOf(file))
-            val dependency = PDependency.ModuleLibrary(library)
-            roots += POrderRoot(dependency, scope)
-        }
+        roots += parseDependencies(configuration).map { POrderRoot(it, scope) }
     }
 
     process(sourceSet.compileClasspathConfigurationName, Scope.PROVIDED)
@@ -393,6 +396,13 @@ private fun parseDependencies(project: Project, sourceSet: PSourceSet): List<POr
     return roots
 }
 
+private fun parseDependencies(configuration: Configuration): List<PDependency> {
+    return configuration.resolve().map { file ->
+        val library = PLibrary(file.name, listOf(file))
+        return@map PDependency.ModuleLibrary(library)
+    }
+}
+
 val Project.pillModuleName: String
     get() = path.removePrefix(":").replace(':', '.')