diff --git a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/plugin/diagnostics/ToolingDiagnosticRenderingOptions.kt b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/plugin/diagnostics/ToolingDiagnosticRenderingOptions.kt
index 8db299f8362..dd2edf05618 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/plugin/diagnostics/ToolingDiagnosticRenderingOptions.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/plugin/diagnostics/ToolingDiagnosticRenderingOptions.kt
@@ -7,19 +7,28 @@ package org.jetbrains.kotlin.gradle.plugin.diagnostics
 
 import org.gradle.api.Project
 import org.gradle.api.logging.configuration.ShowStacktrace
+import org.jetbrains.kotlin.gradle.internal.isInIdeaSync
 import org.jetbrains.kotlin.gradle.plugin.PropertiesProvider.Companion.kotlinPropertiesProvider
 
 internal class ToolingDiagnosticRenderingOptions(
     val useParsableFormat: Boolean,
     val suppressedWarningIds: List<String>,
     val suppressedErrorIds: List<String>,
-    val showStacktrace: Boolean
+    val showStacktrace: Boolean,
 ) {
     companion object {
         fun forProject(project: Project): ToolingDiagnosticRenderingOptions {
             return with(project.kotlinPropertiesProvider) {
-                val showStacktrace = internalDiagnosticsShowStacktrace
-                    ?: (project.gradle.startParameter.showStacktrace > ShowStacktrace.INTERNAL_EXCEPTIONS)
+                val showStacktrace = when {
+                    // if the internal property is specified, it takes the highest priority
+                    internalDiagnosticsShowStacktrace != null -> internalDiagnosticsShowStacktrace!!
+
+                    // IDEA launches sync with `--stacktrace` option, but we don't want to
+                    // spam stacktraces in build toolwindow
+                    project.isInIdeaSync -> false
+
+                    else -> project.gradle.startParameter.showStacktrace > ShowStacktrace.INTERNAL_EXCEPTIONS
+                }
 
                 ToolingDiagnosticRenderingOptions(
                     internalDiagnosticsUseParsableFormat,
diff --git a/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/unitTests/KotlinMultiplatformAndroidGradlePluginCompatibilityHealthCheckTest.kt b/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/unitTests/KotlinMultiplatformAndroidGradlePluginCompatibilityHealthCheckTest.kt
index b423cb874a3..ca67dea0ec3 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/unitTests/KotlinMultiplatformAndroidGradlePluginCompatibilityHealthCheckTest.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/unitTests/KotlinMultiplatformAndroidGradlePluginCompatibilityHealthCheckTest.kt
@@ -183,7 +183,7 @@ class KotlinMultiplatformAndroidGradlePluginCompatibilityHealthCheckTest {
     @Test
     fun `test WhenAndroidIsApplied - android is applied after the health check call`() {
         val project = ProjectBuilder.builder().build()
-        project.gradle.registerConfigurationTimePropertiesAccessorForTests()
+        project.gradle.registerMinimalVariantImplementationFactoriesForTests()
 
         project.runMultiplatformAndroidGradlePluginCompatibilityHealthCheckWhenAndroidIsApplied(
             FixedAndroidGradlePluginVersionProvider(null)
@@ -200,7 +200,7 @@ class KotlinMultiplatformAndroidGradlePluginCompatibilityHealthCheckTest {
     @Test
     fun `test - WhenAndroidIsApplied - android is applied before the health check call`() {
         val project = ProjectBuilder.builder().build()
-        project.gradle.registerConfigurationTimePropertiesAccessorForTests()
+        project.gradle.registerMinimalVariantImplementationFactoriesForTests()
         addBuildEventsListenerRegistryMock(project)
         project.plugins.apply(LibraryPlugin::class.java)
 
@@ -214,7 +214,7 @@ class KotlinMultiplatformAndroidGradlePluginCompatibilityHealthCheckTest {
     @Test
     fun `test - WhenAndroidIsApplied - called multiple times - still emits only a single message`() {
         val project = ProjectBuilder.builder().build()
-        project.gradle.registerConfigurationTimePropertiesAccessorForTests()
+        project.gradle.registerMinimalVariantImplementationFactoriesForTests()
         addBuildEventsListenerRegistryMock(project)
         project.plugins.apply(LibraryPlugin::class.java)
 
diff --git a/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/util/variants.kt b/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/util/variants.kt
index 56d1e7bf4ab..4908ad67ed5 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/util/variants.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/util/variants.kt
@@ -7,16 +7,29 @@ package org.jetbrains.kotlin.gradle.util
 
 import org.gradle.api.invocation.Gradle
 import org.jetbrains.kotlin.gradle.plugin.VariantImplementationFactoriesConfigurator
+import org.jetbrains.kotlin.gradle.plugin.internal.*
 import org.jetbrains.kotlin.gradle.plugin.internal.ConfigurationTimePropertiesAccessor
 import org.jetbrains.kotlin.gradle.plugin.internal.DefaultConfigurationTimePropertiesAccessorVariantFactory
+import org.jetbrains.kotlin.gradle.plugin.internal.IdeaSyncDetector
+
 
 /**
- * [ConfigurationTimePropertiesAccessor] default factory is automatically registered in [org.jetbrains.kotlin.gradle.plugin.DefaultKotlinBasePlugin.apply]
- * This helper function is for simple tests that are testing granular logic without applying Kotlin plugin
+ * Configures some default factories that are usually automatically registered in
+ * [org.jetbrains.kotlin.gradle.plugin.DefaultKotlinBasePlugin.apply]
+ *
+ * This function can be used in some minimal tests that do not apply the full KGP plugin but still touch
+ * some parts of its code
  */
-fun Gradle.registerConfigurationTimePropertiesAccessorForTests() {
+fun Gradle.registerMinimalVariantImplementationFactoriesForTests() {
     VariantImplementationFactoriesConfigurator.get(gradle).putIfAbsent(
         ConfigurationTimePropertiesAccessor.ConfigurationTimePropertiesAccessorVariantFactory::class,
         DefaultConfigurationTimePropertiesAccessorVariantFactory()
     )
+
+    // Diagnostics need to know if we're in IDEA sync in order to decide whether the stacktrace
+    // should be reported
+    VariantImplementationFactoriesConfigurator.get(gradle).putIfAbsent(
+        IdeaSyncDetector.IdeaSyncDetectorVariantFactory::class,
+        DefaultIdeaSyncDetectorVariantFactory()
+    )
 }