diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/build.gradle.kts b/compiler/build-tools/kotlin-build-tools-api-tests/build.gradle.kts
index eb76bfa6f9e..c729c01bafd 100644
--- a/compiler/build-tools/kotlin-build-tools-api-tests/build.gradle.kts
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/build.gradle.kts
@@ -15,6 +15,8 @@ dependencies {
 kotlin {
     compilerOptions {
         optIn.add("org.jetbrains.kotlin.buildtools.api.ExperimentalBuildToolsApi")
+        optIn.add("kotlin.ExperimentalStdlibApi")
+        optIn.add("kotlin.io.path.ExperimentalPathApi")
     }
 }
 
diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/AbstractModule.kt b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/AbstractModule.kt
new file mode 100644
index 00000000000..4fb6da5ad3d
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/AbstractModule.kt
@@ -0,0 +1,39 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.tests.compilation.model
+
+import java.nio.file.Path
+
+abstract class AbstractModule(
+    val project: Project,
+    override val moduleName: String,
+    val moduleDirectory: Path,
+    val dependencies: List<Dependency>,
+    override val additionalCompilationArguments: List<String> = emptyList(),
+) : Module {
+    override val sourcesDirectory: Path
+        get() = moduleDirectory.resolve("src")
+
+    override val buildDirectory: Path
+        get() = moduleDirectory.resolve("build")
+
+    override val outputDirectory: Path
+        get() = buildDirectory.resolve("output")
+
+    override val location: Path
+        get() = outputDirectory
+
+    override val icWorkingDir: Path
+        get() = buildDirectory.resolve("ic")
+
+    override val snapshotFile: Path
+        get() = icWorkingDir.resolve("$moduleName.snapshot")
+
+    override val icCachesDir: Path
+        get() = icWorkingDir.resolve("caches")
+
+    override fun toString() = moduleName
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/BaseCompilationTest.kt b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/BaseCompilationTest.kt
new file mode 100644
index 00000000000..da7234e46e8
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/BaseCompilationTest.kt
@@ -0,0 +1,14 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.tests.compilation.model
+
+import org.junit.jupiter.api.io.TempDir
+import java.nio.file.Path
+
+abstract class BaseCompilationTest {
+    @TempDir
+    lateinit var workingDirectory: Path
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/DefaultStrategyAgnosticCompilationTest.kt b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/DefaultStrategyAgnosticCompilationTest.kt
new file mode 100644
index 00000000000..a3b714bd928
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/DefaultStrategyAgnosticCompilationTest.kt
@@ -0,0 +1,18 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.tests.compilation.model
+
+import org.junit.jupiter.params.ParameterizedTest
+import org.junit.jupiter.params.provider.ArgumentsSource
+
+@Target(AnnotationTarget.FUNCTION, AnnotationTarget.PROPERTY_GETTER, AnnotationTarget.PROPERTY_SETTER)
+@Retention(AnnotationRetention.RUNTIME)
+@ParameterizedTest(name = "{0}: {displayName}")
+@ArgumentsSource(
+    DefaultStrategyAgnosticCompilationTestArgumentProvider::class
+)
+annotation class DefaultStrategyAgnosticCompilationTest
+
diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/DefaultStrategyAgnosticCompilationTestArgumentProvider.kt b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/DefaultStrategyAgnosticCompilationTestArgumentProvider.kt
new file mode 100644
index 00000000000..4f3f39a6c29
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/DefaultStrategyAgnosticCompilationTestArgumentProvider.kt
@@ -0,0 +1,25 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.tests.compilation.model
+
+import org.jetbrains.kotlin.buildtools.api.CompilationService
+import org.junit.jupiter.api.Named.named
+import org.junit.jupiter.api.extension.ExtensionContext
+import org.junit.jupiter.params.provider.Arguments
+import org.junit.jupiter.params.provider.ArgumentsProvider
+import java.util.stream.Stream
+import kotlin.streams.asStream
+
+class DefaultStrategyAgnosticCompilationTestArgumentProvider : ArgumentsProvider {
+    private val compilationService = CompilationService.loadImplementation(this.javaClass.classLoader)
+
+    override fun provideArguments(context: ExtensionContext): Stream<out Arguments> {
+        return sequenceOf(
+            named("in-process", compilationService.makeCompilerExecutionStrategyConfiguration().useInProcessStrategy()),
+            named("within daemon", compilationService.makeCompilerExecutionStrategyConfiguration().useDaemonStrategy(emptyList())),
+        ).map { Arguments.of(it) }.asStream()
+    }
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Dependency.kt b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Dependency.kt
new file mode 100644
index 00000000000..b0982e9253a
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Dependency.kt
@@ -0,0 +1,13 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.tests.compilation.model
+
+import java.nio.file.Path
+
+interface Dependency {
+    val location: Path
+    val snapshotFile: Path
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/JvmModule.kt b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/JvmModule.kt
new file mode 100644
index 00000000000..a434526f999
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/JvmModule.kt
@@ -0,0 +1,116 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.tests.compilation.model
+
+import org.jetbrains.kotlin.buildtools.api.CompilationResult
+import org.jetbrains.kotlin.buildtools.api.CompilationService
+import org.jetbrains.kotlin.buildtools.api.CompilerExecutionStrategyConfiguration
+import org.jetbrains.kotlin.buildtools.api.SourcesChanges
+import org.jetbrains.kotlin.buildtools.api.jvm.AccessibleClassSnapshot
+import org.jetbrains.kotlin.buildtools.api.jvm.ClassSnapshotGranularity
+import org.jetbrains.kotlin.buildtools.api.jvm.ClasspathSnapshotBasedIncrementalCompilationApproachParameters
+import org.jetbrains.kotlin.buildtools.api.jvm.JvmCompilationConfiguration
+import org.jetbrains.kotlin.buildtools.api.tests.buildToolsVersion
+import org.jetbrains.kotlin.tooling.core.KotlinToolingVersion
+import java.io.File
+import java.nio.file.Path
+import kotlin.io.path.absolutePathString
+import kotlin.io.path.createParentDirectories
+import kotlin.io.path.listDirectoryEntries
+import kotlin.io.path.toPath
+
+class JvmModule(
+    project: Project,
+    moduleName: String,
+    moduleDirectory: Path,
+    dependencies: List<Dependency>,
+    additionalCompilationArguments: List<String> = emptyList(),
+) : AbstractModule(
+    project,
+    moduleName,
+    moduleDirectory,
+    dependencies,
+    additionalCompilationArguments,
+) {
+    private val compilationService = CompilationService.loadImplementation(this.javaClass.classLoader)
+
+    override fun compile(
+        strategyConfig: CompilerExecutionStrategyConfiguration,
+        compilationConfigAction: (JvmCompilationConfiguration) -> Unit,
+    ): CompilationResult {
+        val stdlibLocation =
+            KotlinVersion::class.java.protectionDomain.codeSource.location.toURI().toPath() // compile against the provided stdlib
+        val dependencyFiles = dependencies.map { it.location }.plusElement(stdlibLocation)
+        val compilationConfig = compilationService.makeJvmCompilationConfiguration()
+        compilationConfigAction(compilationConfig)
+        val defaultCompilationArguments = listOf(
+            "-no-reflect",
+            "-no-stdlib",
+            "-d", outputDirectory.absolutePathString(),
+            "-cp", dependencyFiles.joinToString(File.pathSeparator),
+            "-module-name", moduleName,
+        )
+        return compilationService.compileJvm(
+            project.projectId,
+            strategyConfig,
+            compilationConfig,
+            sourcesDirectory.listDirectoryEntries().map { it.toFile() },
+            defaultCompilationArguments + additionalCompilationArguments,
+        )
+    }
+
+    private fun generateClasspathSnapshot(dependency: Dependency): Path {
+        val snapshot =
+            compilationService.calculateClasspathSnapshot(dependency.location.toFile(), ClassSnapshotGranularity.CLASS_MEMBER_LEVEL)
+        val hash = snapshot.classSnapshots.values
+            .filterIsInstance<AccessibleClassSnapshot>()
+            .withIndex()
+            .sumOf { (index, snapshot) -> index * 31 + snapshot.classAbiHash }
+        // see details in docs for `CachedClasspathSnapshotSerializer` for details why we can't use a fixed name
+        val snapshotFile = icWorkingDir.resolve("dep-$hash.snapshot")
+        snapshotFile.createParentDirectories()
+        snapshot.saveSnapshot(snapshotFile.toFile())
+        return snapshotFile
+    }
+
+    override fun compileIncrementally(
+        strategyConfig: CompilerExecutionStrategyConfiguration,
+        sourcesChanges: SourcesChanges,
+        forceNonIncrementalCompilation: Boolean,
+        compilationConfigAction: (JvmCompilationConfiguration) -> Unit,
+    ): CompilationResult {
+        return compile(strategyConfig) { compilationConfig ->
+            val snapshots = dependencies.map {
+                generateClasspathSnapshot(it).toFile()
+            }
+            val shrunkClasspathSnapshotFile = icWorkingDir.resolve("shrunk-classpath-snapshot.bin")
+            val params = ClasspathSnapshotBasedIncrementalCompilationApproachParameters(
+                snapshots,
+                shrunkClasspathSnapshotFile.toFile()
+            )
+
+            val options = compilationConfig.makeClasspathSnapshotBasedIncrementalCompilationConfiguration()
+            options.setBuildDir(buildDirectory.toFile())
+            options.setRootProjectDir(project.projectDirectory.toFile())
+
+            if (buildToolsVersion < KotlinToolingVersion(2, 0, 0, "Beta2")) {
+                // workaround for the incorrect default value
+                options.useOutputDirs(setOf(icCachesDir.toFile(), outputDirectory.toFile()))
+            }
+
+            if (forceNonIncrementalCompilation) {
+                options.forceNonIncrementalMode()
+            }
+
+            compilationConfig.useIncrementalCompilation(
+                icCachesDir.toFile(),
+                sourcesChanges,
+                params,
+                options,
+            )
+        }
+    }
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Module.kt b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Module.kt
new file mode 100644
index 00000000000..bb3950a9579
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Module.kt
@@ -0,0 +1,34 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.tests.compilation.model
+
+import org.jetbrains.kotlin.buildtools.api.CompilationResult
+import org.jetbrains.kotlin.buildtools.api.CompilerExecutionStrategyConfiguration
+import org.jetbrains.kotlin.buildtools.api.SourcesChanges
+import org.jetbrains.kotlin.buildtools.api.jvm.JvmCompilationConfiguration
+import java.nio.file.Path
+
+interface Module : Dependency {
+    val moduleName: String
+    val additionalCompilationArguments: List<String>
+    val sourcesDirectory: Path
+    val buildDirectory: Path
+    val outputDirectory: Path
+    val icWorkingDir: Path
+    val icCachesDir: Path
+
+    fun compile(
+        strategyConfig: CompilerExecutionStrategyConfiguration,
+        compilationConfigAction: (JvmCompilationConfiguration) -> Unit = {},
+    ): CompilationResult
+
+    fun compileIncrementally(
+        strategyConfig: CompilerExecutionStrategyConfiguration,
+        sourcesChanges: SourcesChanges,
+        forceNonIncrementalCompilation: Boolean = false,
+        compilationConfigAction: (JvmCompilationConfiguration) -> Unit = {},
+    ): CompilationResult
+}
\ No newline at end of file
diff --git a/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Project.kt b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Project.kt
new file mode 100644
index 00000000000..e2fdb430c38
--- /dev/null
+++ b/compiler/build-tools/kotlin-build-tools-api-tests/src/testCommon/kotlin/compilation/model/Project.kt
@@ -0,0 +1,40 @@
+/*
+ * Copyright 2010-2023 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.buildtools.api.tests.compilation.model
+
+import org.jetbrains.kotlin.buildtools.api.ProjectId
+import java.nio.file.Path
+import java.nio.file.Paths
+import java.util.*
+import kotlin.io.path.copyToRecursively
+import kotlin.io.path.createDirectories
+import kotlin.io.path.isDirectory
+
+class Project(
+    val projectDirectory: Path,
+) {
+    val projectId = ProjectId.ProjectUUID(UUID.randomUUID())
+
+    fun module(
+        moduleName: String,
+        dependencies: List<Module> = emptyList(),
+        additionalCompilationArguments: List<String> = emptyList(),
+    ): Module {
+        val moduleDirectory = projectDirectory.resolve(moduleName)
+        val module = JvmModule(this, moduleName, moduleDirectory, dependencies, additionalCompilationArguments)
+        module.sourcesDirectory.createDirectories()
+        val templatePath = Paths.get("src/testCommon/resources/modules/$moduleName")
+        assert(templatePath.isDirectory()) {
+            "Template for $moduleName not found. Expected template directory path is $templatePath"
+        }
+        templatePath.copyToRecursively(module.sourcesDirectory, followLinks = false)
+        return module
+    }
+}
+
+fun BaseCompilationTest.project(action: Project.() -> Unit) {
+    Project(workingDirectory).action()
+}
\ No newline at end of file