diff --git a/prepare/compiler-client-embeddable/build.gradle.kts b/prepare/compiler-client-embeddable/build.gradle.kts
index f3fbd1f37c7..f0ec0b7c825 100644
--- a/prepare/compiler-client-embeddable/build.gradle.kts
+++ b/prepare/compiler-client-embeddable/build.gradle.kts
@@ -5,9 +5,8 @@ plugins {
     kotlin("jvm")
 }
 
-val testRuntimeCompilerJar by configurations.creating
-val testStdlibJar by configurations.creating
-val testScriptRuntimeJar by configurations.creating
+val testCompilerClasspath by configurations.creating
+val testCompilationClasspath by configurations.creating
 
 dependencies {
     embedded(project(":compiler:cli-common")) { isTransitive = false }
@@ -22,27 +21,23 @@ dependencies {
     testCompile(commonDep("junit:junit"))
     testCompile(project(":kotlin-test:kotlin-test-jvm"))
     testCompile(project(":kotlin-test:kotlin-test-junit"))
-    testRuntimeCompilerJar(project(":kotlin-compiler"))
-    testStdlibJar(kotlinStdlib())
-    testScriptRuntimeJar(project(":kotlin-script-runtime"))
+    testCompilerClasspath(project(":kotlin-compiler"))
+    testCompilerClasspath(project(":kotlin-scripting-compiler"))
+    testCompilerClasspath(project(":kotlin-daemon"))
+    testCompilationClasspath(kotlinStdlib())
+    testCompilationClasspath(project(":kotlin-script-runtime"))
 }
 
 sourceSets {
     "main" {}
-    "test" {
-        // TODO: move closer
-        java.srcDir("../../libraries/tools/kotlin-compiler-client-embeddable-test/src")
-    }
+    "test" { projectDefault() }
 }
 
 projectTest {
-    dependsOn(":dist")
-    workingDir = File(rootDir, "libraries/tools/kotlin-compiler-client-embeddable-test/src")
     doFirst {
         systemProperty("kotlin.test.script.classpath", testSourceSet.output.classesDirs.joinToString(File.pathSeparator))
-        systemProperty("compilerJar", testRuntimeCompilerJar.singleFile.canonicalPath)
-        systemProperty("stdlibJar", testStdlibJar.singleFile.canonicalPath)
-        systemProperty("scriptRuntimeJar", testScriptRuntimeJar.singleFile.canonicalPath)
+        systemProperty("compilerClasspath", testCompilerClasspath.asPath)
+        systemProperty("compilationClasspath", testCompilationClasspath.asPath)
     }
 }
 
diff --git a/libraries/tools/kotlin-compiler-client-embeddable-test/src/test/resources/scripts/simpleHelloWorld.kts b/prepare/compiler-client-embeddable/testData/scripts/simpleHelloWorld.kts
similarity index 100%
rename from libraries/tools/kotlin-compiler-client-embeddable-test/src/test/resources/scripts/simpleHelloWorld.kts
rename to prepare/compiler-client-embeddable/testData/scripts/simpleHelloWorld.kts
diff --git a/libraries/tools/kotlin-compiler-client-embeddable-test/src/test/kotlin/org/jetbrains/kotlin/compiler/client/CompilerClientIT.kt b/prepare/compiler-client-embeddable/tests/kotlin/org/jetbrains/kotlin/compiler/client/CompilerClientIT.kt
similarity index 88%
rename from libraries/tools/kotlin-compiler-client-embeddable-test/src/test/kotlin/org/jetbrains/kotlin/compiler/client/CompilerClientIT.kt
rename to prepare/compiler-client-embeddable/tests/kotlin/org/jetbrains/kotlin/compiler/client/CompilerClientIT.kt
index 9e676ff5b58..467d69d0f0a 100644
--- a/libraries/tools/kotlin-compiler-client-embeddable-test/src/test/kotlin/org/jetbrains/kotlin/compiler/client/CompilerClientIT.kt
+++ b/prepare/compiler-client-embeddable/tests/kotlin/org/jetbrains/kotlin/compiler/client/CompilerClientIT.kt
@@ -38,12 +38,11 @@ class CompilerClientIT {
     val workingDir = TemporaryFolder()
 
     private val compilerClasspath: List<File> by lazy {
-        listOf(fileFromProp("compilerJar", "kotlin-compiler.jar"))
+        filesFromProp("compilerClasspath", "kotlin-compiler.jar", "kotlin-daemon.jar")
     }
 
     private val compilationClasspath: List<File> by lazy {
-        listOf(fileFromProp("stdlibJar", "kotlin-stdlib.jar"),
-               fileFromProp("scriptRuntimeJar", "kotlin-script-runtime.jar"))
+        filesFromProp("compilationClasspath", "kotlin-stdlib.jar", "kotlin-script-runtime.jar")
     }
 
     private val clientAliveFile by lazy {
@@ -52,11 +51,11 @@ class CompilerClientIT {
         }
     }
 
-    private fun fileFromProp(propName: String, defaultPath: String) =
-            File((System.getProperty(propName) ?: defaultPath)).apply {
-                if (!exists())
-                    throw FileNotFoundException("cannot find $defaultPath ($this)")
-            }
+    private fun filesFromProp(propName: String, vararg defaultPaths: String): List<File> =
+        (System.getProperty(propName)?.split(File.pathSeparator) ?: defaultPaths.asList()).map {
+            File(it).takeIf(File::exists)
+                ?: throw FileNotFoundException("cannot find ($it)")
+        }
 
     private val compilerService: CompileService by lazy {
         val compilerId = CompilerId.makeCompilerId(compilerClasspath)
@@ -75,7 +74,7 @@ class CompilerClientIT {
     fun testSimpleScript() {
         val (out, code) = runCompiler(
                 "-cp", compilationClasspath.joinToString(File.pathSeparator) { it.canonicalPath },
-                File("../src/test/resources/scripts/simpleHelloWorld.kts").canonicalPath)
+                File("testData/scripts/simpleHelloWorld.kts").canonicalPath)
         assertEquals(0, code, "compilation failed:\n" + out + "\n")
     }