diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/ExecutionStrategyIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/ExecutionStrategyIT.kt
index d736fb02e28..92d7e59bc0b 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/ExecutionStrategyIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/ExecutionStrategyIT.kt
@@ -101,6 +101,7 @@ abstract class ExecutionStrategyIT : KGPDaemonsBaseTest() {
             projectName = "kotlinBuiltins",
             gradleVersion = gradleVersion,
             addHeapDumpOptions = false,
+            enableKotlinDaemonMemoryLimitInMb = null,
             buildOptions = defaultBuildOptions.copy(
                 useDaemonFallbackStrategy = false,
                 compilerExecutionStrategy = KotlinCompilerExecutionStrategy.DAEMON,
@@ -123,6 +124,7 @@ abstract class ExecutionStrategyIT : KGPDaemonsBaseTest() {
         project(
             projectName = "kotlinBuiltins",
             gradleVersion = gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = null,
             addHeapDumpOptions = false
         ) {
             setupProject(this)
@@ -203,6 +205,7 @@ abstract class ExecutionStrategyIT : KGPDaemonsBaseTest() {
             projectName = "kotlinBuiltins",
             gradleVersion = gradleVersion,
             addHeapDumpOptions = addHeapDumpOptions,
+            enableKotlinDaemonMemoryLimitInMb = if (shouldConfigureStrategyViaGradleProperty) null else 1024,
             buildOptions = defaultBuildOptions.copy(
                 useDaemonFallbackStrategy = testFallbackStrategy,
                 compilerExecutionStrategy = if (shouldConfigureStrategyViaGradleProperty) {
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/Kapt3IT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/Kapt3IT.kt
index d443de2604f..1085f767037 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/Kapt3IT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/Kapt3IT.kt
@@ -152,7 +152,7 @@ open class Kapt3IT : Kapt3BaseIT() {
     @DisplayName("Kapt is skipped when no annotation processors are added")
     @GradleTest
     fun testKaptSkipped(gradleVersion: GradleVersion) {
-        project("kaptSkipped".withPrefix, gradleVersion) {
+        project("kaptSkipped".withPrefix, gradleVersion, enableKotlinDaemonMemoryLimitInMb = 2048) {
             build("build") {
                 assertTasksSkipped(":kaptGenerateStubsKotlin", ":kaptKotlin")
             }
@@ -162,7 +162,7 @@ open class Kapt3IT : Kapt3BaseIT() {
     @DisplayName("Kapt is not skipped when all annotation processors are declared as indirect dependencies")
     @GradleTest
     fun testKaptNotSkippedWithIndirectDependencies(gradleVersion: GradleVersion) {
-        project("indirectDependencies".withPrefix, gradleVersion) {
+        project("indirectDependencies".withPrefix, gradleVersion, enableKotlinDaemonMemoryLimitInMb = 2048) {
             build("assemble") {
                 assertTasksExecuted(":kaptGenerateStubsKotlin", ":kaptKotlin")
             }
@@ -179,6 +179,7 @@ open class Kapt3IT : Kapt3BaseIT() {
         project(
             "simple".withPrefix,
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048,
         ) {
             //language=Groovy
             buildGradle.appendText(
@@ -208,7 +209,8 @@ open class Kapt3IT : Kapt3BaseIT() {
     ) {
         project(
             "simple".withPrefix,
-            gradleVersion
+            gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048
         ) {
             //language=Groovy
             buildGradle.appendText(
@@ -337,7 +339,7 @@ open class Kapt3IT : Kapt3BaseIT() {
     @DisplayName("Kapt tasks is up-to-date on the second run")
     @GradleTest
     fun testSimple(gradleVersion: GradleVersion) {
-        project("simple".withPrefix, gradleVersion) {
+        project("simple".withPrefix, gradleVersion, enableKotlinDaemonMemoryLimitInMb = 2048) {
 
             build("build") {
                 assertKaptSuccessful()
@@ -551,6 +553,7 @@ open class Kapt3IT : Kapt3BaseIT() {
         project(
             "incrementalRebuild".withPrefix,
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048,
             buildOptions = defaultBuildOptions.copy(incremental = true)
         ) {
             val generatedSrc = "build/generated/source/kapt/main"
@@ -586,6 +589,7 @@ open class Kapt3IT : Kapt3BaseIT() {
         project(
             "simple".withPrefix,
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048,
             buildOptions = defaultBuildOptions.copy(incremental = true)
         ) {
             val internalDummyKt = javaSourcesDir().resolve("foo/InternalDummy.kt")
@@ -634,6 +638,7 @@ open class Kapt3IT : Kapt3BaseIT() {
         project(
             "simple".withPrefix,
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048,
             buildOptions = defaultBuildOptions.copy(logLevel = LogLevel.DEBUG)
         ) {
             val arg = "-Xsuppress-version-warnings"
@@ -658,7 +663,7 @@ open class Kapt3IT : Kapt3BaseIT() {
     @DisplayName("generates Kotlin code")
     @GradleTest
     fun testOutputKotlinCode(gradleVersion: GradleVersion) {
-        project("kaptOutputKotlinCode".withPrefix, gradleVersion) {
+        project("kaptOutputKotlinCode".withPrefix, gradleVersion, enableKotlinDaemonMemoryLimitInMb = 2048) {
             build("build") {
                 assertKaptSuccessful()
                 assertFileExists(projectPath.resolve("build/generated/source/kapt/main/example/TestClassCustomized.java"))
@@ -672,7 +677,7 @@ open class Kapt3IT : Kapt3BaseIT() {
     @DisplayName("location mapping is working as expected")
     @GradleTest
     fun testLocationMapping(gradleVersion: GradleVersion) {
-        project("locationMapping".withPrefix, gradleVersion) {
+        project("locationMapping".withPrefix, gradleVersion, enableKotlinDaemonMemoryLimitInMb = 2048) {
             val regex = "((Test\\.java)|(test\\.kt)):(\\d+): error: GenError element".toRegex()
 
             fun BuildResult.getErrorMessages(): String =
@@ -804,7 +809,7 @@ open class Kapt3IT : Kapt3BaseIT() {
     @DisplayName("up-to-date checks are working")
     @GradleTest
     fun testKaptAvoidance(gradleVersion: GradleVersion) {
-        project("kaptAvoidance".withPrefix, gradleVersion) {
+        project("kaptAvoidance".withPrefix, gradleVersion, enableKotlinDaemonMemoryLimitInMb = 2048) {
 
             subProject("app").buildGradle.modify {
                 "$it\n\nkapt.includeCompileClasspath = true"
@@ -1059,6 +1064,7 @@ open class Kapt3IT : Kapt3BaseIT() {
         project(
             "jpms-module".withPrefix,
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048,
         ) {
             build("assemble") {
                 assertTasksExecuted(":kaptKotlin", ":kaptGenerateStubsKotlin", ":compileKotlin", ":compileJava")
@@ -1089,6 +1095,7 @@ open class Kapt3IT : Kapt3BaseIT() {
         project(
             "incrementalRebuild".withPrefix,
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048,
             buildOptions = defaultBuildOptions.withConfigurationCache
         ) {
             build("assemble")
@@ -1158,7 +1165,7 @@ open class Kapt3IT : Kapt3BaseIT() {
     @DisplayName("Generated sources attached to KotlinSourceSet are also used by generate stubs task")
     @GradleTest
     fun testGeneratedSourcesUsedInGenerateStubsTask(gradleVersion: GradleVersion) {
-        project("generatedSources".withPrefix, gradleVersion) {
+        project("generatedSources".withPrefix, gradleVersion, enableKotlinDaemonMemoryLimitInMb = 2048) {
             build("assemble")
         }
     }
@@ -1191,6 +1198,7 @@ open class Kapt3IT : Kapt3BaseIT() {
         project(
             "simple".withPrefix,
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048,
             buildOptions = defaultBuildOptions.copy(logLevel = LogLevel.DEBUG)
         ) {
             buildGradle.appendText(
@@ -1379,6 +1387,7 @@ open class Kapt3IT : Kapt3BaseIT() {
         project(
             "simple".withPrefix,
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = 2048,
             buildOptions = defaultBuildOptions.copy(logLevel = LogLevel.DEBUG)
         ) {
 
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinDaemonIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinDaemonIT.kt
index 60ddf20894c..12d163d3e15 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinDaemonIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinDaemonIT.kt
@@ -23,7 +23,7 @@ import org.gradle.tooling.internal.consumer.ConnectorServices
 import org.gradle.util.GradleVersion
 import org.jetbrains.kotlin.compilerRunner.*
 import org.jetbrains.kotlin.gradle.testbase.*
-import org.junit.jupiter.api.Assumptions.assumeFalse
+import org.junit.jupiter.api.Disabled
 import org.junit.jupiter.api.DisplayName
 import java.nio.file.Paths
 import kotlin.test.assertTrue
@@ -108,6 +108,7 @@ class KotlinDaemonIT : KGPDaemonsBaseTest() {
         project(
             "kotlinProject",
             gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = null,
             buildOptions = defaultBuildOptions.copy(logLevel = LogLevel.INFO)
         ) {
             gradleProperties.append(
@@ -156,11 +157,11 @@ class KotlinDaemonIT : KGPDaemonsBaseTest() {
     }
 
     @DisplayName("KT-57154: Compiler should use specified toolchain regardless of Gradle Runtime JDK")
+    @Disabled("KT-58894: re-enable once fixed")
     @JdkVersions(versions = [JavaVersion.VERSION_1_8, JavaVersion.VERSION_11, JavaVersion.VERSION_17])
     @GradleWithJdkTest
     @GradleTestVersions(minVersion = TestVersions.Gradle.MAX_SUPPORTED)
     internal fun testCompilerRuntimeJdkToolchainIndependence(gradleVersion: GradleVersion, jdkVersion: JdkVersions.ProvidedJdk) {
-        assumeFalse(defaultBuildOptions.isK2ByDefault, "KT-58894")
         project(
             projectName = "kotlin-java-toolchain/onlyJdk11Compatible",
             gradleVersion = gradleVersion,
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinDaemonJvmArgsTest.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinDaemonJvmArgsTest.kt
index 2073560c184..46cb3d18212 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinDaemonJvmArgsTest.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinDaemonJvmArgsTest.kt
@@ -9,6 +9,7 @@ import org.gradle.api.logging.LogLevel
 import org.gradle.util.GradleVersion
 import org.jetbrains.kotlin.gradle.testbase.*
 import org.junit.jupiter.api.DisplayName
+import kotlin.io.path.writeText
 
 @DisplayName("Kotlin daemon JVM args")
 class KotlinDaemonJvmArgsTest : KGPDaemonsBaseTest() {
@@ -18,7 +19,7 @@ class KotlinDaemonJvmArgsTest : KGPDaemonsBaseTest() {
     @GradleTest
     @DisplayName("Kotlin daemon by default should inherit Gradle daemon max jvm heap size")
     internal fun shouldInheritGradleDaemonArgsByDefault(gradleVersion: GradleVersion) {
-        project("simpleProject", gradleVersion) {
+        project("simpleProject", gradleVersion, enableKotlinDaemonMemoryLimitInMb = null) {
             gradleProperties.append(
                 """
                 org.gradle.jvmargs = -Xmx758m
@@ -36,7 +37,7 @@ class KotlinDaemonJvmArgsTest : KGPDaemonsBaseTest() {
     @DisplayName("Kotlin daemon should allow to define own jvm options via gradle daemon jvm args system property")
     @GradleTest
     internal fun shouldAllowToRedefineViaDGradleOption(gradleVersion: GradleVersion) {
-        project("simpleProject", gradleVersion) {
+        project("simpleProject", gradleVersion, enableKotlinDaemonMemoryLimitInMb = null) {
             gradleProperties.append(
                 """
                 org.gradle.jvmargs =-Xmx758m -Dkotlin.daemon.jvm.options=Xmx1g,Xms128m
@@ -54,8 +55,8 @@ class KotlinDaemonJvmArgsTest : KGPDaemonsBaseTest() {
     @DisplayName("Jvm args defined in gradle.properties should override Gradle daemon jvm arguments inheritance")
     @GradleTest
     internal fun shouldUseArgumentsFromGradleProperties(gradleVersion: GradleVersion) {
-        project("simpleProject", gradleVersion) {
-            gradleProperties.append(
+        project("simpleProject", gradleVersion, enableKotlinDaemonMemoryLimitInMb = null) {
+            gradleProperties.writeText(
                 """
                 org.gradle.jvmargs =-Xmx758m -Xms128m
                 kotlin.daemon.jvmargs = -Xmx486m -Xms256m
@@ -73,7 +74,7 @@ class KotlinDaemonJvmArgsTest : KGPDaemonsBaseTest() {
     @DisplayName("Should use arguments from extension DSL")
     @GradleTest
     internal fun shouldUseDslArguments(gradleVersion: GradleVersion) {
-        project("simpleProject", gradleVersion) {
+        project("simpleProject", gradleVersion, enableKotlinDaemonMemoryLimitInMb = null) {
             gradleProperties.append(
                 """
                 org.gradle.jvmargs =-Xmx758m -Xms128m
@@ -104,9 +105,10 @@ class KotlinDaemonJvmArgsTest : KGPDaemonsBaseTest() {
     internal fun allowOverrideArgsForSpecificTask(gradleVersion: GradleVersion) {
         project(
             projectName = "simpleProject",
-            gradleVersion = gradleVersion
+            gradleVersion = gradleVersion,
+            enableKotlinDaemonMemoryLimitInMb = null
         ) {
-            gradleProperties.append(
+            gradleProperties.writeText(
                 """
                 org.gradle.jvmargs = -Xmx758m -Xms128m
                 kotlin.daemon.jvmargs = -Xmx486m -Xms256m
@@ -143,7 +145,7 @@ class KotlinDaemonJvmArgsTest : KGPDaemonsBaseTest() {
     @DisplayName("Should inherit Gradle memory settings if it is not set in Kotlin daemon jvm args")
     @GradleTest
     fun inheritGradleMemorySettingsIfKotlinArgsNotContain(gradleVersion: GradleVersion) {
-        project("simpleProject", gradleVersion) {
+        project("simpleProject", gradleVersion, enableKotlinDaemonMemoryLimitInMb = null) {
             gradleProperties.append(
                 """
                 org.gradle.jvmargs =-Xmx758m -Xms128m
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/testbase/testDsl.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/testbase/testDsl.kt
index 0b67d5d48a2..51f9d6deb8b 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/testbase/testDsl.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/testbase/testDsl.kt
@@ -32,6 +32,8 @@ import kotlin.test.assertTrue
  * @param [projectName] test project name in `src/test/resources/testProject` directory.
  * @param [buildOptions] common Gradle build options
  * @param [buildJdk] path to JDK build should run with. *Note* Only append to 'gradle.properties'!
+ * @param [enableKotlinDaemonMemoryLimitInMb] limit max heap size for Kotlin Daemon.
+ * `null` enables the default limit inherited from the Gradle process.
  */
 @OptIn(EnvironmentalVariablesOverride::class)
 fun KGPBaseTest.project(
@@ -42,6 +44,7 @@ fun KGPBaseTest.project(
     enableBuildScan: Boolean = false,
     addHeapDumpOptions: Boolean = true,
     enableGradleDebug: Boolean = false,
+    enableKotlinDaemonMemoryLimitInMb: Int? = 1024,
     projectPathAdditionalSuffix: String = "",
     buildJdk: File? = null,
     localRepoDir: Path? = null,
@@ -76,6 +79,7 @@ fun KGPBaseTest.project(
         forceOutput = forceOutput,
         enableBuildScan = enableBuildScan,
         enableGradleDebug = enableGradleDebug,
+        enableKotlinDaemonMemoryLimitInMb = enableKotlinDaemonMemoryLimitInMb,
         environmentVariables = environmentVariables
     )
     addHeapDumpOptions.ifTrue { testProject.addHeapDumpOptions() }
@@ -98,6 +102,8 @@ fun KGPBaseTest.project(
  * @param [projectName] test project name in 'src/test/resources/testProject` directory.
  * @param [buildOptions] common Gradle build options
  * @param [buildJdk] path to JDK build should run with. *Note* Only append to 'gradle.properties'!
+ * @param [enableKotlinDaemonMemoryLimitInMb] limit max heap size for Kotlin Daemon.
+ * `null` enables the default limit inherited from the Gradle process.
  */
 @OptIn(EnvironmentalVariablesOverride::class)
 fun KGPBaseTest.nativeProject(
@@ -108,6 +114,7 @@ fun KGPBaseTest.nativeProject(
     enableBuildScan: Boolean = false,
     addHeapDumpOptions: Boolean = true,
     enableGradleDebug: Boolean = false,
+    enableKotlinDaemonMemoryLimitInMb: Int? = 1024,
     projectPathAdditionalSuffix: String = "",
     buildJdk: File? = null,
     localRepoDir: Path? = null,
@@ -123,6 +130,7 @@ fun KGPBaseTest.nativeProject(
         enableBuildScan = enableBuildScan,
         addHeapDumpOptions = addHeapDumpOptions,
         enableGradleDebug = enableGradleDebug,
+        enableKotlinDaemonMemoryLimitInMb = enableKotlinDaemonMemoryLimitInMb,
         projectPathAdditionalSuffix = projectPathAdditionalSuffix,
         buildJdk = buildJdk,
         localRepoDir = localRepoDir,
@@ -143,6 +151,7 @@ fun TestProject.build(
     kotlinDaemonDebugPort: Int? = this.kotlinDaemonDebugPort,
     enableBuildCacheDebug: Boolean = false,
     enableBuildScan: Boolean = this.enableBuildScan,
+    enableKotlinDaemonMemoryLimitInMb: Int? = this.enableKotlinDaemonMemoryLimitInMb,
     buildOptions: BuildOptions = this.buildOptions,
     environmentVariables: EnvironmentalVariables = this.environmentVariables,
     assertions: BuildResult.() -> Unit = {},
@@ -155,6 +164,7 @@ fun TestProject.build(
         buildOptions,
         enableBuildCacheDebug,
         enableBuildScan,
+        enableKotlinDaemonMemoryLimitInMb,
         gradleVersion,
         kotlinDaemonDebugPort
     )
@@ -182,6 +192,7 @@ fun TestProject.buildAndFail(
     enableBuildCacheDebug: Boolean = false,
     enableBuildScan: Boolean = this.enableBuildScan,
     buildOptions: BuildOptions = this.buildOptions,
+    enableKotlinDaemonMemoryLimitInMb: Int? = this.enableKotlinDaemonMemoryLimitInMb,
     environmentVariables: EnvironmentalVariables = this.environmentVariables,
     assertions: BuildResult.() -> Unit = {},
 ) {
@@ -193,6 +204,7 @@ fun TestProject.buildAndFail(
         buildOptions,
         enableBuildCacheDebug,
         enableBuildScan,
+        enableKotlinDaemonMemoryLimitInMb,
         gradleVersion,
         kotlinDaemonDebugPort
     )
@@ -233,6 +245,7 @@ internal inline fun <reified T> TestProject.getModels(
         buildOptions,
         false,
         enableBuildScan,
+        enableKotlinDaemonMemoryLimitInMb,
         gradleVersion
     )
 
@@ -350,6 +363,7 @@ class TestProject(
     val gradleVersion: GradleVersion,
     val forceOutput: Boolean,
     val enableBuildScan: Boolean,
+    val enableKotlinDaemonMemoryLimitInMb: Int?,
     /**
      * Whether the test and the Gradle build launched by the test should be executed in the same process so that we can use the same
      * debugger for both (see https://docs.gradle.org/current/javadoc/org/gradle/testkit/runner/GradleRunner.html#isDebug--).
@@ -413,6 +427,7 @@ private fun commonBuildSetup(
     buildOptions: BuildOptions,
     enableBuildCacheDebug: Boolean,
     enableBuildScan: Boolean,
+    enableKotlinDaemonMemoryLimitInMb: Int?,
     gradleVersion: GradleVersion,
     kotlinDaemonDebugPort: Int? = null,
 ): List<String> {
@@ -429,6 +444,10 @@ private fun commonBuildSetup(
         // Decreasing Gradle daemon idle timeout to 1 min from default 3 hours.
         // This should help with OOM on CI when agents do not have enough free memory available.
         "-Dorg.gradle.daemon.idletimeout=60000",
+        if (enableKotlinDaemonMemoryLimitInMb != null) {
+            // Limiting Kotlin daemon heap size to reduce memory pressure on CI agents
+            "-Pkotlin.daemon.jvmargs=-Xmx${enableKotlinDaemonMemoryLimitInMb}m"
+        } else null,
         if (enableBuildCacheDebug) "-Dorg.gradle.caching.debug=true" else null,
         if (enableBuildScan) "--scan" else null,
         kotlinDaemonDebugPort?.let {