diff --git a/compiler/daemon/daemon-common/src/org/jetbrains/kotlin/daemon/common/DaemonParams.kt b/compiler/daemon/daemon-common/src/org/jetbrains/kotlin/daemon/common/DaemonParams.kt
index fb17db5b4ac..8fc00c78701 100644
--- a/compiler/daemon/daemon-common/src/org/jetbrains/kotlin/daemon/common/DaemonParams.kt
+++ b/compiler/daemon/daemon-common/src/org/jetbrains/kotlin/daemon/common/DaemonParams.kt
@@ -187,13 +187,14 @@ fun Iterable<String>.filterExtractProps(vararg groups: OptionsGroup, prefix: Str
 data class DaemonJVMOptions(
         var maxMemory: String = "",
         var maxPermSize: String = "",
+        var maxMetaspaceSize: String = "",
         var reservedCodeCacheSize: String = "",
         var jvmParams: MutableCollection<String> = arrayListOf()
 ) : OptionsGroup {
-
     override val mappers: List<PropMapper<*, *, *>>
         get() = listOf(StringPropMapper(this, DaemonJVMOptions::maxMemory, listOf("Xmx"), mergeDelimiter = ""),
                        StringPropMapper(this, DaemonJVMOptions::maxPermSize, listOf("XX:MaxPermSize"), mergeDelimiter = "="),
+                       StringPropMapper(this, DaemonJVMOptions::maxMetaspaceSize, listOf("XX:MaxMetaspaceSize"), mergeDelimiter = "="),
                        StringPropMapper(this, DaemonJVMOptions::reservedCodeCacheSize, listOf("XX:ReservedCodeCacheSize"), mergeDelimiter = "="),
                        restMapper)
 
@@ -279,11 +280,13 @@ fun configureDaemonJVMOptions(opts: DaemonJVMOptions,
         val targetOptions = if (inheritMemoryLimits) opts else DaemonJVMOptions()
         val otherArgs = jvmArguments.filterExtractProps(targetOptions.mappers, prefix = "-")
 
-        if (inheritMemoryLimits && opts.maxMemory.isBlank()) {
-            val maxMemBytes = Runtime.getRuntime().maxMemory()
-            // rounding up
-            val maxMemMegabytes = maxMemBytes / (1024 * 1024) + if (maxMemBytes % (1024 * 1024) == 0L) 0 else 1
-            opts.maxMemory = "${maxMemMegabytes}m"
+        if (inheritMemoryLimits) {
+            if (opts.maxMemory.isBlank()) {
+                val maxMemBytes = Runtime.getRuntime().maxMemory()
+                // rounding up
+                val maxMemMegabytes = maxMemBytes / (1024 * 1024) + if (maxMemBytes % (1024 * 1024) == 0L) 0 else 1
+                opts.maxMemory = "${maxMemMegabytes}m"
+            }
         }
 
         if (inheritOtherJvmOptions) {
@@ -365,7 +368,7 @@ private fun String.memToBytes(): Long? =
 
 
 private val daemonJVMOptionsMemoryProps =
-    listOf(DaemonJVMOptions::maxMemory, DaemonJVMOptions::maxPermSize, DaemonJVMOptions::reservedCodeCacheSize)
+    listOf(DaemonJVMOptions::maxMemory, DaemonJVMOptions::maxPermSize, DaemonJVMOptions::maxMetaspaceSize, DaemonJVMOptions::reservedCodeCacheSize)
 
 infix fun DaemonJVMOptions.memorywiseFitsInto(other: DaemonJVMOptions): Boolean =
         daemonJVMOptionsMemoryProps
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 99480c07726..aa295f966cc 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
@@ -1,8 +1,10 @@
 package org.jetbrains.kotlin.gradle
 
+import org.gradle.util.GradleVersion
 import org.jetbrains.kotlin.gradle.util.checkedReplace
 import org.jetbrains.kotlin.gradle.util.getFileByName
 import org.jetbrains.kotlin.gradle.util.modify
+import org.junit.Assert
 import org.junit.Test
 import java.io.File
 
@@ -64,11 +66,24 @@ abstract class ExecutionStrategyIT : BaseGradleIT() {
         val strategyCLIArg = "-Dkotlin.compiler.execution.strategy=$executionStrategy"
         val finishMessage = "Finished executing kotlin compiler using $executionStrategy strategy"
 
+        val isGradleAtLeast50 = project.testGradleVersionAtLeast("5.0")
+
         project.build("build", strategyCLIArg) {
             assertSuccessful()
             assertContains(finishMessage)
             checkOutput()
             assertNoWarnings()
+
+            if (executionStrategy == "daemon" && isGradleAtLeast50) {
+                val m = "Kotlin compile daemon JVM options: \\[(.*?)\\]".toRegex().find(output)
+                    ?: error("Could not find Kotlin compile daemon JVM options in Gradle's output")
+                val kotlinDaemonJvmArgs = m.groupValues[1].split(",").map { it.trim() }
+                val maxMetaspaceArg = "-XX:MaxMetaspaceSize=256m"
+                Assert.assertTrue(
+                    "Kotlin daemon JVM args do not contain '$maxMetaspaceArg': $kotlinDaemonJvmArgs",
+                    maxMetaspaceArg in kotlinDaemonJvmArgs
+                )
+            }
         }
 
         val classesKt = project.projectDir.getFileByName("classes.kt")
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kotlinBuiltins/gradle.properties b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kotlinBuiltins/gradle.properties
deleted file mode 100644
index 93ce6a94e63..00000000000
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/resources/testProject/kotlinBuiltins/gradle.properties
+++ /dev/null
@@ -1 +0,0 @@
-org.gradle.jvmargs=-Xmx1024m -XX:MaxPermSize=512m
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/compilerRunner/GradleKotlinCompilerWork.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/compilerRunner/GradleKotlinCompilerWork.kt
index d24978438b8..942e6ae0dfb 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/compilerRunner/GradleKotlinCompilerWork.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/compilerRunner/GradleKotlinCompilerWork.kt
@@ -179,6 +179,12 @@ internal class GradleKotlinCompilerWork @Inject constructor(
         }
 
         val (daemon, sessionId) = connection
+
+        if (log.isDebugEnabled) {
+            daemon.getDaemonJVMOptions().takeIf { it.isGood }?.let { jvmOpts ->
+                log.debug("Kotlin compile daemon JVM options: ${jvmOpts.get().mappers.flatMap { it.toArgs("-") }}")
+            }
+        }
         val targetPlatform = when (compilerClassName) {
             KotlinCompilerClass.JVM -> CompileService.TargetPlatform.JVM
             KotlinCompilerClass.JS -> CompileService.TargetPlatform.JS