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 917dea64d45..ea7aaa114a3 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
@@ -69,28 +69,30 @@ class Kapt3WorkersIT : Kapt3IT() {
         }
     }
 
-    private fun testSimpleWithCustomJdk(gradleVersion: String, javaHome: File, jdkDescription: String) {
-        val gradleVersionRequired = GradleVersionRequired.AtLeast(gradleVersion)
-
-        Assume.assumeTrue("$jdkDescription isn't available", javaHome.isDirectory)
+    @Test
+    fun testSimpleWithJdk10() {
+        val javaHome = File(System.getProperty("jdk10Home")!!)
+        Assume.assumeTrue("JDK 10 isn't available", javaHome.isDirectory)
         val options = defaultBuildOptions().copy(javaHome = javaHome)
 
-        val project =
-            Project("simple", directoryPrefix = "kapt2", gradleVersionRequirement = gradleVersionRequired)
+        val project = Project("simple", directoryPrefix = "kapt2", gradleVersionRequirement = GradleVersionRequired.AtLeast("4.7"))
         project.build("build", options = options) {
             assertSuccessful()
             assertKaptSuccessful()
         }
     }
 
-    @Test
-    fun testSimpleWithJdk10() {
-        testSimpleWithCustomJdk("4.7", File(System.getProperty("jdk10Home")!!), "JDK 10")
-    }
-
     @Test
     fun testSimpleWithJdk11() {
-        testSimpleWithCustomJdk("5.0", File(System.getProperty("jdk11Home")!!), "JDK 11")
+        val javaHome = File(System.getProperty("jdk11Home")!!)
+        Assume.assumeTrue("JDK 11 isn't available", javaHome.isDirectory)
+        val options = defaultBuildOptions().copy(javaHome = javaHome)
+
+        val project = Project("simple", directoryPrefix = "kapt2", gradleVersionRequirement = GradleVersionRequired.AtLeast("5.0"))
+        project.build("build", options = options) {
+            assertSuccessful()
+            assertKaptSuccessful()
+        }
     }
 }
 
@@ -641,4 +643,21 @@ open class Kapt3IT : Kapt3BaseIT() {
             assertTasksSkipped(":compileJava")
         }
     }
+
+    @Test
+    fun testSimpleWithJdk11AndSourceLevel8() {
+        val javaHome = File(System.getProperty("jdk11Home")!!)
+        Assume.assumeTrue("JDK 11 isn't available", javaHome.isDirectory)
+        val options = defaultBuildOptions().copy(javaHome = javaHome)
+
+        val project = Project("simple", directoryPrefix = "kapt2", gradleVersionRequirement = GradleVersionRequired.AtLeast("5.0")).also {
+            it.setupWorkingDir()
+            it.gradleBuildScript().appendText("\nsourceCompatibility = '8'")
+        }
+        project.build("build", options = options) {
+            assertSuccessful()
+            assertKaptSuccessful()
+            assertContains("Javac options: {-source=1.8}")
+        }
+    }
 }
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/kapt/Kapt3KotlinGradleSubplugin.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/kapt/Kapt3KotlinGradleSubplugin.kt
index d2f6cfb1ca5..2e85752949f 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/kapt/Kapt3KotlinGradleSubplugin.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/kapt/Kapt3KotlinGradleSubplugin.kt
@@ -260,7 +260,7 @@ class Kapt3KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
     }
 
     // This method should be called no more than once for each Kapt3SubpluginContext
-    private fun Kapt3SubpluginContext.buildOptions(aptMode: String): List<SubpluginOption> {
+    private fun Kapt3SubpluginContext.buildOptions(aptMode: String, javacOptions: Map<String, String>): List<SubpluginOption> {
         val pluginOptions = mutableListOf<SubpluginOption>()
 
         val generatedFilesDir = getKaptGeneratedSourcesDir(project, sourceSetName)
@@ -285,7 +285,7 @@ class Kapt3KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
 
         pluginOptions += CompositeSubpluginOption("apoptions", lazy { encodeList(apOptions.associate { it.key to it.value }) }, apOptions)
 
-        pluginOptions += SubpluginOption("javacArguments", encodeList(kaptExtension.getJavacOptions()))
+        pluginOptions += SubpluginOption("javacArguments", encodeList(javacOptions))
 
         pluginOptions += SubpluginOption("includeCompileClasspath", includeCompileClasspath.toString())
 
@@ -326,9 +326,9 @@ class Kapt3KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
                 subluginOptionsFromProvidedApOptions
     }
 
-    private fun Kapt3SubpluginContext.buildAndAddOptionsTo(task: Task, container: CompilerPluginOptions, aptMode: String) {
+    private fun Kapt3SubpluginContext.buildAndAddOptionsTo(task: Task, container: CompilerPluginOptions, aptMode: String, javacOptions: Map<String, String>) {
         val compilerPluginId = getCompilerPluginId()
-        val kaptSubpluginOptions = buildOptions(aptMode)
+        val kaptSubpluginOptions = buildOptions(aptMode, javacOptions)
         task.registerSubpluginOptionsAsInputs(compilerPluginId, kaptSubpluginOptions)
 
         for (option in kaptSubpluginOptions) {
@@ -431,6 +431,10 @@ class Kapt3KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
             kaptTask.annotationProcessorOptionProviders.add(it)
         }
 
+        val dslJavacOptions = kaptExtension.getJavacOptions().toMutableMap()
+        if (javaCompile != null && "-source" !in dslJavacOptions && "--release" !in dslJavacOptions) {
+            dslJavacOptions["-source"] = javaCompile.sourceCompatibility
+        }
         if (kaptTask is KaptWithKotlincTask) {
             if (kaptTask.isIncremental) {
                 kaptTask.pluginOptions.addPluginArgument(
@@ -438,7 +442,7 @@ class Kapt3KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
                     SubpluginOption("incrementalCache", kaptTask.incAptCache!!.absolutePath))
             }
 
-            buildAndAddOptionsTo(kaptTask, kaptTask.pluginOptions, aptMode = "apt")
+            buildAndAddOptionsTo(kaptTask, kaptTask.pluginOptions, aptMode = "apt", javacOptions = dslJavacOptions)
         }
 
         if (kaptTask is KaptWithoutKotlincTask) {
@@ -447,7 +451,7 @@ class Kapt3KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
                 mapDiagnosticLocations = kaptExtension.mapDiagnosticLocations
                 annotationProcessorFqNames = kaptExtension.processors.split(',').filter { it.isNotEmpty() }
                 processorOptions = getAPOptions().map { it.key to it.value }.toMap()
-                javacOptions = kaptExtension.getJavacOptions()
+                javacOptions = dslJavacOptions
             }
         }
 
@@ -493,7 +497,7 @@ class Kapt3KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
         PropertiesProvider(project).mapKotlinTaskProperties(kaptTask)
 
         kaptTask.kaptClasspathConfigurations = kaptClasspathConfigurations
-        buildAndAddOptionsTo(kaptTask, kaptTask.pluginOptions, aptMode = "stubs")
+        buildAndAddOptionsTo(kaptTask, kaptTask.pluginOptions, aptMode = "stubs", javacOptions = kaptExtension.getJavacOptions())
 
         return kaptTask
     }
diff --git a/plugins/kapt3/kapt3-base/src/org/jetbrains/kotlin/kapt3/base/KaptContext.kt b/plugins/kapt3/kapt3-base/src/org/jetbrains/kotlin/kapt3/base/KaptContext.kt
index 7ff6f738b67..64bb524ee85 100644
--- a/plugins/kapt3/kapt3-base/src/org/jetbrains/kotlin/kapt3/base/KaptContext.kt
+++ b/plugins/kapt3/kapt3-base/src/org/jetbrains/kotlin/kapt3/base/KaptContext.kt
@@ -94,9 +94,11 @@ open class KaptContext(val options: KaptOptions, val withJdk: Boolean, val logge
 
             put(Option.PROC, "only") // Only process annotations
 
-            if (!withJdk) {
-                @Suppress("SpellCheckingInspection")
-                putJavacOption("BOOTCLASSPATH", "BOOT_CLASS_PATH", "") // No boot classpath
+            if (!withJdk && !isJava9OrLater()) {
+                // No boot classpath for JDK 8 and below. When running on JDK9+ and specifying source level 8 and below,
+                // boot classpath is not set to empty. This is to allow types to be resolved using boot classpath which defaults to
+                // classes defined in java.base module. See https://youtrack.jetbrains.com/issue/KT-33028 for details.
+                put(Option.valueOf("BOOTCLASSPATH"), "")
             }
 
             if (isJava9OrLater()) {