diff --git a/libraries/tools/kotlin-gradle-plugin/build.gradle.kts b/libraries/tools/kotlin-gradle-plugin/build.gradle.kts
index f2becb99393..1dfdc7ef9ff 100644
--- a/libraries/tools/kotlin-gradle-plugin/build.gradle.kts
+++ b/libraries/tools/kotlin-gradle-plugin/build.gradle.kts
@@ -10,6 +10,9 @@ plugins {
     id("jps-compatible")
 }
 
+apply(from = "functionalTest.gradle.kts")
+val functionalTestImplementation by configurations
+
 configure<GradlePluginDevelopmentExtension> {
     isAutomatedPublishing = false
 }
@@ -79,7 +82,9 @@ dependencies {
     compileOnly("com.android.tools.build:gradle:3.0.0") { isTransitive = false }
     compileOnly("com.android.tools.build:gradle-core:3.0.0") { isTransitive = false }
     compileOnly("com.android.tools.build:builder-model:3.0.0") { isTransitive = false }
-    testImplementation("com.android.tools.build:gradle:4.0.1")
+    functionalTestImplementation("com.android.tools.build:gradle:4.0.1") {
+        because("Functional tests are using APIs from Android. Latest Version is used to avoid NoClassDefFoundError")
+    }
 
     testCompile(intellijDep()) { includeJars("junit", "serviceMessages", rootProject = rootProject) }
 
diff --git a/libraries/tools/kotlin-gradle-plugin/functionalTest.gradle.kts b/libraries/tools/kotlin-gradle-plugin/functionalTest.gradle.kts
new file mode 100644
index 00000000000..55c126d1c5f
--- /dev/null
+++ b/libraries/tools/kotlin-gradle-plugin/functionalTest.gradle.kts
@@ -0,0 +1,27 @@
+import org.jetbrains.kotlin.gradle.dsl.KotlinJvmProjectExtension
+
+project.extensions.getByType<KotlinJvmProjectExtension>().target.compilations {
+    val main by getting
+    create("functionalTest") {
+        associateWith(main)
+        val functionalTest by tasks.register<Test>("functionalTest") {
+            group = JavaBasePlugin.VERIFICATION_GROUP
+            description = "Runs functional tests"
+            testClassesDirs = output.classesDirs
+            classpath = sourceSets["functionalTest"].runtimeClasspath
+        }
+        tasks.named("check") {
+            dependsOn(functionalTest)
+        }
+    }
+}
+
+configurations.getByName("functionalTestImplementation") {
+    extendsFrom(configurations.getByName("implementation"))
+    extendsFrom(configurations.getByName("testImplementation"))
+}
+
+configurations.getByName("functionalTestRuntimeOnly") {
+    extendsFrom(configurations.getByName("runtimeOnly"))
+    extendsFrom(configurations.getByName("testRuntimeOnly"))
+}
diff --git a/libraries/tools/kotlin-gradle-plugin/src/test/kotlin/org/jetbrains/kotlin/gradle/targets/android/KotlinAndroidDependsOnEdgesTest.kt b/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/KotlinAndroidDependsOnEdgesTest.kt
similarity index 97%
rename from libraries/tools/kotlin-gradle-plugin/src/test/kotlin/org/jetbrains/kotlin/gradle/targets/android/KotlinAndroidDependsOnEdgesTest.kt
rename to libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/KotlinAndroidDependsOnEdgesTest.kt
index 0eaa81ac20b..fa437508ba9 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/test/kotlin/org/jetbrains/kotlin/gradle/targets/android/KotlinAndroidDependsOnEdgesTest.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/functionalTest/kotlin/org/jetbrains/kotlin/gradle/KotlinAndroidDependsOnEdgesTest.kt
@@ -2,8 +2,9 @@
  * Copyright 2010-2020 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.gradle.targets.android
+// TODO KT-34102
+@file:Suppress("invisible_reference", "invisible_member")
+package org.jetbrains.kotlin.gradle
 
 import com.android.build.gradle.LibraryExtension
 import org.gradle.api.internal.project.ProjectInternal