diff --git a/kover-gradle-plugin/build.gradle.kts b/kover-gradle-plugin/build.gradle.kts
index 6f41ed3c..64bb4a46 100644
--- a/kover-gradle-plugin/build.gradle.kts
+++ b/kover-gradle-plugin/build.gradle.kts
@@ -1,3 +1,5 @@
+import org.jetbrains.kotlin.gradle.dsl.JvmTarget
+import org.jetbrains.kotlin.gradle.dsl.KotlinVersion
 import java.time.LocalDate
 import java.time.format.DateTimeFormatter
 import org.jetbrains.kotlin.gradle.plugin.KotlinCompilation
@@ -70,6 +72,7 @@ val functionalTest by tasks.registering(Test::class) {
         setSystemPropertyFromProject("kover.test.kotlin.version")
 
         systemProperties["kotlinVersion"] = embeddedKotlinVersion
+        systemProperties["gradleVersion"] = gradle.gradleVersion
         systemProperties["koverVersion"] = version
         systemProperties["localRepositoryPath"] = localRepositoryUri.path
 
@@ -125,19 +128,23 @@ fun Test.setBooleanSystemPropertyFromProject(
 
 tasks.check { dependsOn(functionalTest) }
 
-tasks.withType<KotlinCompile>().configureEach {
-    kotlinOptions {
-        allWarningsAsErrors = true
-        jvmTarget = "1.8"
-
-        // Kover works with the stdlib of at least version `1.4.x`
-        languageVersion = "1.4"
-        apiVersion = "1.4"
-        // Kotlin compiler 1.7 issues a warning if `languageVersion` or `apiVersion` 1.4 is used - suppress it
-        freeCompilerArgs = freeCompilerArgs + "-Xsuppress-version-warnings"
+afterEvaluate {
+    // Workaround:
+    // `kotlin-dsl` itself specifies the language version to ensure compatibility of the Kotlin DSL API
+    // Since we ourselves guarantee and test compatibility with previous Gradle versions, we can override language version
+    // The easiest way to do this now is to specify the version in the `afterEvaluate` block
+    tasks.withType<KotlinCompile>().configureEach {
+        compilerOptions {
+            allWarningsAsErrors.set(true)
+            jvmTarget.set(JvmTarget.JVM_1_8)
+            languageVersion.set(KotlinVersion.KOTLIN_1_5)
+            apiVersion.set(KotlinVersion.KOTLIN_1_5)
+            freeCompilerArgs.add("-Xsuppress-version-warnings")
+        }
     }
 }
 
+
 tasks.dokkaHtml {
     moduleName.set("Kover Gradle Plugin")
     outputDirectory.set(rootProject.layout.projectDirectory.dir("docs/gradle-plugin/dokka").asFile)
diff --git a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/cases/MetadataCompatibilityTests.kt b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/cases/MetadataCompatibilityTests.kt
new file mode 100644
index 00000000..5509f788
--- /dev/null
+++ b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/cases/MetadataCompatibilityTests.kt
@@ -0,0 +1,12 @@
+package kotlinx.kover.gradle.plugin.test.functional.cases
+
+import kotlinx.kover.gradle.plugin.test.functional.framework.checker.CheckerContext
+import kotlinx.kover.gradle.plugin.test.functional.framework.starter.TemplateTest
+
+internal class MetadataCompatibilityTests {
+
+    @TemplateTest("buildsrc-usage", [":koverXmlReport"])
+    fun CheckerContext.test() {
+        // no-op
+    }
+}
\ No newline at end of file
diff --git a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/common/Environment.kt b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/common/Environment.kt
index 0cca808f..ca325ab1 100644
--- a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/common/Environment.kt
+++ b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/common/Environment.kt
@@ -32,7 +32,7 @@ internal val overriddenKotlinVersion = System.getProperty("kover.test.kotlin.ver
 /**
  * Custom version of Gradle runner for functional tests.
  */
-internal val overriddenGradleWrapperVersion: String? = System.getProperty("kover.test.gradle.version")
+internal val overriddenGradleVersion: String? = System.getProperty("kover.test.gradle.version")
 
 /**
  * Result path to the Android SDK. `null` if not defined.
@@ -40,6 +40,11 @@ internal val overriddenGradleWrapperVersion: String? = System.getProperty("kover
 internal val androidSdkDir: String? = System.getProperty("kover.test.android.sdk")
 
 
+/**
+ * Version of gradle which functional tests are run by.
+ */
+internal val defaultGradleVersion: String = System.getProperty("gradleVersion")
+    ?: throw Exception("System property 'gradleVersion' not defined for functional tests")
 
 /**
  * Flag to run functional tests within debug agent.
diff --git a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/runner/BuildsRunner.kt b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/runner/BuildsRunner.kt
index ad4090be..2b26508e 100644
--- a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/runner/BuildsRunner.kt
+++ b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/runner/BuildsRunner.kt
@@ -7,7 +7,11 @@ package kotlinx.kover.gradle.plugin.test.functional.framework.runner
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.isDebugEnabled
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.logInfo
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.uri
+import kotlinx.kover.gradle.plugin.test.functional.framework.starter.*
+import kotlinx.kover.gradle.plugin.test.functional.framework.starter.buildSrc
 import kotlinx.kover.gradle.plugin.test.functional.framework.starter.patchSettingsFile
+import kotlinx.kover.gradle.plugin.util.SemVer
+import org.opentest4j.TestAbortedException
 import java.io.File
 import java.nio.file.Files
 
@@ -39,6 +43,7 @@ internal interface GradleBuild {
 }
 
 internal data class BuildEnv(
+    val gradleVersion: SemVer,
     val wrapperDir: File,
     val androidSdkDir: String? = null,
     val disableBuildCacheByDefault: Boolean = true
@@ -75,11 +80,15 @@ private class BuildSourceImpl(val localMavenDir: String, val koverVersion: Strin
             actualDir
         }
 
-        targetDir.patchSettingsFile(
+        targetDir.settings.patchSettingsFile(
             "$buildType '$buildName', project dir: ${targetDir.uri}",
             koverVersion, localMavenDir, overriddenKotlinVersion
         )
 
+        val buildSrcScript = targetDir.buildSrc?.build
+        buildSrcScript?.patchKoverDependency(koverVersion)
+        buildSrcScript?.addLocalRepository(localMavenDir)
+
         return GradleBuildImpl(targetDir, copy, buildName, buildType)
     }
 }
@@ -94,6 +103,18 @@ private class GradleBuildImpl(
     private var runCount = 0
 
     override fun run(args: List<String>, env: BuildEnv): BuildResult {
+        val requirements = targetDir.requirements
+        requirements.minGradle?.let { minVersion ->
+            if (env.gradleVersion < minVersion) {
+                throw TestAbortedException("Used Gradle version '${env.gradleVersion}' lower than minimal required '$minVersion'")
+            }
+        }
+        requirements.maxGradle?.let { maxVersion ->
+            if (env.gradleVersion >= maxVersion) {
+                throw TestAbortedException("Used Gradle version '${env.gradleVersion}' higher or equals than maximal '$maxVersion'")
+            }
+        }
+
         logInfo("Starting build $buildType '$buildName' with commands '${args.joinToString(" ")}'")
 
         val gradleArgs: MutableList<String> = mutableListOf()
diff --git a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/runner/CustomizableRunning.kt b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/runner/CustomizableRunning.kt
index a1e8f0ae..d4f7085c 100644
--- a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/runner/CustomizableRunning.kt
+++ b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/runner/CustomizableRunning.kt
@@ -9,10 +9,12 @@ import kotlinx.kover.gradle.plugin.test.functional.framework.common.androidSdkDi
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.koverVersionCurrent
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.defaultGradleWrapperDir
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.examplesDir
-import kotlinx.kover.gradle.plugin.test.functional.framework.common.overriddenGradleWrapperVersion
+import kotlinx.kover.gradle.plugin.test.functional.framework.common.overriddenGradleVersion
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.localRepositoryPath
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.overriddenKotlinVersion
 import kotlinx.kover.gradle.plugin.test.functional.framework.common.templateBuildsDir
+import kotlinx.kover.gradle.plugin.util.SemVer
+import org.gradle.kotlin.dsl.provideDelegate
 import java.io.File
 import java.nio.file.Files
 
@@ -57,20 +59,27 @@ internal fun generateBuild(generator: (File) -> Unit): BuildSource {
 }
 
 
-internal fun GradleBuild.runWithParams(args: List<String>): BuildResult {
-    val wrapperDir =
-        if (overriddenGradleWrapperVersion == null) defaultGradleWrapperDir else getWrapper(overriddenGradleWrapperVersion)
+internal fun GradleBuild.runWithParams(vararg args: String): BuildResult {
+    return runWithParams(args.toList())
+}
 
-    val buildEnv = BuildEnv(wrapperDir, androidSdkDir)
+internal fun GradleBuild.runWithParams(args: List<String>): BuildResult {
+    val buildEnv = BuildEnv(gradleVersion, wrapperDir, androidSdkDir)
 
     return run(args, buildEnv)
 }
-internal fun GradleBuild.runWithParams(vararg args: String): BuildResult {
-    return runWithParams(args.toList())
+
+private val gradleVersion: SemVer by lazy {
+    val version = overriddenGradleVersion ?: defaultGradleVersion
+    SemVer.ofVariableOrNull(version) ?: throw IllegalArgumentException("Can not parse Gradle version '$version'")
 }
 
-private fun getWrapper(version: String): File {
-    val wrapperDir = gradleWrappersRoot.resolve(version)
-    if (!wrapperDir.exists()) throw Exception("Wrapper for Gradle version '$version' is not supported by functional tests")
+
+private val wrapperDir =
+    if (overriddenGradleVersion == null) defaultGradleWrapperDir else getWrapper(overriddenGradleVersion)
+
+private fun getWrapper(gradleVersion: String): File {
+    val wrapperDir = gradleWrappersRoot.resolve(gradleVersion)
+    if (!wrapperDir.exists()) throw Exception("Wrapper for Gradle version '$gradleVersion' is not supported by functional tests")
     return wrapperDir
 }
diff --git a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/starter/Commons.kt b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/starter/Commons.kt
index e99da684..32207a4d 100644
--- a/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/starter/Commons.kt
+++ b/kover-gradle-plugin/src/functionalTest/kotlin/kotlinx/kover/gradle/plugin/test/functional/framework/starter/Commons.kt
@@ -12,6 +12,7 @@ import kotlinx.kover.gradle.plugin.test.functional.framework.runner.BuildSource
 import kotlinx.kover.gradle.plugin.test.functional.framework.runner.GradleBuild
 import kotlinx.kover.gradle.plugin.test.functional.framework.runner.runWithParams
 import kotlinx.kover.gradle.plugin.test.functional.framework.writer.*
+import kotlinx.kover.gradle.plugin.util.SemVer
 import org.junit.jupiter.api.extension.*
 import java.io.*
 import java.lang.reflect.AnnotatedElement
@@ -73,6 +74,40 @@ internal abstract class DirectoryBasedGradleTest : BeforeTestExecutionCallback,
     }
 }
 
+internal val File.requirements: BuildRequirements
+    get() {
+        val file = resolve("requires")
+        if (!(file.exists() && file.isFile)) return BuildRequirements()
+
+        var minGradle: SemVer? = null
+        var maxGradle: SemVer? = null
+
+        file.readLines().forEach { line ->
+            when {
+                line.startsWith("MIN_GRADLE=") -> minGradle =
+                    SemVer.ofVariableOrNull(line.substringAfter("MIN_GRADLE="))
+                line.startsWith("MAX_GRADLE=") -> maxGradle =
+                    SemVer.ofVariableOrNull(line.substringAfter("MAX_GRADLE="))
+
+            }
+        }
+
+        return BuildRequirements(minGradle, maxGradle)
+    }
+
+internal data class BuildRequirements(val minGradle: SemVer? = null, val maxGradle: SemVer? = null)
+
+internal val File.buildSrc: File?
+    get() = listFiles()?.firstOrNull { it.isDirectory && it.name == "buildSrc" }
+
+internal val File.settings: File
+    get() = listFiles()?.firstOrNull { it.name == "settings.gradle" || it.name == "settings.gradle.kts" }
+        ?: throw Exception("No Gradle settings file in project ${this.uri}")
+internal val File.build: File
+    get() = listFiles()?.firstOrNull { it.name == "build.gradle" || it.name == "build.gradle.kts" }
+        ?: throw Exception("No Gradle build file in project ${this.uri}")
+
+
 
 /**
  * Override Kover version and add local repository to find artifact for current build.
@@ -84,13 +119,11 @@ internal fun File.patchSettingsFile(
     localRepositoryPath: String,
     overrideKotlinVersion: String?
 ) {
-    val settingsFile = (listFiles()?.firstOrNull { it.name == "settings.gradle" || it.name == "settings.gradle.kts" }
-        ?: throw Exception("No Gradle settings file in project ${this.uri}"))
-    val language = if (settingsFile.name.endsWith(".kts")) ScriptLanguage.KOTLIN else ScriptLanguage.GROOVY
+    val language = if (name.endsWith(".kts")) ScriptLanguage.KOTLIN else ScriptLanguage.GROOVY
 
-    val originLines = settingsFile.readLines()
+    val originLines = readLines()
 
-    settingsFile.bufferedWriter().use { writer ->
+    bufferedWriter().use { writer ->
         var firstStatement = true
         originLines.forEach { line ->
 
@@ -132,4 +165,33 @@ internal fun File.patchSettingsFile(
     }
 }
 
+/**
+ * Override Kover version
+ */
+internal fun File.patchKoverDependency(koverVersion: String) {
+    val originLines = readLines()
+    bufferedWriter().use { writer ->
+        originLines.forEach { line ->
+            val lineToWrite = if (line.contains("org.jetbrains.kotlinx:kover-gradle-plugin:TEST")) {
+                line.replace("org.jetbrains.kotlinx:kover-gradle-plugin:TEST", "org.jetbrains.kotlinx:kover-gradle-plugin:$koverVersion")
+            } else {
+                line
+            }
+            writer.appendLine(lineToWrite)
+        }
+    }
+}
+
+/**
+ * Override Kover version
+ */
+internal fun File.addLocalRepository(path: String) {
+    this.appendText("""
+        
+        repositories {
+            maven("$path")
+        }
+    """.trimIndent())
+}
+
 
diff --git a/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/build.gradle.kts b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/build.gradle.kts
new file mode 100644
index 00000000..34b05f93
--- /dev/null
+++ b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/build.gradle.kts
@@ -0,0 +1,18 @@
+plugins {
+    kotlin("jvm") version "1.4.20"
+}
+
+apply(plugin = "org.jetbrains.kotlinx.kover")
+
+repositories {
+    mavenCentral()
+}
+
+dependencies {
+    testImplementation("org.junit.jupiter:junit-jupiter:5.8.0")
+}
+
+tasks.test {
+    useJUnitPlatform()
+}
+
diff --git a/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/buildSrc/build.gradle.kts b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/buildSrc/build.gradle.kts
new file mode 100644
index 00000000..a4b408f1
--- /dev/null
+++ b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/buildSrc/build.gradle.kts
@@ -0,0 +1,11 @@
+plugins {
+    kotlin("jvm") version "1.4.20"
+}
+
+repositories {
+    mavenCentral()
+}
+
+dependencies {
+    implementation("org.jetbrains.kotlinx:kover-gradle-plugin:TEST")
+}
diff --git a/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/buildSrc/src/main/kotlin/Usage.kt b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/buildSrc/src/main/kotlin/Usage.kt
new file mode 100644
index 00000000..7696fd7a
--- /dev/null
+++ b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/buildSrc/src/main/kotlin/Usage.kt
@@ -0,0 +1,2 @@
+class Class {
+}
\ No newline at end of file
diff --git a/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/requires b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/requires
new file mode 100644
index 00000000..d1ae18cd
--- /dev/null
+++ b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/requires
@@ -0,0 +1 @@
+MAX_GRADLE=8.0
\ No newline at end of file
diff --git a/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/settings.gradle.kts b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/settings.gradle.kts
new file mode 100644
index 00000000..06c80828
--- /dev/null
+++ b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/settings.gradle.kts
@@ -0,0 +1,8 @@
+pluginManagement {
+    repositories {
+        gradlePluginPortal()
+        mavenCentral()
+    }
+}
+rootProject.name = "buildsrc-usage"
+
diff --git a/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/src/main/kotlin/ExampleClass.kt b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/src/main/kotlin/ExampleClass.kt
new file mode 100644
index 00000000..d51001d4
--- /dev/null
+++ b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/src/main/kotlin/ExampleClass.kt
@@ -0,0 +1,9 @@
+class ExampleClass {
+    fun example() {
+        println("example")
+    }
+
+    fun unused() {
+        println("unused")
+    }
+}
\ No newline at end of file
diff --git a/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/src/test/kotlin/TestClass.kt b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/src/test/kotlin/TestClass.kt
new file mode 100644
index 00000000..1b6bf5b6
--- /dev/null
+++ b/kover-gradle-plugin/src/functionalTest/templates/builds/buildsrc-usage/src/test/kotlin/TestClass.kt
@@ -0,0 +1,8 @@
+import org.junit.jupiter.api.Test
+
+class TestClass {
+    @Test
+    fun testBranches() {
+        ExampleClass().example()
+    }
+}
\ No newline at end of file
diff --git a/kover-gradle-plugin/src/main/kotlin/kotlinx/kover/gradle/plugin/appliers/reports/ReportsVariantApplier.kt b/kover-gradle-plugin/src/main/kotlin/kotlinx/kover/gradle/plugin/appliers/reports/ReportsVariantApplier.kt
index f271bfdf..f8d77eb6 100644
--- a/kover-gradle-plugin/src/main/kotlin/kotlinx/kover/gradle/plugin/appliers/reports/ReportsVariantApplier.kt
+++ b/kover-gradle-plugin/src/main/kotlin/kotlinx/kover/gradle/plugin/appliers/reports/ReportsVariantApplier.kt
@@ -39,7 +39,7 @@ import org.gradle.kotlin.dsl.named
 import org.gradle.kotlin.dsl.register
 import org.gradle.language.base.plugins.LifecycleBasePlugin
 
-internal sealed class ReportsVariantApplier(
+internal abstract class ReportsVariantApplier(
     private val project: Project,
     private val variantName: String,
     private val type: ReportsVariantType,
@@ -58,14 +58,16 @@ internal sealed class ReportsVariantApplier(
 
     init {
         artifactGenTask = project.tasks.register<KoverArtifactGenerationTask>(artifactGenerationTaskName(variantName))
+
+        val artifactProperty = project.layout.buildDirectory.file(artifactFilePath(variantName))
         artifactGenTask.configure {
-            artifactFile.set(project.layout.buildDirectory.file(artifactFilePath(variantName)))
+            artifactFile.set(artifactProperty)
         }
 
         config = project.configurations.register(artifactConfigurationName(variantName)) {
             // disable generation of Kover artifacts on `assemble`, fix of https://github.com/Kotlin/kotlinx-kover/issues/353
             isVisible = false
-            outgoing.artifact(artifactGenTask.map { task -> task.artifactFile }) {
+            outgoing.artifact(artifactProperty) {
                 asProducer()
                 attributes {
                     // common Kover artifact attributes