diff --git a/.vscode/launch.json b/.vscode/launch.json
index afb641bd..169b8b6b 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -7,13 +7,16 @@
             "request": "launch",
             "preLaunchTask": "build",
             "program": "${workspaceFolder}/src/Terrabuild/bin/Debug/net9.0/Terrabuild.dll",
-            "args": ["run", "build", "test", "--workspace", "tests/simple", "--parallel", "1", "--debug", "--log" ],
+            // self build
+            // "args": ["run", "build", "test", "dist", "--parallel", "1", "--debug", "--log", "--retry", "--local-only" ],
+            // "args": ["run", "build", "test", "--workspace", "tests/simple", "--parallel", "1", "--debug", "--log" ],
+            "args": ["run", "build", "test", "plan", "apply", "--workspace", "tests/indirect-target", "--parallel", "1", "--debug", "--log" ],
+          
             // "args": ["run", "build", "--workspace", "tests/cluster-layers", "--force", "--debug", "-p", "1", "--whatif" ],
             // "args": ["run", "build", "--workspace", "tests/cluster-layers", "--force", "--debug", "-p", "1", "--whatif" ],
             // "args": ["run", "plan", "dist", "build", "test", "--workspace", "../insights", "--log", "-c", "dev", "--debug", "-p", "1", "--whatif" ],
             // "args": ["run", "build", "test", "plan", "apply", "--log", "--debug", "--parallel", "1" ],
             // "args": [ "run", "build", "-w", "tests/basic", "--whatif", "-p", "1" ],
-            // "args": ["logs", "build" ],
             // "args": ["run", "build", "-w", "tests/simple", "--debug", "-p", "1", "--force" ],
             // "cwd": "${workspaceFolder}/tests/indirect-target",
             "stopAtEntry": false,
diff --git a/src/Terrabuild/Core/Builder.fs b/src/Terrabuild/Core/Builder.fs
index 68442b0d..a7c2f3c9 100644
--- a/src/Terrabuild/Core/Builder.fs
+++ b/src/Terrabuild/Core/Builder.fs
@@ -16,9 +16,8 @@ let build (options: ConfigOptions.Options) (configuration: Configuration.Workspa
 
     $"{Ansi.Emojis.eyes} Building graph" |> Terminal.writeLine
 
-    let processedNodes = ConcurrentDictionary<string, bool>()
     let allNodes = ConcurrentDictionary<string, Node>()
-    let node2children = ConcurrentDictionary<string, Set<string>>()
+    let processedNodes = ConcurrentDictionary<string, bool>()
 
     // first check all targets exist in WORKSPACE
     match options.Targets |> Seq.tryFind (fun targetName -> configuration.Targets |> Map.containsKey targetName |> not) with
@@ -26,154 +25,167 @@ let build (options: ConfigOptions.Options) (configuration: Configuration.Workspa
     | _ -> ()
 
 
-    let rec buildTarget targetName project =
+    let buildDependsOn (projectConfig: Configuration.Project) target =
+        let buildDependsOn =
+            configuration.Targets
+            |> Map.tryFind target
+            |> Option.defaultValue Set.empty
+        let projDependsOn =
+            projectConfig.Targets
+            |> Map.tryFind target
+            |> Option.map (fun ct -> ct.DependsOn)
+            |> Option.defaultValue Set.empty
+        let dependsOns = buildDependsOn + projDependsOn
+        dependsOns
+
+
+    let buildOuterTargets (projectConfig: Configuration.Project) target = [
+        let dependsOns = buildDependsOn projectConfig target
+        for dependsOn in dependsOns do
+            match dependsOn with
+            | String.Regex "^\^(.+)$" [ depTarget ] ->
+                for depProject in projectConfig.Dependencies do
+                    let depConfig = configuration.Projects[depProject]
+                    if depConfig.Targets |> Map.containsKey depTarget then (depProject, depTarget)
+            | _ -> ()
+    ]
+
+
+    let rec buildNode project target =
         let projectConfig = configuration.Projects[project]
-        let nodeId = $"{project}:{targetName}"
-
-        let processNode () =
-            // merge targets requirements
-            let buildDependsOn =
-                configuration.Targets
-                |> Map.tryFind targetName
-                |> Option.defaultValue Set.empty
-            let projDependsOn =
-                projectConfig.Targets
-                |> Map.tryFind targetName
-                |> Option.map (fun ct -> ct.DependsOn)
-                |> Option.defaultValue Set.empty
-            let dependsOns = buildDependsOn + projDependsOn
-
-            // apply on each dependency
-            let inChildren, outChildren =
-                dependsOns |> Set.fold (fun (accInChildren, accOutChildren) dependsOn ->
-                    match dependsOn with
-                    | String.Regex "^\^(.+)$" [ parentDependsOn ] ->
-                        accInChildren, accOutChildren + Set.collect (buildTarget parentDependsOn) projectConfig.Dependencies
-                    | String.Regex "^(.+)$" [ dependsOn ] ->
-                        accInChildren + buildTarget dependsOn project, accOutChildren
-                    | _ -> raiseBugError "Invalid target dependency format") (Set.empty, Set.empty)
+        let targetConfig = projectConfig.Targets[target]
+        let nodeId = $"{project}:{target}"
+
+
+        let rec buildInnerTargets target = [
+            let dependsOns = buildDependsOn projectConfig target
+            yield! dependsOns |> Seq.collect (fun dependsOn ->
+                match dependsOn with
+                | String.Regex "^\^(.+)$" _ -> []
+                | target ->
+                    if projectConfig.Targets |> Map.containsKey target then [ (project, target) ]
+                    else buildInnerTargets target)
+        ]
+
+
+
+        let processNode() =
+            let outerDeps = buildOuterTargets projectConfig target |> Set.ofSeq
+            let innerDeps = buildInnerTargets target |> Set.ofSeq
 
             // NOTE: a node is considered a leaf (within this project only) if the target has no internal dependencies detected
-            let isLeaf = inChildren |> Set.isEmpty
-
-            let children = inChildren + outChildren
-
-            // only generate computation node - that is node that generate something
-            // barrier nodes are just discarded and dependencies lift level up
-            match projectConfig.Targets |> Map.tryFind targetName with
-            | Some target ->
-                let cache, ops =
-                    target.Operations |> List.fold (fun (cache, ops) operation ->
-                        let optContext = {
-                            Terrabuild.Extensibility.ActionContext.Debug = options.Debug
-                            Terrabuild.Extensibility.ActionContext.CI = options.Run.IsSome
-                            Terrabuild.Extensibility.ActionContext.Command = operation.Command
-                            Terrabuild.Extensibility.ActionContext.Hash = projectConfig.Hash
-                        }
-
-                        let parameters = 
-                            match operation.Context with
-                            | Terrabuild.Expressions.Value.Map map ->
-                                map
-                                |> Map.add "context" (Terrabuild.Expressions.Value.Object optContext)
-                                |> Terrabuild.Expressions.Value.Map
-                            | _ -> raiseBugError "Failed to get context (internal error)"
-
-                        Log.Debug($"{hash}: Invoking extension '{operation.Extension}::{operation.Command}' with args {parameters}")
-
-                        let cacheability =
-                            match Extensions.getScriptAttribute<CacheableAttribute> optContext.Command (Some operation.Script) with
-                            | Some attr -> attr.Cacheability
-                            | _ -> raiseBugError $"Failed to get cacheability for command {operation.Extension} {optContext.Command}"
-
-                        let shellOperations =
-                            match Extensions.invokeScriptMethod<Terrabuild.Extensibility.ShellOperations> optContext.Command parameters (Some operation.Script) with
-                            | Extensions.InvocationResult.Success executionRequest -> executionRequest
-                            | Extensions.InvocationResult.ErrorTarget ex -> forwardExternalError($"{hash}: Failed to get shell operation (extension error)", ex)
-                            | _ -> raiseExternalError $"{hash}: Failed to get shell operation (extension error)"
-
-                        let newops =
-                            shellOperations |> List.map (fun shellOperation -> {
-                                ContaineredShellOperation.Container = operation.Container
-                                ContaineredShellOperation.ContainerPlatform = operation.Platform
-                                ContaineredShellOperation.ContainerVariables = operation.ContainerVariables
-                                ContaineredShellOperation.MetaCommand = $"{operation.Extension} {operation.Command}"
-                                ContaineredShellOperation.Command = shellOperation.Command
-                                ContaineredShellOperation.Arguments = shellOperation.Arguments |> String.normalizeShellArgs })
-
-                        let cache =
-                            match cacheability, options.LocalOnly with
-                            | Cacheability.Never, _ -> Cacheability.Never
-                            | Cacheability.Local, _ -> Cacheability.Local
-                            | Cacheability.Remote, true -> Cacheability.Local
-                            | Cacheability.Remote, false -> Cacheability.Remote
-
-                        cache, ops @ newops
-                    ) (Cacheability.Never, [])
-
-                let opsCmds = ops |> List.map Json.Serialize
-
-                let hashContent = opsCmds @ [
-                    yield projectConfig.Hash
-                    yield target.Hash
-                    yield! children |> Seq.map (fun nodeId -> allNodes[nodeId].TargetHash)
-                ]
-
-                let hash = hashContent |> Hash.sha256strings
-
-                Log.Debug($"Node {nodeId} has ProjectHash {projectConfig.Hash} and TargetHash {hash}")
-
-                // cacheability can be overriden by the target
-                let cache = target.Cache |> Option.defaultValue cache
-
-                // no rebuild by default unless force
-                let rebuild = target.Rebuild |> Option.defaultValue options.Force
-
-                let idempotent = target.Idempotent |> Option.defaultValue false
-
-                let targetOutput = target.Outputs
-
-                let node =
-                    { Node.Id = nodeId
-
-                      Node.ProjectId = projectConfig.Id
-                      Node.ProjectDir = projectConfig.Directory
-                      Node.Target = targetName
-                      Node.Operations = ops
-                      Node.Cache = cache
-                      Node.Rebuild = rebuild
-                      Node.Idempotent = idempotent
-
-                      Node.Dependencies = children
-                      Node.Outputs = targetOutput
-
-                      Node.ProjectHash = projectConfig.Hash
-                      Node.TargetHash = hash
-
-                      Node.IsLeaf = isLeaf }
-
-                if allNodes.TryAdd(nodeId, node) |> not then raiseBugError "Unexpected graph building race"
-                Set.singleton nodeId
-            | _ ->
-                outChildren
-
-        if processedNodes.TryAdd(nodeId, true) then
-            let children = processNode()
-            if node2children.TryAdd(nodeId, children) |> not then raiseBugError "Unexpected graph building race"
-            Log.Debug($"Node {nodeId} has children: {children}")
-            children
-        else
-            node2children[nodeId]
+            let isLeaf = innerDeps |> Set.isEmpty
+
+            let allDeps = innerDeps + outerDeps
+            let children = allDeps |> Set.map (fun (project, target) -> $"{project}:{target}")
+
+            // ensure children exist
+            for (project, target) in allDeps do
+                buildNode project target
+
+            let cache, ops =
+                targetConfig.Operations |> List.fold (fun (cache, ops) operation ->
+                    let optContext = {
+                        Terrabuild.Extensibility.ActionContext.Debug = options.Debug
+                        Terrabuild.Extensibility.ActionContext.CI = options.Run.IsSome
+                        Terrabuild.Extensibility.ActionContext.Command = operation.Command
+                        Terrabuild.Extensibility.ActionContext.Hash = projectConfig.Hash
+                    }
+
+                    let parameters = 
+                        match operation.Context with
+                        | Terrabuild.Expressions.Value.Map map ->
+                            map
+                            |> Map.add "context" (Terrabuild.Expressions.Value.Object optContext)
+                            |> Terrabuild.Expressions.Value.Map
+                        | _ -> raiseBugError "Failed to get context (internal error)"
+
+                    Log.Debug($"{hash}: Invoking extension '{operation.Extension}::{operation.Command}' with args {parameters}")
+
+                    let cacheability =
+                        match Extensions.getScriptAttribute<CacheableAttribute> optContext.Command (Some operation.Script) with
+                        | Some attr -> attr.Cacheability
+                        | _ -> raiseBugError $"Failed to get cacheability for command {operation.Extension} {optContext.Command}"
+
+                    let shellOperations =
+                        match Extensions.invokeScriptMethod<Terrabuild.Extensibility.ShellOperations> optContext.Command parameters (Some operation.Script) with
+                        | Extensions.InvocationResult.Success executionRequest -> executionRequest
+                        | Extensions.InvocationResult.ErrorTarget ex -> forwardExternalError($"{hash}: Failed to get shell operation (extension error)", ex)
+                        | _ -> raiseExternalError $"{hash}: Failed to get shell operation (extension error)"
+
+                    let newops =
+                        shellOperations |> List.map (fun shellOperation -> {
+                            ContaineredShellOperation.Container = operation.Container
+                            ContaineredShellOperation.ContainerPlatform = operation.Platform
+                            ContaineredShellOperation.ContainerVariables = operation.ContainerVariables
+                            ContaineredShellOperation.MetaCommand = $"{operation.Extension} {operation.Command}"
+                            ContaineredShellOperation.Command = shellOperation.Command
+                            ContaineredShellOperation.Arguments = shellOperation.Arguments |> String.normalizeShellArgs })
+
+                    let cache =
+                        match cacheability, options.LocalOnly with
+                        | Cacheability.Never, _ -> Cacheability.Never
+                        | Cacheability.Local, _ -> Cacheability.Local
+                        | Cacheability.Remote, true -> Cacheability.Local
+                        | Cacheability.Remote, false -> Cacheability.Remote
+
+                    cache, ops @ newops
+                ) (Cacheability.Never, [])
+
+            let opsCmds = ops |> List.map Json.Serialize
+
+            let hashContent = opsCmds @ [
+                yield projectConfig.Hash
+                yield targetConfig.Hash
+                yield! children |> Seq.map (fun nodeId -> allNodes[nodeId].TargetHash)
+            ]
+
+            let hash = hashContent |> Hash.sha256strings
+
+            Log.Debug($"Node {nodeId} has ProjectHash {projectConfig.Hash} and TargetHash {hash}")
+
+            // cacheability can be overriden by the target
+            let cache = targetConfig.Cache |> Option.defaultValue cache
+
+            // no rebuild by default unless force
+            let rebuild = targetConfig.Rebuild |> Option.defaultValue options.Force
+
+            let idempotent = targetConfig.Idempotent |> Option.defaultValue false
+
+            let targetOutput = targetConfig.Outputs
+
+            let node =
+                { Node.Id = nodeId
+  
+                  Node.ProjectId = projectConfig.Id
+                  Node.ProjectDir = projectConfig.Directory
+                  Node.Target = target
+                  Node.Operations = ops
+                  Node.Cache = cache
+                  Node.Rebuild = rebuild
+                  Node.Idempotent = idempotent
+      
+                  Node.Dependencies = children
+                  Node.Outputs = targetOutput
+      
+                  Node.ProjectHash = projectConfig.Hash
+                  Node.TargetHash = hash
+      
+                  Node.IsLeaf = isLeaf }
+            if allNodes.TryAdd(nodeId, node) |> not then raiseBugError "Unexpected graph building race"
+  
+        if processedNodes.TryAdd(nodeId, true) then processNode()
+
+    configuration.SelectedProjects |> Seq.iter (fun project ->
+        options.Targets |> Seq.iter (fun target ->
+            configuration.Projects
+            |> Map.tryFind project
+            |> Option.iter (fun projectConfig -> if projectConfig.Targets |> Map.containsKey target then buildNode project target)))
 
     let rootNodes =
-        configuration.SelectedProjects |> Seq.collect (fun project ->
-            options.Targets |> Seq.choose (fun target ->
-                buildTarget target project |> ignore
-
-                // identify root target
-                configuration.Projects[project].Targets |> Map.tryFind target
-                |> Option.map (fun _ -> $"{project}:{target}")))
-        |> Set
+        let allNodeIds = allNodes.Keys |> Set
+        let allDependencyIds = allNodes.Values |> Seq.collect (fun node -> node.Dependencies) |> Set.ofSeq
+        allNodeIds - allDependencyIds
 
     let endedAt = DateTime.UtcNow
     let buildDuration = endedAt - startedAt
diff --git a/tests/cluster-layers/results/terrabuild-debug.build-graph.json b/tests/cluster-layers/results/terrabuild-debug.build-graph.json
index cdf1eb66..697a95e2 100644
--- a/tests/cluster-layers/results/terrabuild-debug.build-graph.json
+++ b/tests/cluster-layers/results/terrabuild-debug.build-graph.json
@@ -269,11 +269,6 @@
     }
   },
   "rootNodes": [
-    "a:build",
-    "b:build",
-    "c:build",
-    "d:build",
-    "e:build",
     "f:build",
     "g:build"
   ]
diff --git a/tests/indirect-target/results/terrabuild-debug.build-graph.json b/tests/indirect-target/results/terrabuild-debug.build-graph.json
index d938b72b..1421454b 100644
--- a/tests/indirect-target/results/terrabuild-debug.build-graph.json
+++ b/tests/indirect-target/results/terrabuild-debug.build-graph.json
@@ -22,30 +22,6 @@
       "idempotent": false,
       "isLeaf": true
     },
-    "a:dist": {
-      "id": "a:dist",
-      "projectId": "a",
-      "projectDir": "A",
-      "target": "dist",
-      "dependencies": [
-        "a:build"
-      ],
-      "outputs": [],
-      "projectHash": "9C785D55C11F07C0562A258ED07F84A7D8F048C0642BB37FDD51CA79B1BA7477",
-      "targetHash": "50F5F31C8F99596F8E1E420A060A506196FCD6248BF7AD58EE006D3EC84A570B",
-      "operations": [
-        {
-          "containerVariables": [],
-          "metaCommand": "@shell echo",
-          "command": "echo",
-          "arguments": "dist A"
-        }
-      ],
-      "cache": "never",
-      "rebuild": true,
-      "idempotent": false,
-      "isLeaf": false
-    },
     "b:apply": {
       "id": "b:apply",
       "projectId": "b",
@@ -56,7 +32,7 @@
       ],
       "outputs": [],
       "projectHash": "216C66023FFF22BF42082547C0CA6B8558703DE2E94147B86DDE8E0EB9140214",
-      "targetHash": "5B1E3A6B67518D428A8866B441FD4BD50A7599BB73514A1C8CB1D5A3D362DB9D",
+      "targetHash": "4C1DC6E6563A97E0B27E8752BB0AD2812BF57E870EB0E867E66720CC60477C86",
       "operations": [
         {
           "containerVariables": [],
@@ -75,12 +51,10 @@
       "projectId": "b",
       "projectDir": "B",
       "target": "plan",
-      "dependencies": [
-        "a:dist"
-      ],
+      "dependencies": [],
       "outputs": [],
       "projectHash": "216C66023FFF22BF42082547C0CA6B8558703DE2E94147B86DDE8E0EB9140214",
-      "targetHash": "7B87E97A91FEB653E59685702413244279D3C23DCAD0BB317C4F24F0D69382BB",
+      "targetHash": "C02332643A2557B7E0269B00CEA6B1607A00B886453073360C33AB68C64DB318",
       "operations": [
         {
           "containerVariables": [],
@@ -92,7 +66,7 @@
       "cache": "never",
       "rebuild": false,
       "idempotent": false,
-      "isLeaf": false
+      "isLeaf": true
     },
     "c:build": {
       "id": "c:build",
@@ -115,36 +89,11 @@
       "rebuild": true,
       "idempotent": false,
       "isLeaf": true
-    },
-    "c:dist": {
-      "id": "c:dist",
-      "projectId": "c",
-      "projectDir": "C",
-      "target": "dist",
-      "dependencies": [
-        "c:build"
-      ],
-      "outputs": [],
-      "projectHash": "5140E561832E315D1BDE9C88BC59A0C76757647DFB07F409BA73535ABDB5EC16",
-      "targetHash": "530F9C5E56668D23CBFF3BE3917BF657EE0E1A4DCB587721669C2C0927E7AA5C",
-      "operations": [
-        {
-          "containerVariables": [],
-          "metaCommand": "@shell echo",
-          "command": "echo",
-          "arguments": "dist C"
-        }
-      ],
-      "cache": "never",
-      "rebuild": true,
-      "idempotent": false,
-      "isLeaf": false
     }
   },
   "rootNodes": [
     "a:build",
     "b:apply",
-    "b:plan",
     "c:build"
   ]
 }
\ No newline at end of file
diff --git a/tests/indirect-target/results/terrabuild-debug.info.md b/tests/indirect-target/results/terrabuild-debug.info.md
index 896d4046..26a420b8 100644
--- a/tests/indirect-target/results/terrabuild-debug.info.md
+++ b/tests/indirect-target/results/terrabuild-debug.info.md
@@ -18,25 +18,16 @@ classDef restore stroke:orange,stroke-width:3px
 classDef ignore stroke:black,stroke-width:3px
 a:build("<b>build a</b> 
 A")
-a:dist("<b>dist a</b> 
-A")
 b:apply("<b>apply b</b> 
 B")
 b:plan("<b>plan b</b> 
 B")
 c:build("<b>build c</b> 
 C")
-c:dist("<b>dist c</b> 
-C")
 class a:build ignore
-a:dist --> a:build
-class a:dist ignore
 b:apply --> b:plan
 class b:apply ignore
-b:plan --> a:dist
 class b:plan ignore
 class c:build ignore
-c:dist --> c:build
-class c:dist ignore
 ```
 
diff --git a/tests/multirefs/results/terrabuild-debug.build-graph.json b/tests/multirefs/results/terrabuild-debug.build-graph.json
index 2b5d9bcf..2b5255cb 100644
--- a/tests/multirefs/results/terrabuild-debug.build-graph.json
+++ b/tests/multirefs/results/terrabuild-debug.build-graph.json
@@ -70,8 +70,6 @@
     }
   },
   "rootNodes": [
-    "a:build",
-    "b:build",
-    "c:build"
+    "a:build"
   ]
 }
\ No newline at end of file
diff --git a/tests/simple/results/terrabuild-debug.build-graph.json b/tests/simple/results/terrabuild-debug.build-graph.json
index ff3dcb71..2753761d 100644
--- a/tests/simple/results/terrabuild-debug.build-graph.json
+++ b/tests/simple/results/terrabuild-debug.build-graph.json
@@ -321,12 +321,7 @@
   },
   "rootNodes": [
     "deployments/terraform-deploy:build",
-    "libraries/dotnet-lib:build",
-    "libraries/npm-lib:build",
-    "libraries/shell-lib:build",
-    "projects/dotnet-app:build",
     "projects/make-app:build",
-    "projects/npm-app:build",
     "projects/open-api:build",
     "projects/rust-app:build",
     "tests/playwright:test"