diff --git a/javatests/artifacts/dagger/build-tests/build.gradle b/javatests/artifacts/dagger/build-tests/build.gradle
new file mode 100644
index 00000000000..407c7ef0f78
--- /dev/null
+++ b/javatests/artifacts/dagger/build-tests/build.gradle
@@ -0,0 +1,31 @@
+/*
+ * Copyright (C) 2021 The Dagger Authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+plugins {
+  id 'java'
+  id 'application'
+}
+
+// Set the versions in a system property so that tests can access it.
+test {
+    systemProperty 'dagger_version', "$dagger_version"
+}
+
+dependencies {
+  testImplementation "com.google.truth:truth:$truth_version"
+  testImplementation "junit:junit:$junit_version"
+  testImplementation gradleTestKit()
+}
\ No newline at end of file
diff --git a/javatests/artifacts/dagger/build-tests/src/main/java/buildtests/GradleModule.java b/javatests/artifacts/dagger/build-tests/src/main/java/buildtests/GradleModule.java
new file mode 100644
index 00000000000..6b7a6204ae2
--- /dev/null
+++ b/javatests/artifacts/dagger/build-tests/src/main/java/buildtests/GradleModule.java
@@ -0,0 +1,81 @@
+/*
+ * Copyright (C) 2021 The Dagger Authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package buildtests;
+
+import java.io.BufferedWriter;
+import java.io.File;
+import java.io.FileWriter;
+import java.io.IOException;
+
+/** Used to create files for a Gradle module in a particular directory. */
+public final class GradleModule {
+  public static GradleModule create(File moduleDir) {
+    return new GradleModule(moduleDir);
+  }
+
+  public static GradleModule create(File projectDir, String moduleName) {
+    return new GradleModule(new File(projectDir, moduleName));
+  }
+
+  private final File moduleDir;
+  private final File moduleSrcDir;
+
+  private GradleModule(File moduleDir) {
+    this.moduleDir = moduleDir;
+    this.moduleSrcDir = new File(moduleDir, "src/main/java/");
+  }
+
+  public GradleModule addBuildFile(String... content) throws IOException {
+    writeFile(createFile(moduleDir, "build.gradle"), content);
+    return this;
+  }
+
+  public GradleModule addSettingsFile(String... content) throws IOException {
+    writeFile(createFile(moduleDir, "settings.gradle"), content);
+    return this;
+  }
+
+  public GradleModule addFile(String fileName, String... content) throws IOException {
+    writeFile(createFile(moduleDir, fileName), content);
+    return this;
+  }
+
+  public GradleModule addSrcFile(String fileName, String... content) throws IOException {
+    writeFile(createFile(moduleSrcDir, fileName), content);
+    return this;
+  }
+
+  private static File createFile(File dir, String fileName) {
+    File file = new File(dir, fileName);
+    file.getParentFile().mkdirs();
+    return file;
+  }
+
+  private static void writeFile(File destination, String... content) throws IOException {
+    BufferedWriter output = null;
+    try {
+      output = new BufferedWriter(new FileWriter(destination));
+      for (String line : content) {
+        output.write(line + "\n");
+      }
+    } finally {
+      if (output != null) {
+        output.close();
+      }
+    }
+  }
+}
diff --git a/javatests/artifacts/dagger/build-tests/src/test/java/buildtests/TransitiveScopeTest.java b/javatests/artifacts/dagger/build-tests/src/test/java/buildtests/TransitiveScopeTest.java
new file mode 100644
index 00000000000..cb694f85a3a
--- /dev/null
+++ b/javatests/artifacts/dagger/build-tests/src/test/java/buildtests/TransitiveScopeTest.java
@@ -0,0 +1,196 @@
+/*
+ * Copyright (C) 2021 The Dagger Authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package buildtests;
+
+import static com.google.common.truth.Truth.assertThat;
+import static org.gradle.testkit.runner.TaskOutcome.SUCCESS;
+
+import java.io.File;
+import java.io.IOException;
+import org.gradle.testkit.runner.BuildResult;
+import org.gradle.testkit.runner.GradleRunner;
+import org.junit.Rule;
+import org.junit.Test;
+import org.junit.rules.TemporaryFolder;
+import org.junit.runner.RunWith;
+import org.junit.runners.JUnit4;
+
+// This is a regression test for https://github.com/google/dagger/issues/3136
+@RunWith(JUnit4.class)
+public class TransitiveScopeTest {
+  @Rule public TemporaryFolder folder = new TemporaryFolder();
+
+  @Test
+  public void testTransitiveScope_WithImplementation() throws IOException {
+    BuildResult result = setupBuildWith("implementation");
+
+    // TODO(bcorso): This is a repro of https://github.com/google/dagger/issues/3136.
+    // Once the issue is fixed, this test case should fail to build.
+    assertThat(result.task(":app:assemble").getOutcome()).isEqualTo(SUCCESS);
+    assertThat(result.getOutput()).contains("@Inject library1.Foo(): UNSCOPED");
+  }
+
+  @Test
+  public void testTransitiveScope_WithApi() throws IOException {
+    BuildResult result = setupBuildWith("api");
+    assertThat(result.task(":app:assemble").getOutcome()).isEqualTo(SUCCESS);
+    assertThat(result.getOutput()).contains("@Inject library1.Foo(): SCOPED");
+  }
+
+  private BuildResult setupBuildWith(String dependencyType) throws IOException {
+    File projectDir = folder.getRoot();
+    GradleModule.create(projectDir)
+        .addSettingsFile(
+            "include 'app'",
+            "include 'library1'",
+            "include 'library2'",
+            "include 'spi-plugin'")
+        .addBuildFile(
+            "buildscript {",
+            "  ext {",
+            String.format("dagger_version = \"%s\"", System.getProperty("dagger_version")),
+            "  }",
+            "}",
+            "",
+            "allprojects {",
+            "  repositories {",
+            "    jcenter()",
+            "    mavenCentral()",
+            "    mavenLocal()",
+            "  }",
+            "}");
+
+    GradleModule.create(projectDir, "app")
+        .addBuildFile(
+            "plugins {",
+            "  id 'java'",
+            "  id 'application'",
+            "}",
+            "dependencies {",
+            "  implementation project(':library1')",
+            "  annotationProcessor project(':spi-plugin')",
+            "  implementation \"com.google.dagger:dagger:$dagger_version\"",
+            "  annotationProcessor \"com.google.dagger:dagger-compiler:$dagger_version\"",
+            "}")
+        .addSrcFile(
+            "MyComponent.java",
+            "package app;",
+            "",
+            "import dagger.Component;",
+            "import library1.MySubcomponent;",
+            "",
+            "@Component",
+            "public interface MyComponent {",
+            "  MySubcomponent subcomponent();",
+            "}");
+
+    GradleModule.create(projectDir, "library1")
+        .addBuildFile(
+            "plugins {",
+            "  id 'java'",
+            "  id 'java-library'",
+            "}",
+            "dependencies {",
+            dependencyType + " project(':library2')",
+            "  implementation \"com.google.dagger:dagger:$dagger_version\"",
+            "  annotationProcessor \"com.google.dagger:dagger-compiler:$dagger_version\"",
+            "}")
+        .addSrcFile(
+            "Foo.java",
+            "package library1;",
+            "",
+            "import javax.inject.Inject;",
+            "import library2.MyScope;",
+            "",
+            "@MyScope",
+            "public class Foo {",
+            "  @Inject Foo() {}",
+            "}")
+        // Note: In order to repro the issue we place MyScope on a subcomponent so that it can be a
+        // transitive dependency of the component. If MyScope was placed on directly on the
+        // component, it would need to be a direct dependency of the component.
+        .addSrcFile(
+            "MySubcomponent.java",
+            "package library1;",
+            "",
+            "import dagger.Subcomponent;",
+            "import library2.MyScope;",
+            "",
+            "@MyScope",
+            "@Subcomponent",
+            "public interface MySubcomponent {",
+            "  Foo foo();",
+            "}");
+
+    GradleModule.create(projectDir, "library2")
+        .addBuildFile(
+            "plugins {",
+            "  id 'java'",
+            "  id 'java-library'",
+            "}",
+            "dependencies {",
+            "  implementation 'javax.inject:javax.inject:1'",
+            "}")
+        .addSrcFile(
+            "MyScope.java",
+            "package library2;",
+            "",
+            "import javax.inject.Scope;",
+            "",
+            "@Scope",
+            "public @interface MyScope {}");
+
+    // This plugin is used to print output about bindings that we can assert on in tests.
+    GradleModule.create(projectDir, "spi-plugin")
+        .addBuildFile(
+            "plugins {",
+            "  id 'java'",
+            "}",
+            "dependencies {",
+            "  implementation \"com.google.dagger:dagger-spi:$dagger_version\"",
+            "  implementation 'com.google.auto.service:auto-service-annotations:1.0.1'",
+            "  annotationProcessor 'com.google.auto.service:auto-service:1.0.1'",
+            "}")
+        .addSrcFile(
+            "TestBindingGraphPlugin.java",
+            "package spiplugin;",
+            "",
+            "import com.google.auto.service.AutoService;",
+            "import dagger.model.BindingGraph;",
+            "import dagger.spi.BindingGraphPlugin;",
+            "import dagger.spi.DiagnosticReporter;",
+            "",
+            "@AutoService(BindingGraphPlugin.class)",
+            "public class TestBindingGraphPlugin implements BindingGraphPlugin {",
+            "  @Override",
+            "  public void visitGraph(BindingGraph bindingGraph, DiagnosticReporter"
+                + " diagnosticReporter) {",
+            "    bindingGraph.bindings().stream()",
+            "        .filter(binding -> binding.scope().isPresent())",
+            "        .forEach(binding -> System.out.println(binding + \": SCOPED\"));",
+            "    bindingGraph.bindings().stream()",
+            "        .filter(binding -> !binding.scope().isPresent())",
+            "        .forEach(binding -> System.out.println(binding + \": UNSCOPED\"));",
+            "  }",
+            "}");
+
+    return GradleRunner.create()
+        .withArguments("--stacktrace", "build")
+        .withProjectDir(projectDir)
+        .build();
+  }
+}
diff --git a/javatests/artifacts/dagger/settings.gradle b/javatests/artifacts/dagger/settings.gradle
index 6f7bf3ac048..57a7cec6727 100644
--- a/javatests/artifacts/dagger/settings.gradle
+++ b/javatests/artifacts/dagger/settings.gradle
@@ -1,4 +1,5 @@
 rootProject.name = 'Dagger Apps'
+include ':build-tests'
 include ':java-app'
 include ':kotlin-app'
 include ':kotlin-app:kotlin-library'