diff --git a/subprojects/language-groovy/src/main/java/org/gradle/api/internal/tasks/compile/ApiGroovyCompiler.java b/subprojects/language-groovy/src/main/java/org/gradle/api/internal/tasks/compile/ApiGroovyCompiler.java
index 52c837d7ea05..26bba16a9956 100644
--- a/subprojects/language-groovy/src/main/java/org/gradle/api/internal/tasks/compile/ApiGroovyCompiler.java
+++ b/subprojects/language-groovy/src/main/java/org/gradle/api/internal/tasks/compile/ApiGroovyCompiler.java
@@ -29,9 +29,11 @@
 import org.codehaus.groovy.control.CompilationUnit;
 import org.codehaus.groovy.control.CompilePhase;
 import org.codehaus.groovy.control.CompilerConfiguration;
+import org.codehaus.groovy.control.MultipleCompilationErrorsException;
 import org.codehaus.groovy.control.SourceUnit;
 import org.codehaus.groovy.control.customizers.CompilationCustomizer;
 import org.codehaus.groovy.control.customizers.ImportCustomizer;
+import org.codehaus.groovy.control.messages.ExceptionMessage;
 import org.codehaus.groovy.control.messages.SimpleMessage;
 import org.codehaus.groovy.tools.javac.JavaAwareCompilationUnit;
 import org.codehaus.groovy.tools.javac.JavaCompiler;
@@ -283,6 +285,12 @@ private void copyJavaCompilerResult(ApiCompilerResult javaCompilerResult) {
             unit.compile();
             return result;
         } catch (org.codehaus.groovy.control.CompilationFailedException e) {
+            if (isFatalException(e)) {
+                // This indicates a compiler bug and not a user error,
+                // so we cannot recover from such error: we need to force full recompilation.
+                throw new CompilationFatalException(e);
+            }
+
             System.err.println(e.getMessage());
             // Explicit flush, System.err is an auto-flushing PrintWriter unless it is replaced.
             System.err.flush();
@@ -297,6 +305,27 @@ private void copyJavaCompilerResult(ApiCompilerResult javaCompilerResult) {
         }
     }
 
+    /**
+     * Returns true if the exception is fatal, unrecoverable for the incremental compilation. Example of such error:
+     * <pre>
+     * error: startup failed:
+     * General error during instruction selection: java.lang.NoClassDefFoundError: Unable to load class ClassName due to missing dependency DependencyName
+     *   java.lang.RuntimeException: java.lang.NoClassDefFoundError: Unable to load class ClassName due to missing dependency DependencyName
+     *      at org.codehaus.groovy.control.CompilationUnit$IPrimaryClassNodeOperation.doPhaseOperation(CompilationUnit.java:977)
+     *      at org.codehaus.groovy.control.CompilationUnit.processPhaseOperations(CompilationUnit.java:672)
+     *      at org.codehaus.groovy.control.CompilationUnit.compile(CompilationUnit.java:636)
+     *      at org.codehaus.groovy.control.CompilationUnit.compile(CompilationUnit.java:611)
+     * </pre>
+     */
+    private static boolean isFatalException(org.codehaus.groovy.control.CompilationFailedException e) {
+        if (e instanceof MultipleCompilationErrorsException) {
+            // Groovy compiler wraps any uncontrolled exception (e.g. IOException, NoClassDefFoundError and similar) in a `ExceptionMessage`
+            return ((MultipleCompilationErrorsException) e).getErrorCollector().getErrors().stream()
+                .anyMatch(message -> message instanceof ExceptionMessage);
+        }
+        return false;
+    }
+
     private static boolean shouldProcessAnnotations(GroovyJavaJointCompileSpec spec) {
         return spec.getGroovyCompileOptions().isJavaAnnotationProcessing() && spec.annotationProcessingConfigured();
     }
diff --git a/subprojects/language-java/src/integTest/groovy/org/gradle/java/compile/incremental/AbstractJavaGroovyIncrementalCompilationSupport.groovy b/subprojects/language-java/src/integTest/groovy/org/gradle/java/compile/incremental/AbstractJavaGroovyIncrementalCompilationSupport.groovy
index fd3cad79cf67..0c27ab20577d 100644
--- a/subprojects/language-java/src/integTest/groovy/org/gradle/java/compile/incremental/AbstractJavaGroovyIncrementalCompilationSupport.groovy
+++ b/subprojects/language-java/src/integTest/groovy/org/gradle/java/compile/incremental/AbstractJavaGroovyIncrementalCompilationSupport.groovy
@@ -53,7 +53,7 @@ abstract class AbstractJavaGroovyIncrementalCompilationSupport extends AbstractI
             def packageGroup = (body =~ "\\s*package ([\\w.]+).*")
             String packageName = packageGroup.size() > 0 ? packageGroup[0][1] : ""
             String packageFolder = packageName.replaceAll("[.]", "/")
-            def className = (body =~ /(?s).*?(?:class|interface|enum) ([\w$]+) .*/)[0][1]
+            def className = (body =~ /(?s).*?(?:class|interface|enum|trait) ([\w$]+) .*/)[0][1]
             assert className: "unable to find class name"
             def f
             if (packageFolder.isEmpty()) {
diff --git a/subprojects/language-java/src/integTest/groovy/org/gradle/java/compile/incremental/BaseIncrementalCompilationAfterFailureIntegrationTest.groovy b/subprojects/language-java/src/integTest/groovy/org/gradle/java/compile/incremental/BaseIncrementalCompilationAfterFailureIntegrationTest.groovy
index 453cb805b4fa..43c563e322dd 100644
--- a/subprojects/language-java/src/integTest/groovy/org/gradle/java/compile/incremental/BaseIncrementalCompilationAfterFailureIntegrationTest.groovy
+++ b/subprojects/language-java/src/integTest/groovy/org/gradle/java/compile/incremental/BaseIncrementalCompilationAfterFailureIntegrationTest.groovy
@@ -543,4 +543,42 @@ class GroovyIncrementalCompilationAfterFailureIntegrationTest extends BaseIncrem
         "Java"      | "java"              | ""
         "Groovy"    | "groovy"            | COMPILE_STATIC_ANNOTATION
     }
+
+    @Issue("https://github.com/gradle/gradle/issues/22814")
+    def 'does full recompilation on fatal failure'() {
+        given:
+        def a = source("class A extends ABase implements WithTrait { def m() { println('a') } }")
+        source "class ABase { def mBase() { println(A) } }"
+        source """
+            import groovy.transform.SelfType
+            @SelfType(ABase)
+            trait WithTrait {
+                final AllPluginsValidation allPlugins = new AllPluginsValidation(this)
+
+                static class AllPluginsValidation {
+                    final ABase base
+                    AllPluginsValidation(ABase base) {
+                        this.base = base
+                    }
+                }
+            }
+        """
+        run "compileGroovy"
+        outputs.recompiledClasses('ABase', 'A', 'WithTrait', 'WithTrait$Trait$FieldHelper', 'WithTrait$AllPluginsValidation', 'WithTrait$Trait$Helper')
+
+        when:
+        a.text = "class A extends ABase implements WithTrait { def m() { println('b') } }"
+
+        then:
+        executer.withStackTraceChecksDisabled()
+        def execution = runAndFail "compileGroovy"
+        execution.assertHasCause("Unrecoverable compilation error")
+
+        when:
+        run"compileGroovy", "--info"
+
+        then:
+        outputs.recompiledClasses('ABase', 'A', 'WithTrait', 'WithTrait$Trait$FieldHelper', 'WithTrait$AllPluginsValidation', 'WithTrait$Trait$Helper')
+        outputContains("Full recompilation is required")
+    }
 }
diff --git a/subprojects/language-java/src/main/java/org/gradle/api/internal/tasks/compile/CompilationFatalException.java b/subprojects/language-java/src/main/java/org/gradle/api/internal/tasks/compile/CompilationFatalException.java
new file mode 100644
index 000000000000..0476eeda4223
--- /dev/null
+++ b/subprojects/language-java/src/main/java/org/gradle/api/internal/tasks/compile/CompilationFatalException.java
@@ -0,0 +1,27 @@
+/*
+ * Copyright 2023 the original author or 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 org.gradle.api.internal.tasks.compile;
+
+/**
+ * Indicates a fatal error during compilation. Gradle will not try to recover output files from a previous compilation.
+ */
+public class CompilationFatalException extends RuntimeException {
+
+    public CompilationFatalException(Throwable cause) {
+        super("Unrecoverable compilation error: " + cause.getMessage(), cause);
+    }
+}