diff --git a/.idea/modules.xml b/.idea/modules.xml
index 5948daff878a..134d91c10557 100644
--- a/.idea/modules.xml
+++ b/.idea/modules.xml
@@ -1193,6 +1193,7 @@
       <module fileurl="file://$PROJECT_DIR$/plugins/kotlin/jvm-debugger/test/compose/kotlin.jvm-debugger.test.compose.k2.iml" filepath="$PROJECT_DIR$/plugins/kotlin/jvm-debugger/test/compose/kotlin.jvm-debugger.test.compose.k2.iml" />
       <module fileurl="file://$PROJECT_DIR$/plugins/kotlin/jvm-debugger/test/k2/kotlin.jvm-debugger.test.k2.iml" filepath="$PROJECT_DIR$/plugins/kotlin/jvm-debugger/test/k2/kotlin.jvm-debugger.test.k2.iml" />
       <module fileurl="file://$PROJECT_DIR$/plugins/kotlin/jvm-decompiler/kotlin.jvm-decompiler.iml" filepath="$PROJECT_DIR$/plugins/kotlin/jvm-decompiler/kotlin.jvm-decompiler.iml" />
+      <module fileurl="file://$PROJECT_DIR$/plugins/kotlin/internal/kotlin.k2.internal.iml" filepath="$PROJECT_DIR$/plugins/kotlin/internal/kotlin.k2.internal.iml" />
       <module fileurl="file://$PROJECT_DIR$/plugins/kotlin/kotlin.lombok.tests/kotlin.k2.lombok.tests.iml" filepath="$PROJECT_DIR$/plugins/kotlin/kotlin.lombok.tests/kotlin.k2.lombok.tests.iml" />
       <module fileurl="file://$PROJECT_DIR$/plugins/kotlin/maven/kotlin.maven.iml" filepath="$PROJECT_DIR$/plugins/kotlin/maven/kotlin.maven.iml" />
       <module fileurl="file://$PROJECT_DIR$/plugins/kotlin/maven/tests/kotlin.maven.tests.iml" filepath="$PROJECT_DIR$/plugins/kotlin/maven/tests/kotlin.maven.tests.iml" />
diff --git a/platform/build-scripts/src/org/jetbrains/intellij/build/kotlin/KotlinPluginBuilder.kt b/platform/build-scripts/src/org/jetbrains/intellij/build/kotlin/KotlinPluginBuilder.kt
index 81461169b90c..09670385dc83 100644
--- a/platform/build-scripts/src/org/jetbrains/intellij/build/kotlin/KotlinPluginBuilder.kt
+++ b/platform/build-scripts/src/org/jetbrains/intellij/build/kotlin/KotlinPluginBuilder.kt
@@ -195,7 +195,8 @@ object KotlinPluginBuilder {
     "kotlin.refactorings.rename.k2",
     "kotlin.performanceExtendedPlugin",
     "kotlin.bundled-compiler-plugins-support",
-    "kotlin.jsr223"
+    "kotlin.jsr223",
+    "kotlin.k2.internal",
   )
 
   private val KOTLIN_SCRIPTING_LIBRARIES = java.util.List.of(
diff --git a/plugins/kotlin/intellij.kotlin.plugin.community.main.iml b/plugins/kotlin/intellij.kotlin.plugin.community.main.iml
index 04bc5ad25631..ada9aa63d6e9 100644
--- a/plugins/kotlin/intellij.kotlin.plugin.community.main.iml
+++ b/plugins/kotlin/intellij.kotlin.plugin.community.main.iml
@@ -212,5 +212,6 @@
     <orderEntry type="module" module-name="kotlin.formatter.minimal" exported="" />
     <orderEntry type="module" module-name="kotlin.ide" exported="" />
     <orderEntry type="module" module-name="kotlin.jsr223" exported="" />
+    <orderEntry type="module" module-name="kotlin.k2.internal" exported="" />
   </component>
 </module>
\ No newline at end of file
diff --git a/plugins/kotlin/internal/kotlin.k2.internal.iml b/plugins/kotlin/internal/kotlin.k2.internal.iml
new file mode 100644
index 000000000000..ab12f45984b9
--- /dev/null
+++ b/plugins/kotlin/internal/kotlin.k2.internal.iml
@@ -0,0 +1,24 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<module type="JAVA_MODULE" version="4">
+  <component name="NewModuleRootManager" inherit-compiler-output="true">
+    <exclude-output />
+    <content url="file://$MODULE_DIR$">
+      <sourceFolder url="file://$MODULE_DIR$/resources" type="java-resource" />
+      <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
+    </content>
+    <orderEntry type="inheritedJdk" />
+    <orderEntry type="library" name="kotlin-stdlib" level="project" />
+    <orderEntry type="sourceFolder" forTests="false" />
+    <orderEntry type="module" module-name="intellij.platform.editor" />
+    <orderEntry type="module" module-name="intellij.platform.core" />
+    <orderEntry type="module" module-name="kotlin.base.util" />
+    <orderEntry type="module" module-name="kotlin.fir.frontend-independent" />
+    <orderEntry type="module" module-name="intellij.java" />
+    <orderEntry type="module" module-name="kotlin.base.plugin" />
+    <orderEntry type="library" name="kotlinc.low-level-api-fir" level="project" />
+    <orderEntry type="module" module-name="kotlin.base.analysis" />
+    <orderEntry type="library" name="kotlinc.analysis-api-platform-interface" level="project" />
+    <orderEntry type="module" module-name="intellij.platform.ide.impl" />
+    <orderEntry type="module" module-name="kotlin.base.resources" />
+  </component>
+</module>
\ No newline at end of file
diff --git a/plugins/kotlin/internal/resources/kotlin.k2.internal.xml b/plugins/kotlin/internal/resources/kotlin.k2.internal.xml
new file mode 100644
index 000000000000..71608e2244a1
--- /dev/null
+++ b/plugins/kotlin/internal/resources/kotlin.k2.internal.xml
@@ -0,0 +1,13 @@
+<idea-plugin package="org.jetbrains.kotlin.idea.internal.actions">
+  <resource-bundle>messages.KotlinInternalBundle</resource-bundle>
+  <actions>
+      <action id="InvalidateK2CachesInternalAction" class="org.jetbrains.kotlin.idea.internal.actions.InvalidateK2CachesInternalAction" internal="true">
+        <add-to-group group-id="KotlinInternalGroup"/>
+      </action>
+  </actions>
+
+  <extensions defaultExtensionNs="com.intellij">
+    <notificationGroup id="Internal Kotlin Plugin Actions" displayType="BALLOON" bundle="messages.KotlinInternalBundle"
+                       key="internal.kotlin.plugin.actions.notification.group"/>
+  </extensions>
+</idea-plugin>
diff --git a/plugins/kotlin/internal/resources/messages/KotlinInternalBundle.properties b/plugins/kotlin/internal/resources/messages/KotlinInternalBundle.properties
new file mode 100644
index 000000000000..99566913f5df
--- /dev/null
+++ b/plugins/kotlin/internal/resources/messages/KotlinInternalBundle.properties
@@ -0,0 +1,14 @@
+action.InvalidateK2CachesInternalAction.text=Invalidate Kotlin Plugin K2 Mode Caches
+internal.kotlin.plugin.actions.notification.group=Internal Kotlin plugin actions
+notification.content.kotlin.internal.resolution.caches.were.invalidated.title=Kotlin caches are invalidated.
+dialog.title.invalidate.caches=Invalidate Caches
+button.source.library.caches=Source and Library Caches
+button.source.caches=Source Caches
+notification.content.source.caches=Source caches
+notification.content.source.library.caches=Source and library caches
+invalidate.source.caches.tooltip=Invalidates all K2 plugin source and script caches.<br/>\
+  Library caches are kept intact.<br/>\
+  Invoking this action should be equivalent to performing an out-of-block modification in each module simultaneously.<br/>
+invalidate.source.library.caches.tooltip=Invalidates all K2 plugin source, script, builtins, and library caches.<br/>\
+  Invoking this action should be equivalent to removing and re-adding all project libraries, \
+  as well as performing an out-of-block modification in each module simultaneously.
\ No newline at end of file
diff --git a/plugins/kotlin/internal/src/org/jetbrains/kotlin/idea/internal/actions/InvalidateK2CachesInternalAction.kt b/plugins/kotlin/internal/src/org/jetbrains/kotlin/idea/internal/actions/InvalidateK2CachesInternalAction.kt
new file mode 100644
index 000000000000..000d71d59cfa
--- /dev/null
+++ b/plugins/kotlin/internal/src/org/jetbrains/kotlin/idea/internal/actions/InvalidateK2CachesInternalAction.kt
@@ -0,0 +1,134 @@
+// Copyright 2000-2024 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
+package org.jetbrains.kotlin.idea.internal.actions
+
+import com.intellij.codeInsight.daemon.DaemonCodeAnalyzer
+import com.intellij.icons.AllIcons
+import com.intellij.java.library.JavaLibraryModificationTracker
+import com.intellij.notification.Notification
+import com.intellij.notification.NotificationType
+import com.intellij.notification.Notifications
+import com.intellij.openapi.actionSystem.ActionUpdateThread
+import com.intellij.openapi.actionSystem.AnAction
+import com.intellij.openapi.actionSystem.AnActionEvent
+import com.intellij.openapi.project.Project
+import com.intellij.openapi.ui.DialogWrapper
+import com.intellij.openapi.util.NlsContexts
+import com.intellij.ui.dsl.builder.panel
+import org.jetbrains.kotlin.analysis.api.platform.analysisMessageBus
+import org.jetbrains.kotlin.analysis.api.platform.modification.KotlinModificationTopics
+import org.jetbrains.kotlin.analysis.low.level.api.fir.LLFirInternals
+import org.jetbrains.kotlin.analysis.low.level.api.fir.projectStructure.LLFirBuiltinsSessionFactory
+import org.jetbrains.kotlin.idea.KotlinIcons
+import org.jetbrains.kotlin.idea.base.plugin.KotlinPluginModeProvider
+import org.jetbrains.kotlin.idea.caches.trackers.KotlinIDEModificationTrackerService
+import org.jetbrains.kotlin.idea.util.application.isApplicationInternalMode
+import org.jetbrains.kotlin.idea.util.application.runWriteAction
+import javax.swing.JComponent
+
+internal class InvalidateK2CachesInternalAction : AnAction() {
+    override fun getActionUpdateThread() = ActionUpdateThread.BGT
+
+    override fun actionPerformed(e: AnActionEvent) {
+        val project = e.project ?: return
+        val invalidationMode = InvalidateCachesDialog.show() ?: return
+        invalidateCaches(project, invalidationMode)
+        DaemonCodeAnalyzer.getInstance(project).restart()
+
+        showNotificationAboutInvalidatedCaches(project, invalidationMode)
+    }
+
+    @OptIn(LLFirInternals::class)
+    @Suppress("TestOnlyProblems")
+    private fun invalidateCaches(project: Project, invalidationMode: InvalidationMode) = runWriteAction {
+        if (invalidationMode.invalidateSources) {
+            KotlinIDEModificationTrackerService.invalidateCaches(project)
+            project.analysisMessageBus.apply {
+                syncPublisher(KotlinModificationTopics.GLOBAL_SOURCE_OUT_OF_BLOCK_MODIFICATION).onModification()
+                syncPublisher(KotlinModificationTopics.GLOBAL_SCRIPT_MODULE_STATE_MODIFICATION).onModification()
+            }
+        }
+        if (invalidationMode.invalidateLibraries) {
+            LLFirBuiltinsSessionFactory.getInstance(project).clearForTheNextTest()
+            JavaLibraryModificationTracker.incModificationCount(project)
+            project.analysisMessageBus.apply {
+                syncPublisher(KotlinModificationTopics.GLOBAL_MODULE_STATE_MODIFICATION).onModification()
+            }
+        }
+    }
+
+    private fun showNotificationAboutInvalidatedCaches(project: Project, invalidationMode: InvalidationMode) {
+        val content: @NlsContexts.NotificationContent String = when (invalidationMode) {
+            InvalidationMode.OnlySourceCaches -> KotlinInternalBundle.message("notification.content.source.caches")
+            InvalidationMode.LibraryAndSourceCaches -> KotlinInternalBundle.message("notification.content.source.library.caches")
+        }
+        val notification = Notification(
+            "Internal Kotlin Plugin Actions",
+            KotlinInternalBundle.message("notification.content.kotlin.internal.resolution.caches.were.invalidated.title"),
+            content,
+            NotificationType.INFORMATION
+        ).apply {
+            icon = KotlinIcons.FIR
+        }
+
+        Notifications.Bus.notify(notification, project)
+    }
+
+    override fun update(e: AnActionEvent) {
+        e.presentation.isEnabledAndVisible =
+            e.project != null
+                    && isApplicationInternalMode()
+                    && KotlinPluginModeProvider.isK2Mode()
+    }
+}
+
+private class InvalidateCachesDialog : DialogWrapper(true) {
+    private var result: InvalidationMode? = null
+
+    init {
+        init()
+        title = KotlinInternalBundle.message("dialog.title.invalidate.caches")
+    }
+
+    override fun isResizable(): Boolean {
+        return false
+    }
+
+    override fun createCenterPanel(): JComponent = panel {
+        row {
+            button(KotlinInternalBundle.message("button.source.caches")) {
+                result = InvalidationMode.OnlySourceCaches
+                close(OK_EXIT_CODE)
+            }.applyToComponent {
+                icon = AllIcons.Actions.ModuleDirectory
+                toolTipText = KotlinInternalBundle.message("invalidate.source.caches.tooltip")
+            }
+            button(KotlinInternalBundle.message("button.source.library.caches")) {
+                result = InvalidationMode.LibraryAndSourceCaches
+                close(OK_EXIT_CODE)
+            }.applyToComponent {
+                icon = AllIcons.Nodes.Library
+                toolTipText = KotlinInternalBundle.message("invalidate.source.library.caches.tooltip")
+            }
+        }
+    }
+
+    override fun createSouthPanel(): JComponent = panel {}
+
+
+    companion object {
+        fun show(): InvalidationMode? {
+            val dialog = InvalidateCachesDialog()
+            if (!dialog.showAndGet()) return null
+            return dialog.result
+        }
+    }
+}
+
+
+private enum class InvalidationMode(
+    val invalidateSources: Boolean,
+    val invalidateLibraries: Boolean,
+) {
+    LibraryAndSourceCaches(invalidateSources = true, invalidateLibraries = true),
+    OnlySourceCaches(invalidateSources = true, invalidateLibraries = false),
+}
diff --git a/plugins/kotlin/internal/src/org/jetbrains/kotlin/idea/internal/actions/KotlinInternalBundle.kt b/plugins/kotlin/internal/src/org/jetbrains/kotlin/idea/internal/actions/KotlinInternalBundle.kt
new file mode 100644
index 000000000000..9f67927e2891
--- /dev/null
+++ b/plugins/kotlin/internal/src/org/jetbrains/kotlin/idea/internal/actions/KotlinInternalBundle.kt
@@ -0,0 +1,16 @@
+// Copyright 2000-2024 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
+package org.jetbrains.kotlin.idea.internal.actions
+
+import org.jetbrains.annotations.Nls
+import org.jetbrains.annotations.NonNls
+import org.jetbrains.annotations.PropertyKey
+import org.jetbrains.kotlin.util.AbstractKotlinBundle
+
+@NonNls
+private const val BUNDLE = "messages.KotlinInternalBundle"
+
+internal object KotlinInternalBundle : AbstractKotlinBundle(BUNDLE) {
+    @Nls
+    @JvmStatic
+    fun message(@NonNls @PropertyKey(resourceBundle = BUNDLE) key: String, vararg params: Any): String = getMessage(key, *params)
+}
\ No newline at end of file
diff --git a/plugins/kotlin/plugin/k2/kotlin.plugin.k2.iml b/plugins/kotlin/plugin/k2/kotlin.plugin.k2.iml
index ebe878e318e7..29f2100c010e 100644
--- a/plugins/kotlin/plugin/k2/kotlin.plugin.k2.iml
+++ b/plugins/kotlin/plugin/k2/kotlin.plugin.k2.iml
@@ -123,5 +123,6 @@
     <orderEntry type="module" module-name="kotlin.performanceExtendedPlugin" scope="RUNTIME" />
     <orderEntry type="module" module-name="kotlin.jvm-debugger.evaluation.k2" scope="RUNTIME" />
     <orderEntry type="module" module-name="kotlin.features-trainer" scope="RUNTIME" />
+    <orderEntry type="module" module-name="kotlin.k2.internal" scope="RUNTIME" />
   </component>
 </module>
\ No newline at end of file
diff --git a/plugins/kotlin/plugin/k2/resources/kotlin.plugin.k2.xml b/plugins/kotlin/plugin/k2/resources/kotlin.plugin.k2.xml
index 992106439775..3f9b9b6282ed 100644
--- a/plugins/kotlin/plugin/k2/resources/kotlin.plugin.k2.xml
+++ b/plugins/kotlin/plugin/k2/resources/kotlin.plugin.k2.xml
@@ -272,6 +272,7 @@
     <module name="kotlin.base.injection"/>
 
     <module name="kotlin.j2k.k2"/>
+    <module name="kotlin.k2.internal"/>
 
     <module name="kotlin.performanceExtendedPlugin"/>
   </content>
diff --git a/plugins/kotlin/plugin/plugin-content.yaml b/plugins/kotlin/plugin/plugin-content.yaml
index 815f7319e035..0496c15865f5 100644
--- a/plugins/kotlin/plugin/plugin-content.yaml
+++ b/plugins/kotlin/plugin/plugin-content.yaml
@@ -256,6 +256,7 @@
   - name: kotlin.performanceExtendedPlugin
   - name: kotlin.bundled-compiler-plugins-support
   - name: kotlin.jsr223
+  - name: kotlin.k2.internal
   - name: kotlin-ultimate.common-native
   - name: kotlin-ultimate.javascript.debugger
   - name: kotlin-ultimate.javascript.nodeJs