diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/compiler/GroovyCompiler.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/compiler/GroovyCompiler.java
index 1346be937ad8..087684a4250f 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/compiler/GroovyCompiler.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/compiler/GroovyCompiler.java
@@ -16,36 +16,44 @@
 
 package org.jetbrains.plugins.groovy.compiler;
 
+import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.compiler.CompileContext;
 import com.intellij.openapi.compiler.CompileScope;
+import com.intellij.openapi.diagnostic.Logger;
 import com.intellij.openapi.module.JavaModuleType;
 import com.intellij.openapi.module.Module;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.projectRoots.JavaSdkType;
 import com.intellij.openapi.projectRoots.Sdk;
+import com.intellij.openapi.roots.ContentIterator;
 import com.intellij.openapi.roots.ModuleRootManager;
 import com.intellij.openapi.roots.ProjectRootManager;
 import com.intellij.openapi.roots.ui.configuration.ClasspathEditor;
 import com.intellij.openapi.roots.ui.configuration.ModulesConfigurator;
 import com.intellij.openapi.ui.Messages;
+import com.intellij.openapi.util.Computable;
 import com.intellij.openapi.vfs.VirtualFile;
+import com.intellij.psi.*;
+import com.intellij.util.containers.FactoryMap;
+import gnu.trove.THashMap;
+import gnu.trove.THashSet;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.plugins.groovy.GroovyBundle;
 import org.jetbrains.plugins.groovy.GroovyFileType;
 import org.jetbrains.plugins.groovy.GroovyFileTypeLoader;
 import org.jetbrains.plugins.groovy.config.GroovyConfigUtils;
+import org.jetbrains.plugins.groovy.lang.psi.GroovyFile;
+import org.jetbrains.plugins.groovy.lang.psi.api.types.GrCodeReferenceElement;
 import org.jetbrains.plugins.groovy.util.LibrariesUtil;
 
-import java.util.HashSet;
-import java.util.List;
-import java.util.Set;
+import java.util.*;
 
 /**
  * @author Dmitry.Krasilschikov
  */
 
 public class GroovyCompiler extends GroovyCompilerBase {
-  private static final String GROOVY_COMPILER = "groovy compiler";
+  private static final Logger LOG = Logger.getInstance("#org.jetbrains.plugins.groovy.compiler.GroovyCompiler");
 
   public GroovyCompiler(Project project) {
     super(project);
@@ -53,12 +61,145 @@ public class GroovyCompiler extends GroovyCompilerBase {
 
   @NotNull
   public String getDescription() {
-    return GROOVY_COMPILER;
+    return "groovy compiler";
   }
 
   @Override
-  protected void compileFiles(CompileContext compileContext, Module module, List<VirtualFile> toCompile, OutputSink sink, boolean tests) {
-    runGroovycCompiler(compileContext, module, toCompile, false, getMainOutput(compileContext, module, tests), sink, tests);
+  protected void compileFiles(final CompileContext context, final Module module, List<VirtualFile> toCompile, OutputSink sink, boolean tests) {
+    final Set<VirtualFile> allToCompile = new LinkedHashSet<VirtualFile>(toCompile);
+
+    // groovyc may fail if we don't also recompile files like B such that A depends on B and B depends on C, where A & C \in toCompile
+    // see http://jira.codehaus.org/browse/GROOVY-4024
+    // this is important only if >1 files have been changed
+    if (toCompile.size() > 1 && !"false".equals(System.getProperty("compile.groovy.dependencies", "true"))) {
+      context.getProgressIndicator().checkCanceled();
+      context.getProgressIndicator().setText("Enumerating Groovy classes...");
+
+      final Map<PsiClass, VirtualFile> moduleClasses = new THashMap<PsiClass, VirtualFile>();
+      int groovyFiles = enumerateGroovyClasses(module, moduleClasses);
+
+      if (toCompile.size() < groovyFiles) {
+        context.getProgressIndicator().checkCanceled();
+        context.getProgressIndicator().setText("Processing Groovy dependencies...");
+
+        addIntermediateGroovyClasses(allToCompile, moduleClasses);
+      }
+    }
+
+    context.getProgressIndicator().checkCanceled();
+    context.getProgressIndicator().setText(GroovycOSProcessHandler.GROOVY_COMPILER_IN_OPERATION);
+
+    runGroovycCompiler(context, module, new ArrayList<VirtualFile>(allToCompile), false, getMainOutput(context, module, tests), sink, tests);
+  }
+
+  private void addIntermediateGroovyClasses(Set<VirtualFile> allToCompile, final Map<PsiClass, VirtualFile> moduleClasses) {
+    final Set<PsiClass> initialClasses = new THashSet<PsiClass>();
+    for (VirtualFile file : allToCompile) {
+      initialClasses.addAll(getAllClasses(file));
+    }
+
+    final THashSet<PsiClass> dirty = new THashSet<PsiClass>(initialClasses);
+
+    final THashSet<PsiClass> visited = new THashSet<PsiClass>();
+    for (PsiClass aClass : initialClasses) {
+      if (visited.add(aClass)) {
+        goForIntermediateClasses(aClass, dirty, new FactoryMap<PsiClass, Set<PsiClass>>() {
+          @Override
+          protected Set<PsiClass> create(final PsiClass key) {
+            return ApplicationManager.getApplication().runReadAction(new Computable<Set<PsiClass>>() {
+              public Set<PsiClass> compute() {
+                return calcCodeReferenceDependencies(key, moduleClasses);
+              }
+            });
+          }
+        }, visited);
+      }
+    }
+    for (PsiClass psiClass : dirty) {
+      allToCompile.add(moduleClasses.get(psiClass));
+    }
+  }
+
+  private int enumerateGroovyClasses(final Module module, final Map<PsiClass, VirtualFile> moduleClasses) {
+    final Set<VirtualFile> groovyFiles = new THashSet<VirtualFile>();
+    ModuleRootManager.getInstance(module).getFileIndex().iterateContent(new ContentIterator() {
+      public boolean processFile(final VirtualFile vfile) {
+        if (!vfile.isDirectory() && GroovyFileType.GROOVY_FILE_TYPE.equals(vfile.getFileType())) {
+          final List<PsiClass> classes = getAllClasses(vfile);
+          if (!classes.isEmpty()) {
+            groovyFiles.add(vfile);
+            for (PsiClass psiClass : classes) {
+              moduleClasses.put(psiClass, vfile);
+            }
+          }
+
+        }
+        return true;
+      }
+    });
+    return groovyFiles.size();
+  }
+
+  private List<PsiClass> getAllClasses(final VirtualFile vfile) {
+    final ArrayList<PsiClass> classes = new ArrayList<PsiClass>();
+    ApplicationManager.getApplication().runReadAction(new Runnable() {
+      public void run() {
+        final PsiFile file = PsiManager.getInstance(myProject).findFile(vfile);
+        if (file instanceof GroovyFile) {
+          addClassesFrom(((GroovyFile)file).getClasses(), classes);
+        }
+      }
+
+      private void addClassesFrom(final PsiClass[] classes, List<PsiClass> result) {
+        for (PsiClass aClass : classes) {
+          result.add(aClass);
+          addClassesFrom(aClass.getInnerClasses(), result);
+        }
+      }
+
+    });
+    return classes;
+  }
+
+
+  private static void goForIntermediateClasses(PsiClass from, Set<PsiClass> dirty, FactoryMap<PsiClass, Set<PsiClass>> deps, Set<PsiClass> visited) {
+    final Set<PsiClass> set = deps.get(from);
+    for (PsiClass psiClass : set) {
+      if (visited.add(psiClass)) {
+        goForIntermediateClasses(psiClass, dirty, deps, visited);
+      }
+      if (dirty.contains(psiClass)) {
+        dirty.add(from);
+      }
+    }
+  }
+
+  private Set<PsiClass> calcCodeReferenceDependencies(PsiClass psiClass, final Map<PsiClass, VirtualFile> moduleClasses) {
+    final Set<PsiClass> deps = new THashSet<PsiClass>();
+    psiClass.acceptChildren(new PsiElementVisitor() {
+      @Override
+      public void visitElement(PsiElement element) {
+        if (element instanceof PsiClass) {
+          return;
+        }
+        if (element instanceof GrCodeReferenceElement) {
+          GrCodeReferenceElement referenceElement = (GrCodeReferenceElement)element;
+          try {
+            final PsiElement target = referenceElement.resolve();
+            if (target instanceof PsiClass && moduleClasses.containsKey(target)) {
+              deps.add((PsiClass)target);
+            }
+          }
+          catch (Exception e) {
+            LOG.error(e);
+            //prevent our PSI errors from failing the entire compilation
+          }
+        }
+
+        element.acceptChildren(this);
+      }
+    });
+    return deps;
   }
 
   public boolean validateConfiguration(CompileScope compileScope) {
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/compiler/GroovycOSProcessHandler.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/compiler/GroovycOSProcessHandler.java
index 64ad41c847b1..b1d75ce67cef 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/compiler/GroovycOSProcessHandler.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/compiler/GroovycOSProcessHandler.java
@@ -44,6 +44,7 @@ public class GroovycOSProcessHandler extends OSProcessHandler {
   private final CompileContext myContext;
 
   private static final Logger LOG = Logger.getInstance("org.jetbrains.plugins.groovy.compiler.GroovycOSProcessHandler");
+  public static final String GROOVY_COMPILER_IN_OPERATION = "Groovy compiler in operation...";
 
   public GroovycOSProcessHandler(CompileContext context, Process process, String s) {
     super(process, s);
@@ -73,7 +74,7 @@ public class GroovycOSProcessHandler extends OSProcessHandler {
     }
 
     if (GroovycRunner.CLEAR_PRESENTABLE.equals(text)) {
-      myContext.getProgressIndicator().setText("Groovy compiler in operation...");
+      myContext.getProgressIndicator().setText(GROOVY_COMPILER_IN_OPERATION);
       return;
     }
 
diff --git a/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/GroovyCompilerTest.groovy b/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/GroovyCompilerTest.groovy
index fff8d04f1871..391947f56adc 100644
--- a/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/GroovyCompilerTest.groovy
+++ b/plugins/groovy/test/org/jetbrains/plugins/groovy/lang/GroovyCompilerTest.groovy
@@ -287,5 +287,26 @@ class Foo {
     assertEmpty make()
   }
 
+  public void testRecompileDependentClass() throws Exception {
+    def cloud = myFixture.addFileToProject("Cloud.groovy", """
+class Cloud {
+  def accessFooProperty(Foo c) {
+    c.prop = 2
+  }
+}
+""")
+    myFixture.addFileToProject "Foo.groovy", """
+class Foo {
+  def withGooParameter(Goo x) {}
+}"""
+    def goo = myFixture.addFileToProject("Goo.groovy", "class Goo {}")
+
+    assertEmpty make()
+
+    touch(cloud.virtualFile)
+    touch(goo.virtualFile)
+    assertEmpty make()
+  }
+
 
 }