diff --git a/build-logic/build.gradle.kts b/build-logic/build.gradle.kts
index aadd6a3b4..f4391800f 100644
--- a/build-logic/build.gradle.kts
+++ b/build-logic/build.gradle.kts
@@ -1,7 +1,7 @@
 // Copyright (c) 2026. Tony Robalik.
 // SPDX-License-Identifier: Apache-2.0
 plugins {
-  id("org.jetbrains.kotlin.jvm") version "2.2.21" apply false
+  id("org.jetbrains.kotlin.jvm") version "2.3.20" apply false
   alias(libs.plugins.dependencyAnalysis)
 }
 
diff --git a/build-logic/convention/build.gradle.kts b/build-logic/convention/build.gradle.kts
index 9f1118224..f83bebcc6 100644
--- a/build-logic/convention/build.gradle.kts
+++ b/build-logic/convention/build.gradle.kts
@@ -67,8 +67,7 @@ dependencies {
     because("For extending Gradle Plugin-Publish Plugin functionality")
   }
 
-  // Need to use embedded version for Gradle 9 compatibility.
-  implementation("org.jetbrains.kotlin:kotlin-gradle-plugin:${embeddedKotlinVersion}") {
+  implementation(libs.kotlin.gradle) {
     because("For applying the kotlin-jvm plugin")
   }
   implementation(libs.kotlinDokkaGradlePlugin)
diff --git a/gradle/libs.versions.toml b/gradle/libs.versions.toml
index a08a76f6d..e84057860 100644
--- a/gradle/libs.versions.toml
+++ b/gradle/libs.versions.toml
@@ -22,15 +22,10 @@ javaTarget = "11"
 jdkVersion = "17"
 jspecify = "1.0.0"
 junit = "5.14.1"
-# TODO(tsr): downgraded to 2.2.21 due to issues with the kotlin-daemon-client.
-#  See https://kotlinlang.slack.com/archives/C19FD9681/p1775698198510429.
 # IMPORTANT: keep this version in sync with build-logic/build.gradle.kts
-#kotlin = "2.3.20"
-#kotlinForAndroidtests = "2.3.20"
-#kotlinMetadata = "2.3.20"
-kotlin = "2.2.21"
-kotlinForAndroidtests = "2.2.21"
-kotlinMetadata = "2.2.21"
+kotlin = "2.3.20"
+kotlinForAndroidtests = "2.3.20"
+kotlinMetadata = "2.3.20"
 # TODO(tsr): update Dokka
 kotlinDokka = "2.0.0"
 # Cannot be called kotlin-editor as it causes `libs.versions.kotlin.get()` to fail
diff --git a/src/functionalTest/groovy/com/autonomousapps/android/projects/DominanceTreeProject.groovy b/src/functionalTest/groovy/com/autonomousapps/android/projects/DominanceTreeProject.groovy
index 76c2c1bdb..6665aabf1 100644
--- a/src/functionalTest/groovy/com/autonomousapps/android/projects/DominanceTreeProject.groovy
+++ b/src/functionalTest/groovy/com/autonomousapps/android/projects/DominanceTreeProject.groovy
@@ -46,14 +46,14 @@ final class DominanceTreeProject extends AbstractAndroidProject {
   }
 
   final expectedTree = """\
-      10.01 MiB :app
+      10.05 MiB :app
       +--- 8.32 MiB (1.69 MiB) androidx.appcompat:appcompat:1.7.1
       |    +--- 2.70 MiB (2.63 MiB) androidx.core:core:1.13.0
       |    |    \\--- 0.07 MiB androidx.versionedparcelable:versionedparcelable:1.1.1
       |    +--- 1.43 MiB (0.02 MiB) org.jetbrains.kotlinx:kotlinx-coroutines-android:1.6.4
       |    |    +--- 1.41 MiB org.jetbrains.kotlinx:kotlinx-coroutines-core:1.6.4
       |    |    |    \\--- 1.41 MiB (1.41 MiB) org.jetbrains.kotlinx:kotlinx-coroutines-core-jvm:1.6.4
-      |    |    |         \\--- org.jetbrains.kotlin:kotlin-stdlib-common:2.2.21
+      |    |    |         \\--- org.jetbrains.kotlin:kotlin-stdlib-common:2.3.20
       |    |    \\--- 0.00 MiB (0.00 MiB) org.jetbrains.kotlin:kotlin-stdlib-jdk8:1.8.0
       |    |         \\--- 0.00 MiB org.jetbrains.kotlin:kotlin-stdlib-jdk7:1.8.0
       |    +--- 0.86 MiB (0.62 MiB) androidx.fragment:fragment:1.5.4
@@ -81,7 +81,7 @@ final class DominanceTreeProject extends AbstractAndroidProject {
       |    +--- 0.02 MiB androidx.lifecycle:lifecycle-livedata-core:2.6.2
       |    +--- 0.01 MiB androidx.arch.core:core-common:2.2.0
       |    \\--- 0.01 MiB androidx.annotation:annotation-experimental:1.4.0
-      +--- 1.70 MiB (1.68 MiB) org.jetbrains.kotlin:kotlin-stdlib:2.2.21
+      +--- 1.74 MiB (1.72 MiB) org.jetbrains.kotlin:kotlin-stdlib:2.3.20
       |    \\--- 0.02 MiB org.jetbrains:annotations:13.0
       \\--- 0.00 MiB :lib""".stripIndent().readLines()
 }
diff --git a/src/functionalTest/groovy/com/autonomousapps/android/projects/DuplicateDependencyVersionsProject.groovy b/src/functionalTest/groovy/com/autonomousapps/android/projects/DuplicateDependencyVersionsProject.groovy
index 343ba0b77..f65b0f303 100644
--- a/src/functionalTest/groovy/com/autonomousapps/android/projects/DuplicateDependencyVersionsProject.groovy
+++ b/src/functionalTest/groovy/com/autonomousapps/android/projects/DuplicateDependencyVersionsProject.groovy
@@ -124,10 +124,10 @@ final class DuplicateDependencyVersionsProject extends AbstractAndroidProject {
     junit-junit-4-12 = { module = "junit:junit", version = "4.12" }
     junit-junit-4-13 = { module = "junit:junit", version = "4.13" }
     org-hamcrest-hamcrest-core-1-3 = { module = "org.hamcrest:hamcrest-core", version = "1.3" }
-    org-jetbrains-kotlin-kotlin-stdlib-common-2-2-21 = { module = "org.jetbrains.kotlin:kotlin-stdlib-common", version = "2.2.21" }
+    org-jetbrains-kotlin-kotlin-stdlib-common-2-3-20 = { module = "org.jetbrains.kotlin:kotlin-stdlib-common", version = "2.3.20" }
     org-jetbrains-kotlin-kotlin-stdlib-jdk7-1-8-0 = { module = "org.jetbrains.kotlin:kotlin-stdlib-jdk7", version = "1.8.0" }
     org-jetbrains-kotlin-kotlin-stdlib-jdk8-1-8-0 = { module = "org.jetbrains.kotlin:kotlin-stdlib-jdk8", version = "1.8.0" }
-    org-jetbrains-kotlin-kotlin-stdlib-2-2-21 = { module = "org.jetbrains.kotlin:kotlin-stdlib", version = "2.2.21" }
+    org-jetbrains-kotlin-kotlin-stdlib-2-3-20 = { module = "org.jetbrains.kotlin:kotlin-stdlib", version = "2.3.20" }
     org-jetbrains-kotlinx-kotlinx-coroutines-android-1-6-4 = { module = "org.jetbrains.kotlinx:kotlinx-coroutines-android", version = "1.6.4" }
     org-jetbrains-kotlinx-kotlinx-coroutines-core-jvm-1-6-4 = { module = "org.jetbrains.kotlinx:kotlinx-coroutines-core-jvm", version = "1.6.4" }
     org-jetbrains-kotlinx-kotlinx-coroutines-core-1-6-4 = { module = "org.jetbrains.kotlinx:kotlinx-coroutines-core", version = "1.6.4" }