diff --git a/plugin-build/src/test/kotlin/io/sentry/android/gradle/integration/SentryPluginIsolatedProjectsTest.kt b/plugin-build/src/test/kotlin/io/sentry/android/gradle/integration/SentryPluginIsolatedProjectsTest.kt
new file mode 100644
index 000000000..a4ef27de0
--- /dev/null
+++ b/plugin-build/src/test/kotlin/io/sentry/android/gradle/integration/SentryPluginIsolatedProjectsTest.kt
@@ -0,0 +1,167 @@
+package io.sentry.android.gradle.integration
+
+import io.sentry.BuildConfig
+import io.sentry.android.gradle.util.AgpVersions
+import io.sentry.android.gradle.util.GradleVersions
+import io.sentry.android.gradle.util.SemVer
+import java.io.File
+import kotlin.test.assertFalse
+import kotlin.test.assertTrue
+import org.gradle.testkit.runner.internal.PluginUnderTestMetadataReading
+import org.gradle.util.GradleVersion
+import org.hamcrest.CoreMatchers.`is`
+import org.junit.Assume.assumeThat
+import org.junit.Test
+
+class SentryPluginIsolatedProjectsTest :
+  BaseSentryPluginTest(BuildConfig.AgpVersion, GradleVersion.current().version) {
+
+  @Test
+  fun `plugin is compatible with isolated projects in a multi-module build`() {
+    assumeThat(
+      "Isolated Projects requires AGP 8.3.0+ and Gradle 8.0+",
+      SemVer.parse(BuildConfig.AgpVersion) >= AgpVersions.VERSION_8_3_0 &&
+        GradleVersions.CURRENT >= GradleVersions.VERSION_8_0,
+      `is`(true),
+    )
+
+    writeIsolatedProjectsFixture()
+
+    runner.appendArguments(":app:assembleDebug").appendArguments("--configuration-cache")
+
+    val output = runner.build().output
+
+    assertTrue(output) { "BUILD SUCCESSFUL" in output }
+    // Sanity-check that isolated-projects was actually active during this build —
+    // otherwise the test would silently degrade into a plain config-cache test.
+    assertTrue(output) { "isolated projects" in output.lowercase() }
+    assertFalse(
+      "problems were found " in output || "cannot access '" in output,
+      "Expected no isolated-projects violations, but got:\n$output",
+    )
+  }
+
+  private fun writeIsolatedProjectsFixture() {
+    // Replace the fixture written by BaseSentryPluginTest — its root build.gradle
+    // uses allprojects {} and subprojects {}, which are fundamentally incompatible
+    // with Gradle's isolated-projects feature. Instead, wire everything per-project
+    // and add an Android library module that :app depends on, so we exercise
+    // cross-project configuration (the interesting scenario for Isolated Projects).
+    //
+    // autoInstallation is intentionally left disabled: it walks the dependency
+    // graph at configuration time and reaches into sibling projects' metadata
+    // (Project.group), which violates Isolated Projects. Tracked in EME-1072.
+    val pluginClasspath =
+      PluginUnderTestMetadataReading.readImplementationClasspath()
+        .joinToString(separator = ", ") { "\"$it\"" }
+        .replace(File.separator, "/")
+
+    File(testProjectDir.root, "settings.gradle")
+      .writeText(
+        // language=Groovy
+        """
+        include ':app', ':library'
+        """
+          .trimIndent()
+      )
+
+    File(testProjectDir.root, "gradle.properties")
+      .writeText(
+        """
+        org.gradle.jvmargs=-Xmx2g -XX:MaxMetaspaceSize=1g -Dfile.encoding=UTF-8
+        org.gradle.daemon=false
+        org.gradle.unsafe.isolated-projects=true
+        android.useAndroidX=true
+        android.overrideVersionCheck=true
+        """
+          .trimIndent()
+      )
+
+    File(testProjectDir.root, "build.gradle")
+      .writeText(
+        // language=Groovy
+        """
+        buildscript {
+          repositories {
+            google()
+            gradlePluginPortal()
+            mavenCentral()
+          }
+          dependencies {
+            classpath 'com.android.tools.build:gradle:$androidGradlePluginVersion'
+            classpath files($pluginClasspath)
+          }
+        }
+        """
+          .trimIndent()
+      )
+
+    File(testProjectDir.root, "app/build.gradle")
+      .writeText(
+        // language=Groovy
+        """
+        plugins {
+          id 'com.android.application'
+          id 'io.sentry.android.gradle'
+        }
+
+        repositories {
+          google()
+          mavenCentral()
+        }
+
+        android {
+          namespace 'com.example'
+          compileSdkVersion 35
+          defaultConfig {
+            applicationId 'com.example'
+            minSdkVersion 21
+          }
+        }
+
+        dependencies {
+          implementation project(':library')
+        }
+
+        sentry {
+          autoUploadProguardMapping = true
+          autoInstallation.enabled = false
+          telemetry = true
+        }
+        """
+          .trimIndent()
+      )
+
+    val libraryDir = File(testProjectDir.root, "library").apply { mkdirs() }
+    File(libraryDir, "build.gradle")
+      .writeText(
+        // language=Groovy
+        """
+        plugins {
+          id 'com.android.library'
+          id 'io.sentry.android.gradle'
+        }
+
+        repositories {
+          google()
+          mavenCentral()
+        }
+
+        android {
+          namespace 'com.example.library'
+          compileSdkVersion 35
+          defaultConfig {
+            minSdkVersion 21
+          }
+        }
+
+        sentry {
+          autoUploadProguardMapping = false
+          autoInstallation.enabled = false
+          telemetry = false
+        }
+        """
+          .trimIndent()
+      )
+  }
+}