diff --git a/README.md b/README.md
index 675a8da1f..ae1fd336b 100644
--- a/README.md
+++ b/README.md
@@ -229,6 +229,7 @@ composeVersion | The version for the Jetpack Compose dependencies to use for Esp
 sourceCompatibility | The minimum version of JVM the project sources are compatible with. The default value is `VERSION_1_8` | VERSION_12
 targetCompatibility | The target version of JVM the project sources are compatible with. The default value is `VERSION_1_8` | VERSION_12
 jvmTarget | Target version of the generated JVM bytecode as a string. The default value is `1_8` | `1_10`
+annotationVersion | The target version of `androidx.annotation:annotation` pakage. By default the version from the app [build.gradle.kts](https://github.com/appium/appium-espresso-driver/blob/master/espresso-server/app/build.gradle.kts) is used | '1.2.0'
 
 ### additionalAppDependencies
 
diff --git a/espresso-server/app/build.gradle.kts b/espresso-server/app/build.gradle.kts
index 437052b6b..85ef43a1e 100644
--- a/espresso-server/app/build.gradle.kts
+++ b/espresso-server/app/build.gradle.kts
@@ -86,6 +86,7 @@ android {
 
 val kotlinVersion = rootProject.extra["appiumKotlin"]
 val composeVersion = getStringProperty("appiumComposeVersion", Version.compose)
+val annotationVersion = getStringProperty("appiumAnnotationVersion", Version.annotation)
 
 dependencies {
     implementation(fileTree(mapOf("dir" to "libs", "include" to listOf("*.jar"))))
@@ -95,7 +96,7 @@ dependencies {
     testImplementation("org.powermock:powermock-classloading-xstream:${Version.mocklib}")
     testImplementation("org.powermock:powermock-module-junit4-rule:${Version.mocklib}")
     testImplementation("org.powermock:powermock-module-junit4:${Version.mocklib}")
-    testImplementation("androidx.annotation:annotation:${Version.annotation}")
+    testImplementation("androidx.annotation:annotation:${annotationVersion}")
     testImplementation("androidx.test.espresso:espresso-contrib:${Version.espresso}")
     testImplementation("androidx.test.espresso:espresso-core:${Version.espresso}")
     testImplementation("androidx.test.espresso:espresso-web:${Version.espresso}")
@@ -114,7 +115,7 @@ dependencies {
     testImplementation("androidx.compose.ui:ui-test:${composeVersion}")
     testImplementation("androidx.compose.ui:ui-test-junit4:${composeVersion}")
 
-    androidTestImplementation("androidx.annotation:annotation:${Version.annotation}")
+    androidTestImplementation("androidx.annotation:annotation:${annotationVersion}")
     androidTestImplementation("androidx.test.espresso:espresso-contrib:${Version.espresso}") {
         // Exclude transitive dependencies to limit conflicts with AndroidX libraries from AUT.
         // Link to PR with fix and discussion https://github.com/appium/appium-espresso-driver/pull/596
@@ -137,6 +138,15 @@ dependencies {
     // additionalAndroidTestDependencies placeholder (don't change or delete this line)
 }
 
+configurations.all {
+    resolutionStrategy.eachDependency {
+        // To avoid "androidx.annotation:annotation" version conflict.
+        if (requested.group == "androidx.annotation" && !requested.name.contains("annotation")) {
+            useVersion(annotationVersion)
+        }
+    }
+}
+
 tasks.withType<Test> {
     systemProperty("skipespressoserver", "true")
 }
diff --git a/lib/server-builder.js b/lib/server-builder.js
index c527b48ee..b49cdf024 100644
--- a/lib/server-builder.js
+++ b/lib/server-builder.js
@@ -22,7 +22,8 @@ const VERSION_KEYS = [
   'sourceCompatibility',
   'targetCompatibility',
   'jvmTarget',
-  'composeVersion'
+  'composeVersion',
+  'annotationVersion'
 ];
 
 function buildServerSigningConfig (args) {