diff --git a/java/src/com/google/idea/blaze/java/fastbuild/BazelFastBuildDeployJarStrategy.java b/java/src/com/google/idea/blaze/java/fastbuild/BazelFastBuildDeployJarStrategy.java
index f35b4030845..4ccbb9fa59e 100644
--- a/java/src/com/google/idea/blaze/java/fastbuild/BazelFastBuildDeployJarStrategy.java
+++ b/java/src/com/google/idea/blaze/java/fastbuild/BazelFastBuildDeployJarStrategy.java
@@ -17,6 +17,7 @@
 
 import com.google.common.collect.ImmutableList;
 import com.google.common.collect.ImmutableSet;
+import com.google.idea.blaze.base.model.BlazeVersionData;
 import com.google.idea.blaze.base.model.primitives.Label;
 import com.google.idea.blaze.base.model.primitives.TargetExpression;
 import com.google.idea.blaze.base.settings.BuildSystemName;
@@ -29,22 +30,37 @@ public ImmutableSet<BuildSystemName> getSupportedBuildSystems() {
   }
 
   @Override
-  public ImmutableList<? extends TargetExpression> getBuildTargets(Label label) {
-    return ImmutableList.of(createDeployJarLabel(label), label);
+  public ImmutableList<? extends TargetExpression> getBuildTargets(
+      Label label, BlazeVersionData versionData) {
+    if (versionData.bazelIsAtLeastVersion(7, 0, 1)) {
+      return ImmutableList.of(label);
+    }
+    return ImmutableList.of(createDeployJarLabel(label, versionData), label);
   }
 
   @Override
-  public ImmutableList<String> getBuildFlags() {
+  public ImmutableList<String> getBuildFlags(BlazeVersionData versionData) {
+    if (versionData.bazelIsAtLeastVersion(7, 0, 1)) {
+      return ImmutableList.of(
+          "--experimental_java_test_auto_create_deploy_jar",
+          "--output_groups=+_hidden_top_level_INTERNAL_");
+    }
     return ImmutableList.of();
   }
 
   @Override
-  public Label createDeployJarLabel(Label label) {
+  public Label createDeployJarLabel(Label label, BlazeVersionData versionData) {
+    if (versionData.bazelIsAtLeastVersion(7, 0, 1)) {
+      return Label.create(label + "_auto_deploy.jar");
+    }
     return Label.create(label + "_deploy.jar");
   }
 
   @Override
-  public Label deployJarOwnerLabel(Label label) {
-    return createDeployJarLabel(label);
+  public Label deployJarOwnerLabel(Label label, BlazeVersionData versionData) {
+    if (versionData.bazelIsAtLeastVersion(7, 0, 1)) {
+      return label;
+    }
+    return createDeployJarLabel(label, versionData);
   }
 }
diff --git a/java/src/com/google/idea/blaze/java/fastbuild/FastBuildDeployJarStrategy.java b/java/src/com/google/idea/blaze/java/fastbuild/FastBuildDeployJarStrategy.java
index 24fef327d01..ecd9eea475e 100644
--- a/java/src/com/google/idea/blaze/java/fastbuild/FastBuildDeployJarStrategy.java
+++ b/java/src/com/google/idea/blaze/java/fastbuild/FastBuildDeployJarStrategy.java
@@ -16,6 +16,7 @@
 package com.google.idea.blaze.java.fastbuild;
 
 import com.google.common.collect.ImmutableList;
+import com.google.idea.blaze.base.model.BlazeVersionData;
 import com.google.idea.blaze.base.model.primitives.Label;
 import com.google.idea.blaze.base.model.primitives.TargetExpression;
 import com.google.idea.blaze.base.settings.BuildSystemName;
@@ -30,11 +31,12 @@ static FastBuildDeployJarStrategy getInstance(BuildSystemName buildSystemName) {
     return BuildSystemExtensionPoint.getInstance(EP_NAME, buildSystemName);
   }
 
-  public abstract ImmutableList<? extends TargetExpression> getBuildTargets(Label label);
+  public abstract ImmutableList<? extends TargetExpression> getBuildTargets(
+      Label label, BlazeVersionData versionData);
 
-  public abstract ImmutableList<String> getBuildFlags();
+  public abstract ImmutableList<String> getBuildFlags(BlazeVersionData versionData);
 
-  public abstract Label createDeployJarLabel(Label label);
+  public abstract Label createDeployJarLabel(Label label, BlazeVersionData versionData);
 
-  public abstract Label deployJarOwnerLabel(Label label);
+  public abstract Label deployJarOwnerLabel(Label label, BlazeVersionData versionData);
 }
diff --git a/java/src/com/google/idea/blaze/java/fastbuild/FastBuildServiceImpl.java b/java/src/com/google/idea/blaze/java/fastbuild/FastBuildServiceImpl.java
index a58669c7640..1b662220b74 100644
--- a/java/src/com/google/idea/blaze/java/fastbuild/FastBuildServiceImpl.java
+++ b/java/src/com/google/idea/blaze/java/fastbuild/FastBuildServiceImpl.java
@@ -269,14 +269,20 @@ private FastBuildState.BuildOutput buildDeployJar(
       Label label,
       FastBuildParameters buildParameters,
       BuildResultHelper resultHelper) {
+    WorkspaceRoot workspaceRoot = WorkspaceRoot.fromProject(project);
+    BlazeInfo blazeInfo = getBlazeInfo(context, buildParameters);
+
+    BlazeVersionData blazeversionData =
+        BlazeVersionData.build(
+            Blaze.getBuildSystemProvider(project).getBuildSystem(), workspaceRoot, blazeInfo);
+
     FastBuildDeployJarStrategy deployJarStrategy =
         FastBuildDeployJarStrategy.getInstance(Blaze.getBuildSystemName(project));
-    Label deployJarLabel = deployJarStrategy.createDeployJarLabel(label);
+    Label deployJarLabel = deployJarStrategy.createDeployJarLabel(label, blazeversionData);
     context.output(
         new StatusOutput(
             "Building base deploy jar for fast builds: " + deployJarLabel.targetName()));
 
-    BlazeInfo blazeInfo = getBlazeInfo(context, buildParameters);
     FastBuildAspectStrategy aspectStrategy =
         FastBuildAspectStrategy.getInstance(Blaze.getBuildSystemName(project));
 
@@ -284,18 +290,13 @@ private FastBuildState.BuildOutput buildDeployJar(
 
     BlazeCommand.Builder command =
         BlazeCommand.builder(buildParameters.blazeBinary(), BlazeCommandName.BUILD)
-            .addTargets(deployJarStrategy.getBuildTargets(label))
-            .addBlazeFlags(deployJarStrategy.getBuildFlags())
+            .addTargets(deployJarStrategy.getBuildTargets(label, blazeversionData))
+            .addBlazeFlags(deployJarStrategy.getBuildFlags(blazeversionData))
             .addBlazeFlags(buildParameters.buildFlags())
             .addBlazeFlags(resultHelper.getBuildFlags());
 
-    WorkspaceRoot workspaceRoot = WorkspaceRoot.fromProject(project);
-
     aspectStrategy.addAspectAndOutputGroups(
-        command,
-        BlazeVersionData.build(
-            Blaze.getBuildSystemProvider(project).getBuildSystem(), workspaceRoot, blazeInfo),
-        /* additionalOutputGroups...= */ "default");
+        command, blazeversionData, /* additionalOutputGroups...= */ "default");
 
     int exitCode =
         ExternalTask.builder(workspaceRoot)
@@ -318,7 +319,7 @@ private FastBuildState.BuildOutput buildDeployJar(
       ImmutableList<File> deployJarArtifacts =
           BlazeArtifact.getLocalFiles(
               resultHelper.getBuildArtifactsForTarget(
-                  deployJarStrategy.deployJarOwnerLabel(label), jarPredicate));
+                  deployJarStrategy.deployJarOwnerLabel(label, blazeversionData), jarPredicate));
       checkState(deployJarArtifacts.size() == 1);
       File deployJar = deployJarArtifacts.get(0);
 
diff --git a/java/src/com/google/idea/blaze/java/run/fastbuild/BazelFastBuildTestEnvironmentCreator.java b/java/src/com/google/idea/blaze/java/run/fastbuild/BazelFastBuildTestEnvironmentCreator.java
index 22b7942fc5f..3ddada81c20 100644
--- a/java/src/com/google/idea/blaze/java/run/fastbuild/BazelFastBuildTestEnvironmentCreator.java
+++ b/java/src/com/google/idea/blaze/java/run/fastbuild/BazelFastBuildTestEnvironmentCreator.java
@@ -27,6 +27,9 @@ final class BazelFastBuildTestEnvironmentCreator extends FastBuildTestEnvironmen
   // Bazel adds the Java launcher to the runfiles path when building a Java test target.
   private static final File STANDARD_JAVA_BINARY = new File("../local_jdk/bin/java");
 
+  // TODO: b/295221112 - remove LAUNCHER_ALIAS once label_flag is used
+  private static final String LAUNCHER_ALIAS = "@bazel_tools//tools/jdk:launcher_flag_alias";
+
   @Override
   String getTestClassProperty() {
     return "bazel.test_suite";
@@ -44,7 +47,7 @@ File getJavaBinFromLauncher(
       @Nullable Label javaLauncher,
       boolean swigdeps,
       String runfilesPath) {
-    if (javaLauncher == null) {
+    if (javaLauncher == null || javaLauncher.getLabel().equals(LAUNCHER_ALIAS)) {
       return getStandardJavaBinary(runfilesPath);
     } else {
       return new File(getTestBinary(label) + "_nativedeps");