diff --git a/focus-gradle-plugin/src/main/kotlin/com/dropbox/focus/CreateFocusSettingsTask.kt b/focus-gradle-plugin/src/main/kotlin/com/dropbox/focus/CreateFocusSettingsTask.kt
index ed41c9c..fe558a8 100644
--- a/focus-gradle-plugin/src/main/kotlin/com/dropbox/focus/CreateFocusSettingsTask.kt
+++ b/focus-gradle-plugin/src/main/kotlin/com/dropbox/focus/CreateFocusSettingsTask.kt
@@ -1,9 +1,13 @@
 package com.dropbox.focus
 
+import java.io.Serializable
 import org.gradle.api.DefaultTask
 import org.gradle.api.Project
 import org.gradle.api.artifacts.ProjectDependency
 import org.gradle.api.file.RegularFileProperty
+import org.gradle.api.provider.Property
+import org.gradle.api.provider.SetProperty
+import org.gradle.api.tasks.Input
 import org.gradle.api.tasks.OutputFile
 import org.gradle.api.tasks.TaskAction
 import org.gradle.work.DisableCachingByDefault
@@ -11,19 +15,33 @@ import org.gradle.work.DisableCachingByDefault
 @DisableCachingByDefault(because = "Not worth caching")
 public abstract class CreateFocusSettingsTask : DefaultTask() {
 
+  @get:Input
+  protected abstract val projectDeps: SetProperty<DependentProjectInfo>
+
+  @get:Input
+  protected abstract val projectPath: Property<String>
+
   @get:OutputFile
   public abstract val settingsFile: RegularFileProperty
 
   @get:OutputFile
   public abstract val modulesToDirMapFile: RegularFileProperty
 
+  /**
+   * Project info required for focus.settings.gradle generation.
+   */
+  protected data class DependentProjectInfo(
+    public val path: String,
+    public val projectDir: String,
+  ): Serializable
+
   init {
     outputs.upToDateWhen { false }
   }
 
   @TaskAction
   public fun createFocusSettings() {
-    val dependencies = project.collectDependencies().sortedBy { it.path }
+    val dependencies = projectDeps.get().sortedBy { it.path }
 
     // generate CSV mapping from module name to its absolute path
     modulesToDirMapFile.get().asFile.writer().use { writer ->
@@ -37,7 +55,7 @@ public abstract class CreateFocusSettingsTask : DefaultTask() {
     }
 
     settingsFile.get().asFile.writer().use { writer ->
-      writer.write("// ${project.path} specific settings\n")
+      writer.write("// ${projectPath.get()} specific settings\n")
       writer.appendLine("//")
       writer.appendLine("// This file is autogenerated by the focus task. Changes will be overwritten.")
       writer.appendLine()
@@ -60,11 +78,12 @@ public abstract class CreateFocusSettingsTask : DefaultTask() {
     }
   }
 
-  private fun Project.collectDependencies(): Set<Project> {
-    val result = mutableSetOf<Project>()
+  private fun Project.collectDependencies(): Set<DependentProjectInfo> {
+    val result = mutableSetOf<DependentProjectInfo>()
     fun addDependent(project: Project) {
       val configuredProject = this.evaluationDependsOn(project.path)
-      if (result.add(configuredProject)) {
+      val dep = DependentProjectInfo(project.path, project.projectDir.absolutePath)
+      if (result.add(dep)) {
         configuredProject.configurations.forEach { config ->
           config.dependencies
             .filterIsInstance<ProjectDependency>()
@@ -83,7 +102,10 @@ public abstract class CreateFocusSettingsTask : DefaultTask() {
       group = FOCUS_TASK_GROUP
       settingsFile.set(subExtension.focusSettingsFile)
       modulesToDirMapFile.set(subExtension.moduleToDirMapFile)
-      notCompatibleWithConfigurationCache("This reads configurations from the project at action-time.")
+      projectPath.set(project.path)
+      // Collecting dependencies info in the configuration phase.
+      // Gradle disallows accessing project in execution phase.
+      projectDeps.set(project.collectDependencies())
     }
   }
 }
diff --git a/focus-gradle-plugin/src/test/kotlin/com/dropbox/focus/FocusPluginTest.kt b/focus-gradle-plugin/src/test/kotlin/com/dropbox/focus/FocusPluginTest.kt
index c7728ed..ce1fe08 100644
--- a/focus-gradle-plugin/src/test/kotlin/com/dropbox/focus/FocusPluginTest.kt
+++ b/focus-gradle-plugin/src/test/kotlin/com/dropbox/focus/FocusPluginTest.kt
@@ -21,7 +21,24 @@ class FocusPluginTest {
   }
 
   @Test
-  fun configurationCache() {
+  fun configurationCache_focus() {
+    val fixtureRoot = File("src/test/projects/configuration-cache-compatible")
+
+    gradleRunner
+      .withArguments("--configuration-cache", "focus")
+      .withProjectDir(fixtureRoot)
+      .build()
+
+    val result = gradleRunner
+      .withArguments("--configuration-cache", "focus")
+      .withProjectDir(fixtureRoot)
+      .build()
+
+    assertThat(result.output).contains("Reusing configuration cache.")
+  }
+
+  @Test
+  fun configurationCache_clear() {
     val fixtureRoot = File("src/test/projects/configuration-cache-compatible")
 
     gradleRunner