diff --git a/java/aar.go b/java/aar.go
index 8ceeace..bffe88b 100644
--- a/java/aar.go
+++ b/java/aar.go
@@ -1297,6 +1297,10 @@
 	var staticJars android.Paths
 	var staticHeaderJars android.Paths
 	var staticResourceJars android.Paths
+	var transitiveStaticLibsHeaderJars []*android.DepSet[android.Path]
+	var transitiveStaticLibsImplementationJars []*android.DepSet[android.Path]
+	var transitiveStaticLibsResourceJars []*android.DepSet[android.Path]
+
 	ctx.VisitDirectDeps(func(module android.Module) {
 		if dep, ok := android.OtherModuleProvider(ctx, module, JavaInfoProvider); ok {
 			tag := ctx.OtherModuleDependencyTag(module)
@@ -1305,66 +1309,111 @@
 				staticJars = append(staticJars, dep.ImplementationJars...)
 				staticHeaderJars = append(staticHeaderJars, dep.HeaderJars...)
 				staticResourceJars = append(staticResourceJars, dep.ResourceJars...)
+				if dep.TransitiveStaticLibsHeaderJars != nil {
+					transitiveStaticLibsHeaderJars = append(transitiveStaticLibsHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+				}
+				if dep.TransitiveStaticLibsImplementationJars != nil {
+					transitiveStaticLibsImplementationJars = append(transitiveStaticLibsImplementationJars, dep.TransitiveStaticLibsImplementationJars)
+				}
+				if dep.TransitiveStaticLibsResourceJars != nil {
+					transitiveStaticLibsResourceJars = append(transitiveStaticLibsResourceJars, dep.TransitiveStaticLibsResourceJars)
+				}
 			}
 		}
 		addCLCFromDep(ctx, module, a.classLoaderContexts)
 		addMissingOptionalUsesLibsFromDep(ctx, module, &a.usesLibrary)
 	})
 
+	completeStaticLibsHeaderJars := android.NewDepSet(android.PREORDER, android.Paths{classpathFile}, transitiveStaticLibsHeaderJars)
+	completeStaticLibsImplementationJars := android.NewDepSet(android.PREORDER, android.Paths{classpathFile}, transitiveStaticLibsImplementationJars)
+	completeStaticLibsResourceJars := android.NewDepSet(android.PREORDER, nil, transitiveStaticLibsResourceJars)
+
 	var implementationJarFile android.Path
-	if len(staticJars) > 0 {
-		combineJars := append(android.Paths{classpathFile}, staticJars...)
-		combinedImplementationJar := android.PathForModuleOut(ctx, "combined", jarName).OutputPath
-		TransformJarsToJar(ctx, combinedImplementationJar, "combine", combineJars, android.OptionalPath{}, false, nil, nil)
-		implementationJarFile = combinedImplementationJar
+	var combineJars android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		combineJars = completeStaticLibsImplementationJars.ToList()
+	} else {
+		combineJars = append(android.Paths{classpathFile}, staticJars...)
+	}
+
+	if len(combineJars) > 1 {
+		implementationJarOutputPath := android.PathForModuleOut(ctx, "combined", jarName)
+		TransformJarsToJar(ctx, implementationJarOutputPath, "combine", combineJars, android.OptionalPath{}, false, nil, nil)
+		implementationJarFile = implementationJarOutputPath
 	} else {
 		implementationJarFile = classpathFile
 	}
 
 	var resourceJarFile android.Path
-	if len(staticResourceJars) > 1 {
+	var resourceJars android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		resourceJars = completeStaticLibsResourceJars.ToList()
+	} else {
+		resourceJars = staticResourceJars
+	}
+	if len(resourceJars) > 1 {
 		combinedJar := android.PathForModuleOut(ctx, "res-combined", jarName)
-		TransformJarsToJar(ctx, combinedJar, "for resources", staticResourceJars, android.OptionalPath{},
+		TransformJarsToJar(ctx, combinedJar, "for resources", resourceJars, android.OptionalPath{},
 			false, nil, nil)
 		resourceJarFile = combinedJar
-	} else if len(staticResourceJars) == 1 {
-		resourceJarFile = staticResourceJars[0]
+	} else if len(resourceJars) == 1 {
+		resourceJarFile = resourceJars[0]
 	}
 
 	// merge implementation jar with resources if necessary
-	implementationAndResourcesJar := implementationJarFile
-	if resourceJarFile != nil {
-		jars := android.Paths{resourceJarFile, implementationAndResourcesJar}
+	var implementationAndResourcesJars android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		implementationAndResourcesJars = append(slices.Clone(resourceJars), combineJars...)
+	} else {
+		implementationAndResourcesJars = android.PathsIfNonNil(resourceJarFile, implementationJarFile)
+	}
+	var implementationAndResourcesJar android.Path
+	if len(implementationAndResourcesJars) > 1 {
 		combinedJar := android.PathForModuleOut(ctx, "withres", jarName)
-		TransformJarsToJar(ctx, combinedJar, "for resources", jars, android.OptionalPath{},
+		TransformJarsToJar(ctx, combinedJar, "for resources", implementationAndResourcesJars, android.OptionalPath{},
 			false, nil, nil)
 		implementationAndResourcesJar = combinedJar
+	} else {
+		implementationAndResourcesJar = implementationAndResourcesJars[0]
 	}
 
 	a.implementationJarFile = implementationJarFile
 	// Save the output file with no relative path so that it doesn't end up in a subdirectory when used as a resource
 	a.implementationAndResourcesJarFile = implementationAndResourcesJar.WithoutRel()
 
-	if len(staticHeaderJars) > 0 {
-		combineJars := append(android.Paths{classpathFile}, staticHeaderJars...)
+	var headerJars android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		headerJars = completeStaticLibsHeaderJars.ToList()
+	} else {
+		headerJars = append(android.Paths{classpathFile}, staticHeaderJars...)
+	}
+	if len(headerJars) > 1 {
 		headerJarFile := android.PathForModuleOut(ctx, "turbine-combined", jarName)
-		TransformJarsToJar(ctx, headerJarFile, "combine header jars", combineJars, android.OptionalPath{}, false, nil, nil)
+		TransformJarsToJar(ctx, headerJarFile, "combine header jars", headerJars, android.OptionalPath{}, false, nil, nil)
 		a.headerJarFile = headerJarFile
 	} else {
-		a.headerJarFile = classpathFile
+		a.headerJarFile = headerJars[0]
 	}
 
-	ctx.CheckbuildFile(a.headerJarFile)
-	ctx.CheckbuildFile(a.implementationJarFile)
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		ctx.CheckbuildFile(classpathFile)
+	} else {
+		ctx.CheckbuildFile(a.headerJarFile)
+		ctx.CheckbuildFile(a.implementationJarFile)
+	}
 
 	android.SetProvider(ctx, JavaInfoProvider, &JavaInfo{
-		HeaderJars:                          android.PathsIfNonNil(a.headerJarFile),
-		ResourceJars:                        android.PathsIfNonNil(resourceJarFile),
-		TransitiveLibsHeaderJarsForR8:       a.transitiveLibsHeaderJarsForR8,
-		TransitiveStaticLibsHeaderJarsForR8: a.transitiveStaticLibsHeaderJarsForR8,
-		ImplementationAndResourcesJars:      android.PathsIfNonNil(a.implementationAndResourcesJarFile),
-		ImplementationJars:                  android.PathsIfNonNil(a.implementationJarFile),
-		StubsLinkType:                       Implementation,
+		HeaderJars:                             android.PathsIfNonNil(a.headerJarFile),
+		LocalHeaderJars:                        android.PathsIfNonNil(classpathFile),
+		TransitiveStaticLibsHeaderJars:         completeStaticLibsHeaderJars,
+		TransitiveStaticLibsImplementationJars: completeStaticLibsImplementationJars,
+		TransitiveStaticLibsResourceJars:       completeStaticLibsResourceJars,
+		ResourceJars:                           android.PathsIfNonNil(resourceJarFile),
+		TransitiveLibsHeaderJarsForR8:          a.transitiveLibsHeaderJarsForR8,
+		TransitiveStaticLibsHeaderJarsForR8:    a.transitiveStaticLibsHeaderJarsForR8,
+		ImplementationAndResourcesJars:         android.PathsIfNonNil(a.implementationAndResourcesJarFile),
+		ImplementationJars:                     android.PathsIfNonNil(a.implementationJarFile),
+		StubsLinkType:                          Implementation,
 		// TransitiveAconfigFiles: // TODO(b/289117800): LOCAL_ACONFIG_FILES for prebuilts
 	})
 
diff --git a/java/base.go b/java/base.go
index a31c848..a635331 100644
--- a/java/base.go
+++ b/java/base.go
@@ -464,15 +464,10 @@
 	// inserting into the bootclasspath/classpath of another compile
 	headerJarFile android.Path
 
-	repackagedHeaderJarFile android.Path
-
 	// jar file containing implementation classes including static library dependencies but no
 	// resources
 	implementationJarFile android.Path
 
-	// jar file containing only resources including from static library dependencies
-	resourceJar android.Path
-
 	// args and dependencies to package source files into a srcjar
 	srcJarArgs []string
 	srcJarDeps android.Paths
@@ -1256,7 +1251,6 @@
 	// Collect .java and .kt files for AIDEGen
 	j.expandIDEInfoCompiledSrcs = append(j.expandIDEInfoCompiledSrcs, uniqueSrcFiles.Strings()...)
 
-	var kotlinJars android.Paths
 	var kotlinHeaderJars android.Paths
 
 	// Prepend extraClasspathJars to classpath so that the resource processor R.jar comes before
@@ -1266,6 +1260,8 @@
 
 	j.aconfigCacheFiles = append(deps.aconfigProtoFiles, j.properties.Aconfig_Cache_files...)
 
+	var localImplementationJars android.Paths
+
 	// If compiling headers then compile them and skip the rest
 	if proptools.Bool(j.properties.Headers_only) {
 		if srcFiles.HasExt(".kt") {
@@ -1275,20 +1271,41 @@
 			ctx.ModuleErrorf("headers_only is enabled but Turbine is disabled.")
 		}
 
-		_, combinedHeaderJarFile := j.compileJavaHeader(ctx, uniqueJavaFiles, srcJars, deps, flags, jarName,
+		transitiveStaticLibsHeaderJars := deps.transitiveStaticLibsHeaderJars
+
+		localHeaderJars, combinedHeaderJarFile := j.compileJavaHeader(ctx, uniqueJavaFiles, srcJars, deps, flags, jarName,
 			extraCombinedJars)
 
-		combinedHeaderJarFile = j.jarjarIfNecessary(ctx, combinedHeaderJarFile, jarName, "turbine")
-		combinedHeaderJarFile = j.repackageFlagsIfNecessary(ctx, combinedHeaderJarFile, jarName, "repackage-turbine")
+		combinedHeaderJarFile, jarjared := j.jarjarIfNecessary(ctx, combinedHeaderJarFile, jarName, "turbine")
+		if jarjared {
+			localHeaderJars = android.Paths{combinedHeaderJarFile}
+			transitiveStaticLibsHeaderJars = nil
+		}
+		combinedHeaderJarFile, repackaged := j.repackageFlagsIfNecessary(ctx, combinedHeaderJarFile, jarName, "repackage-turbine")
+		if repackaged {
+			localHeaderJars = android.Paths{combinedHeaderJarFile}
+			transitiveStaticLibsHeaderJars = nil
+		}
 		if ctx.Failed() {
 			return
 		}
 		j.headerJarFile = combinedHeaderJarFile
 
-		ctx.CheckbuildFile(j.headerJarFile)
+		if ctx.Config().UseTransitiveJarsInClasspath() {
+			if len(localHeaderJars) > 0 {
+				ctx.CheckbuildFile(localHeaderJars...)
+			} else {
+				// There are no local sources or resources in this module, so there is nothing to checkbuild.
+				ctx.UncheckedModule()
+			}
+		} else {
+			ctx.CheckbuildFile(j.headerJarFile)
+		}
 
 		android.SetProvider(ctx, JavaInfoProvider, &JavaInfo{
 			HeaderJars:                          android.PathsIfNonNil(j.headerJarFile),
+			LocalHeaderJars:                     localHeaderJars,
+			TransitiveStaticLibsHeaderJars:      android.NewDepSet(android.PREORDER, localHeaderJars, transitiveStaticLibsHeaderJars),
 			TransitiveLibsHeaderJarsForR8:       j.transitiveLibsHeaderJarsForR8,
 			TransitiveStaticLibsHeaderJarsForR8: j.transitiveStaticLibsHeaderJarsForR8,
 			AidlIncludeDirs:                     j.exportAidlIncludeDirs,
@@ -1347,7 +1364,7 @@
 			kaptResJar := android.PathForModuleOut(ctx, "kapt", "kapt-res.jar")
 			kotlinKapt(ctx, kaptSrcJar, kaptResJar, uniqueSrcFiles, kotlinCommonSrcFiles, srcJars, flags)
 			srcJars = append(srcJars, kaptSrcJar)
-			kotlinJars = append(kotlinJars, kaptResJar)
+			localImplementationJars = append(localImplementationJars, kaptResJar)
 			// Disable annotation processing in javac, it's already been handled by kapt
 			flags.processorPath = nil
 			flags.processors = nil
@@ -1360,21 +1377,24 @@
 			return
 		}
 
-		kotlinJarPath := j.repackageFlagsIfNecessary(ctx, kotlinJar, jarName, "kotlinc")
+		kotlinJarPath, _ := j.repackageFlagsIfNecessary(ctx, kotlinJar, jarName, "kotlinc")
 
 		// Make javac rule depend on the kotlinc rule
 		flags.classpath = append(classpath{kotlinHeaderJar}, flags.classpath...)
 
-		kotlinJars = append(kotlinJars, kotlinJarPath)
+		localImplementationJars = append(localImplementationJars, kotlinJarPath)
+
 		kotlinHeaderJars = append(kotlinHeaderJars, kotlinHeaderJar)
 	}
 
-	jars := slices.Clone(kotlinJars)
-
 	j.compiledSrcJars = srcJars
 
+	transitiveStaticLibsHeaderJars := deps.transitiveStaticLibsHeaderJars
+
 	enableSharding := false
-	var headerJarFileWithoutDepsOrJarjar android.Path
+	var localHeaderJars android.Paths
+	var shardingHeaderJars android.Paths
+	var repackagedHeaderJarFile android.Path
 	if ctx.Device() && !ctx.Config().IsEnvFalse("TURBINE_ENABLED") && !disableTurbine {
 		if j.properties.Javac_shard_size != nil && *(j.properties.Javac_shard_size) > 0 {
 			enableSharding = true
@@ -1387,11 +1407,26 @@
 		extraJars := slices.Clone(kotlinHeaderJars)
 		extraJars = append(extraJars, extraCombinedJars...)
 		var combinedHeaderJarFile android.Path
-		headerJarFileWithoutDepsOrJarjar, combinedHeaderJarFile =
-			j.compileJavaHeader(ctx, uniqueJavaFiles, srcJars, deps, flags, jarName, extraJars)
+		localHeaderJars, combinedHeaderJarFile = j.compileJavaHeader(ctx, uniqueJavaFiles, srcJars, deps, flags, jarName, extraJars)
+		shardingHeaderJars = localHeaderJars
 
-		j.headerJarFile = j.jarjarIfNecessary(ctx, combinedHeaderJarFile, jarName, "turbine")
-		j.repackagedHeaderJarFile = j.repackageFlagsIfNecessary(ctx, j.headerJarFile, jarName, "turbine")
+		var jarjared bool
+		j.headerJarFile, jarjared = j.jarjarIfNecessary(ctx, combinedHeaderJarFile, jarName, "turbine")
+		if jarjared {
+			// jarjar modifies transitive static dependencies, use the combined header jar and drop the transitive
+			// static libs header jars.
+			localHeaderJars = android.Paths{j.headerJarFile}
+			transitiveStaticLibsHeaderJars = nil
+		}
+		var repackaged bool
+		repackagedHeaderJarFile, repackaged = j.repackageFlagsIfNecessary(ctx, j.headerJarFile, jarName, "turbine")
+		if repackaged {
+			// repackage modifies transitive static dependencies, use the combined header jar and drop the transitive
+			// static libs header jars.
+			// TODO(b/356688296): this shouldn't export both the unmodified and repackaged header jars
+			localHeaderJars = android.Paths{j.headerJarFile, repackagedHeaderJarFile}
+			transitiveStaticLibsHeaderJars = nil
+		}
 	}
 	if len(uniqueJavaFiles) > 0 || len(srcJars) > 0 {
 		hasErrorproneableFiles := false
@@ -1426,8 +1461,8 @@
 		}
 
 		if enableSharding {
-			if headerJarFileWithoutDepsOrJarjar != nil {
-				flags.classpath = append(classpath{headerJarFileWithoutDepsOrJarjar}, flags.classpath...)
+			if len(shardingHeaderJars) > 0 {
+				flags.classpath = append(classpath(slices.Clone(shardingHeaderJars)), flags.classpath...)
 			}
 			shardSize := int(*(j.properties.Javac_shard_size))
 			var shardSrcs []android.Paths
@@ -1436,8 +1471,8 @@
 				for idx, shardSrc := range shardSrcs {
 					classes := j.compileJavaClasses(ctx, jarName, idx, shardSrc,
 						nil, flags, extraJarDeps)
-					classes = j.repackageFlagsIfNecessary(ctx, classes, jarName, "javac-"+strconv.Itoa(idx))
-					jars = append(jars, classes)
+					classes, _ = j.repackageFlagsIfNecessary(ctx, classes, jarName, "javac-"+strconv.Itoa(idx))
+					localImplementationJars = append(localImplementationJars, classes)
 				}
 			}
 			// Assume approximately 5 sources per srcjar.
@@ -1449,21 +1484,21 @@
 				for idx, shardSrcJars := range shardSrcJarsList {
 					classes := j.compileJavaClasses(ctx, jarName, startIdx+idx,
 						nil, shardSrcJars, flags, extraJarDeps)
-					classes = j.repackageFlagsIfNecessary(ctx, classes, jarName, "javac-"+strconv.Itoa(startIdx+idx))
-					jars = append(jars, classes)
+					classes, _ = j.repackageFlagsIfNecessary(ctx, classes, jarName, "javac-"+strconv.Itoa(startIdx+idx))
+					localImplementationJars = append(localImplementationJars, classes)
 				}
 			}
 		} else {
 			classes := j.compileJavaClasses(ctx, jarName, -1, uniqueJavaFiles, srcJars, flags, extraJarDeps)
-			classes = j.repackageFlagsIfNecessary(ctx, classes, jarName, "javac")
-			jars = append(jars, classes)
+			classes, _ = j.repackageFlagsIfNecessary(ctx, classes, jarName, "javac")
+			localImplementationJars = append(localImplementationJars, classes)
 		}
 		if ctx.Failed() {
 			return
 		}
 	}
 
-	jars = append(jars, extraCombinedJars...)
+	localImplementationJars = append(localImplementationJars, extraCombinedJars...)
 
 	j.srcJarArgs, j.srcJarDeps = resourcePathsToJarArgs(srcFiles), srcFiles
 
@@ -1490,42 +1525,18 @@
 	resArgs = append(resArgs, extraArgs...)
 	resDeps = append(resDeps, extraDeps...)
 
+	var localResourceJars android.Paths
 	if len(resArgs) > 0 {
 		resourceJar := android.PathForModuleOut(ctx, "res", jarName)
 		TransformResourcesToJar(ctx, resourceJar, resArgs, resDeps)
-		j.resourceJar = resourceJar
 		if ctx.Failed() {
 			return
 		}
+		localResourceJars = append(localResourceJars, resourceJar)
 	}
 
-	var resourceJars android.Paths
-	if j.resourceJar != nil {
-		resourceJars = append(resourceJars, j.resourceJar)
-	}
 	if Bool(j.properties.Include_srcs) {
-		resourceJars = append(resourceJars, includeSrcJar)
-	}
-	resourceJars = append(resourceJars, deps.staticResourceJars...)
-
-	if len(resourceJars) > 1 {
-		combinedJar := android.PathForModuleOut(ctx, "res-combined", jarName)
-		TransformJarsToJar(ctx, combinedJar, "for resources", resourceJars, android.OptionalPath{},
-			false, nil, nil)
-		j.resourceJar = combinedJar
-	} else if len(resourceJars) == 1 {
-		j.resourceJar = resourceJars[0]
-	}
-
-	if len(deps.staticJars) > 0 {
-		jars = append(jars, deps.staticJars...)
-	}
-
-	jars = append(jars, extraDepCombinedJars...)
-
-	manifest := j.overrideManifest
-	if !manifest.Valid() && j.properties.Manifest != nil {
-		manifest = android.OptionalPathForPath(android.PathForModuleSrc(ctx, *j.properties.Manifest))
+		localResourceJars = append(localResourceJars, includeSrcJar)
 	}
 
 	services := android.PathsForModuleSrc(ctx, j.properties.Services)
@@ -1550,35 +1561,68 @@
 			Implicits: services,
 			Args:      args,
 		})
-		jars = append(jars, servicesJar)
+		localResourceJars = append(localResourceJars, servicesJar)
+	}
+
+	completeStaticLibsResourceJars := android.NewDepSet(android.PREORDER, localResourceJars, deps.transitiveStaticLibsResourceJars)
+
+	var combinedResourceJar android.Path
+	var resourceJars android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		resourceJars = completeStaticLibsResourceJars.ToList()
+	} else {
+		resourceJars = append(slices.Clone(localResourceJars), deps.staticResourceJars...)
+	}
+	if len(resourceJars) == 1 {
+		combinedResourceJar = resourceJars[0]
+	} else if len(resourceJars) > 0 {
+		combinedJar := android.PathForModuleOut(ctx, "res-combined", jarName)
+		TransformJarsToJar(ctx, combinedJar, "for resources", resourceJars, android.OptionalPath{},
+			false, nil, nil)
+		combinedResourceJar = combinedJar
+	}
+
+	manifest := j.overrideManifest
+	if !manifest.Valid() && j.properties.Manifest != nil {
+		manifest = android.OptionalPathForPath(android.PathForModuleSrc(ctx, *j.properties.Manifest))
 	}
 
 	// Combine the classes built from sources, any manifests, and any static libraries into
 	// classes.jar. If there is only one input jar this step will be skipped.
 	var outputFile android.Path
 
+	completeStaticLibsImplementationJars := android.NewDepSet(android.PREORDER, localImplementationJars, deps.transitiveStaticLibsImplementationJars)
+
+	var jars android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		jars = completeStaticLibsImplementationJars.ToList()
+	} else {
+		jars = append(slices.Clone(localImplementationJars), deps.staticJars...)
+	}
+
+	jars = append(jars, extraDepCombinedJars...)
+
 	if len(jars) == 1 && !manifest.Valid() {
 		// Optimization: skip the combine step as there is nothing to do
 		// TODO(ccross): this leaves any module-info.class files, but those should only come from
 		// prebuilt dependencies until we support modules in the platform build, so there shouldn't be
-		// any if len(jars) == 1.
+		// any if len(extraJars) == 0.
 
 		// moduleStubLinkType determines if the module is the TopLevelStubLibrary generated
 		// from sdk_library. The TopLevelStubLibrary contains only one static lib,
 		// either with .from-source or .from-text suffix.
 		// outputFile should be agnostic to the build configuration,
-		// thus "combine" the single static lib in order to prevent the static lib from being exposed
+		// thus copy the single input static lib in order to prevent the static lib from being exposed
 		// to the copy rules.
-		stub, _ := moduleStubLinkType(j)
-
-		if stub {
-			combinedJar := android.PathForModuleOut(ctx, "combined", jarName)
+		if stub, _ := moduleStubLinkType(j); stub {
+			copiedJar := android.PathForModuleOut(ctx, "combined", jarName)
 			ctx.Build(pctx, android.BuildParams{
 				Rule:   android.Cp,
 				Input:  jars[0],
-				Output: combinedJar,
+				Output: copiedJar,
 			})
-			outputFile = combinedJar
+			completeStaticLibsImplementationJars = android.NewDepSet(android.PREORDER, android.Paths{copiedJar}, nil)
+			outputFile = copiedJar
 		} else {
 			outputFile = jars[0]
 		}
@@ -1590,13 +1634,21 @@
 	}
 
 	// jarjar implementation jar if necessary
-	jarjarFile := j.jarjarIfNecessary(ctx, outputFile, jarName, "")
+	jarjarFile, jarjarred := j.jarjarIfNecessary(ctx, outputFile, jarName, "")
+	if jarjarred {
+		localImplementationJars = android.Paths{jarjarFile}
+		completeStaticLibsImplementationJars = android.NewDepSet(android.PREORDER, localImplementationJars, nil)
+	}
 	outputFile = jarjarFile
 
 	// jarjar resource jar if necessary
-	if j.resourceJar != nil {
-		resourceJarJarFile := j.jarjarIfNecessary(ctx, j.resourceJar, jarName, "resource")
-		j.resourceJar = resourceJarJarFile
+	if combinedResourceJar != nil {
+		resourceJarJarFile, jarjarred := j.jarjarIfNecessary(ctx, combinedResourceJar, jarName, "resource")
+		combinedResourceJar = resourceJarJarFile
+		if jarjarred {
+			localResourceJars = android.Paths{resourceJarJarFile}
+			completeStaticLibsResourceJars = android.NewDepSet(android.PREORDER, localResourceJars, nil)
+		}
 	}
 
 	if ctx.Failed() {
@@ -1664,6 +1716,13 @@
 		headerJarFile := android.PathForModuleOut(ctx, "javac-header", jarName)
 		convertImplementationJarToHeaderJar(ctx, j.implementationJarFile, headerJarFile)
 		j.headerJarFile = headerJarFile
+		if len(localImplementationJars) == 1 && ctx.Config().UseTransitiveJarsInClasspath() {
+			localHeaderJarFile := android.PathForModuleOut(ctx, "local-javac-header", jarName)
+			convertImplementationJarToHeaderJar(ctx, localImplementationJars[0], localHeaderJarFile)
+			localHeaderJars = append(localHeaderJars, localHeaderJarFile)
+		} else {
+			localHeaderJars = append(localHeaderJars, headerJarFile)
+		}
 	}
 
 	// enforce syntax check to jacoco filters for any build (http://b/183622051)
@@ -1677,16 +1736,27 @@
 	}
 
 	// merge implementation jar with resources if necessary
-	implementationAndResourcesJar := outputFile
-	if j.resourceJar != nil {
-		jars := android.Paths{j.resourceJar, implementationAndResourcesJar}
-		combinedJar := android.PathForModuleOut(ctx, "withres", jarName)
-		TransformJarsToJar(ctx, combinedJar, "for resources", jars, manifest,
-			false, nil, nil)
-		implementationAndResourcesJar = combinedJar
+	var implementationAndResourcesJarsToCombine android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		resourceJars := completeStaticLibsResourceJars.ToList()
+		if len(resourceJars) > 0 {
+			implementationAndResourcesJarsToCombine = append(resourceJars, completeStaticLibsImplementationJars.ToList()...)
+			implementationAndResourcesJarsToCombine = append(implementationAndResourcesJarsToCombine, extraDepCombinedJars...)
+		}
+	} else {
+		if combinedResourceJar != nil {
+			implementationAndResourcesJarsToCombine = android.Paths{combinedResourceJar, outputFile}
+		}
 	}
 
-	j.implementationAndResourcesJar = implementationAndResourcesJar
+	if len(implementationAndResourcesJarsToCombine) > 0 {
+		combinedJar := android.PathForModuleOut(ctx, "withres", jarName)
+		TransformJarsToJar(ctx, combinedJar, "for resources", implementationAndResourcesJarsToCombine, manifest,
+			false, nil, nil)
+		outputFile = combinedJar
+	}
+
+	j.implementationAndResourcesJar = outputFile
 
 	// Enable dex compilation for the APEX variants, unless it is disabled explicitly
 	compileDex := j.dexProperties.Compile_dex
@@ -1712,7 +1782,7 @@
 				flags:         flags,
 				sdkVersion:    j.SdkVersion(ctx),
 				minSdkVersion: j.MinSdkVersion(ctx),
-				classesJar:    implementationAndResourcesJar,
+				classesJar:    outputFile,
 				jarName:       jarName,
 			}
 			if j.GetProfileGuided() && j.optimizeOrObfuscateEnabled() && !j.EnableProfileRewriting() {
@@ -1738,10 +1808,20 @@
 			}
 
 			// merge dex jar with resources if necessary
-			if j.resourceJar != nil {
-				jars := android.Paths{dexOutputFile, j.resourceJar}
+			var dexAndResourceJarsToCombine android.Paths
+			if ctx.Config().UseTransitiveJarsInClasspath() {
+				resourceJars := completeStaticLibsResourceJars.ToList()
+				if len(resourceJars) > 0 {
+					dexAndResourceJarsToCombine = append(android.Paths{dexOutputFile}, resourceJars...)
+				}
+			} else {
+				if combinedResourceJar != nil {
+					dexAndResourceJarsToCombine = android.Paths{dexOutputFile, combinedResourceJar}
+				}
+			}
+			if len(dexAndResourceJarsToCombine) > 0 {
 				combinedJar := android.PathForModuleOut(ctx, "dex-withres", jarName)
-				TransformJarsToJar(ctx, combinedJar, "for dex resources", jars, android.OptionalPath{},
+				TransformJarsToJar(ctx, combinedJar, "for dex resources", dexAndResourceJarsToCombine, android.OptionalPath{},
 					false, nil, nil)
 				if *j.dexProperties.Uncompress_dex {
 					combinedAlignedJar := android.PathForModuleOut(ctx, "dex-withres-aligned", jarName)
@@ -1774,15 +1854,12 @@
 		} else {
 			// There is no code to compile into a dex jar, make sure the resources are propagated
 			// to the APK if this is an app.
-			outputFile = implementationAndResourcesJar
-			j.dexJarFile = makeDexJarPathFromPath(j.resourceJar)
+			j.dexJarFile = makeDexJarPathFromPath(combinedResourceJar)
 		}
 
 		if ctx.Failed() {
 			return
 		}
-	} else {
-		outputFile = implementationAndResourcesJar
 	}
 
 	if ctx.Device() {
@@ -1814,17 +1891,34 @@
 
 	j.collectTransitiveSrcFiles(ctx, srcFiles)
 
-	ctx.CheckbuildFile(j.implementationJarFile)
-	ctx.CheckbuildFile(j.headerJarFile)
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		if len(localImplementationJars) > 0 || len(localResourceJars) > 0 || len(localHeaderJars) > 0 {
+			ctx.CheckbuildFile(localImplementationJars...)
+			ctx.CheckbuildFile(localResourceJars...)
+			ctx.CheckbuildFile(localHeaderJars...)
+		} else {
+			// There are no local sources or resources in this module, so there is nothing to checkbuild.
+			ctx.UncheckedModule()
+		}
+	} else {
+		ctx.CheckbuildFile(j.implementationJarFile)
+		ctx.CheckbuildFile(j.headerJarFile)
+	}
 
 	android.SetProvider(ctx, JavaInfoProvider, &JavaInfo{
-		HeaderJars:                          android.PathsIfNonNil(j.headerJarFile),
-		RepackagedHeaderJars:                android.PathsIfNonNil(j.repackagedHeaderJarFile),
+		HeaderJars:           android.PathsIfNonNil(j.headerJarFile),
+		RepackagedHeaderJars: android.PathsIfNonNil(repackagedHeaderJarFile),
+
+		LocalHeaderJars:                        localHeaderJars,
+		TransitiveStaticLibsHeaderJars:         android.NewDepSet(android.PREORDER, localHeaderJars, transitiveStaticLibsHeaderJars),
+		TransitiveStaticLibsImplementationJars: completeStaticLibsImplementationJars,
+		TransitiveStaticLibsResourceJars:       completeStaticLibsResourceJars,
+
 		TransitiveLibsHeaderJarsForR8:       j.transitiveLibsHeaderJarsForR8,
 		TransitiveStaticLibsHeaderJarsForR8: j.transitiveStaticLibsHeaderJarsForR8,
 		ImplementationAndResourcesJars:      android.PathsIfNonNil(j.implementationAndResourcesJar),
 		ImplementationJars:                  android.PathsIfNonNil(j.implementationJarFile),
-		ResourceJars:                        android.PathsIfNonNil(j.resourceJar),
+		ResourceJars:                        android.PathsIfNonNil(combinedResourceJar),
 		AidlIncludeDirs:                     j.exportAidlIncludeDirs,
 		SrcJarArgs:                          j.srcJarArgs,
 		SrcJarDeps:                          j.srcJarDeps,
@@ -1960,22 +2054,26 @@
 
 func (j *Module) compileJavaHeader(ctx android.ModuleContext, srcFiles, srcJars android.Paths,
 	deps deps, flags javaBuilderFlags, jarName string,
-	extraJars android.Paths) (headerJar android.Path, combinedHeaderJar android.Path) {
+	extraJars android.Paths) (localHeaderJars android.Paths, combinedHeaderJar android.Path) {
 
-	var jars android.Paths
 	if len(srcFiles) > 0 || len(srcJars) > 0 {
 		// Compile java sources into turbine.jar.
 		turbineJar := android.PathForModuleOut(ctx, "turbine", jarName)
 		TransformJavaToHeaderClasses(ctx, turbineJar, srcFiles, srcJars, flags)
-		jars = append(jars, turbineJar)
-		headerJar = turbineJar
+		localHeaderJars = append(localHeaderJars, turbineJar)
 	}
 
-	jars = append(jars, extraJars...)
+	localHeaderJars = append(localHeaderJars, extraJars...)
 
 	// Combine any static header libraries into classes-header.jar. If there is only
 	// one input jar this step will be skipped.
-	jars = append(jars, deps.staticHeaderJars...)
+	var jars android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		depSet := android.NewDepSet(android.PREORDER, localHeaderJars, deps.transitiveStaticLibsHeaderJars)
+		jars = depSet.ToList()
+	} else {
+		jars = append(slices.Clone(localHeaderJars), deps.staticHeaderJars...)
+	}
 
 	// we cannot skip the combine step for now if there is only one jar
 	// since we have to strip META-INF/TRANSITIVE dir from turbine.jar
@@ -1983,9 +2081,7 @@
 	TransformJarsToJar(ctx, combinedHeaderJarOutputPath, "for turbine", jars, android.OptionalPath{},
 		false, nil, []string{"META-INF/TRANSITIVE"})
 
-	ctx.CheckbuildFile(combinedHeaderJarOutputPath)
-
-	return headerJar, combinedHeaderJarOutputPath
+	return localHeaderJars, combinedHeaderJarOutputPath
 }
 
 func (j *Module) instrument(ctx android.ModuleContext, flags javaBuilderFlags,
@@ -2041,6 +2137,7 @@
 			if dep.TransitiveStaticLibsHeaderJarsForR8 != nil {
 				transitiveStaticLibs = append(transitiveStaticLibs, dep.TransitiveStaticLibsHeaderJarsForR8)
 			}
+
 		}
 	})
 	j.transitiveLibsHeaderJarsForR8 = android.NewDepSet(android.POSTORDER, directLibs, transitiveLibs)
@@ -2288,29 +2385,17 @@
 func (j *Module) collectDeps(ctx android.ModuleContext) deps {
 	var deps deps
 
-	if ctx.Device() {
-		sdkDep := decodeSdkDep(ctx, android.SdkContext(j))
-		if sdkDep.invalidVersion {
-			ctx.AddMissingDependencies(sdkDep.bootclasspath)
-			ctx.AddMissingDependencies(sdkDep.java9Classpath)
-		} else if sdkDep.useFiles {
-			// sdkDep.jar is actually equivalent to turbine header.jar.
-			deps.classpath = append(deps.classpath, sdkDep.jars...)
-			deps.dexClasspath = append(deps.dexClasspath, sdkDep.jars...)
-			deps.aidlPreprocess = sdkDep.aidl
-			// Add the sdk module dependency to `compileDepNames`.
-			// This ensures that the dependency is reported in `module_bp_java_deps.json`
-			// TODO (b/358608607): Move this to decodeSdkDep
-			sdkSpec := android.SdkContext(j).SdkVersion(ctx)
-			j.compileDepNames = append(j.compileDepNames, fmt.Sprintf("sdk_%s_%s_android", sdkSpec.Kind.String(), sdkSpec.ApiLevel.String()))
-		} else {
-			deps.aidlPreprocess = sdkDep.aidl
-		}
-	}
-
 	sdkLinkType, _ := j.getSdkLinkType(ctx, ctx.ModuleName())
 
 	j.collectTransitiveHeaderJarsForR8(ctx)
+
+	var transitiveBootClasspathHeaderJars []*android.DepSet[android.Path]
+	var transitiveClasspathHeaderJars []*android.DepSet[android.Path]
+	var transitiveJava9ClasspathHeaderJars []*android.DepSet[android.Path]
+	var transitiveStaticJarsHeaderLibs []*android.DepSet[android.Path]
+	var transitiveStaticJarsImplementationLibs []*android.DepSet[android.Path]
+	var transitiveStaticJarsResourceLibs []*android.DepSet[android.Path]
+
 	ctx.VisitDirectDeps(func(module android.Module) {
 		otherName := ctx.OtherModuleName(module)
 		tag := ctx.OtherModuleDependencyTag(module)
@@ -2330,6 +2415,10 @@
 				depHeaderJars := dep.SdkHeaderJars(ctx, j.SdkVersion(ctx))
 				deps.classpath = append(deps.classpath, depHeaderJars...)
 				deps.dexClasspath = append(deps.dexClasspath, depHeaderJars...)
+
+				// TODO: SDK libraries should export a provider with TransitiveClasspathHeaderJars
+				depHeaderJarsSet := android.NewDepSet(android.PREORDER, depHeaderJars, nil)
+				transitiveClasspathHeaderJars = append(transitiveClasspathHeaderJars, depHeaderJarsSet)
 			case staticLibTag:
 				ctx.ModuleErrorf("dependency on java_sdk_library %q can only be in libs", otherName)
 			}
@@ -2345,6 +2434,9 @@
 			switch tag {
 			case bootClasspathTag:
 				deps.bootClasspath = append(deps.bootClasspath, dep.HeaderJars...)
+				if dep.TransitiveStaticLibsHeaderJars != nil {
+					transitiveBootClasspathHeaderJars = append(transitiveBootClasspathHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+				}
 			case sdkLibTag, libTag, instrumentationForTag:
 				if _, ok := module.(*Plugin); ok {
 					ctx.ModuleErrorf("a java_plugin (%s) cannot be used as a libs dependency", otherName)
@@ -2358,8 +2450,15 @@
 				deps.aidlIncludeDirs = append(deps.aidlIncludeDirs, dep.AidlIncludeDirs...)
 				addPlugins(&deps, dep.ExportedPlugins, dep.ExportedPluginClasses...)
 				deps.disableTurbine = deps.disableTurbine || dep.ExportedPluginDisableTurbine
+
+				if dep.TransitiveStaticLibsHeaderJars != nil {
+					transitiveClasspathHeaderJars = append(transitiveClasspathHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+				}
 			case java9LibTag:
 				deps.java9Classpath = append(deps.java9Classpath, dep.HeaderJars...)
+				if dep.TransitiveStaticLibsHeaderJars != nil {
+					transitiveJava9ClasspathHeaderJars = append(transitiveJava9ClasspathHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+				}
 			case staticLibTag:
 				if _, ok := module.(*Plugin); ok {
 					ctx.ModuleErrorf("a java_plugin (%s) cannot be used as a static_libs dependency", otherName)
@@ -2375,6 +2474,17 @@
 				// optimization.
 				deps.disableTurbine = deps.disableTurbine || dep.ExportedPluginDisableTurbine
 				deps.aconfigProtoFiles = append(deps.aconfigProtoFiles, dep.AconfigIntermediateCacheOutputPaths...)
+
+				if dep.TransitiveStaticLibsHeaderJars != nil {
+					transitiveClasspathHeaderJars = append(transitiveClasspathHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+					transitiveStaticJarsHeaderLibs = append(transitiveStaticJarsHeaderLibs, dep.TransitiveStaticLibsHeaderJars)
+				}
+				if dep.TransitiveStaticLibsImplementationJars != nil {
+					transitiveStaticJarsImplementationLibs = append(transitiveStaticJarsImplementationLibs, dep.TransitiveStaticLibsImplementationJars)
+				}
+				if dep.TransitiveStaticLibsResourceJars != nil {
+					transitiveStaticJarsResourceLibs = append(transitiveStaticJarsResourceLibs, dep.TransitiveStaticLibsResourceJars)
+				}
 			case pluginTag:
 				if plugin, ok := module.(*Plugin); ok {
 					if plugin.pluginProperties.Processor_class != nil {
@@ -2423,11 +2533,18 @@
 				checkProducesJars(ctx, dep)
 				deps.classpath = append(deps.classpath, dep.Srcs()...)
 				deps.dexClasspath = append(deps.classpath, dep.Srcs()...)
+				transitiveClasspathHeaderJars = append(transitiveClasspathHeaderJars,
+					android.NewDepSet(android.PREORDER, dep.Srcs(), nil))
 			case staticLibTag:
 				checkProducesJars(ctx, dep)
 				deps.classpath = append(deps.classpath, dep.Srcs()...)
 				deps.staticJars = append(deps.staticJars, dep.Srcs()...)
 				deps.staticHeaderJars = append(deps.staticHeaderJars, dep.Srcs()...)
+
+				depHeaderJars := android.NewDepSet(android.PREORDER, dep.Srcs(), nil)
+				transitiveClasspathHeaderJars = append(transitiveClasspathHeaderJars, depHeaderJars)
+				transitiveStaticJarsHeaderLibs = append(transitiveStaticJarsHeaderLibs, depHeaderJars)
+				transitiveStaticJarsImplementationLibs = append(transitiveStaticJarsImplementationLibs, depHeaderJars)
 			}
 		} else if dep, ok := android.OtherModuleProvider(ctx, module, android.CodegenInfoProvider); ok {
 			switch tag {
@@ -2440,8 +2557,11 @@
 				// If a system modules dependency has been added to the bootclasspath
 				// then add its libs to the bootclasspath.
 				if sm, ok := android.OtherModuleProvider(ctx, module, SystemModulesProvider); ok {
-					depHeaderJars := sm.HeaderJars
-					deps.bootClasspath = append(deps.bootClasspath, depHeaderJars...)
+					deps.bootClasspath = append(deps.bootClasspath, sm.HeaderJars...)
+					if sm.TransitiveStaticLibsHeaderJars != nil {
+						transitiveBootClasspathHeaderJars = append(transitiveBootClasspathHeaderJars,
+							sm.TransitiveStaticLibsHeaderJars)
+					}
 				} else {
 					ctx.PropertyErrorf("boot classpath dependency %q does not provide SystemModulesProvider",
 						ctx.OtherModuleName(module))
@@ -2472,6 +2592,39 @@
 		addMissingOptionalUsesLibsFromDep(ctx, module, &j.usesLibrary)
 	})
 
+	deps.transitiveStaticLibsHeaderJars = transitiveStaticJarsHeaderLibs
+	deps.transitiveStaticLibsImplementationJars = transitiveStaticJarsImplementationLibs
+	deps.transitiveStaticLibsResourceJars = transitiveStaticJarsResourceLibs
+
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		depSet := android.NewDepSet(android.PREORDER, nil, transitiveClasspathHeaderJars)
+		deps.classpath = depSet.ToList()
+		depSet = android.NewDepSet(android.PREORDER, nil, transitiveBootClasspathHeaderJars)
+		deps.bootClasspath = depSet.ToList()
+		depSet = android.NewDepSet(android.PREORDER, nil, transitiveJava9ClasspathHeaderJars)
+		deps.java9Classpath = depSet.ToList()
+	}
+
+	if ctx.Device() {
+		sdkDep := decodeSdkDep(ctx, android.SdkContext(j))
+		if sdkDep.invalidVersion {
+			ctx.AddMissingDependencies(sdkDep.bootclasspath)
+			ctx.AddMissingDependencies(sdkDep.java9Classpath)
+		} else if sdkDep.useFiles {
+			// sdkDep.jar is actually equivalent to turbine header.jar.
+			deps.classpath = append(slices.Clone(classpath(sdkDep.jars)), deps.classpath...)
+			deps.dexClasspath = append(slices.Clone(classpath(sdkDep.jars)), deps.dexClasspath...)
+			deps.aidlPreprocess = sdkDep.aidl
+			// Add the sdk module dependency to `compileDepNames`.
+			// This ensures that the dependency is reported in `module_bp_java_deps.json`
+			// TODO (b/358608607): Move this to decodeSdkDep
+			sdkSpec := android.SdkContext(j).SdkVersion(ctx)
+			j.compileDepNames = append(j.compileDepNames, fmt.Sprintf("sdk_%s_%s_android", sdkSpec.Kind.String(), sdkSpec.ApiLevel.String()))
+		} else {
+			deps.aidlPreprocess = sdkDep.aidl
+		}
+	}
+
 	return deps
 }
 
@@ -2783,22 +2936,22 @@
 }
 
 // Repackage the flags if the jarjar rule txt for the flags is generated
-func (j *Module) repackageFlagsIfNecessary(ctx android.ModuleContext, infile android.Path, jarName, info string) android.Path {
+func (j *Module) repackageFlagsIfNecessary(ctx android.ModuleContext, infile android.Path, jarName, info string) (android.Path, bool) {
 	if j.repackageJarjarRules == nil {
-		return infile
+		return infile, false
 	}
 	repackagedJarjarFile := android.PathForModuleOut(ctx, "repackaged-jarjar", info, jarName)
 	TransformJarJar(ctx, repackagedJarjarFile, infile, j.repackageJarjarRules)
-	return repackagedJarjarFile
+	return repackagedJarjarFile, true
 }
 
-func (j *Module) jarjarIfNecessary(ctx android.ModuleContext, infile android.Path, jarName, info string) android.Path {
+func (j *Module) jarjarIfNecessary(ctx android.ModuleContext, infile android.Path, jarName, info string) (android.Path, bool) {
 	if j.expandJarjarRules == nil {
-		return infile
+		return infile, false
 	}
 	jarjarFile := android.PathForModuleOut(ctx, "jarjar", info, jarName)
 	TransformJarJar(ctx, jarjarFile, infile, j.expandJarjarRules)
-	return jarjarFile
+	return jarjarFile, true
 
 }
 
diff --git a/java/device_host_converter.go b/java/device_host_converter.go
index 7cc06fc..3f4e3cd 100644
--- a/java/device_host_converter.go
+++ b/java/device_host_converter.go
@@ -96,6 +96,10 @@
 		ctx.PropertyErrorf("libs", "at least one dependency is required")
 	}
 
+	var transitiveHeaderJars []*android.DepSet[android.Path]
+	var transitiveImplementationJars []*android.DepSet[android.Path]
+	var transitiveResourceJars []*android.DepSet[android.Path]
+
 	ctx.VisitDirectDepsWithTag(deviceHostConverterDepTag, func(m android.Module) {
 		if dep, ok := android.OtherModuleProvider(ctx, m, JavaInfoProvider); ok {
 			d.headerJars = append(d.headerJars, dep.HeaderJars...)
@@ -105,6 +109,16 @@
 
 			d.srcJarArgs = append(d.srcJarArgs, dep.SrcJarArgs...)
 			d.srcJarDeps = append(d.srcJarDeps, dep.SrcJarDeps...)
+
+			if dep.TransitiveStaticLibsHeaderJars != nil {
+				transitiveHeaderJars = append(transitiveHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+			}
+			if dep.TransitiveStaticLibsImplementationJars != nil {
+				transitiveImplementationJars = append(transitiveImplementationJars, dep.TransitiveStaticLibsImplementationJars)
+			}
+			if dep.TransitiveStaticLibsResourceJars != nil {
+				transitiveResourceJars = append(transitiveResourceJars, dep.TransitiveStaticLibsResourceJars)
+			}
 		} else {
 			ctx.PropertyErrorf("libs", "module %q cannot be used as a dependency", ctx.OtherModuleName(m))
 		}
@@ -131,13 +145,17 @@
 	}
 
 	android.SetProvider(ctx, JavaInfoProvider, &JavaInfo{
-		HeaderJars:                     d.headerJars,
-		ImplementationAndResourcesJars: d.implementationAndResourceJars,
-		ImplementationJars:             d.implementationJars,
-		ResourceJars:                   d.resourceJars,
-		SrcJarArgs:                     d.srcJarArgs,
-		SrcJarDeps:                     d.srcJarDeps,
-		StubsLinkType:                  Implementation,
+		HeaderJars:                             d.headerJars,
+		LocalHeaderJars:                        d.headerJars,
+		TransitiveStaticLibsHeaderJars:         android.NewDepSet(android.PREORDER, nil, transitiveHeaderJars),
+		TransitiveStaticLibsImplementationJars: android.NewDepSet(android.PREORDER, nil, transitiveImplementationJars),
+		TransitiveStaticLibsResourceJars:       android.NewDepSet(android.PREORDER, nil, transitiveResourceJars),
+		ImplementationAndResourcesJars:         d.implementationAndResourceJars,
+		ImplementationJars:                     d.implementationJars,
+		ResourceJars:                           d.resourceJars,
+		SrcJarArgs:                             d.srcJarArgs,
+		SrcJarDeps:                             d.srcJarDeps,
+		StubsLinkType:                          Implementation,
 		// TODO: Not sure if aconfig flags that have been moved between device and host variants
 		// make sense.
 	})
diff --git a/java/java.go b/java/java.go
index f30d892..797a90d 100644
--- a/java/java.go
+++ b/java/java.go
@@ -254,6 +254,7 @@
 type JavaInfo struct {
 	// HeaderJars is a list of jars that can be passed as the javac classpath in order to link
 	// against this module.  If empty, ImplementationJars should be used instead.
+	// Unlike LocalHeaderJars, HeaderJars includes classes from static dependencies.
 	HeaderJars android.Paths
 
 	RepackagedHeaderJars android.Paths
@@ -264,6 +265,15 @@
 	// set of header jars for all transitive static libs deps
 	TransitiveStaticLibsHeaderJarsForR8 *android.DepSet[android.Path]
 
+	// depset of header jars for this module and all transitive static dependencies
+	TransitiveStaticLibsHeaderJars *android.DepSet[android.Path]
+
+	// depset of implementation jars for this module and all transitive static dependencies
+	TransitiveStaticLibsImplementationJars *android.DepSet[android.Path]
+
+	// depset of resource jars for this module and all transitive static dependencies
+	TransitiveStaticLibsResourceJars *android.DepSet[android.Path]
+
 	// ImplementationAndResourceJars is a list of jars that contain the implementations of classes
 	// in the module as well as any resources included in the module.
 	ImplementationAndResourcesJars android.Paths
@@ -275,6 +285,9 @@
 	// ResourceJars is a list of jars that contain the resources included in the module.
 	ResourceJars android.Paths
 
+	// LocalHeaderJars is a list of jars that contain classes from this module, but not from any static dependencies.
+	LocalHeaderJars android.Paths
+
 	// AidlIncludeDirs is a list of directories that should be passed to the aidl tool when
 	// depending on this module.
 	AidlIncludeDirs android.Paths
@@ -568,6 +581,10 @@
 	aconfigProtoFiles       android.Paths
 
 	disableTurbine bool
+
+	transitiveStaticLibsHeaderJars         []*android.DepSet[android.Path]
+	transitiveStaticLibsImplementationJars []*android.DepSet[android.Path]
+	transitiveStaticLibsResourceJars       []*android.DepSet[android.Path]
 }
 
 func checkProducesJars(ctx android.ModuleContext, dep android.SourceFileProducer) {
@@ -1008,7 +1025,7 @@
 		}
 		hostDexNeeded := Bool(j.deviceProperties.Hostdex) && !ctx.Host()
 		if hostDexNeeded {
-			j.hostdexInstallFile = ctx.InstallFile(
+			j.hostdexInstallFile = ctx.InstallFileWithoutCheckbuild(
 				android.PathForHostDexInstall(ctx, "framework"),
 				j.Stem()+"-hostdex.jar", j.outputFile)
 		}
@@ -1022,7 +1039,7 @@
 		} else {
 			installDir = android.PathForModuleInstall(ctx, "framework")
 		}
-		j.installFile = ctx.InstallFile(installDir, j.Stem()+".jar", j.outputFile, extraInstallDeps...)
+		j.installFile = ctx.InstallFileWithoutCheckbuild(installDir, j.Stem()+".jar", j.outputFile, extraInstallDeps...)
 	}
 }
 
@@ -2359,11 +2376,14 @@
 	ctx.Phony(ctx.ModuleName(), al.stubsJar)
 
 	android.SetProvider(ctx, JavaInfoProvider, &JavaInfo{
-		HeaderJars:                     android.PathsIfNonNil(al.stubsJar),
-		ImplementationAndResourcesJars: android.PathsIfNonNil(al.stubsJar),
-		ImplementationJars:             android.PathsIfNonNil(al.stubsJar),
-		AidlIncludeDirs:                android.Paths{},
-		StubsLinkType:                  Stubs,
+		HeaderJars:                             android.PathsIfNonNil(al.stubsJar),
+		LocalHeaderJars:                        android.PathsIfNonNil(al.stubsJar),
+		TransitiveStaticLibsHeaderJars:         android.NewDepSet(android.PREORDER, android.PathsIfNonNil(al.stubsJar), nil),
+		TransitiveStaticLibsImplementationJars: android.NewDepSet(android.PREORDER, android.PathsIfNonNil(al.stubsJar), nil),
+		ImplementationAndResourcesJars:         android.PathsIfNonNil(al.stubsJar),
+		ImplementationJars:                     android.PathsIfNonNil(al.stubsJar),
+		AidlIncludeDirs:                        android.Paths{},
+		StubsLinkType:                          Stubs,
 		// No aconfig libraries on api libraries
 	})
 }
@@ -2634,6 +2654,12 @@
 
 	var flags javaBuilderFlags
 
+	var transitiveClasspathHeaderJars []*android.DepSet[android.Path]
+	var transitiveBootClasspathHeaderJars []*android.DepSet[android.Path]
+	var transitiveStaticLibsHeaderJars []*android.DepSet[android.Path]
+	var transitiveStaticLibsImplementationJars []*android.DepSet[android.Path]
+	var transitiveStaticLibsResourceJars []*android.DepSet[android.Path]
+
 	j.collectTransitiveHeaderJarsForR8(ctx)
 	var staticJars android.Paths
 	var staticResourceJars android.Paths
@@ -2645,32 +2671,67 @@
 			case libTag, sdkLibTag:
 				flags.classpath = append(flags.classpath, dep.HeaderJars...)
 				flags.dexClasspath = append(flags.dexClasspath, dep.HeaderJars...)
+				if dep.TransitiveStaticLibsHeaderJars != nil {
+					transitiveClasspathHeaderJars = append(transitiveClasspathHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+				}
 			case staticLibTag:
 				flags.classpath = append(flags.classpath, dep.HeaderJars...)
 				staticJars = append(staticJars, dep.ImplementationJars...)
 				staticResourceJars = append(staticResourceJars, dep.ResourceJars...)
 				staticHeaderJars = append(staticHeaderJars, dep.HeaderJars...)
+				if dep.TransitiveStaticLibsHeaderJars != nil {
+					transitiveClasspathHeaderJars = append(transitiveClasspathHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+					transitiveStaticLibsHeaderJars = append(transitiveStaticLibsHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+				}
+				if dep.TransitiveStaticLibsImplementationJars != nil {
+					transitiveStaticLibsImplementationJars = append(transitiveStaticLibsImplementationJars, dep.TransitiveStaticLibsImplementationJars)
+				}
+				if dep.TransitiveStaticLibsResourceJars != nil {
+					transitiveStaticLibsResourceJars = append(transitiveStaticLibsResourceJars, dep.TransitiveStaticLibsResourceJars)
+				}
 			case bootClasspathTag:
 				flags.bootClasspath = append(flags.bootClasspath, dep.HeaderJars...)
+				if dep.TransitiveStaticLibsHeaderJars != nil {
+					transitiveBootClasspathHeaderJars = append(transitiveBootClasspathHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+				}
 			}
 		} else if dep, ok := module.(SdkLibraryDependency); ok {
 			switch tag {
 			case libTag, sdkLibTag:
-				flags.classpath = append(flags.classpath, dep.SdkHeaderJars(ctx, j.SdkVersion(ctx))...)
+				depHeaderJars := dep.SdkHeaderJars(ctx, j.SdkVersion(ctx))
+				flags.classpath = append(flags.classpath, depHeaderJars...)
+				transitiveClasspathHeaderJars = append(transitiveClasspathHeaderJars,
+					android.NewDepSet(android.PREORDER, depHeaderJars, nil))
 			}
 		}
 
 		addCLCFromDep(ctx, module, j.classLoaderContexts)
 	})
 
-	jars := android.PathsForModuleSrc(ctx, j.properties.Jars)
+	localJars := android.PathsForModuleSrc(ctx, j.properties.Jars)
 	jarName := j.Stem() + ".jar"
 
+	// Combine only the local jars together for use in transitive classpaths.
+	// Always pass input jar through TransformJarsToJar to strip module-info.class from prebuilts.
+	localCombinedHeaderJar := android.PathForModuleOut(ctx, "local-combined", jarName)
+	TransformJarsToJar(ctx, localCombinedHeaderJar, "combine local prebuilt implementation jars", localJars, android.OptionalPath{},
+		false, j.properties.Exclude_files, j.properties.Exclude_dirs)
+	localStrippedJars := android.Paths{localCombinedHeaderJar}
+
+	completeStaticLibsHeaderJars := android.NewDepSet(android.PREORDER, localStrippedJars, transitiveStaticLibsHeaderJars)
+	completeStaticLibsImplementationJars := android.NewDepSet(android.PREORDER, localStrippedJars, transitiveStaticLibsImplementationJars)
+	completeStaticLibsResourceJars := android.NewDepSet(android.PREORDER, nil, transitiveStaticLibsResourceJars)
+
 	// Always pass the input jars to TransformJarsToJar, even if there is only a single jar, we need the output
 	// file of the module to be named jarName.
 	var outputFile android.Path
 	combinedImplementationJar := android.PathForModuleOut(ctx, "combined", jarName)
-	implementationJars := append(slices.Clone(jars), staticJars...)
+	var implementationJars android.Paths
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		implementationJars = completeStaticLibsImplementationJars.ToList()
+	} else {
+		implementationJars = append(slices.Clone(localJars), staticJars...)
+	}
 	TransformJarsToJar(ctx, combinedImplementationJar, "combine prebuilt implementation jars", implementationJars, android.OptionalPath{},
 		false, j.properties.Exclude_files, j.properties.Exclude_dirs)
 	outputFile = combinedImplementationJar
@@ -2693,7 +2754,12 @@
 	if reuseImplementationJarAsHeaderJar {
 		headerJar = outputFile
 	} else {
-		headerJars := append(slices.Clone(jars), staticHeaderJars...)
+		var headerJars android.Paths
+		if ctx.Config().UseTransitiveJarsInClasspath() {
+			headerJars = completeStaticLibsHeaderJars.ToList()
+		} else {
+			headerJars = append(slices.Clone(localJars), staticHeaderJars...)
+		}
 		headerOutputFile := android.PathForModuleOut(ctx, "turbine-combined", jarName)
 		TransformJarsToJar(ctx, headerOutputFile, "combine prebuilt header jars", headerJars, android.OptionalPath{},
 			false, j.properties.Exclude_files, j.properties.Exclude_dirs)
@@ -2712,6 +2778,11 @@
 		} else {
 			headerJar = outputFile
 		}
+
+		// Enabling jetifier requires modifying classes from transitive dependencies, disable transitive
+		// classpath and use the combined header jar instead.
+		completeStaticLibsHeaderJars = android.NewDepSet(android.PREORDER, android.Paths{headerJar}, nil)
+		completeStaticLibsImplementationJars = android.NewDepSet(android.PREORDER, android.Paths{outputFile}, nil)
 	}
 
 	implementationJarFile := outputFile
@@ -2735,7 +2806,11 @@
 
 	j.exportAidlIncludeDirs = android.PathsForModuleSrc(ctx, j.properties.Aidl.Export_include_dirs)
 
-	ctx.CheckbuildFile(outputFile)
+	if ctx.Config().UseTransitiveJarsInClasspath() {
+		ctx.CheckbuildFile(localJars...)
+	} else {
+		ctx.CheckbuildFile(outputFile)
+	}
 
 	if ctx.Device() {
 		// If this is a variant created for a prebuilt_apex then use the dex implementation jar
@@ -2817,14 +2892,18 @@
 	}
 
 	android.SetProvider(ctx, JavaInfoProvider, &JavaInfo{
-		HeaderJars:                          android.PathsIfNonNil(j.combinedHeaderFile),
-		TransitiveLibsHeaderJarsForR8:       j.transitiveLibsHeaderJarsForR8,
-		TransitiveStaticLibsHeaderJarsForR8: j.transitiveStaticLibsHeaderJarsForR8,
-		ImplementationAndResourcesJars:      android.PathsIfNonNil(j.combinedImplementationFile),
-		ImplementationJars:                  android.PathsIfNonNil(implementationJarFile.WithoutRel()),
-		ResourceJars:                        android.PathsIfNonNil(resourceJarFile),
-		AidlIncludeDirs:                     j.exportAidlIncludeDirs,
-		StubsLinkType:                       j.stubsLinkType,
+		HeaderJars:                             android.PathsIfNonNil(j.combinedHeaderFile),
+		LocalHeaderJars:                        android.PathsIfNonNil(j.combinedHeaderFile),
+		TransitiveLibsHeaderJarsForR8:          j.transitiveLibsHeaderJarsForR8,
+		TransitiveStaticLibsHeaderJarsForR8:    j.transitiveStaticLibsHeaderJarsForR8,
+		TransitiveStaticLibsHeaderJars:         completeStaticLibsHeaderJars,
+		TransitiveStaticLibsImplementationJars: completeStaticLibsImplementationJars,
+		TransitiveStaticLibsResourceJars:       completeStaticLibsResourceJars,
+		ImplementationAndResourcesJars:         android.PathsIfNonNil(j.combinedImplementationFile),
+		ImplementationJars:                     android.PathsIfNonNil(implementationJarFile.WithoutRel()),
+		ResourceJars:                           android.PathsIfNonNil(resourceJarFile),
+		AidlIncludeDirs:                        j.exportAidlIncludeDirs,
+		StubsLinkType:                          j.stubsLinkType,
 		// TODO(b/289117800): LOCAL_ACONFIG_FILES for prebuilts
 	})
 
diff --git a/java/java_test.go b/java/java_test.go
index 9e39b51..e4e6bca 100644
--- a/java/java_test.go
+++ b/java/java_test.go
@@ -20,6 +20,7 @@
 	"path/filepath"
 	"reflect"
 	"runtime"
+	"slices"
 	"strconv"
 	"strings"
 	"testing"
@@ -211,7 +212,7 @@
 }
 
 func TestSimple(t *testing.T) {
-	ctx, _ := testJava(t, `
+	bp := `
 		java_library {
 			name: "foo",
 			srcs: ["a.java"],
@@ -222,31 +223,157 @@
 		java_library {
 			name: "bar",
 			srcs: ["b.java"],
+			static_libs: ["quz"],
 		}
 
 		java_library {
 			name: "baz",
 			srcs: ["c.java"],
+			static_libs: ["quz"],
 		}
-	`)
 
-	javac := ctx.ModuleForTests("foo", "android_common").Rule("javac")
-	combineJar := ctx.ModuleForTests("foo", "android_common").Description("for javac")
+		java_library {
+			name: "quz",
+			srcs: ["d.java"],
+		}`
 
-	if len(javac.Inputs) != 1 || javac.Inputs[0].String() != "a.java" {
-		t.Errorf(`foo inputs %v != ["a.java"]`, javac.Inputs)
+	frameworkTurbineCombinedJars := []string{
+		"out/soong/.intermediates/default/java/ext/android_common/turbine-combined/ext.jar",
+		"out/soong/.intermediates/default/java/framework/android_common/turbine-combined/framework.jar",
 	}
 
-	baz := ctx.ModuleForTests("baz", "android_common").Rule("javac").Output.String()
-	barTurbine := filepath.Join("out", "soong", ".intermediates", "bar", "android_common", "turbine-combined", "bar.jar")
-	bazTurbine := filepath.Join("out", "soong", ".intermediates", "baz", "android_common", "turbine-combined", "baz.jar")
+	frameworkTurbineJars := []string{
+		"out/soong/.intermediates/default/java/ext/android_common/turbine/ext.jar",
+		"out/soong/.intermediates/default/java/framework/android_common/turbine/framework.jar",
+	}
 
-	android.AssertStringDoesContain(t, "foo classpath", javac.Args["classpath"], barTurbine)
+	testCases := []struct {
+		name string
 
-	android.AssertStringDoesContain(t, "foo classpath", javac.Args["classpath"], bazTurbine)
+		preparer android.FixturePreparer
 
-	if len(combineJar.Inputs) != 2 || combineJar.Inputs[1].String() != baz {
-		t.Errorf("foo combineJar inputs %v does not contain %q", combineJar.Inputs, baz)
+		fooJavacInputs          []string
+		fooJavacClasspath       []string
+		fooCombinedInputs       []string
+		fooHeaderCombinedInputs []string
+
+		barJavacInputs          []string
+		barJavacClasspath       []string
+		barCombinedInputs       []string
+		barHeaderCombinedInputs []string
+	}{
+		{
+			name:           "normal",
+			preparer:       android.NullFixturePreparer,
+			fooJavacInputs: []string{"a.java"},
+			fooJavacClasspath: slices.Concat(
+				frameworkTurbineCombinedJars,
+				[]string{
+					"out/soong/.intermediates/bar/android_common/turbine-combined/bar.jar",
+					"out/soong/.intermediates/baz/android_common/turbine-combined/baz.jar",
+				},
+			),
+			fooCombinedInputs: []string{
+				"out/soong/.intermediates/foo/android_common/javac/foo.jar",
+				"out/soong/.intermediates/baz/android_common/combined/baz.jar",
+			},
+
+			fooHeaderCombinedInputs: []string{
+				"out/soong/.intermediates/foo/android_common/turbine/foo.jar",
+				"out/soong/.intermediates/baz/android_common/turbine-combined/baz.jar",
+			},
+
+			barJavacInputs: []string{"b.java"},
+			barJavacClasspath: slices.Concat(
+				frameworkTurbineCombinedJars,
+				[]string{
+					"out/soong/.intermediates/quz/android_common/turbine-combined/quz.jar",
+				},
+			),
+			barCombinedInputs: []string{
+				"out/soong/.intermediates/bar/android_common/javac/bar.jar",
+				"out/soong/.intermediates/quz/android_common/javac/quz.jar",
+			},
+			barHeaderCombinedInputs: []string{
+				"out/soong/.intermediates/bar/android_common/turbine/bar.jar",
+				"out/soong/.intermediates/quz/android_common/turbine-combined/quz.jar",
+			},
+		},
+		{
+			name:           "transitive classpath",
+			preparer:       PrepareForTestWithTransitiveClasspathEnabled,
+			fooJavacInputs: []string{"a.java"},
+			fooJavacClasspath: slices.Concat(
+				frameworkTurbineJars,
+				[]string{
+					"out/soong/.intermediates/bar/android_common/turbine/bar.jar",
+					"out/soong/.intermediates/quz/android_common/turbine/quz.jar",
+					"out/soong/.intermediates/baz/android_common/turbine/baz.jar",
+				},
+			),
+			fooCombinedInputs: []string{
+				"out/soong/.intermediates/foo/android_common/javac/foo.jar",
+				"out/soong/.intermediates/baz/android_common/javac/baz.jar",
+				"out/soong/.intermediates/quz/android_common/javac/quz.jar",
+			},
+
+			fooHeaderCombinedInputs: []string{
+				"out/soong/.intermediates/foo/android_common/turbine/foo.jar",
+				"out/soong/.intermediates/baz/android_common/turbine/baz.jar",
+				"out/soong/.intermediates/quz/android_common/turbine/quz.jar",
+			},
+
+			barJavacInputs: []string{"b.java"},
+			barJavacClasspath: slices.Concat(
+				frameworkTurbineJars,
+				[]string{"out/soong/.intermediates/quz/android_common/turbine/quz.jar"},
+			),
+			barCombinedInputs: []string{
+				"out/soong/.intermediates/bar/android_common/javac/bar.jar",
+				"out/soong/.intermediates/quz/android_common/javac/quz.jar",
+			},
+			barHeaderCombinedInputs: []string{
+				"out/soong/.intermediates/bar/android_common/turbine/bar.jar",
+				"out/soong/.intermediates/quz/android_common/turbine/quz.jar",
+			},
+		},
+	}
+
+	for _, tt := range testCases {
+		t.Run(tt.name, func(t *testing.T) {
+			result := android.GroupFixturePreparers(
+				PrepareForTestWithJavaDefaultModules,
+				tt.preparer,
+			).RunTestWithBp(t, bp)
+			foo := result.ModuleForTests("foo", "android_common")
+
+			fooJavac := foo.Rule("javac")
+			android.AssertPathsRelativeToTopEquals(t, "foo javac inputs", tt.fooJavacInputs, fooJavac.Inputs)
+
+			fooJavacClasspath := fooJavac.Args["classpath"]
+			android.AssertStringPathsRelativeToTopEquals(t, "foo javac classpath", result.Config, tt.fooJavacClasspath,
+				strings.Split(strings.TrimPrefix(fooJavacClasspath, "-classpath "), ":"))
+
+			fooCombinedJar := foo.Output("combined/foo.jar")
+			android.AssertPathsRelativeToTopEquals(t, "foo combined inputs", tt.fooCombinedInputs, fooCombinedJar.Inputs)
+
+			fooCombinedHeaderJar := foo.Output("turbine-combined/foo.jar")
+			android.AssertPathsRelativeToTopEquals(t, "foo header combined inputs", tt.fooHeaderCombinedInputs, fooCombinedHeaderJar.Inputs)
+
+			bar := result.ModuleForTests("bar", "android_common")
+			barJavac := bar.Rule("javac")
+			android.AssertPathsRelativeToTopEquals(t, "bar javac inputs", tt.barJavacInputs, barJavac.Inputs)
+
+			barJavacClasspath := barJavac.Args["classpath"]
+			android.AssertStringPathsRelativeToTopEquals(t, "bar javac classpath", result.Config, tt.barJavacClasspath,
+				strings.Split(strings.TrimPrefix(barJavacClasspath, "-classpath "), ":"))
+
+			barCombinedJar := bar.Output("combined/bar.jar")
+			android.AssertPathsRelativeToTopEquals(t, "bar combined inputs", tt.barCombinedInputs, barCombinedJar.Inputs)
+
+			barCombinedHeaderJar := bar.Output("turbine-combined/bar.jar")
+			android.AssertPathsRelativeToTopEquals(t, "bar header combined inputs", tt.barHeaderCombinedInputs, barCombinedHeaderJar.Inputs)
+		})
 	}
 }
 
@@ -590,7 +717,7 @@
 	barModule := ctx.ModuleForTests("bar", "android_common")
 	barJar := barModule.Output("combined/bar.jar").Output
 	bazModule := ctx.ModuleForTests("baz", "android_common")
-	bazJar := bazModule.Rule("combineJar").Output
+	bazJar := bazModule.Output("combined/baz.jar").Output
 	sdklibStubsJar := ctx.ModuleForTests("sdklib.stubs", "android_common").
 		Output("combined/sdklib.stubs.jar").Output
 
diff --git a/java/kotlin_test.go b/java/kotlin_test.go
index 844e974..f6e7fca 100644
--- a/java/kotlin_test.go
+++ b/java/kotlin_test.go
@@ -56,6 +56,13 @@
 		"out/soong/.intermediates/default/java/kotlin-annotations/android_common/turbine-combined/kotlin-annotations.jar",
 	}
 
+	kotlinStdlibTurbineJars := []string{
+		"out/soong/.intermediates/default/java/kotlin-stdlib/android_common/turbine/kotlin-stdlib.jar",
+		"out/soong/.intermediates/default/java/kotlin-stdlib-jdk7/android_common/turbine/kotlin-stdlib-jdk7.jar",
+		"out/soong/.intermediates/default/java/kotlin-stdlib-jdk8/android_common/turbine/kotlin-stdlib-jdk8.jar",
+		"out/soong/.intermediates/default/java/kotlin-annotations/android_common/turbine/kotlin-annotations.jar",
+	}
+
 	kotlinStdlibJavacJars := []string{
 		"out/soong/.intermediates/default/java/kotlin-stdlib/android_common/javac/kotlin-stdlib.jar",
 		"out/soong/.intermediates/default/java/kotlin-stdlib-jdk7/android_common/javac/kotlin-stdlib-jdk7.jar",
@@ -68,11 +75,21 @@
 		"out/soong/.intermediates/default/java/core-lambda-stubs/android_common/turbine-combined/core-lambda-stubs.jar",
 	}
 
+	bootclasspathTurbineJars := []string{
+		"out/soong/.intermediates/default/java/stable.core.platform.api.stubs/android_common/turbine/stable.core.platform.api.stubs.jar",
+		"out/soong/.intermediates/default/java/core-lambda-stubs/android_common/turbine/core-lambda-stubs.jar",
+	}
+
 	frameworkTurbineCombinedJars := []string{
 		"out/soong/.intermediates/default/java/ext/android_common/turbine-combined/ext.jar",
 		"out/soong/.intermediates/default/java/framework/android_common/turbine-combined/framework.jar",
 	}
 
+	frameworkTurbineJars := []string{
+		"out/soong/.intermediates/default/java/ext/android_common/turbine/ext.jar",
+		"out/soong/.intermediates/default/java/framework/android_common/turbine/framework.jar",
+	}
+
 	testCases := []struct {
 		name string
 
@@ -150,6 +167,69 @@
 				kotlinStdlibTurbineCombinedJars,
 			),
 		},
+		{
+			name:             "transitive classpath",
+			preparer:         PrepareForTestWithTransitiveClasspathEnabled,
+			fooKotlincInputs: []string{"a.java", "b.kt"},
+			fooJavacInputs:   []string{"a.java"},
+			fooKotlincClasspath: slices.Concat(
+				bootclasspathTurbineJars,
+				frameworkTurbineJars,
+				[]string{"out/soong/.intermediates/quz/android_common/kotlin_headers/quz.jar"},
+				kotlinStdlibTurbineJars,
+			),
+			fooJavacClasspath: slices.Concat(
+				[]string{"out/soong/.intermediates/foo/android_common/kotlin_headers/foo.jar"},
+				frameworkTurbineJars,
+				[]string{"out/soong/.intermediates/quz/android_common/kotlin_headers/quz.jar"},
+				kotlinStdlibTurbineJars,
+			),
+			fooCombinedInputs: slices.Concat(
+				[]string{
+					"out/soong/.intermediates/foo/android_common/kotlin/foo.jar",
+					"out/soong/.intermediates/foo/android_common/javac/foo.jar",
+					"out/soong/.intermediates/quz/android_common/kotlin/quz.jar",
+				},
+				kotlinStdlibJavacJars,
+			),
+			fooHeaderCombinedInputs: slices.Concat(
+				[]string{
+					"out/soong/.intermediates/foo/android_common/turbine/foo.jar",
+					"out/soong/.intermediates/foo/android_common/kotlin_headers/foo.jar",
+					"out/soong/.intermediates/quz/android_common/kotlin_headers/quz.jar",
+				},
+				kotlinStdlibTurbineJars,
+			),
+
+			barKotlincInputs: []string{"b.kt"},
+			barKotlincClasspath: slices.Concat(
+				bootclasspathTurbineJars,
+				frameworkTurbineJars,
+				[]string{
+					"out/soong/.intermediates/foo/android_common/turbine/foo.jar",
+					"out/soong/.intermediates/foo/android_common/kotlin_headers/foo.jar",
+					"out/soong/.intermediates/quz/android_common/kotlin_headers/quz.jar",
+				},
+				kotlinStdlibTurbineJars,
+				[]string{"out/soong/.intermediates/baz/android_common/turbine/baz.jar"},
+			),
+			barCombinedInputs: slices.Concat(
+				[]string{
+					"out/soong/.intermediates/bar/android_common/kotlin/bar.jar",
+					"out/soong/.intermediates/baz/android_common/javac/baz.jar",
+					"out/soong/.intermediates/quz/android_common/kotlin/quz.jar",
+				},
+				kotlinStdlibJavacJars,
+			),
+			barHeaderCombinedInputs: slices.Concat(
+				[]string{
+					"out/soong/.intermediates/bar/android_common/kotlin_headers/bar.jar",
+					"out/soong/.intermediates/baz/android_common/turbine/baz.jar",
+					"out/soong/.intermediates/quz/android_common/kotlin_headers/quz.jar",
+				},
+				kotlinStdlibTurbineJars,
+			),
+		},
 	}
 
 	for _, tt := range testCases {
diff --git a/java/sdk_library_test.go b/java/sdk_library_test.go
index 485776b..12d5877 100644
--- a/java/sdk_library_test.go
+++ b/java/sdk_library_test.go
@@ -907,7 +907,7 @@
 		fooModule := result.ModuleForTests("foo"+scope, "android_common")
 		javac := fooModule.Rule("javac")
 
-		sdklibStubsJar := result.ModuleForTests("sdklib.stubs"+scope, "android_common").Rule("combineJar").Output
+		sdklibStubsJar := result.ModuleForTests("sdklib.stubs"+scope, "android_common").Output("combined/sdklib.stubs" + scope + ".jar").Output
 		android.AssertStringDoesContain(t, "foo classpath", javac.Args["classpath"], sdklibStubsJar.String())
 	}
 
diff --git a/java/sdk_test.go b/java/sdk_test.go
index 2dac27a..9bfe6a2 100644
--- a/java/sdk_test.go
+++ b/java/sdk_test.go
@@ -391,15 +391,19 @@
 	t.Parallel()
 	t.Run("basic", func(t *testing.T) {
 		t.Parallel()
-		testClasspathTestCases(t, classpathTestcases, false)
+		testClasspathTestCases(t, classpathTestcases, false, false)
 	})
 
 	t.Run("Always_use_prebuilt_sdks=true", func(t *testing.T) {
-		testClasspathTestCases(t, classpathTestcases, true)
+		testClasspathTestCases(t, classpathTestcases, true, false)
+	})
+
+	t.Run("UseTransitiveJarsInClasspath", func(t *testing.T) {
+		testClasspathTestCases(t, classpathTestcases, false, true)
 	})
 }
 
-func testClasspathTestCases(t *testing.T, classpathTestcases []classpathTestCase, alwaysUsePrebuiltSdks bool) {
+func testClasspathTestCases(t *testing.T, classpathTestcases []classpathTestCase, alwaysUsePrebuiltSdks, useTransitiveJarsInClasspath bool) {
 	for _, testcase := range classpathTestcases {
 		if testcase.forAlwaysUsePrebuiltSdks != nil && *testcase.forAlwaysUsePrebuiltSdks != alwaysUsePrebuiltSdks {
 			continue
@@ -437,7 +441,14 @@
 			convertModulesToPaths := func(cp []string) []string {
 				ret := make([]string, len(cp))
 				for i, e := range cp {
-					ret[i] = defaultModuleToPath(e)
+					switch {
+					case e == `""`, strings.HasSuffix(e, ".jar"):
+						ret[i] = e
+					case useTransitiveJarsInClasspath:
+						ret[i] = filepath.Join("out", "soong", ".intermediates", defaultJavaDir, e, "android_common", "turbine", e+".jar")
+					default:
+						ret[i] = filepath.Join("out", "soong", ".intermediates", defaultJavaDir, e, "android_common", "turbine-combined", e+".jar")
+					}
 				}
 				return ret
 			}
@@ -531,6 +542,9 @@
 					variables.Always_use_prebuilt_sdks = proptools.BoolPtr(true)
 				})
 			}
+			if useTransitiveJarsInClasspath {
+				preparer = PrepareForTestWithTransitiveClasspathEnabled
+			}
 
 			fixtureFactory := android.GroupFixturePreparers(
 				prepareForJavaTest,
diff --git a/java/system_modules.go b/java/system_modules.go
index f89bf9e..d9430b2 100644
--- a/java/system_modules.go
+++ b/java/system_modules.go
@@ -127,6 +127,9 @@
 
 	OutputDir     android.Path
 	OutputDirDeps android.Paths
+
+	// depset of header jars for this module and all transitive static dependencies
+	TransitiveStaticLibsHeaderJars *android.DepSet[android.Path]
 }
 
 var SystemModulesProvider = blueprint.NewProvider[*SystemModulesProviderInfo]()
@@ -149,18 +152,23 @@
 func (system *SystemModules) GenerateAndroidBuildActions(ctx android.ModuleContext) {
 	var jars android.Paths
 
+	var transitiveStaticLibsHeaderJars []*android.DepSet[android.Path]
 	ctx.VisitDirectDepsWithTag(systemModulesLibsTag, func(module android.Module) {
 		if dep, ok := android.OtherModuleProvider(ctx, module, JavaInfoProvider); ok {
 			jars = append(jars, dep.HeaderJars...)
+			if dep.TransitiveStaticLibsHeaderJars != nil {
+				transitiveStaticLibsHeaderJars = append(transitiveStaticLibsHeaderJars, dep.TransitiveStaticLibsHeaderJars)
+			}
 		}
 	})
 
 	system.outputDir, system.outputDeps = TransformJarsToSystemModules(ctx, jars)
 
 	android.SetProvider(ctx, SystemModulesProvider, &SystemModulesProviderInfo{
-		HeaderJars:    jars,
-		OutputDir:     system.outputDir,
-		OutputDirDeps: system.outputDeps,
+		HeaderJars:                     jars,
+		OutputDir:                      system.outputDir,
+		OutputDirDeps:                  system.outputDeps,
+		TransitiveStaticLibsHeaderJars: android.NewDepSet(android.PREORDER, nil, transitiveStaticLibsHeaderJars),
 	})
 }
 
diff --git a/java/testing.go b/java/testing.go
index 03dcee6..e31e0d2 100644
--- a/java/testing.go
+++ b/java/testing.go
@@ -581,6 +581,7 @@
 				name: "%[1]s-lib",
 				sdk_version: "none",
 				system_modules: "none",
+				srcs: ["a.java"],
 			}
 		`, extra)
 	}
@@ -780,3 +781,5 @@
 		config.installDir = installDir
 	})
 }
+
+var PrepareForTestWithTransitiveClasspathEnabled = android.PrepareForTestWithBuildFlag("RELEASE_USE_TRANSITIVE_JARS_IN_CLASSPATH", "true")