diff --git a/devtools/gradle/gradle-application-plugin/src/main/java/io/quarkus/gradle/QuarkusPlugin.java b/devtools/gradle/gradle-application-plugin/src/main/java/io/quarkus/gradle/QuarkusPlugin.java
index 913565876bfe2..b2fb4d78493e2 100644
--- a/devtools/gradle/gradle-application-plugin/src/main/java/io/quarkus/gradle/QuarkusPlugin.java
+++ b/devtools/gradle/gradle-application-plugin/src/main/java/io/quarkus/gradle/QuarkusPlugin.java
@@ -20,6 +20,7 @@
 import org.gradle.api.artifacts.Configuration;
 import org.gradle.api.artifacts.ConfigurationContainer;
 import org.gradle.api.artifacts.ProjectDependency;
+import org.gradle.api.artifacts.ResolvedArtifact;
 import org.gradle.api.plugins.BasePlugin;
 import org.gradle.api.plugins.JavaPlugin;
 import org.gradle.api.plugins.JavaPluginConvention;
@@ -256,13 +257,6 @@ private void registerConditionalDependencies(Project project) {
                             .declareConditionalDependencies(JavaPlugin.IMPLEMENTATION_CONFIGURATION_NAME);
                     deploymentClasspathBuilder.createBuildClasspath(implementationExtensions,
                             JavaPlugin.IMPLEMENTATION_CONFIGURATION_NAME);
-                    // enable the Panache annotation processor on the classpath, if it's found among the dependencies
-                    for (ExtensionDependency extension : implementationExtensions) {
-                        if ("quarkus-panache-common".equals(extension.getName()) && "io.quarkus".equals(extension.getGroup())) {
-                            project.getDependencies().add(JavaPlugin.ANNOTATION_PROCESSOR_CONFIGURATION_NAME,
-                                    extension.asDependencyNotation());
-                        }
-                    }
                 });
         project.getConfigurations().getByName(DEV_MODE_CONFIGURATION_NAME).getIncoming().beforeResolve((devDependencies) -> {
             Set<ExtensionDependency> devModeExtensions = conditionalDependenciesEnabler
@@ -276,6 +270,21 @@ private void registerConditionalDependencies(Project project) {
                     deploymentClasspathBuilder.createBuildClasspath(testExtensions,
                             JavaPlugin.TEST_IMPLEMENTATION_CONFIGURATION_NAME);
                 });
+        project.getConfigurations().getByName(JavaPlugin.ANNOTATION_PROCESSOR_CONFIGURATION_NAME).getIncoming()
+                .beforeResolve(annotationProcessors -> {
+                    Set<ResolvedArtifact> compileClasspathArtifacts = project.getConfigurations()
+                            .getByName(JavaPlugin.COMPILE_CLASSPATH_CONFIGURATION_NAME).getResolvedConfiguration()
+                            .getResolvedArtifacts();
+
+                    // enable the Panache annotation processor on the classpath, if it's found among the dependencies
+                    for (ResolvedArtifact artifact : compileClasspathArtifacts) {
+                        if ("quarkus-panache-common".equals(artifact.getName())
+                                && "io.quarkus".equals(artifact.getModuleVersion().getId().getGroup())) {
+                            project.getDependencies().add(JavaPlugin.ANNOTATION_PROCESSOR_CONFIGURATION_NAME,
+                                    "io.quarkus:quarkus-panache-common:" + artifact.getModuleVersion().getId().getVersion());
+                        }
+                    }
+                });
     }
 
     private Set<Path> getSourcesParents(SourceSet mainSourceSet) {
diff --git a/integration-tests/gradle/src/main/resources/annotation-processor-simple-module/build.gradle b/integration-tests/gradle/src/main/resources/annotation-processor-simple-module/build.gradle
index 7380907644ca8..95fcb396d04cb 100644
--- a/integration-tests/gradle/src/main/resources/annotation-processor-simple-module/build.gradle
+++ b/integration-tests/gradle/src/main/resources/annotation-processor-simple-module/build.gradle
@@ -13,6 +13,7 @@ test {
 }
 
 repositories {
+    mavenCentral()
     if (System.properties.containsKey('maven.repo.local')) {
         maven {
             url System.properties.get('maven.repo.local')
@@ -20,7 +21,6 @@ repositories {
     } else {
         mavenLocal()
     }
-    mavenCentral()
 }
 
 dependencies {
@@ -28,6 +28,7 @@ dependencies {
     implementation 'io.quarkus:quarkus-resteasy'
     implementation 'io.quarkus:quarkus-resteasy-jackson'
     implementation "org.mapstruct:mapstruct:${mapstructVersion}"
+    implementation 'io.quarkus:quarkus-hibernate-orm-panache'
 
     annotationProcessor "org.mapstruct:mapstruct-processor:${mapstructVersion}"
 
diff --git a/integration-tests/gradle/src/test/java/io/quarkus/gradle/AnnotationProcessorSimpleModuleTest.java b/integration-tests/gradle/src/test/java/io/quarkus/gradle/AnnotationProcessorSimpleModuleTest.java
index 7e109aa25ab0b..66a61bbc6b048 100644
--- a/integration-tests/gradle/src/test/java/io/quarkus/gradle/AnnotationProcessorSimpleModuleTest.java
+++ b/integration-tests/gradle/src/test/java/io/quarkus/gradle/AnnotationProcessorSimpleModuleTest.java
@@ -1,8 +1,9 @@
 package io.quarkus.gradle;
 
-import static org.assertj.core.api.AssertionsForClassTypes.assertThat;
+import static org.assertj.core.api.Assertions.assertThat;
 
 import java.io.File;
+import java.nio.file.Path;
 
 import org.junit.jupiter.api.Test;
 
@@ -16,4 +17,17 @@ public void shouldRunTestCorrectly() throws Exception {
 
         assertThat(buildResult.getTasks().get(":test")).isEqualTo(BuildResult.SUCCESS_OUTCOME);
     }
+
+    @Test
+    public void shouldContainsPanacheMarkerFile() throws Exception {
+        final File projectDir = getProjectDir("annotation-processor-simple-module");
+
+        BuildResult buildResult = runGradleWrapper(projectDir, "clean", "quarkusBuild");
+
+        assertThat(buildResult.getTasks().get(":quarkusBuild")).isEqualTo(BuildResult.SUCCESS_OUTCOME);
+        File buildDir = new File(projectDir, "build");
+
+        Path metaInfDir = buildDir.toPath().resolve("classes").resolve("java").resolve("main").resolve("META-INF");
+        assertThat(metaInfDir.resolve("panache-archive.marker")).exists();
+    }
 }