diff --git a/packages/gradle/plugin.spec.ts b/packages/gradle/plugin.spec.ts
index 78dc8efe8b..4d9108e34f 100644
--- a/packages/gradle/plugin.spec.ts
+++ b/packages/gradle/plugin.spec.ts
@@ -23,7 +23,7 @@ describe('@nx/gradle/plugin', () => {
       gradleFileToGradleProjectMap: new Map<string, string>([
         ['proj/build.gradle', 'proj'],
       ]),
-      buildFileToDepsMap: new Map<string, string>(),
+      buildFileToDepsMap: new Map<string, Set<string>>(),
       gradleFileToOutputDirsMap: new Map<string, Map<string, string>>([
         ['proj/build.gradle', new Map([['build', 'build']])],
       ]),
diff --git a/packages/gradle/src/plugin/dependencies.spec.ts b/packages/gradle/src/plugin/dependencies.spec.ts
deleted file mode 100644
index 6b79e46163..0000000000
--- a/packages/gradle/src/plugin/dependencies.spec.ts
+++ /dev/null
@@ -1,102 +0,0 @@
-import { join } from 'path';
-import { processGradleDependencies } from './dependencies';
-
-jest.mock('@nx/devkit', () => ({
-  ...jest.requireActual<any>('@nx/devkit'),
-  validateDependency: jest.fn().mockReturnValue(true),
-}));
-
-describe('processGradleDependencies', () => {
-  it('should process gradle dependencies with composite build', () => {
-    const depFilePath = join(
-      __dirname,
-      '..',
-      'utils/__mocks__/gradle-composite-dependencies.txt'
-    );
-    const dependencies = new Set([]);
-    processGradleDependencies(
-      depFilePath,
-      new Map([
-        [':my-utils:number-utils', 'utilities/number-utils'],
-        [':my-utils:string-utils', 'utilities/string-utils'],
-      ]),
-      'app',
-      'app',
-      {
-        projects: {
-          'number-utils': {
-            root: 'utilities/number-utils',
-            name: 'number-utils',
-          },
-          'string-utils': {
-            root: 'utilities/string-utils',
-            name: 'string-utils',
-          },
-          utilities: {
-            root: 'utilities',
-            name: 'utilities',
-          },
-        },
-      } as any,
-      dependencies
-    );
-    expect(Array.from(dependencies)).toEqual([
-      {
-        source: 'app',
-        sourceFile: 'app',
-        target: 'number-utils',
-        type: 'static',
-      },
-      {
-        source: 'app',
-        sourceFile: 'app',
-        target: 'string-utils',
-        type: 'static',
-      },
-    ]);
-  });
-
-  it('should process gradle dependencies with regular build', () => {
-    const depFilePath = join(
-      __dirname,
-      '..',
-      'utils/__mocks__/gradle-dependencies.txt'
-    );
-    const dependencies = new Set([]);
-    processGradleDependencies(
-      depFilePath,
-      new Map([
-        [':my-utils:number-utils', 'utilities/number-utils'],
-        [':my-utils:string-utils', 'utilities/string-utils'],
-        [':utilities', 'utilities'],
-      ]),
-      'app',
-      'app',
-      {
-        projects: {
-          'number-utils': {
-            root: 'utilities/number-utils',
-            name: 'number-utils',
-          },
-          'string-utils': {
-            root: 'utilities/string-utils',
-            name: 'string-utils',
-          },
-          utilities: {
-            root: 'utilities',
-            name: 'utilities',
-          },
-        },
-      } as any,
-      dependencies
-    );
-    expect(Array.from(dependencies)).toEqual([
-      {
-        source: 'app',
-        sourceFile: 'app',
-        target: 'utilities',
-        type: 'static',
-      },
-    ]);
-  });
-});
diff --git a/packages/gradle/src/plugin/dependencies.ts b/packages/gradle/src/plugin/dependencies.ts
index d306713064..67fc4006e9 100644
--- a/packages/gradle/src/plugin/dependencies.ts
+++ b/packages/gradle/src/plugin/dependencies.ts
@@ -6,12 +6,10 @@ import {
   RawProjectGraphDependency,
   validateDependency,
 } from '@nx/devkit';
-import { readFileSync } from 'node:fs';
 import { basename, dirname } from 'node:path';
 
 import { getCurrentGradleReport } from '../utils/get-gradle-report';
 import { GRADLE_BUILD_FILES } from '../utils/split-config-files';
-import { newLineSeparator } from '../utils/get-project-report-lines';
 
 export const createDependencies: CreateDependencies = async (
   _,
@@ -36,17 +34,25 @@ export const createDependencies: CreateDependencies = async (
     const projectName = Object.values(context.projects).find(
       (project) => project.root === dirname(gradleFile)
     )?.name;
-    const depsFile = buildFileToDepsMap.get(gradleFile);
+    const dependedProjects: Set<string> = buildFileToDepsMap.get(gradleFile);
 
-    if (projectName && depsFile) {
-      processGradleDependencies(
-        depsFile,
-        gradleProjectNameToProjectRootMap,
-        projectName,
-        gradleFile,
-        context,
-        dependencies
-      );
+    if (projectName && dependedProjects?.size) {
+      dependedProjects?.forEach((dependedProject) => {
+        const targetProjectRoot = gradleProjectNameToProjectRootMap.get(
+          dependedProject
+        ) as string;
+        const targetProjectName = Object.values(context.projects).find(
+          (project) => project.root === targetProjectRoot
+        )?.name;
+        const dependency: RawProjectGraphDependency = {
+          source: projectName as string,
+          target: targetProjectName as string,
+          type: DependencyType.static,
+          sourceFile: gradleFile,
+        };
+        validateDependency(dependency, context);
+        dependencies.add(dependency);
+      });
     }
     gradleProjectToChildProjects.get(gradleProject)?.forEach((childProject) => {
       if (childProject) {
@@ -85,60 +91,3 @@ function findGradleFiles(fileMap: FileMap): string[] {
 
   return gradleFiles;
 }
-
-export function processGradleDependencies(
-  depsFile: string,
-  gradleProjectNameToProjectRoot: Map<string, string>,
-  sourceProjectName: string,
-  gradleFile: string,
-  context: CreateDependenciesContext,
-  dependencies: Set<RawProjectGraphDependency>
-): void {
-  const lines = readFileSync(depsFile).toString().split(newLineSeparator);
-  let inDeps = false;
-  for (const line of lines) {
-    if (
-      line.startsWith('implementationDependenciesMetadata') ||
-      line.startsWith('compileClasspath')
-    ) {
-      inDeps = true;
-      continue;
-    }
-
-    if (inDeps) {
-      if (line === '') {
-        inDeps = false;
-        continue;
-      }
-      const [indents, dep] = line.split('--- ');
-      if (indents === '\\' || indents === '+') {
-        let gradleProjectName: string | undefined;
-        if (dep.startsWith('project ')) {
-          gradleProjectName = dep
-            .substring('project '.length)
-            .replace(/ \(n\)$/, '')
-            .trim();
-        } else if (dep.includes('-> project')) {
-          const [_, projectName] = dep.split('-> project');
-          gradleProjectName = projectName.trim();
-        }
-        const targetProjectRoot = gradleProjectNameToProjectRoot.get(
-          gradleProjectName
-        ) as string;
-        const targetProjectName = Object.values(context.projects).find(
-          (project) => project.root === targetProjectRoot
-        )?.name;
-        if (targetProjectName) {
-          const dependency: RawProjectGraphDependency = {
-            source: sourceProjectName,
-            target: targetProjectName,
-            type: DependencyType.static,
-            sourceFile: gradleFile,
-          };
-          validateDependency(dependency, context);
-          dependencies.add(dependency);
-        }
-      }
-    }
-  }
-}
diff --git a/packages/gradle/src/plugin/nodes.spec.ts b/packages/gradle/src/plugin/nodes.spec.ts
index 2860777af9..c6dd65f87f 100644
--- a/packages/gradle/src/plugin/nodes.spec.ts
+++ b/packages/gradle/src/plugin/nodes.spec.ts
@@ -26,7 +26,7 @@ describe('@nx/gradle/plugin', () => {
       gradleFileToGradleProjectMap: new Map<string, string>([
         ['proj/build.gradle', 'proj'],
       ]),
-      buildFileToDepsMap: new Map<string, string>(),
+      buildFileToDepsMap: new Map<string, Set<string>>(),
       gradleFileToOutputDirsMap: new Map<string, Map<string, string>>([
         ['proj/build.gradle', new Map([['build', 'build']])],
       ]),
@@ -249,7 +249,7 @@ describe('@nx/gradle/plugin', () => {
       gradleFileToGradleProjectMap: new Map<string, string>([
         ['nested/nested/proj/build.gradle', 'proj'],
       ]),
-      buildFileToDepsMap: new Map<string, string>(),
+      buildFileToDepsMap: new Map<string, Set<string>>(),
       gradleFileToOutputDirsMap: new Map<string, Map<string, string>>([
         ['nested/nested/proj/build.gradle', new Map([['build', 'build']])],
       ]),
@@ -341,7 +341,7 @@ describe('@nx/gradle/plugin', () => {
         gradleFileToGradleProjectMap: new Map<string, string>([
           ['nested/nested/proj/build.gradle', 'proj'],
         ]),
-        buildFileToDepsMap: new Map<string, string>(),
+        buildFileToDepsMap: new Map<string, Set<string>>(),
         gradleFileToOutputDirsMap: new Map<string, Map<string, string>>([
           ['nested/nested/proj/build.gradle', new Map([['build', 'build']])],
         ]),
diff --git a/packages/gradle/src/utils/get-gradle-report.spec.ts b/packages/gradle/src/utils/get-gradle-report.spec.ts
index 014e3cbac2..66775fee56 100644
--- a/packages/gradle/src/utils/get-gradle-report.spec.ts
+++ b/packages/gradle/src/utils/get-gradle-report.spec.ts
@@ -1,6 +1,9 @@
 import { readFileSync } from 'fs';
 import { join } from 'path';
-import { processProjectReports } from './get-gradle-report';
+import {
+  processGradleDependencies,
+  processProjectReports,
+} from './get-gradle-report';
 
 describe('processProjectReports', () => {
   it('should process project reports', () => {
@@ -46,3 +49,28 @@ describe('processProjectReports', () => {
     expect(report.gradleProjectToChildProjects.get('')).toEqual([]);
   });
 });
+
+describe('processGradleDependencies', () => {
+  it('should process gradle dependencies with composite build', () => {
+    const depFilePath = join(
+      __dirname,
+      '..',
+      'utils/__mocks__/gradle-composite-dependencies.txt'
+    );
+    const dependencies = processGradleDependencies(depFilePath);
+    expect(Array.from(dependencies)).toEqual([
+      ':my-utils:number-utils',
+      ':my-utils:string-utils',
+    ]);
+  });
+
+  it('should process gradle dependencies with regular build', () => {
+    const depFilePath = join(
+      __dirname,
+      '..',
+      'utils/__mocks__/gradle-dependencies.txt'
+    );
+    const dependencies = processGradleDependencies(depFilePath);
+    expect(Array.from(dependencies)).toEqual([':utilities']);
+  });
+});
diff --git a/packages/gradle/src/utils/get-gradle-report.ts b/packages/gradle/src/utils/get-gradle-report.ts
index f9de425ba8..ddb5006795 100644
--- a/packages/gradle/src/utils/get-gradle-report.ts
+++ b/packages/gradle/src/utils/get-gradle-report.ts
@@ -21,10 +21,10 @@ import { workspaceDataDirectory } from 'nx/src/utils/cache-directory';
 
 export interface GradleReport {
   gradleFileToGradleProjectMap: Map<string, string>;
-  buildFileToDepsMap: Map<string, string>;
+  buildFileToDepsMap: Map<string, Set<string>>;
   gradleFileToOutputDirsMap: Map<string, Map<string, string>>;
   gradleProjectToTasksTypeMap: Map<string, Map<string, string>>;
-  gradleProjectToTasksMap: Map<string, Set<String>>;
+  gradleProjectToTasksMap: Map<string, Set<string>>;
   gradleProjectToProjectName: Map<string, string>;
   gradleProjectNameToProjectRootMap: Map<string, string>;
   gradleProjectToChildProjects: Map<string, string[]>;
@@ -33,10 +33,10 @@ export interface GradleReport {
 export interface GradleReportJSON {
   hash: string;
   gradleFileToGradleProjectMap: Record<string, string>;
-  buildFileToDepsMap: Record<string, string>;
+  buildFileToDepsMap: Record<string, Set<string>>;
   gradleFileToOutputDirsMap: Record<string, Record<string, string>>;
   gradleProjectToTasksTypeMap: Record<string, Record<string, string>>;
-  gradleProjectToTasksMap: Record<string, Array<String>>;
+  gradleProjectToTasksMap: Record<string, Array<string>>;
   gradleProjectToProjectName: Record<string, string>;
   gradleProjectNameToProjectRootMap: Record<string, string>;
   gradleProjectToChildProjects: Record<string, string[]>;
@@ -220,13 +220,13 @@ export function processProjectReports(
    * Map of Gradle Build File to tasks type map
    */
   const gradleProjectToTasksTypeMap = new Map<string, Map<string, string>>();
-  const gradleProjectToTasksMap = new Map<string, Set<String>>();
+  const gradleProjectToTasksMap = new Map<string, Set<string>>();
   const gradleProjectToProjectName = new Map<string, string>();
   const gradleProjectNameToProjectRootMap = new Map<string, string>();
   /**
    * Map of buildFile to dependencies report path
    */
-  const buildFileToDepsMap = new Map<string, string>();
+  const buildFileToDepsMap = new Map<string, Set<string>>();
   /**
    * Map fo possible output files of each gradle file
    * e.g. {build.gradle.kts: { projectReportDir: '' testReportDir: '' }}
@@ -320,10 +320,13 @@ export function processProjectReports(
           relative(workspaceRoot, absBuildFilePath)
         );
         const buildDir = relative(workspaceRoot, absBuildDirPath);
-        buildFileToDepsMap.set(
-          buildFile,
-          dependenciesMap.get(gradleProject) as string
-        );
+        const depsFile = dependenciesMap.get(gradleProject);
+        if (depsFile) {
+          buildFileToDepsMap.set(
+            buildFile,
+            processGradleDependencies(depsFile)
+          );
+        }
 
         outputDirMap.set('build', `{workspaceRoot}/${buildDir}`);
         outputDirMap.set(
@@ -395,3 +398,42 @@ export function processProjectReports(
     gradleProjectToChildProjects,
   };
 }
+
+export function processGradleDependencies(depsFile: string): Set<string> {
+  const dependedProjects = new Set<string>();
+  const lines = readFileSync(depsFile).toString().split(newLineSeparator);
+  let inDeps = false;
+  for (const line of lines) {
+    if (
+      line.startsWith('implementationDependenciesMetadata') ||
+      line.startsWith('compileClasspath')
+    ) {
+      inDeps = true;
+      continue;
+    }
+
+    if (inDeps) {
+      if (line === '') {
+        inDeps = false;
+        continue;
+      }
+      const [indents, dep] = line.split('--- ');
+      if (indents === '\\' || indents === '+') {
+        let targetProjectName: string | undefined;
+        if (dep.startsWith('project ')) {
+          targetProjectName = dep
+            .substring('project '.length)
+            .replace(/ \(n\)$/, '')
+            .trim();
+        } else if (dep.includes('-> project')) {
+          const [_, projectName] = dep.split('-> project');
+          targetProjectName = projectName.trim();
+        }
+        if (targetProjectName) {
+          dependedProjects.add(targetProjectName);
+        }
+      }
+    }
+  }
+  return dependedProjects;
+}