diff --git a/apps/common-app/package.json b/apps/common-app/package.json
index 5602e8b8752a..53ddb50d4e64 100644
--- a/apps/common-app/package.json
+++ b/apps/common-app/package.json
@@ -35,7 +35,7 @@
     "fuse.js": "patch:fuse.js@npm%3A7.1.0#~/.yarn/patches/fuse.js-npm-7.1.0-5dcae892a6.patch",
     "react": "19.2.3",
     "react-dom": "19.2.3",
-    "react-native-gesture-handler": "2.30.0",
+    "react-native-gesture-handler": "2.32.0",
     "react-native-mmkv": "4.3.0",
     "react-native-nitro-modules": "patch:react-native-nitro-modules@npm%3A0.35.2#~/.yarn/patches/react-native-nitro-modules-npm-0.35.2-717188fdb0.patch",
     "react-native-reanimated": "workspace:*",
diff --git a/apps/fabric-example/android/app/build.gradle b/apps/fabric-example/android/app/build.gradle
index 9c538acb30ff..38c0efe3650e 100644
--- a/apps/fabric-example/android/app/build.gradle
+++ b/apps/fabric-example/android/app/build.gradle
@@ -102,7 +102,7 @@ android {
             // see https://reactnative.dev/docs/signed-apk-android.
             signingConfig signingConfigs.debug
             minifyEnabled enableProguardInReleaseBuilds
-            proguardFiles getDefaultProguardFile("proguard-android.txt"), "proguard-rules.pro"
+            proguardFiles getDefaultProguardFile("proguard-android-optimize.txt"), "proguard-rules.pro"
         }
     }
 }
diff --git a/apps/fabric-example/android/gradle.properties b/apps/fabric-example/android/gradle.properties
index 2af1072bc63c..b93b8cfc6660 100644
--- a/apps/fabric-example/android/gradle.properties
+++ b/apps/fabric-example/android/gradle.properties
@@ -52,3 +52,8 @@ enableWorkletsProfiling=true
 # https://docs.gradle.org/current/userguide/configuration_cache.html
 org.gradle.configuration-cache=true
 org.gradle.configuration-cache.problems=fail
+
+# Opt out of built-in kotlin and new DSL behavior that ships with AGP 9.
+# Starting from AGP 10.x these opt outs will be removed.
+android.builtInKotlin=false
+android.newDsl=false
\ No newline at end of file
diff --git a/apps/fabric-example/android/gradle/wrapper/gradle-wrapper.properties b/apps/fabric-example/android/gradle/wrapper/gradle-wrapper.properties
index 37f78a6af837..c61a118f7ddb 100644
--- a/apps/fabric-example/android/gradle/wrapper/gradle-wrapper.properties
+++ b/apps/fabric-example/android/gradle/wrapper/gradle-wrapper.properties
@@ -1,6 +1,6 @@
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-9.3.1-bin.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-9.4.1-bin.zip
 networkTimeout=10000
 validateDistributionUrl=true
 zipStoreBase=GRADLE_USER_HOME
diff --git a/docs/docs-reanimated/package.json b/docs/docs-reanimated/package.json
index 544f8d11e479..35f20da8bd2b 100644
--- a/docs/docs-reanimated/package.json
+++ b/docs/docs-reanimated/package.json
@@ -57,7 +57,7 @@
     "react-colorful": "5.6.1",
     "react-dom": "19.1.1",
     "react-native": "0.83.0",
-    "react-native-gesture-handler": "2.28.0",
+    "react-native-gesture-handler": "2.32.0",
     "react-native-reanimated": "4.4.1",
     "react-native-svg": "15.15.4",
     "react-native-web": "0.21.2",
diff --git a/docs/docs-worklets/package.json b/docs/docs-worklets/package.json
index aaa6ddbd36e7..feb91218ebec 100644
--- a/docs/docs-worklets/package.json
+++ b/docs/docs-worklets/package.json
@@ -58,7 +58,7 @@
     "react-colorful": "5.6.1",
     "react-dom": "19.1.1",
     "react-native": "0.83.0",
-    "react-native-gesture-handler": "2.28.0",
+    "react-native-gesture-handler": "2.32.0",
     "react-native-reanimated": "4.4.1",
     "react-native-svg": "15.15.4",
     "react-native-web": "0.21.2",
diff --git a/packages/react-native-reanimated/android/build.gradle.kts b/packages/react-native-reanimated/android/build.gradle.kts
index 7c57979bc648..6bdf6f1c838b 100644
--- a/packages/react-native-reanimated/android/build.gradle.kts
+++ b/packages/react-native-reanimated/android/build.gradle.kts
@@ -1,6 +1,8 @@
 import groovy.json.JsonSlurper
+import com.android.Version
 import org.apache.tools.ant.taskdefs.condition.Os
 import org.jetbrains.kotlin.gradle.dsl.JvmTarget
+import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 import java.util.Properties
 import javax.inject.Inject
 
@@ -8,7 +10,6 @@ plugins {
     id("com.android.library")
     id("maven-publish")
     id("com.diffplug.spotless") version "8.4.0"
-    id("org.jetbrains.kotlin.android")
 }
 
 fun safeExtGet(prop: String, fallback: Any?): Any? =
@@ -105,6 +106,20 @@ if (project != rootProject) {
     apply(plugin = "com.facebook.react")
 }
 
+fun shouldEnableAgpFallback(): Boolean {
+    val agpMajorVersion = Version.ANDROID_GRADLE_PLUGIN_VERSION.substringBefore('.').toIntOrNull() ?: Int.MAX_VALUE
+    if (agpMajorVersion <= 8) {
+        return true
+    }
+
+    val isBuiltInKotlinEnabled = providers.gradleProperty("android.builtInKotlin").orNull?.toBooleanStrictOrNull() ?: true
+    return !isBuiltInKotlinEnabled
+}
+
+if (shouldEnableAgpFallback()) {
+    apply(plugin = "org.jetbrains.kotlin.android")
+}
+
 val packageDir: File = project.projectDir.parentFile
 val reactNativeRootDir: File = resolveReactNativeDirectory()
 val REACT_NATIVE_VERSION: String = getReactNativeVersion()
@@ -237,8 +252,8 @@ android {
     }
 }
 
-if (project != rootProject) {
-    kotlin {
+if (project != rootProject && shouldEnableAgpFallback()) {
+    tasks.withType<KotlinCompile>().configureEach {
         compilerOptions {
             jvmTarget = JvmTarget.fromTarget("17")
         }
diff --git a/packages/react-native-reanimated/android/gradle/wrapper/gradle-wrapper.properties b/packages/react-native-reanimated/android/gradle/wrapper/gradle-wrapper.properties
index 2f2958b923a0..221c4f98228a 100644
--- a/packages/react-native-reanimated/android/gradle/wrapper/gradle-wrapper.properties
+++ b/packages/react-native-reanimated/android/gradle/wrapper/gradle-wrapper.properties
@@ -1,5 +1,5 @@
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-9.3.1-bin.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-9.4.1-bin.zip
 zipStoreBase=GRADLE_USER_HOME
 zipStorePath=wrapper/dists
diff --git a/packages/react-native-reanimated/android/settings.gradle.kts b/packages/react-native-reanimated/android/settings.gradle.kts
index 5c3025008052..ff4731e1807a 100644
--- a/packages/react-native-reanimated/android/settings.gradle.kts
+++ b/packages/react-native-reanimated/android/settings.gradle.kts
@@ -6,7 +6,7 @@ pluginManagement {
     resolutionStrategy {
         eachPlugin {
             if (requested.id.id.startsWith("com.android")) {
-                useModule("com.android.tools.build:gradle:8.13.1")
+                useModule("com.android.tools.build:gradle:9.2.1")
             }
             if (requested.id.id == "com.diffplug.spotless") {
                 useModule("com.diffplug.spotless:spotless-plugin-gradle:8.1.0")
diff --git a/packages/react-native-worklets/android/build.gradle.kts b/packages/react-native-worklets/android/build.gradle.kts
index 2e01292a6956..2317c712e7bd 100644
--- a/packages/react-native-worklets/android/build.gradle.kts
+++ b/packages/react-native-worklets/android/build.gradle.kts
@@ -1,6 +1,8 @@
 import groovy.json.JsonSlurper
+import com.android.Version
 import org.apache.tools.ant.taskdefs.condition.Os
 import org.jetbrains.kotlin.gradle.dsl.JvmTarget
+import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 import java.util.Properties
 import javax.inject.Inject
 
@@ -8,7 +10,6 @@ plugins {
     id("com.android.library")
     id("maven-publish")
     id("com.diffplug.spotless") version "8.1.0"
-    id("org.jetbrains.kotlin.android")
 }
 
 fun safeExtGet(prop: String, fallback: Any?): Any? =
@@ -116,6 +117,20 @@ if (project != rootProject) {
     apply(plugin = "com.facebook.react")
 }
 
+fun shouldEnableAgpFallback(): Boolean {
+    val agpMajorVersion = Version.ANDROID_GRADLE_PLUGIN_VERSION.substringBefore('.').toIntOrNull() ?: Int.MAX_VALUE
+    if (agpMajorVersion <= 8) {
+        return true
+    }
+
+    val isBuiltInKotlinEnabled = providers.gradleProperty("android.builtInKotlin").orNull?.toBooleanStrictOrNull() ?: true
+    return !isBuiltInKotlinEnabled
+}
+
+if (shouldEnableAgpFallback()) {
+    apply(plugin = "org.jetbrains.kotlin.android")
+}
+
 val featureFlags = getStaticFeatureFlags()
 
 val packageDir: File = project.projectDir.parentFile
@@ -267,11 +282,11 @@ android {
 
     sourceSets {
         getByName("main") {
-            java {
+            kotlin {
                 if (FETCH_PREVIEW_ENABLED) {
-                    srcDir("src/networking")
+                    directories.add("src/networking")
                 } else {
-                    srcDir("src/no-networking")
+                    directories.add("src/no-networking")
                 }
             }
         }
@@ -282,8 +297,8 @@ android {
     }
 }
 
-if (project != rootProject) {
-    kotlin {
+if (project != rootProject && shouldEnableAgpFallback()) {
+    tasks.withType<KotlinCompile>().configureEach {
         compilerOptions {
             jvmTarget = JvmTarget.fromTarget("17")
         }
diff --git a/packages/react-native-worklets/android/gradle/wrapper/gradle-wrapper.properties b/packages/react-native-worklets/android/gradle/wrapper/gradle-wrapper.properties
index 2f2958b923a0..221c4f98228a 100644
--- a/packages/react-native-worklets/android/gradle/wrapper/gradle-wrapper.properties
+++ b/packages/react-native-worklets/android/gradle/wrapper/gradle-wrapper.properties
@@ -1,5 +1,5 @@
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-9.3.1-bin.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-9.4.1-bin.zip
 zipStoreBase=GRADLE_USER_HOME
 zipStorePath=wrapper/dists
diff --git a/packages/react-native-worklets/android/settings.gradle.kts b/packages/react-native-worklets/android/settings.gradle.kts
index 921de2a69214..c58b72057257 100644
--- a/packages/react-native-worklets/android/settings.gradle.kts
+++ b/packages/react-native-worklets/android/settings.gradle.kts
@@ -6,7 +6,7 @@ pluginManagement {
     resolutionStrategy {
         eachPlugin {
             if (requested.id.id.startsWith("com.android")) {
-                useModule("com.android.tools.build:gradle:8.13.1")
+                useModule("com.android.tools.build:gradle:9.2.1")
             }
             if (requested.id.id == "com.diffplug.spotless") {
                 useModule("com.diffplug.spotless:spotless-plugin-gradle:8.1.0")
diff --git a/yarn.lock b/yarn.lock
index aca439c23c10..9b2b76f03914 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -9645,7 +9645,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@types/react-test-renderer@npm:19.1.0":
+"@types/react-test-renderer@npm:19.1.0, @types/react-test-renderer@npm:^19.1.0":
   version: 19.1.0
   resolution: "@types/react-test-renderer@npm:19.1.0"
   dependencies:
@@ -13901,7 +13901,7 @@ __metadata:
     react: "npm:19.2.3"
     react-dom: "npm:19.2.3"
     react-native: "npm:0.85.2"
-    react-native-gesture-handler: "npm:2.30.0"
+    react-native-gesture-handler: "npm:2.32.0"
     react-native-mmkv: "npm:4.3.0"
     react-native-nitro-modules: "patch:react-native-nitro-modules@npm%3A0.35.2#~/.yarn/patches/react-native-nitro-modules-npm-0.35.2-717188fdb0.patch"
     react-native-reanimated: "workspace:*"
@@ -15652,7 +15652,7 @@ __metadata:
     react-colorful: "npm:5.6.1"
     react-dom: "npm:19.1.1"
     react-native: "npm:0.83.0"
-    react-native-gesture-handler: "npm:2.28.0"
+    react-native-gesture-handler: "npm:2.32.0"
     react-native-reanimated: "npm:4.4.1"
     react-native-svg: "npm:15.15.4"
     react-native-web: "npm:0.21.2"
@@ -15717,7 +15717,7 @@ __metadata:
     react-colorful: "npm:5.6.1"
     react-dom: "npm:19.1.1"
     react-native: "npm:0.83.0"
-    react-native-gesture-handler: "npm:2.28.0"
+    react-native-gesture-handler: "npm:2.32.0"
     react-native-reanimated: "npm:4.4.1"
     react-native-svg: "npm:15.15.4"
     react-native-web: "npm:0.21.2"
@@ -27951,31 +27951,18 @@ __metadata:
   languageName: node
   linkType: hard
 
-"react-native-gesture-handler@npm:2.28.0":
-  version: 2.28.0
-  resolution: "react-native-gesture-handler@npm:2.28.0"
-  dependencies:
-    "@egjs/hammerjs": "npm:^2.0.17"
-    hoist-non-react-statics: "npm:^3.3.0"
-    invariant: "npm:^2.2.4"
-  peerDependencies:
-    react: "*"
-    react-native: "*"
-  checksum: 10/856a9cb50b467e5e21cdd50930be68fee20f1c8ea13caa3cabb0bebd1345d0a847cd7b761a39b2d42b986b9d8e82e9419ccaf481b17373233c7ece7fed08dc70
-  languageName: node
-  linkType: hard
-
-"react-native-gesture-handler@npm:2.30.0":
-  version: 2.30.0
-  resolution: "react-native-gesture-handler@npm:2.30.0"
+"react-native-gesture-handler@npm:2.32.0":
+  version: 2.32.0
+  resolution: "react-native-gesture-handler@npm:2.32.0"
   dependencies:
     "@egjs/hammerjs": "npm:^2.0.17"
+    "@types/react-test-renderer": "npm:^19.1.0"
     hoist-non-react-statics: "npm:^3.3.0"
     invariant: "npm:^2.2.4"
   peerDependencies:
     react: "*"
     react-native: "*"
-  checksum: 10/242b1eb29202bc9fc7bf0271c3da102559adc9f2810441465b6d78c1a8ed8f65bdd91335957c841a4716f796be3e7b87d1d55629d6803ea12e1be832d89c946c
+  checksum: 10/b43d350fd281ed9f75a469873a1eb74ae7cfa3d3e15dc7e57b11c0da5702a107b2824e1a9115386d9812e1179e86ccb952d6617cecbdbb26097d7c186088210f
   languageName: node
   linkType: hard