diff --git a/CHANGELOG.md b/CHANGELOG.md
index bbae92d16..1434d5a09 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,8 @@
 
 ### Changed
 
+- The [issue](https://youtrack.jetbrains.com/issue/KT-38576) that required disabling precise Java tracking is not needed anymore. The workaround has been removed.
+
 ### Deprecated
 
 ### Removed
diff --git a/README.md b/README.md
index fa29b4bab..322d8403b 100644
--- a/README.md
+++ b/README.md
@@ -304,8 +304,7 @@ There is a bug that affects the Anvil Kotlin compiler plugin:
 
 The Gradle plugin implements a workaround for this bug, so you shouldn't notice it. Side effects
 are that incremental Kotlin compilation is disabled for stub generating tasks (which don't run a
-full compilation before KAPT anyways). The flag `usePreciseJavaTracking` is disabled, if the
-module contains Java code.
+full compilation before KAPT anyways).
 
 ## Hilt
 
diff --git a/gradle-plugin/src/main/java/com/squareup/anvil/plugin/AnvilPlugin.kt b/gradle-plugin/src/main/java/com/squareup/anvil/plugin/AnvilPlugin.kt
index 3d5647729..794dbb441 100644
--- a/gradle-plugin/src/main/java/com/squareup/anvil/plugin/AnvilPlugin.kt
+++ b/gradle-plugin/src/main/java/com/squareup/anvil/plugin/AnvilPlugin.kt
@@ -116,7 +116,6 @@ internal open class AnvilPlugin : KotlinCompilerPluginSupportPlugin {
       .extendsFrom(getConfiguration(project, variant.name))
 
     disableIncrementalKotlinCompilation(variant)
-    disablePreciseJavaTracking(variant)
 
     if (!variant.variantFilter.generateDaggerFactoriesOnly) {
       disableCorrectErrorTypes(variant)
@@ -185,35 +184,6 @@ internal open class AnvilPlugin : KotlinCompilerPluginSupportPlugin {
     version = VERSION
   )
 
-  private fun disablePreciseJavaTracking(variant: Variant) {
-    val configureAction: (KotlinCompile) -> Unit = { compileTask ->
-      val result = CheckMixedSourceSet.preparePreciseJavaTrackingCheck(variant)
-
-      compileTask.doFirstCompat {
-        // Disable precise java tracking if needed. Note that the doFirst() action only runs
-        // if the task is not up to date. That's ideal, because if nothing needs to be
-        // compiled, then we don't need to disable the flag.
-        //
-        // We also use the doFirst block to walk through the file system at execution time
-        // and minimize the IO at configuration time.
-        CheckMixedSourceSet.disablePreciseJavaTrackingIfNeeded(compileTask, result)
-
-        compileTask.log(
-          "Anvil: Use precise java tracking: ${compileTask.usePreciseJavaTracking}"
-        )
-      }
-    }
-
-    variant.compileTaskProvider.configure(configureAction)
-
-    variant.project.pluginManager.withPlugin(KAPT_PLUGIN_ID) {
-      variant.project
-        .namedLazy<KaptGenerateStubsTask>(variant.stubsTaskName) { stubsTaskProvider ->
-          stubsTaskProvider.configure(configureAction)
-        }
-    }
-  }
-
   private fun disableCorrectErrorTypes(variant: Variant) {
     variant.project.pluginManager.withPlugin(KAPT_PLUGIN_ID) {
       // This needs to be disabled, otherwise compiler plugins fail in weird ways when
diff --git a/gradle-plugin/src/main/java/com/squareup/anvil/plugin/CheckMixedSourceSet.kt b/gradle-plugin/src/main/java/com/squareup/anvil/plugin/CheckMixedSourceSet.kt
deleted file mode 100644
index a2f897669..000000000
--- a/gradle-plugin/src/main/java/com/squareup/anvil/plugin/CheckMixedSourceSet.kt
+++ /dev/null
@@ -1,73 +0,0 @@
-package com.squareup.anvil.plugin
-
-import org.gradle.api.Project
-import org.gradle.api.file.FileCollection
-import org.gradle.api.plugins.JavaPluginExtension
-import org.gradle.api.provider.Property
-import org.jetbrains.kotlin.gradle.internal.Kapt3GradleSubplugin
-import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
-
-/**
- * In a mixed Kotlin / Java source set the Kotlin compiler might crash with an error like this:
- *
- * java.lang.AssertionError: Duplicated JavaClassDescriptor a/b/c/Hello reported to IC.
- *
- * That's a known bug: https://youtrack.jetbrains.com/issue/KT-38576
- *
- * The workaround for now is to set the kotlin.incremental.usePreciseJavaTracking flag to false for
- * these module using this task.
- */
-internal object CheckMixedSourceSet {
-
-  fun preparePreciseJavaTrackingCheck(variant: Variant): Input =
-    Input(
-      sources = getAndroidSourceDirs(variant) ?: getJvmSourceDirs(variant),
-      isKaptApplied = variant.project.isKaptApplied()
-    )
-
-  fun disablePreciseJavaTrackingIfNeeded(
-    compileTask: KotlinCompile,
-    input: Input
-  ) {
-    val hasJavaFile = input.sources
-      ?.asSequence()
-      ?.flatMap { it.walk() }
-      ?.filter { it.isFile }
-      ?.any { it.extension == "java" }
-      ?: false
-
-    // If there is Java file, then disable precise Java tracking.
-    //
-    // If Kapt is enabled then it usually generates Java code making Kotlin compilation use a
-    // mixed source set.
-    if (hasJavaFile || input.isKaptApplied.get()) {
-      compileTask.usePreciseJavaTracking = false
-    }
-  }
-
-  private fun getAndroidSourceDirs(variant: Variant): FileCollection? {
-    return variant.androidVariant
-      ?.sourceSets
-      ?.flatMap { it.javaDirectories }
-      ?.let { variant.project.files(it) }
-  }
-
-  private fun getJvmSourceDirs(variant: Variant): FileCollection? {
-    return variant.project.extensions.findByType(JavaPluginExtension::class.java)
-      ?.sourceSets
-      ?.single { it.name == variant.name }
-      ?.allJava
-  }
-
-  private fun Project.isKaptApplied(): Property<Boolean> =
-    objects
-      .property(Boolean::class.java)
-      .also {
-        it.set(plugins.hasPlugin(Kapt3GradleSubplugin::class.java))
-      }
-
-  class Input(
-    val sources: FileCollection?,
-    val isKaptApplied: Property<Boolean>
-  )
-}