diff --git a/modules/build/src/main/scala/scala/build/Build.scala b/modules/build/src/main/scala/scala/build/Build.scala
index 9374287860..cb2e388e37 100644
--- a/modules/build/src/main/scala/scala/build/Build.scala
+++ b/modules/build/src/main/scala/scala/build/Build.scala
@@ -857,7 +857,9 @@ object Build {
     val semanticDbSourceRoot =
       options.scalaOptions.semanticDbOptions.semanticDbSourceRoot.getOrElse(inputs.workspace)
 
-    val releaseFlagVersion = releaseFlag(options, compilerJvmVersionOpt, logger).map(_.toString)
+    val releaseFlagVersion =
+      if (options.useBuildServer.getOrElse(true)) None
+      else releaseFlag(options, compilerJvmVersionOpt, logger).map(_.toString)
 
     val scalaCompilerParamsOpt = artifacts.scalaOpt match {
       case Some(scalaArtifacts) =>
diff --git a/modules/build/src/main/scala/scala/build/Project.scala b/modules/build/src/main/scala/scala/build/Project.scala
index 6e2bd585fd..f6d793be82 100644
--- a/modules/build/src/main/scala/scala/build/Project.scala
+++ b/modules/build/src/main/scala/scala/build/Project.scala
@@ -37,10 +37,8 @@ final case class Project(
     val platform = (scalaJsOptions, scalaNativeOptions) match {
       case (None, None) =>
         val baseJvmConf = bloopJvmPlatform
-        baseJvmConf.copy(
-          // We don't pass jvm home here, because it applies only to java files compilation
-          config = baseJvmConf.config.copy(home = None)
-        )
+        val home        = javaHomeOpt.map(_.toNIO).orElse(baseJvmConf.config.home)
+        baseJvmConf.copy(config = baseJvmConf.config.copy(home = home))
       case (Some(jsConfig), _) => BloopConfig.Platform.Js(config = jsConfig, mainClass = None)
       case (_, Some(nativeConfig)) =>
         BloopConfig.Platform.Native(config = nativeConfig, mainClass = None)
diff --git a/modules/build/src/test/scala/scala/build/tests/BuildProjectTests.scala b/modules/build/src/test/scala/scala/build/tests/BuildProjectTests.scala
index 3887e1ee2c..c4d122b39c 100644
--- a/modules/build/src/test/scala/scala/build/tests/BuildProjectTests.scala
+++ b/modules/build/src/test/scala/scala/build/tests/BuildProjectTests.scala
@@ -65,108 +65,6 @@ class BuildProjectTests extends TestUtil.ScalaCliBuildSuite {
     override def flushExperimentalWarnings: Unit                                          = ???
   }
 
-  val bloopJavaPath = Position.Bloop("/home/empty/jvm/8/")
-
-  def testJvmReleaseIsSetCorrectly(
-    javaHome: String,
-    bloopJvmVersion: Option[Int],
-    scalacOptions: Seq[String] = Nil
-  ) = {
-    val options = BuildOptions(
-      internal = InternalOptions(localRepository =
-        LocalRepo.localRepo(scala.build.Directories.default().localRepoDir)
-      ),
-      javaOptions = JavaOptions(
-        javaHomeOpt = Some(Positioned.none(os.Path(javaHome)))
-      ),
-      scalaOptions = ScalaOptions(
-        scalacOptions = ShadowingSeq.from(
-          scalacOptions.map(ScalacOpt(_)).map(Positioned.commandLine(_))
-        )
-      )
-    )
-
-    val inputs    = Inputs.empty("project")
-    val sources   = Sources(Nil, Nil, None, Nil, options)
-    val logger    = new LoggerMock()
-    val artifacts = options.artifacts(logger, Scope.Test).orThrow
-    val res = Build.buildProject(
-      inputs,
-      sources,
-      Nil,
-      options,
-      bloopJvmVersion.map(bv => Positioned(bloopJavaPath, bv)),
-      Scope.Test,
-      logger,
-      artifacts
-    )
-
-    val scalaCompilerOptions = res.fold(throw _, identity)
-      .scalaCompiler
-      .toSeq
-      .flatMap(_.scalacOptions)
-    (scalaCompilerOptions, res.fold(throw _, identity).javacOptions, logger.diagnostics)
-  }
-
-  def jvm(v: Int) = os.proc(TestUtil.cs, "java-home", "--jvm", s"zulu:$v").call().out.trim()
-
-  test("Compiler options contain target JVM release") {
-    val javaHome        = jvm(8)
-    val bloopJvmVersion = 11
-    val (scalacOptions, javacOptions, diagnostics) =
-      testJvmReleaseIsSetCorrectly(javaHome, Some(bloopJvmVersion))
-    expect(scalacOptions.containsSlice(Seq("-release", "8")))
-    expect(javacOptions.containsSlice(Seq("--release", "8")))
-    expect(diagnostics.isEmpty)
-
-  }
-
-  test("Empty BuildOptions is actually empty 2 ") {
-    val javaHome        = jvm(8)
-    val bloopJvmVersion = 8
-    val (scalacOptions, javacOptions, diagnostics) =
-      testJvmReleaseIsSetCorrectly(javaHome, Some(bloopJvmVersion))
-    expect(!scalacOptions.containsSlice(Seq("-release")))
-    expect(!javacOptions.containsSlice(Seq("--release")))
-    expect(diagnostics.isEmpty)
-  }
-
-  test("Empty BuildOptions is actually empty 2 ") {
-    val javaHome        = jvm(11)
-    val bloopJvmVersion = 17
-    val (scalacOptions, javacOptions, diagnostics) =
-      testJvmReleaseIsSetCorrectly(javaHome, Some(bloopJvmVersion))
-    expect(scalacOptions.containsSlice(Seq("-release", "11")))
-    expect(javacOptions.containsSlice(Seq("--release", "11")))
-    expect(diagnostics.isEmpty)
-  }
-
-  lazy val expectedDiagnostic = Diagnostic(
-    Diagnostic.Messages.bloopTooOld,
-    Severity.Warning,
-    List(bloopJavaPath)
-  )
-
-  test("Compiler options contain target JVM release") {
-    val javaHome        = jvm(17)
-    val bloopJvmVersion = 11
-    val (scalacOptions, javacOptions, diagnostics) =
-      testJvmReleaseIsSetCorrectly(javaHome, Some(bloopJvmVersion))
-    expect(!scalacOptions.containsSlice(Seq("-release")))
-    expect(!javacOptions.containsSlice(Seq("--release")))
-    expect(diagnostics == List(expectedDiagnostic))
-  }
-
-  test("Empty BuildOptions is actually empty 2 ") {
-    val javaHome        = jvm(11)
-    val bloopJvmVersion = 8
-    val (scalacOptions, javacOptions, diagnostics) =
-      testJvmReleaseIsSetCorrectly(javaHome, Some(bloopJvmVersion), List("-release", "17"))
-    expect(scalacOptions.containsSlice(Seq("-release", "17")))
-    expect(!javacOptions.containsSlice(Seq("--release")))
-    expect(diagnostics == List(expectedDiagnostic))
-  }
-
   test("workspace for bsp") {
     val options = BuildOptions(
       internal = InternalOptions(localRepository =
@@ -183,11 +81,4 @@ class BuildProjectTests extends TestUtil.ScalaCliBuildSuite {
 
     expect(project.workspace == inputs.workspace)
   }
-  test("skip passing release flag for java 8 for ScalaSimpleCompiler") {
-    val javaHome        = jvm(8)
-    val bloopJvmVersion = 17
-    val (_, javacOptions, _) =
-      testJvmReleaseIsSetCorrectly(javaHome, bloopJvmVersion = None)
-    expect(!javacOptions.containsSlice(Seq("--release")))
-  }
 }
diff --git a/modules/integration/src/test/scala/scala/cli/integration/BloopTests.scala b/modules/integration/src/test/scala/scala/cli/integration/BloopTests.scala
index 7bdcf0a4b0..83fbfc5fdd 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/BloopTests.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/BloopTests.scala
@@ -174,7 +174,7 @@ class BloopTests extends ScalaCliSuite {
     val inputs = TestInputs(
       os.rel / "Simple.java" ->
         s"""|//> using jvm 21
-            |//> using javacOpt --enable-preview -Xlint:preview
+            |//> using javacOpt --enable-preview -Xlint:preview --release 21
             |//> using javaOpt --enable-preview
             |//> using mainClass Simple
             |
@@ -191,4 +191,54 @@ class BloopTests extends ScalaCliSuite {
       runScalaCli("bloop", "exit", "--power").call(cwd = root)
     }
   }
+
+  for {
+    lang         <- List("scala", "java")
+    useDirective <- List(true, false)
+    option       <- List("java-home", "jvm")
+  }
+    test(s"compiles $lang file with correct jdk version for $option ${
+        if (useDirective) "use directive" else "option"
+      }") {
+      def isScala = lang == "scala"
+      val optionValue =
+        if (option == "java-home")
+          os.Path(os.proc(TestUtil.cs, "java-home", "--jvm", "zulu:8").call().out.trim()).toString()
+        else "8"
+      val directive =
+        if (useDirective) s"//> using ${option.replace("-h", "H")} $optionValue\n" else ""
+      val options = if (useDirective) Nil else List(s"--$option", optionValue)
+      val content =
+        if (isScala)
+          """|package a
+             |import java.net.http.HttpClient
+             |
+             |trait Simple {
+             |  def httpClient: HttpClient
+             |}
+             |""".stripMargin
+        else """|package a;
+               |
+               |import java.net.http.HttpClient;
+               |
+               |interface Simple {
+               |  HttpClient httpClient();
+               |}
+               |""".stripMargin
+      val inputs = TestInputs(os.rel / s"Simple.$lang" -> s"$directive$content")
+
+      inputs.fromRoot { root =>
+        val res =
+          runScalaCli(("compile" :: "." :: options)*).call(root, check = false, stderr = os.Pipe)
+        assert(res.exitCode == 1)
+
+        val compilationError = res.err.text()
+        val message =
+          if (isScala) "value http is not a member of java.net"
+          else "error: package java.net.http does not exist"
+
+        assert(compilationError.contains("Compilation failed"))
+        assert(compilationError.contains(message))
+      }
+    }
 }
diff --git a/modules/integration/src/test/scala/scala/cli/integration/BspTestDefinitions.scala b/modules/integration/src/test/scala/scala/cli/integration/BspTestDefinitions.scala
index 6582b04126..a00178e9fd 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/BspTestDefinitions.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/BspTestDefinitions.scala
@@ -1284,7 +1284,14 @@ abstract class BspTestDefinitions extends ScalaCliSuite with TestScalaVersionArg
               await(remoteServer.buildTargetCompile(new b.CompileParams(targets.asJava)).asScala)
             expect(errorResponse.getStatusCode == b.StatusCode.ERROR)
 
-            val javacOptions = Seq("--javac-opt", "--enable-preview")
+            val javacOptions = Seq(
+              "--javac-opt",
+              "--enable-preview",
+              "--javac-opt",
+              "--release",
+              "--javac-opt",
+              "19"
+            )
 
             os.proc(TestUtil.cli, "setup-ide", ".", "--jvm", "19", javacOptions, extraOptions)
               .call(
@@ -1348,7 +1355,7 @@ abstract class BspTestDefinitions extends ScalaCliSuite with TestScalaVersionArg
 
             val updatedSourceFile =
               s"""//> using jvm 19
-                 |//> using javacOpt --enable-preview
+                 |//> using javacOpt --enable-preview --release 19
                  |
                  |public class ReloadTest {
                  |  public static void main(String[] args) {
@@ -1390,7 +1397,7 @@ abstract class BspTestDefinitions extends ScalaCliSuite with TestScalaVersionArg
     val inputs = TestInputs(
       sourceFilePath ->
         s"""//> using jvm 19
-           |//> using javacOpt --enable-preview
+           |//> using javacOpt --enable-preview --release 19
            |
            |public class ReloadTest {
            |  public static void main(String[] args) {