diff --git a/changelog/@unreleased/pr-2465.v2.yml b/changelog/@unreleased/pr-2465.v2.yml
new file mode 100644
index 000000000..4219c16f7
--- /dev/null
+++ b/changelog/@unreleased/pr-2465.v2.yml
@@ -0,0 +1,7 @@
+type: fix
+fix:
+  description: Ensure that `baseline-immutables` configures immutables to work incrementally
+    when the immutables `annotationProcessor` dependency is not a direct dependency
+    (ie it is brought in transitively or by an `extendsFrom`).
+  links:
+  - https://github.com/palantir/gradle-baseline/pull/2465
diff --git a/gradle-baseline-java/src/main/groovy/com/palantir/baseline/plugins/BaselineImmutables.java b/gradle-baseline-java/src/main/groovy/com/palantir/baseline/plugins/BaselineImmutables.java
index cc32cc4b8..f5655837a 100644
--- a/gradle-baseline-java/src/main/groovy/com/palantir/baseline/plugins/BaselineImmutables.java
+++ b/gradle-baseline-java/src/main/groovy/com/palantir/baseline/plugins/BaselineImmutables.java
@@ -21,7 +21,9 @@
 import java.util.Objects;
 import org.gradle.api.Plugin;
 import org.gradle.api.Project;
-import org.gradle.api.artifacts.Dependency;
+import org.gradle.api.artifacts.component.ComponentIdentifier;
+import org.gradle.api.artifacts.component.ModuleComponentIdentifier;
+import org.gradle.api.artifacts.result.ResolvedComponentResult;
 import org.gradle.api.tasks.SourceSet;
 import org.gradle.api.tasks.SourceSetContainer;
 import org.gradle.api.tasks.compile.JavaCompile;
@@ -74,12 +76,22 @@ private static boolean hasImmutablesProcessor(Project project, SourceSet sourceS
         return project
                 .getConfigurations()
                 .getByName(sourceSet.getAnnotationProcessorConfigurationName())
-                .getDependencies()
+                .getIncoming()
+                .getResolutionResult()
+                .getAllComponents()
                 .stream()
                 .anyMatch(BaselineImmutables::isImmutablesValue);
     }
 
-    private static boolean isImmutablesValue(Dependency dep) {
-        return Objects.equals(dep.getGroup(), "org.immutables") && Objects.equals(dep.getName(), "value");
+    private static boolean isImmutablesValue(ResolvedComponentResult component) {
+        ComponentIdentifier id = component.getId();
+
+        if (!(id instanceof ModuleComponentIdentifier)) {
+            return false;
+        }
+
+        ModuleComponentIdentifier moduleId = (ModuleComponentIdentifier) id;
+
+        return Objects.equals(moduleId.getGroup(), "org.immutables") && Objects.equals(moduleId.getModule(), "value");
     }
 }
diff --git a/gradle-baseline-java/src/test/groovy/com/palantir/baseline/plugins/BaselineImmutablesTest.groovy b/gradle-baseline-java/src/test/groovy/com/palantir/baseline/plugins/BaselineImmutablesTest.groovy
index e28e08a6f..840f4f9e9 100644
--- a/gradle-baseline-java/src/test/groovy/com/palantir/baseline/plugins/BaselineImmutablesTest.groovy
+++ b/gradle-baseline-java/src/test/groovy/com/palantir/baseline/plugins/BaselineImmutablesTest.groovy
@@ -128,4 +128,50 @@ class BaselineImmutablesTest extends IntegrationSpec {
         where:
         javaVersion << ImmutableList.of(11, 17)
     }
+
+    def 'handles an annotationProcesor source set extending from another one'() {
+        buildFile << """
+            apply plugin: 'com.palantir.baseline-immutables'
+            apply plugin: 'java-library'
+
+            repositories {
+                mavenCentral()
+            }
+
+            dependencies {
+                annotationProcessor '$IMMUTABLES'
+                compileOnly '$IMMUTABLES_ANNOTATIONS'
+            }
+            
+            configurations {
+                testAnnotationProcessor.extendsFrom annotationProcessor
+                testCompileOnly.extendsFrom compileOnly
+            } 
+            
+            tasks.withType(JavaCompile) { javaCompile ->
+                doFirst {
+                    logger.lifecycle "\${javaCompile.name}: \${javaCompile.options.allCompilerArgs}"
+                }
+            }
+        """.stripIndent(true)
+
+        def testJava = 'src/test/java'
+
+        // language=java
+        writeJavaSourceFile '''
+            package test;
+            import org.immutables.value.Value;
+            @Value.Immutable
+            public interface Test {
+                int item();
+            }
+        '''.stripIndent(true), testJava
+
+        when:
+        def stdout = runTasksSuccessfully('compileTestJava').standardOutput
+        println stdout
+
+        then:
+        stdout.contains('compileTestJava: [-Aimmutables.gradle.incremental]')
+    }
 }