diff --git a/.github/workflows/installer.yml b/.github/workflows/installer.yml
index b0a7299e..013a97d4 100644
--- a/.github/workflows/installer.yml
+++ b/.github/workflows/installer.yml
@@ -55,7 +55,7 @@ jobs:
         if: matrix.variant == 'sdkman'
         shell: bash
         run: |
-          bash -c "curl -s "https://get.sdkman.io" | bash"
+          bash -c "curl -s "https://get.sdkman.io?ci=true" | bash"
           source "$HOME/.sdkman/bin/sdkman-init.sh"
           
           sdk install kscript ${{ env.KSCRIPT_VERSION }}
diff --git a/build.gradle.kts b/build.gradle.kts
index 91893b3c..2cf29bc9 100644
--- a/build.gradle.kts
+++ b/build.gradle.kts
@@ -4,10 +4,10 @@ import org.jetbrains.kotlin.util.capitalizeDecapitalize.toLowerCaseAsciiOnly
 import java.time.ZoneOffset
 import java.time.ZonedDateTime
 
-val kotlinVersion: String = "1.7.21"
+val kotlinVersion: String = "2.1.21-embedded"
 
 plugins {
-    kotlin("jvm") version "1.7.21"
+    kotlin("jvm") version "2.1.21-embedded"
     application
     id("com.adarshr.test-logger") version "3.2.0"
     id("com.github.gmazzo.buildconfig") version "3.1.0"
diff --git a/src/main/kotlin/io/github/kscripting/kscript/code/GradleTemplates.kt b/src/main/kotlin/io/github/kscripting/kscript/code/GradleTemplates.kt
index 56ad00a4..0e46bf8b 100644
--- a/src/main/kotlin/io/github/kscripting/kscript/code/GradleTemplates.kt
+++ b/src/main/kotlin/io/github/kscripting/kscript/code/GradleTemplates.kt
@@ -10,7 +10,7 @@ object GradleTemplates {
     fun createGradleIdeaScript(script: Script): String {
         val kotlinVersion = KotlinVersion.CURRENT
         val extendedDependencies = setOf(
-            Dependency("org.jetbrains.kotlin:kotlin-stdlib"),
+            Dependency("org.jetbrains.kotlin:kotlin-stdlib:$kotlinVersion"),
             Dependency("org.jetbrains.kotlin:kotlin-script-runtime:$kotlinVersion"),
             Dependency("io.github.kscripting:kscript-annotations:1.5.0"),
         ) + script.dependencies
@@ -42,7 +42,7 @@ object GradleTemplates {
 
         val kotlinVersion = KotlinVersion.CURRENT
         val extendedDependencies = setOf(
-            Dependency("org.jetbrains.kotlin:kotlin-stdlib"),
+            Dependency("org.jetbrains.kotlin:kotlin-stdlib:$kotlinVersion"),
             Dependency("org.jetbrains.kotlin:kotlin-script-runtime:$kotlinVersion")
         ) + script.dependencies
 
diff --git a/src/main/kotlin/io/github/kscripting/kscript/creator/JarArtifactCreator.kt b/src/main/kotlin/io/github/kscripting/kscript/creator/JarArtifactCreator.kt
index 4813f9a2..4c3fb263 100644
--- a/src/main/kotlin/io/github/kscripting/kscript/creator/JarArtifactCreator.kt
+++ b/src/main/kotlin/io/github/kscripting/kscript/creator/JarArtifactCreator.kt
@@ -34,7 +34,16 @@ class JarArtifactCreator(private val executor: Executor) {
 
         execClassNameFile.writeText(execClassName)
 
-        FileUtils.createFile(scriptFile, script.resolvedCode)
+        var scriptContent = script.resolvedCode
+
+        if (script.scriptLocation.scriptType == ScriptType.KTS &&
+            script.packageName.value.isNotBlank() &&
+            !scriptContent.trimStart().startsWith("package ")
+        ) {
+            scriptContent = "package ${script.packageName.value}\n\n$scriptContent"
+        }
+
+        FileUtils.createFile(scriptFile, scriptContent)
 
         val filesToCompile = mutableSetOf<OsPath>()
         filesToCompile.add(scriptFile)
diff --git a/src/main/kotlin/io/github/kscripting/kscript/resolver/CommandResolver.kt b/src/main/kotlin/io/github/kscripting/kscript/resolver/CommandResolver.kt
index 8aa30d1a..b71dce0b 100644
--- a/src/main/kotlin/io/github/kscripting/kscript/resolver/CommandResolver.kt
+++ b/src/main/kotlin/io/github/kscripting/kscript/resolver/CommandResolver.kt
@@ -7,6 +7,8 @@ import io.github.kscripting.kscript.model.OsConfig
 import io.github.kscripting.shell.model.OsPath
 import io.github.kscripting.shell.model.OsType
 import io.github.kscripting.shell.model.toNativeOsPath
+import java.nio.file.Files
+import kotlin.io.path.writeLines
 
 class CommandResolver(val osConfig: OsConfig) {
     private val classPathSeparator =
@@ -17,6 +19,10 @@ class CommandResolver(val osConfig: OsConfig) {
         else -> '\''
     }
 
+    companion object {
+        private const val ARGFILE_PATHS_CHAR_THRESHOLD = 4096
+        private const val ARGFILE_PATHS_COUNT_THRESHOLD = 100
+    }
 
     fun getKotlinJreVersion(): String {
         val kotlin = resolveKotlinBinary("kotlin")
@@ -47,12 +53,51 @@ class CommandResolver(val osConfig: OsConfig) {
         jar: OsPath, dependencies: Set<OsPath>, filePaths: Set<OsPath>, compilerOpts: Set<CompilerOpt>
     ): String {
         val compilerOptsStr = resolveCompilerOpts(compilerOpts)
-        val classpath = resolveClasspath(dependencies)
+        val classpath = resolveClasspath(dependencies) // Keep classpath on command line for now
         val jarFile = resolveJarFile(jar)
-        val files = resolveFiles(filePaths)
         val kotlinc = resolveKotlinBinary("kotlinc")
 
-        return "$kotlinc $compilerOptsStr $classpath -d $jarFile $files"
+        // Calculate total length of all resolved file paths and classpath entries for character threshold
+        val totalPathLength = filePaths.sumOf { it.stringPath().length } +
+                dependencies.sumOf { it.stringPath().length } +
+                compilerOptsStr.length +
+                classpath.length // Approx length of classpath string itself
+
+        // Calculate total number of files/options for count threshold
+        val totalItemsCount = filePaths.size + dependencies.size + compilerOpts.size
+
+        if (totalPathLength > ARGFILE_PATHS_CHAR_THRESHOLD || totalItemsCount > ARGFILE_PATHS_COUNT_THRESHOLD) {
+            val tempArgFile = Files.createTempFile("kscript-kotlinc-args-", ".txt")
+            try {
+                val argFileLines = mutableListOf<String>()
+
+                // Add compiler options (if any)
+                if (compilerOptsStr.isNotBlank()) {
+                    argFileLines.add(compilerOptsStr)
+                }
+
+                // Add classpath string (if any)
+                // resolveClasspath() returns "-classpath \"foo:bar\"" or empty string
+                if (classpath.isNotBlank()) {
+                    argFileLines.add(classpath)
+                }
+
+                // Add source files, native and unquoted, one per line
+                filePaths.mapTo(argFileLines) { it.toNativeOsPath().stringPath() }
+
+                tempArgFile.writeLines(argFileLines)
+
+                val argFileArgument = "@${tempArgFile.toAbsolutePath().toString()}"
+
+                // -d $jarFile must remain on command line as it's an output specifier
+                return "$kotlinc $argFileArgument -d $jarFile"
+            } finally {
+                Files.deleteIfExists(tempArgFile)
+            }
+        } else {
+            val files = resolveFiles(filePaths) // Only resolve files if not using argfile
+            return "$kotlinc $compilerOptsStr $classpath -d $jarFile $files"
+        }
     }
 
     fun executeKotlin(