diff --git a/pkg/cmd/pulumi-language-java/language_test.go b/pkg/cmd/pulumi-language-java/language_test.go
index 5dd31a01e88..64e2b04fb8c 100644
--- a/pkg/cmd/pulumi-language-java/language_test.go
+++ b/pkg/cmd/pulumi-language-java/language_test.go
@@ -180,7 +180,6 @@ var expectedFailures = map[string]string{
 	"l2-resource-config":                    "unimplemented for Java",
 	"l2-resource-primitives":                "unimplemented for Java",
 	"l2-resource-secret":                    "unimplemented for Java",
-	"l2-target-up-with-new-dependency":      "unimplemented for Java",
 }
 
 // runTestingHost boots up a new instance of the language conformance test runner, `pulumi-test-language`, as well as a
diff --git a/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/Pulumi.yaml b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/Pulumi.yaml
new file mode 100644
index 00000000000..f02ea54c089
--- /dev/null
+++ b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/Pulumi.yaml
@@ -0,0 +1,2 @@
+name: l2-target-up-with-new-dependency
+runtime: java
diff --git a/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/pom.xml b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/pom.xml
new file mode 100644
index 00000000000..a0a5a8fb334
--- /dev/null
+++ b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/pom.xml
@@ -0,0 +1,99 @@
+<?xml version="1.0" encoding="UTF-8"?>
+		<project xmlns="http://maven.apache.org/POM/4.0.0"
+				 xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+				 xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
+			<modelVersion>4.0.0</modelVersion>
+
+			<groupId>com.pulumi</groupId>
+			<artifactId>l2-target-up-with-new-dependency</artifactId>
+			<version>1.0-SNAPSHOT</version>
+
+			<properties>
+				<encoding>UTF-8</encoding>
+				<maven.compiler.source>11</maven.compiler.source>
+				<maven.compiler.target>11</maven.compiler.target>
+				<maven.compiler.release>11</maven.compiler.release>
+				<mainClass>generated_program.App</mainClass>
+				<mainArgs/>
+			</properties>
+			
+			<repositories>
+				<repository>
+					<id>repository-0</id>
+					<url>REPOSITORY</url>
+				</repository>
+			</repositories>
+
+			<dependencies>
+				<dependency>
+					<groupId>com.pulumi</groupId>
+					<artifactId>pulumi</artifactId>
+					<version>CORE.VERSION</version>
+				</dependency>
+				<dependency>
+					<groupId>com.pulumi</groupId>
+					<artifactId>simple</artifactId>
+					<version>2.0.0</version>
+				</dependency>
+			</dependencies>
+
+			<build>
+				<plugins>
+					<plugin>
+						<groupId>org.apache.maven.plugins</groupId>
+						<artifactId>maven-jar-plugin</artifactId>
+						<version>3.2.2</version>
+						<configuration>
+							<archive>
+								<manifest>
+									<addClasspath>true</addClasspath>
+									<mainClass>${mainClass}</mainClass>
+								</manifest>
+							</archive>
+						</configuration>
+					</plugin>
+					<plugin>
+						<groupId>org.apache.maven.plugins</groupId>
+						<artifactId>maven-assembly-plugin</artifactId>
+						<version>3.4.2</version>
+						<configuration>
+							<archive>
+								<manifest>
+									<addClasspath>true</addClasspath>
+									<mainClass>${mainClass}</mainClass>
+								</manifest>
+							</archive>
+							<descriptorRefs>
+								<descriptorRef>jar-with-dependencies</descriptorRef>
+							</descriptorRefs>
+						</configuration>
+						<executions>
+							<execution>
+								<id>make-my-jar-with-dependencies</id>
+								<phase>package</phase>
+								<goals>
+									<goal>single</goal>
+								</goals>
+							</execution>
+						</executions>
+					</plugin>
+					<plugin>
+						<groupId>org.codehaus.mojo</groupId>
+						<artifactId>exec-maven-plugin</artifactId>
+						<version>3.1.0</version>
+						<configuration>
+							<mainClass>${mainClass}</mainClass>
+							<commandlineArgs>${mainArgs}</commandlineArgs>
+						</configuration>
+					</plugin>
+					<plugin>
+						<groupId>org.apache.maven.plugins</groupId>
+						<artifactId>maven-wrapper-plugin</artifactId>
+						<version>3.1.1</version>
+						<configuration>
+							<mavenVersion>3.8.5</mavenVersion>
+						</configuration>
+					</plugin>
+				</plugins>
+			</build>
+		</project>
\ No newline at end of file
diff --git a/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/src/main/java/generated_program/App.java b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/src/main/java/generated_program/App.java
new file mode 100644
index 00000000000..0856e968cec
--- /dev/null
+++ b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/0/src/main/java/generated_program/App.java
@@ -0,0 +1,30 @@
+package generated_program;
+
+import com.pulumi.Context;
+import com.pulumi.Pulumi;
+import com.pulumi.core.Output;
+import com.pulumi.simple.Resource;
+import com.pulumi.simple.ResourceArgs;
+import java.util.List;
+import java.util.ArrayList;
+import java.util.Map;
+import java.io.File;
+import java.nio.file.Files;
+import java.nio.file.Paths;
+
+public class App {
+    public static void main(String[] args) {
+        Pulumi.run(App::stack);
+    }
+
+    public static void stack(Context ctx) {
+        var targetOnly = new Resource("targetOnly", ResourceArgs.builder()
+            .value(true)
+            .build());
+
+        var unrelated = new Resource("unrelated", ResourceArgs.builder()
+            .value(true)
+            .build());
+
+    }
+}
diff --git a/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/Pulumi.yaml b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/Pulumi.yaml
new file mode 100644
index 00000000000..f02ea54c089
--- /dev/null
+++ b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/Pulumi.yaml
@@ -0,0 +1,2 @@
+name: l2-target-up-with-new-dependency
+runtime: java
diff --git a/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/pom.xml b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/pom.xml
new file mode 100644
index 00000000000..a0a5a8fb334
--- /dev/null
+++ b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/pom.xml
@@ -0,0 +1,99 @@
+<?xml version="1.0" encoding="UTF-8"?>
+		<project xmlns="http://maven.apache.org/POM/4.0.0"
+				 xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+				 xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
+			<modelVersion>4.0.0</modelVersion>
+
+			<groupId>com.pulumi</groupId>
+			<artifactId>l2-target-up-with-new-dependency</artifactId>
+			<version>1.0-SNAPSHOT</version>
+
+			<properties>
+				<encoding>UTF-8</encoding>
+				<maven.compiler.source>11</maven.compiler.source>
+				<maven.compiler.target>11</maven.compiler.target>
+				<maven.compiler.release>11</maven.compiler.release>
+				<mainClass>generated_program.App</mainClass>
+				<mainArgs/>
+			</properties>
+			
+			<repositories>
+				<repository>
+					<id>repository-0</id>
+					<url>REPOSITORY</url>
+				</repository>
+			</repositories>
+
+			<dependencies>
+				<dependency>
+					<groupId>com.pulumi</groupId>
+					<artifactId>pulumi</artifactId>
+					<version>CORE.VERSION</version>
+				</dependency>
+				<dependency>
+					<groupId>com.pulumi</groupId>
+					<artifactId>simple</artifactId>
+					<version>2.0.0</version>
+				</dependency>
+			</dependencies>
+
+			<build>
+				<plugins>
+					<plugin>
+						<groupId>org.apache.maven.plugins</groupId>
+						<artifactId>maven-jar-plugin</artifactId>
+						<version>3.2.2</version>
+						<configuration>
+							<archive>
+								<manifest>
+									<addClasspath>true</addClasspath>
+									<mainClass>${mainClass}</mainClass>
+								</manifest>
+							</archive>
+						</configuration>
+					</plugin>
+					<plugin>
+						<groupId>org.apache.maven.plugins</groupId>
+						<artifactId>maven-assembly-plugin</artifactId>
+						<version>3.4.2</version>
+						<configuration>
+							<archive>
+								<manifest>
+									<addClasspath>true</addClasspath>
+									<mainClass>${mainClass}</mainClass>
+								</manifest>
+							</archive>
+							<descriptorRefs>
+								<descriptorRef>jar-with-dependencies</descriptorRef>
+							</descriptorRefs>
+						</configuration>
+						<executions>
+							<execution>
+								<id>make-my-jar-with-dependencies</id>
+								<phase>package</phase>
+								<goals>
+									<goal>single</goal>
+								</goals>
+							</execution>
+						</executions>
+					</plugin>
+					<plugin>
+						<groupId>org.codehaus.mojo</groupId>
+						<artifactId>exec-maven-plugin</artifactId>
+						<version>3.1.0</version>
+						<configuration>
+							<mainClass>${mainClass}</mainClass>
+							<commandlineArgs>${mainArgs}</commandlineArgs>
+						</configuration>
+					</plugin>
+					<plugin>
+						<groupId>org.apache.maven.plugins</groupId>
+						<artifactId>maven-wrapper-plugin</artifactId>
+						<version>3.1.1</version>
+						<configuration>
+							<mavenVersion>3.8.5</mavenVersion>
+						</configuration>
+					</plugin>
+				</plugins>
+			</build>
+		</project>
\ No newline at end of file
diff --git a/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/src/main/java/generated_program/App.java b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/src/main/java/generated_program/App.java
new file mode 100644
index 00000000000..9baa6fa804a
--- /dev/null
+++ b/pkg/cmd/pulumi-language-java/testdata/projects/l2-target-up-with-new-dependency/1/src/main/java/generated_program/App.java
@@ -0,0 +1,37 @@
+package generated_program;
+
+import com.pulumi.Context;
+import com.pulumi.Pulumi;
+import com.pulumi.core.Output;
+import com.pulumi.simple.Resource;
+import com.pulumi.simple.ResourceArgs;
+import com.pulumi.resources.CustomResourceOptions;
+import java.util.List;
+import java.util.ArrayList;
+import java.util.Map;
+import java.io.File;
+import java.nio.file.Files;
+import java.nio.file.Paths;
+
+public class App {
+    public static void main(String[] args) {
+        Pulumi.run(App::stack);
+    }
+
+    public static void stack(Context ctx) {
+        var targetOnly = new Resource("targetOnly", ResourceArgs.builder()
+            .value(true)
+            .build());
+
+        var dep = new Resource("dep", ResourceArgs.builder()
+            .value(true)
+            .build());
+
+        var unrelated = new Resource("unrelated", ResourceArgs.builder()
+            .value(true)
+            .build(), CustomResourceOptions.builder()
+                .dependsOn(dep)
+                .build());
+
+    }
+}