diff --git a/changelog/@unreleased/pr-1231.v2.yml b/changelog/@unreleased/pr-1231.v2.yml
new file mode 100644
index 000000000..b5deeccc0
--- /dev/null
+++ b/changelog/@unreleased/pr-1231.v2.yml
@@ -0,0 +1,5 @@
+type: improvement
+improvement:
+  description: The Dialogue annotation processor now supports incremental compilation.
+  links:
+  - https://github.com/palantir/dialogue/pull/1231
diff --git a/dialogue-annotations-processor/build.gradle b/dialogue-annotations-processor/build.gradle
index e15493367..ef092e11a 100644
--- a/dialogue-annotations-processor/build.gradle
+++ b/dialogue-annotations-processor/build.gradle
@@ -30,6 +30,8 @@ dependencies {
 
     annotationProcessor 'com.google.auto.service:auto-service'
     compileOnly 'com.google.auto.service:auto-service'
+    annotationProcessor 'net.ltgt.gradle.incap:incap-processor'
+    compileOnly 'net.ltgt.gradle.incap:incap'
     annotationProcessor 'org.immutables:value'
     compileOnly 'org.immutables:value::annotations'
     annotationProcessor 'org.derive4j:derive4j'
@@ -37,6 +39,7 @@ dependencies {
 
     testAnnotationProcessor 'org.immutables:value'
     testCompileOnly 'org.immutables:value::annotations'
+    testCompileOnly 'net.ltgt.gradle.incap:incap'
     testImplementation project(':dialogue-annotations')
     testImplementation project(':dialogue-target')
     testImplementation 'com.fasterxml.jackson.core:jackson-annotations'
diff --git a/dialogue-annotations-processor/src/main/java/com/palantir/dialogue/annotations/processor/DialogueRequestAnnotationsProcessor.java b/dialogue-annotations-processor/src/main/java/com/palantir/dialogue/annotations/processor/DialogueRequestAnnotationsProcessor.java
index 1deda6683..78d9740ee 100644
--- a/dialogue-annotations-processor/src/main/java/com/palantir/dialogue/annotations/processor/DialogueRequestAnnotationsProcessor.java
+++ b/dialogue-annotations-processor/src/main/java/com/palantir/dialogue/annotations/processor/DialogueRequestAnnotationsProcessor.java
@@ -60,9 +60,12 @@
 import javax.lang.model.util.Elements;
 import javax.lang.model.util.Types;
 import javax.tools.Diagnostic.Kind;
+import net.ltgt.gradle.incap.IncrementalAnnotationProcessor;
+import net.ltgt.gradle.incap.IncrementalAnnotationProcessorType;
 
 @SupportedSourceVersion(SourceVersion.RELEASE_8)
 @AutoService(Processor.class)
+@IncrementalAnnotationProcessor(IncrementalAnnotationProcessorType.ISOLATING)
 public final class DialogueRequestAnnotationsProcessor extends AbstractProcessor {
 
     private Messager messager;
diff --git a/versions.lock b/versions.lock
index 6c0444912..3cee81e2c 100644
--- a/versions.lock
+++ b/versions.lock
@@ -51,6 +51,7 @@ io.dropwizard.metrics:metrics-core:3.2.6 (3 constraints: b125441c)
 jakarta.annotation:jakarta.annotation-api:1.3.5 (3 constraints: ee256969)
 jakarta.ws.rs:jakarta.ws.rs-api:2.1.6 (3 constraints: ee256969)
 joda-time:joda-time:2.10.8 (1 constraints: 2e16acf1)
+net.ltgt.gradle.incap:incap:0.3 (1 constraints: a7041a2c)
 org.apache.httpcomponents.client5:httpclient5:5.0.3 (1 constraints: 0a050736)
 org.apache.httpcomponents.core5:httpcore5:5.1 (3 constraints: 392a5176)
 org.apache.httpcomponents.core5:httpcore5-h2:5.0.2 (1 constraints: 3b13053c)
diff --git a/versions.props b/versions.props
index 66bc0bea8..1c1d5a5ad 100644
--- a/versions.props
+++ b/versions.props
@@ -17,6 +17,7 @@ com.palantir.tritium:* = 0.18.8
 com.squareup:javapoet = 1.13.0
 com.uber.nullaway:nullaway = 0.9.0
 io.dropwizard.metrics:metrics-core = 3.2.6
+net.ltgt.gradle.incap:* = 0.3
 org.apache.httpcomponents.client5:httpclient5 = 5.0.3
 org.apache.httpcomponents.core5:httpcore5 = 5.1
 org.derive4j:* = 1.1.1