diff --git a/java.freeform/apichanges.xml b/java.freeform/apichanges.xml
--- a/java.freeform/apichanges.xml
+++ b/java.freeform/apichanges.xml
@@ -48,6 +48,18 @@
     </apidefs>
     <changes>
 
+        <change id="annotation-processing">
+            <summary>Support for annotation processing</summary>
+            <version major="1" minor="21"/>
+            <date day="12" month="5" year="2010"/>
+            <author login="tzezula"/>
+            <compatibility binary="compatible" source="compatible" semantic="compatible"/>
+            <description>
+                Added complete support for annotation processing into freeform-project-java/3 schema which now supports all metadata for
+                AnnotationProcessingQuery.
+            </description>
+            <issue number="185457"/>
+        </change>
         <change id="source-16">
             <summary>Added freeform-project-java/3 schema to support annotation processors and source levels 1.6 and 1.7</summary>
             <version major="1" minor="16"/>
diff --git a/java.freeform/manifest.mf b/java.freeform/manifest.mf
--- a/java.freeform/manifest.mf
+++ b/java.freeform/manifest.mf
@@ -1,6 +1,6 @@
 Manifest-Version: 1.0
 OpenIDE-Module: org.netbeans.modules.java.freeform/1
-OpenIDE-Module-Specification-Version: 1.20
+OpenIDE-Module-Specification-Version: 1.21
 OpenIDE-Module-Localizing-Bundle: org/netbeans/modules/java/freeform/Bundle.properties
 OpenIDE-Module-Layer: org/netbeans/modules/java/freeform/resources/layer.xml
 AutoUpdate-Show-In-Client: false
diff --git a/java.freeform/src/org/netbeans/modules/java/freeform/AnnotationProcessingQueryImpl.java b/java.freeform/src/org/netbeans/modules/java/freeform/AnnotationProcessingQueryImpl.java
--- a/java.freeform/src/org/netbeans/modules/java/freeform/AnnotationProcessingQueryImpl.java
+++ b/java.freeform/src/org/netbeans/modules/java/freeform/AnnotationProcessingQueryImpl.java
@@ -39,42 +39,273 @@
 
 package org.netbeans.modules.java.freeform;
 
+import java.net.MalformedURLException;
 import java.net.URL;
-import java.util.Collections;
+import java.util.ArrayList;
+import java.util.Collection;
 import java.util.EnumSet;
+import java.util.HashMap;
+import java.util.List;
 import java.util.Map;
 import java.util.Set;
 import javax.swing.event.ChangeListener;
+import org.netbeans.api.java.queries.AnnotationProcessingQuery;
 import org.netbeans.api.java.queries.AnnotationProcessingQuery.Result;
 import org.netbeans.api.java.queries.AnnotationProcessingQuery.Trigger;
+import org.netbeans.api.project.ProjectManager;
 import org.netbeans.spi.java.queries.AnnotationProcessingQueryImplementation;
+import org.netbeans.spi.project.AuxiliaryConfiguration;
+import org.netbeans.spi.project.support.ant.AntProjectEvent;
+import org.netbeans.spi.project.support.ant.AntProjectHelper;
+import org.netbeans.spi.project.support.ant.AntProjectListener;
+import org.netbeans.spi.project.support.ant.PropertyEvaluator;
 import org.openide.filesystems.FileObject;
+import org.openide.filesystems.FileUtil;
+import org.openide.util.ChangeSupport;
+import org.openide.util.Exceptions;
+import org.openide.util.Mutex;
+import org.openide.xml.XMLUtil;
+import org.w3c.dom.Element;
 
 /**
- * Currently there is no special control over AP other than {@code <classpath mode="processorpath"/>}.
+ * Freeform implementation of  AnnotationProcessingQueryImplementation
  */
-class AnnotationProcessingQueryImpl implements AnnotationProcessingQueryImplementation {
+class AnnotationProcessingQueryImpl implements AnnotationProcessingQueryImplementation, AntProjectListener {
 
-    public AnnotationProcessingQueryImpl() {}
+    static final String EL_ANNOTATION_PROCESSING = "annotation-processing"; //NOI18N
+    static final String EL_PROCESSOR_PATH = "processor-path"; //NOI18N
+    private static final String EL_SCAN_TRIGGER = "scan-trigger";   //NOI18N
+    private static final String EL_EDITOR_TRIGGER = "editor-trigger"; //NOI18N
+    private static final String EL_PROCESSOR = "processor"; //NOI18N
+    private static final String EL_PROCESSOR_OPTION = "processor-option";  //NOI18N
+    private static final String EL_SOURCE_OUTPUT ="source-output"; //NOI18N
 
-    public @Override Result getAnnotationProcessingOptions(FileObject file) {
-        return new Result() {
-            public @Override Set<? extends Trigger> annotationProcessingEnabled() {
-                return EnumSet.allOf(Trigger.class);
+    private final Object LCK = new Object();
+
+    private final AntProjectHelper helper;
+    private final PropertyEvaluator eval;
+    private final AuxiliaryConfiguration aux;
+    private Map<FileObject, R> results;
+
+    @SuppressWarnings("LeakingThisInConstructor")
+    public AnnotationProcessingQueryImpl(AntProjectHelper helper, PropertyEvaluator eval, final AuxiliaryConfiguration aux) {
+        assert helper != null;
+        assert eval != null;
+        assert aux != null;
+        this.helper = helper;
+        this.eval = eval;
+        this.aux = aux;
+        this.helper.addAntProjectListener(this);
+    }
+
+    public @Override Result getAnnotationProcessingOptions(final FileObject file) {
+        assert file != null;
+        return ProjectManager.mutex().readAccess(new Mutex.Action<Result>() {
+            public Result run() {
+                synchronized (LCK) {
+                    init(true);
+                    assert results != null;
+                    for (Map.Entry<FileObject,R> entry : results.entrySet()) {
+                        FileObject fo = entry.getKey();
+                        if (fo.equals(file) || FileUtil.isParentOf(fo, file)) {
+                            return entry.getValue();
+                        }
+                    }
+                    return null;
+                }
             }
-            public @Override Iterable<? extends String> annotationProcessorsToRun() {
-                return null;
+        });
+    }
+
+    @Override
+    public void configurationXmlChanged(AntProjectEvent ev) {
+        init (false);
+    }
+
+    @Override
+    public void propertiesChanged(AntProjectEvent ev) {
+        //pass
+    }
+
+    private void init(final boolean force) {
+        synchronized (LCK) {
+            if (results == null) {
+                if (force) {
+                    results = new HashMap<FileObject, R>();
+                } else {
+                    return;
+                }
             }
-            public @Override URL sourceOutputDirectory() {
-                return null;
+            final Map<FileObject,R> added = new HashMap<FileObject, R>();
+            final Map<FileObject,R> retained = new HashMap<FileObject, R>();
+
+            final Element java = aux.getConfigurationFragment(JavaProjectNature.EL_JAVA, JavaProjectNature.NS_JAVA_3, true);
+            if (java != null) {
+                for (Element compilationUnit : XMLUtil.findSubElements(java)) {
+                    assert compilationUnit.getLocalName().equals("compilation-unit") : compilationUnit;
+                    final List<FileObject> packageRoots = Classpaths.findPackageRoots(helper, eval, compilationUnit);
+                    for (FileObject source : packageRoots) {
+                        final R r = results.remove(source);
+                        if (r == null) {
+                            // Create a new result
+                            added.put(source, new R(compilationUnit));
+                        } else {
+                            //Recalculate and fire
+                            retained.put(source,r);
+                            r.update(compilationUnit);
+                        }
+                    }
+                }
             }
-            public @Override Map<? extends String, ? extends String> processorOptions() {
-                return Collections.emptyMap();
+
+            //Invalidate results for remvoed roots
+            for (R r : results.values()) {
+                r.update(null);
             }
-            public @Override void addChangeListener(ChangeListener l) {}
-            public @Override void removeChangeListener(ChangeListener l) {}
+            results.putAll(added);
+            results.putAll(retained);
+        }
+    }
 
-        };
+
+
+    private class R implements AnnotationProcessingQuery.Result {
+
+        private final ChangeSupport changeSupport = new ChangeSupport(this);
+        private volatile Element ap;
+        private volatile Set<Trigger> triggerCache;
+        private volatile Map<String,String> optionsCache;
+        private volatile Collection<String> processorsCache;
+        private volatile List<URL> sourceOutputCache;
+
+        private R(final Element cu) {
+            assert cu != null;
+            this.ap = findAP(cu);
+        }
+
+        public @Override Set<? extends Trigger> annotationProcessingEnabled() {
+            Set<Trigger> result = triggerCache;
+            if (result != null) {
+                return result;
+            }
+            result = EnumSet.noneOf(Trigger.class);
+            if (ap != null) {
+                for (Element e : XMLUtil.findSubElements(ap)) {
+                    if (e.getLocalName().equals(EL_SCAN_TRIGGER)) {
+                        result.add(Trigger.ON_SCAN);
+                    } else if (e.getLocalName().equals(EL_EDITOR_TRIGGER)) {
+                        result.add(Trigger.IN_EDITOR);
+                    }
+                }
+            }
+            synchronized (LCK) {
+                if (triggerCache == null) {
+                    triggerCache = result;
+                }
+            }
+            return result;
+        }
+
+        public @Override Iterable<? extends String> annotationProcessorsToRun() {
+            Collection<String> result = processorsCache;
+            if (result != null) {
+                return result.isEmpty() ? null : result;
+            }
+            result = new ArrayList<String>();
+            if (ap != null) {
+                for (Element e : XMLUtil.findSubElements(ap)) {
+                    if (e.getLocalName().equals(EL_PROCESSOR)) {
+                        result.add(eval.evaluate(XMLUtil.findText(e)));
+                    }
+                }
+            }
+            synchronized (LCK) {
+                if (processorsCache == null) {
+                    processorsCache = result;
+                }
+            }
+            return result.isEmpty() ? null : result;
+        }
+
+
+        public @Override URL sourceOutputDirectory() {
+            List<URL> result = sourceOutputCache;
+            if (result != null) {
+                return result.get(0);
+            }
+            result = new ArrayList<URL>(1);
+            if (ap != null) {
+                for (Element e : XMLUtil.findSubElements(ap)) {
+                    if (e.getLocalName().equals(EL_SOURCE_OUTPUT)) {
+                        try {
+                            final String path = eval.evaluate(XMLUtil.findText(e));
+                            result.add(helper.resolveFile(path).toURI().toURL());
+                        } catch (MalformedURLException ex) {
+                            Exceptions.printStackTrace(ex);
+                        }
+                        break;
+                    }
+                }
+            }
+            synchronized (LCK) {
+                if (sourceOutputCache == null) {
+                    sourceOutputCache = result;
+                }
+            }
+            return result.get(0);
+        }
+
+        public @Override Map<? extends String, ? extends String> processorOptions() {
+            Map<String,String> result = optionsCache;
+            if (result != null) {
+                return result;
+            }
+            result = new HashMap<String, String>();
+            if (ap != null) {
+                for (Element e : XMLUtil.findSubElements(ap)) {
+                    if (e.getLocalName().equals(EL_PROCESSOR_OPTION)) {
+                        final Element keyElement = XMLUtil.findElement(e, "key", JavaProjectNature.NS_JAVA_3);  //NOI18N
+                        final Element valueElement = XMLUtil.findElement(e, "value", JavaProjectNature.NS_JAVA_3);  //NOI18N
+                        if (keyElement == null || valueElement == null) {
+                            continue;
+                        }
+                        final String key = XMLUtil.findText(keyElement);
+                        final String value = XMLUtil.findText(valueElement);
+                        result.put(key, eval.evaluate(value));
+                    }
+                }
+            }
+            synchronized (LCK) {
+                if (optionsCache == null) {
+                    optionsCache = result;
+                }
+            }
+            return result;
+        }
+
+        public @Override void addChangeListener(ChangeListener l) {
+            changeSupport.addChangeListener(l);
+        }
+
+        public @Override void removeChangeListener(ChangeListener l) {
+            changeSupport.removeChangeListener(l);
+        }
+
+        private void update (final Element cu) {
+            synchronized(LCK) {
+                triggerCache = null;
+                optionsCache = null;
+                processorsCache = null;
+                sourceOutputCache = null;
+                ap = findAP(cu);
+            }
+            this.changeSupport.fireChange();
+        }
+
+        private Element findAP(final Element cu) {
+            return cu == null ? null : XMLUtil.findElement(cu, AnnotationProcessingQueryImpl.EL_ANNOTATION_PROCESSING, JavaProjectNature.NS_JAVA_3);
+        }
+
     }
 
 }
diff --git a/java.freeform/src/org/netbeans/modules/java/freeform/Classpaths.java b/java.freeform/src/org/netbeans/modules/java/freeform/Classpaths.java
--- a/java.freeform/src/org/netbeans/modules/java/freeform/Classpaths.java
+++ b/java.freeform/src/org/netbeans/modules/java/freeform/Classpaths.java
@@ -485,11 +485,13 @@
         }
         return urls;
     }
-    
+
     private List<URL> createProcessorClasspath(Element compilationUnitEl) {
-        for (Element e : XMLUtil.findSubElements(compilationUnitEl)) {
-            if (e.getLocalName().equals("classpath") && e.getAttribute("mode").equals("processor")) { // NOI18N
-                return createClasspath(e);
+        final Element ap = XMLUtil.findElement(compilationUnitEl, AnnotationProcessingQueryImpl.EL_ANNOTATION_PROCESSING, JavaProjectNature.NS_JAVA_3);
+        if (ap != null) {
+            final Element path = XMLUtil.findElement(ap, AnnotationProcessingQueryImpl.EL_PROCESSOR_PATH, JavaProjectNature.NS_JAVA_3);
+            if (path != null) {
+                return createClasspath(path);
             }
         }
         // None specified; assume it is the same as the compile classpath.
diff --git a/java.freeform/src/org/netbeans/modules/java/freeform/LookupProviderImpl.java b/java.freeform/src/org/netbeans/modules/java/freeform/LookupProviderImpl.java
--- a/java.freeform/src/org/netbeans/modules/java/freeform/LookupProviderImpl.java
+++ b/java.freeform/src/org/netbeans/modules/java/freeform/LookupProviderImpl.java
@@ -87,7 +87,7 @@
             cp, // ClassPathProvider
             new SourceLevelQueryImpl(projectHelper, projectEvaluator, aux), // SourceLevelQueryImplementation
             new SourceForBinaryQueryImpl(projectHelper, projectEvaluator, aux), // SourceForBinaryQueryImplementation
-            new AnnotationProcessingQueryImpl(),
+            new AnnotationProcessingQueryImpl(projectHelper, projectEvaluator, aux),
             new OpenHook(project, cp), // ProjectOpenedHook
             new TestQuery(projectHelper, projectEvaluator, aux), // MultipleRootsUnitTestForSourceQueryImplementation
             new JavadocQuery(projectHelper, projectEvaluator, aux), // JavadocForBinaryQueryImplementation
diff --git a/java.freeform/src/org/netbeans/modules/java/freeform/resources/freeform-project-java-3.xsd b/java.freeform/src/org/netbeans/modules/java/freeform/resources/freeform-project-java-3.xsd
--- a/java.freeform/src/org/netbeans/modules/java/freeform/resources/freeform-project-java-3.xsd
+++ b/java.freeform/src/org/netbeans/modules/java/freeform/resources/freeform-project-java-3.xsd
@@ -74,7 +74,6 @@
                                         <xsd:enumeration value="boot"/>
                                         <xsd:enumeration value="compile"/>
                                         <xsd:enumeration value="execute"/>
-                                        <xsd:enumeration value="processor"/>
                                     </xsd:restriction>
                                 </xsd:simpleType>
                             </xsd:attribute>
@@ -95,6 +94,18 @@
                     </xsd:restriction>
                 </xsd:simpleType>
             </xsd:element>
+            <xsd:element name="annotation-processing" minOccurs="0">
+                <xsd:complexType>
+                    <xsd:sequence>
+                        <xsd:element name="scan-trigger" minOccurs="0"><xsd:complexType/></xsd:element>
+                        <xsd:element name="editor-trigger" minOccurs="0"><xsd:complexType/></xsd:element>
+                        <xsd:element name="source-output" minOccurs="0" type="substitutable-text"/>
+                        <xsd:element name="processor-path" minOccurs="0" type="substitutable-text"/>
+                        <xsd:element name="processor" minOccurs="0" maxOccurs="unbounded" type="substitutable-text"/>
+                        <xsd:element name="processor-option" minOccurs="0" maxOccurs="unbounded" type="processor-option"/>
+                    </xsd:sequence>
+                </xsd:complexType>
+            </xsd:element>
         </xsd:sequence>
     </xsd:complexType>
 
@@ -105,4 +116,13 @@
             <!-- XXX limit by regexp, perhaps -->
         </xsd:restriction>
     </xsd:simpleType>
+
+    <xsd:complexType name="processor-option">
+        <xsd:sequence>
+            <xsd:element name="key" type="xsd:string"/>     <!-- xsd:token???? -->
+            <xsd:element name="value" type="substitutable-text"/>
+        </xsd:sequence>
+    </xsd:complexType>
+
+
 </xsd:schema>