diff --git a/CHANGELOG.md b/CHANGELOG.md
new file mode 100644
index 0000000..36a554a
--- /dev/null
+++ b/CHANGELOG.md
@@ -0,0 +1,8 @@
+# Changelog
+
+All notable changes to this project will be documented in this file.
+
+## [1.0.2] - Unreleased
+
+- Also export `ANDROID_SDK_ROOT` for compatibility with newer Gradle plugins
+  that read it directly.
diff --git a/README.md b/README.md
index 47e5d80..c0a0a31 100644
--- a/README.md
+++ b/README.md
@@ -73,7 +73,7 @@ steps:
 | Input | Default | Description |
 |---|---|---|
 | `packages` | `''` | SDK packages to install, space- or newline-separated (slash syntax). Empty = CLI only. |
-| `sdk-path` | platform default | Override SDK install location. Exported as `ANDROID_HOME`. |
+| `sdk-path` | platform default | Override SDK install location. Exported as both `ANDROID_HOME` and `ANDROID_SDK_ROOT`. |
 | `cache` | `'true'` | Cache `~/.android/bin` and the SDK between runs. |
 | `cache-key` | `''` | Extra input appended to cache key (for busting). |
 | `no-metrics` | `'true'` | Pass `--no-metrics` to opt out of CLI telemetry. |
@@ -87,11 +87,20 @@ steps:
 | `cli-version` | Version string from `android --version`. |
 | `cache-hit` | Whether the cache was restored (`true`/`false`, empty if caching disabled). |
 
+## Environment
+
+The action exports the following environment variables for subsequent steps:
+
+| Variable | Description |
+|---|---|
+| `ANDROID_HOME` | Absolute path to the SDK. Set for back-compat with older tooling. |
+| `ANDROID_SDK_ROOT` | Same value as `ANDROID_HOME`. Set because newer Android tooling (AGP 8.x, recent Gradle plugins, the cmdline-tools `sdkmanager`) reads this variable first and only falls back to `ANDROID_HOME` when it is unset. |
+
 ## What it does
 
 1. Downloads the `android` CLI launcher (~5 MB) into the runner's tool cache.
 2. Unpacks embedded resources on first run into `~/.android/bin/` (~78 MB, cached).
-3. Exports `ANDROID_HOME` and adds `platform-tools/`, `emulator/`, and `cmdline-tools/latest/bin/` to `PATH`.
+3. Exports `ANDROID_HOME` and `ANDROID_SDK_ROOT`, and adds `platform-tools/`, `emulator/`, and `cmdline-tools/latest/bin/` to `PATH`.
 4. Runs `android sdk install <packages>` if packages are specified.
 5. Registers Gradle, Kotlin, and Android Lint [problem matchers](https://github.com/actions/toolkit/blob/main/docs/problem-matchers.md) so build errors show inline in the GitHub UI.
 6. Writes a job summary table with CLI version, SDK path, and cache status.
diff --git a/action.yml b/action.yml
index 7a169c0..5d08c71 100644
--- a/action.yml
+++ b/action.yml
@@ -19,7 +19,8 @@ inputs:
     description: >-
       Override where the Android SDK is installed. Defaults to
       `~/Library/Android/sdk` on macOS and `~/Android/Sdk` on Linux. The
-      chosen path is exported as `ANDROID_HOME` for subsequent steps.
+      chosen path is exported as `ANDROID_HOME` and `ANDROID_SDK_ROOT` for
+      subsequent steps.
     required: false
     default: ''
   cache:
@@ -149,13 +150,14 @@ runs:
         ANDROID_CLI_FRESH_INSTALL=1 android --version
         echo "::endgroup::"
 
-    - name: Configure ANDROID_HOME
+    - name: Configure ANDROID_HOME and ANDROID_SDK_ROOT
       shell: bash
       env:
         SDK_PATH: ${{ steps.platform.outputs.sdk-path }}
       run: |
         set -euo pipefail
         echo "ANDROID_HOME=$SDK_PATH" >> "$GITHUB_ENV"
+        echo "ANDROID_SDK_ROOT=$SDK_PATH" >> "$GITHUB_ENV"
         # Also export common adjacent PATH entries so later steps can call
         # adb / emulator without setting PATH themselves. These are only
         # populated once their packages are installed.