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It look more like a warning that a setting was ignored than an outright error. The rest of the build should have proceeded fine, and you should see the Hibernate libraries if you open up the source sets on the right (in the gradle window) and the External Libraries on the left (Project window).

You should be able to get rid of the warning by going to either 1) Settings > Build, Execution, Deployment > Build Tools > Gradle and remove the option mentioned in the warning from the VM options at the bottom or 2) your ~/.gradle/gradle.properties file and remove said option.

I did look into the places you suggested. The vm options column is completely empty.

This is the error message that I get when I am trying to build a new gradle project

Error:Unable to start the daemon process. This problem might be caused by incorrect configuration of the daemon. For example, an unrecognized jvm option is used. Please refer to the user guide chapter on the daemon at https://docs.gradle.org/2.9/userguide/gradle_daemon.html

Please read the following process output to find out more:

Java HotSpot(TM) 64-Bit Server VM warning: ignoring option MaxPermSize=256m; support was removed in 8.0

Did you try this Stackoverflow solution: http://stackoverflow.com/questions/20471311/android-studio-unable-to-start-the-daemon-process .

Disregard the line: Java HotSpot(TM) 64-Bit Server VM warning: ignoring option MaxPermSize=256m; support was removed in 8.0 It is just a warning. It is unrelated. You have problem starting daemon process.

Hi Gowtham! Do you get this error upon importing an existing Gradle project, or upon creating a new one? And, do you have Gradle installed on your machine, or are you using the Gradle wrapper? If you haven't taken steps to install Gradle, then you'd want to use the wrapper. And, I'd suggest this route anyway since it helps with sharing your project with others.