diff --git a/src/env.cc b/src/env.cc
index b8574fcfb775b8..642a7d4a9d2559 100644
--- a/src/env.cc
+++ b/src/env.cc
@@ -1096,6 +1096,12 @@ void Environment::InitializeCompileCache() {
       dir_from_env.empty()) {
     return;
   }
+  if (!options()->experimental_policy.empty()) {
+    Debug(this,
+          DebugCategory::COMPILE_CACHE,
+          "[compile cache] skipping cache because policy is enabled");
+    return;
+  }
   auto handler = std::make_unique<CompileCacheHandler>(this);
   if (handler->InitializeDirectory(this, dir_from_env)) {
     compile_cache_handler_ = std::move(handler);
diff --git a/test/parallel/test-compile-cache-policy.js b/test/parallel/test-compile-cache-policy.js
new file mode 100644
index 00000000000000..fd6fe36bcc0cd9
--- /dev/null
+++ b/test/parallel/test-compile-cache-policy.js
@@ -0,0 +1,38 @@
+'use strict';
+
+// This tests NODE_COMPILE_CACHE is disabled when policy is used.
+
+const common = require('../common');
+if (!common.hasCrypto)
+  common.skip('missing crypto');
+
+const { spawnSyncAndAssert } = require('../common/child_process');
+const assert = require('assert');
+const fs = require('fs');
+const tmpdir = require('../common/tmpdir');
+const fixtures = require('../common/fixtures');
+
+{
+  tmpdir.refresh();
+  const dir = tmpdir.resolve('.compile_cache_dir');
+  const script = fixtures.path('policy', 'parent.js');
+  const policy = fixtures.path(
+    'policy',
+    'dependencies',
+    'dependencies-redirect-policy.json');
+  spawnSyncAndAssert(
+    process.execPath,
+    ['--experimental-policy', policy, script],
+    {
+      env: {
+        ...process.env,
+        NODE_DEBUG_NATIVE: 'COMPILE_CACHE',
+        NODE_COMPILE_CACHE: dir
+      },
+      cwd: tmpdir.path
+    },
+    {
+      stderr: /skipping cache because policy is enabled/
+    });
+  assert(!fs.existsSync(dir));
+}