diff --git a/gradle-twirl/src/main/java/play/twirl/gradle/TwirlCompile.java b/gradle-twirl/src/main/java/play/twirl/gradle/TwirlCompile.java
index c6615f85..dbc090de 100644
--- a/gradle-twirl/src/main/java/play/twirl/gradle/TwirlCompile.java
+++ b/gradle-twirl/src/main/java/play/twirl/gradle/TwirlCompile.java
@@ -17,6 +17,7 @@
 import org.gradle.api.provider.MapProperty;
 import org.gradle.api.provider.Property;
 import org.gradle.api.provider.SetProperty;
+import org.gradle.api.tasks.CacheableTask;
 import org.gradle.api.tasks.Classpath;
 import org.gradle.api.tasks.IgnoreEmptyDirectories;
 import org.gradle.api.tasks.Input;
@@ -34,6 +35,7 @@
 import play.twirl.gradle.internal.TwirlCompileAction;
 
 /** Gradle task for compiling Twirl templates into Scala code. */
+@CacheableTask
 public abstract class TwirlCompile extends DefaultTask {
 
   @InputFiles
diff --git a/gradle-twirl/src/test/java/play/twirl/gradle/SimpleProjectTest.java b/gradle-twirl/src/test/java/play/twirl/gradle/SimpleProjectTest.java
index 1725fd91..6731e8fc 100644
--- a/gradle-twirl/src/test/java/play/twirl/gradle/SimpleProjectTest.java
+++ b/gradle-twirl/src/test/java/play/twirl/gradle/SimpleProjectTest.java
@@ -9,6 +9,7 @@
 import java.io.IOException;
 import java.nio.file.Files;
 import java.nio.file.Path;
+import java.util.Collections;
 import java.util.Map;
 import org.apache.commons.io.FileUtils;
 import org.apache.groovy.util.Maps;
@@ -37,6 +38,11 @@ protected String getBuildFileContent() {
     return templateProcess("build.gradle.kts.ftlh", params);
   }
 
+  @Override
+  protected String getSettingsFileContent() {
+    return templateProcess("settings.gradle.kts.ftlh", Collections.emptyMap());
+  }
+
   @ParameterizedTest
   @MethodSource("gradleVersions")
   @DisplayName("Test common build")
@@ -125,4 +131,63 @@ void testIncrementalBuild(String gradleVersion) throws IOException {
     assertThat(compileScalaResult.getOutcome()).isEqualTo(TaskOutcome.SUCCESS);
     assertThat(projectBuildPath("classes/scala/main/a/b/html/d.class")).doesNotExist();
   }
+
+  @ParameterizedTest
+  @MethodSource("gradleVersions")
+  @DisplayName("Test build cache")
+  void testBuildCache(String gradleVersion) throws IOException {
+    File simpleSources = projectPath("src").toFile();
+    FileUtils.copyDirectory(projectSourcePath("src").toFile(), simpleSources);
+    Path newTemplate = projectPath("src/main/twirl/a/b/d.scala.html");
+    Files.copy(projectSourcePath("src/main/twirl/a/b/c.scala.html"), newTemplate);
+
+    BuildResult result = build(gradleVersion, "--build-cache", "compileTwirl");
+
+    BuildTask compileTwirlResult = result.task(":compileTwirl");
+    assertThat(compileTwirlResult).isNotNull();
+    assertThat(compileTwirlResult.getOutcome()).isEqualTo(TaskOutcome.SUCCESS);
+
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/c.template.scala"))
+        .isNotEmptyFile();
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/d.template.scala"))
+        .isNotEmptyFile();
+
+    build(gradleVersion, "clean");
+
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/c.template.scala"))
+        .doesNotExist();
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/d.template.scala"))
+        .doesNotExist();
+
+    result = build(gradleVersion, "--build-cache", "compileTwirl");
+
+    compileTwirlResult = result.task(":compileTwirl");
+    assertThat(compileTwirlResult).isNotNull();
+    assertThat(compileTwirlResult.getOutcome()).isEqualTo(TaskOutcome.FROM_CACHE);
+
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/c.template.scala"))
+        .isNotEmptyFile();
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/d.template.scala"))
+        .isNotEmptyFile();
+
+    build(gradleVersion, "clean");
+
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/c.template.scala"))
+        .doesNotExist();
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/d.template.scala"))
+        .doesNotExist();
+
+    Files.delete(newTemplate);
+
+    result = build(gradleVersion, "--build-cache", "compileTwirl");
+
+    compileTwirlResult = result.task(":compileTwirl");
+    assertThat(compileTwirlResult).isNotNull();
+    assertThat(compileTwirlResult.getOutcome()).isEqualTo(TaskOutcome.SUCCESS);
+
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/c.template.scala"))
+        .isNotEmptyFile();
+    assertThat(projectBuildPath("generated/sources/twirl/main/a/b/html/d.template.scala"))
+        .doesNotExist();
+  }
 }
diff --git a/gradle-twirl/src/test/resources/simple/settings.gradle.kts.ftlh b/gradle-twirl/src/test/resources/simple/settings.gradle.kts.ftlh
new file mode 100644
index 00000000..d55ac3ca
--- /dev/null
+++ b/gradle-twirl/src/test/resources/simple/settings.gradle.kts.ftlh
@@ -0,0 +1,5 @@
+buildCache {
+    local {
+        directory = File(rootProject.projectDir, "build-cache")
+    }
+}