diff --git a/packages/cache/__tests__/cache.test.ts b/packages/cache/__tests__/cache.test.ts
index 80375305..b7c3ca45 100644
--- a/packages/cache/__tests__/cache.test.ts
+++ b/packages/cache/__tests__/cache.test.ts
@@ -1,14 +1,69 @@
 import * as cache from '../src/cache'
 
-test('isFeatureAvailable returns true if server url is set', () => {
-  try {
+describe('isFeatureAvailable', () => {
+  const originalEnv = process.env
+
+  beforeEach(() => {
+    jest.resetModules()
+    process.env = {...originalEnv}
+    // Clean cache-related environment variables
+    delete process.env['ACTIONS_CACHE_URL']
+    delete process.env['ACTIONS_RESULTS_URL']
+    delete process.env['ACTIONS_CACHE_SERVICE_V2']
+    delete process.env['GITHUB_SERVER_URL']
+  })
+
+  afterAll(() => {
+    process.env = originalEnv
+  })
+
+  test('returns true for cache service v1 when ACTIONS_CACHE_URL is set', () => {
     process.env['ACTIONS_CACHE_URL'] = 'http://cache.com'
     expect(cache.isFeatureAvailable()).toBe(true)
-  } finally {
-    delete process.env['ACTIONS_CACHE_URL']
-  }
-})
+  })
 
-test('isFeatureAvailable returns false if server url is not set', () => {
-  expect(cache.isFeatureAvailable()).toBe(false)
+  test('returns true for cache service v1 when ACTIONS_RESULTS_URL is set', () => {
+    process.env['ACTIONS_RESULTS_URL'] = 'http://results.com'
+    expect(cache.isFeatureAvailable()).toBe(true)
+  })
+
+  test('returns true for cache service v1 when both URLs are set', () => {
+    process.env['ACTIONS_CACHE_URL'] = 'http://cache.com'
+    process.env['ACTIONS_RESULTS_URL'] = 'http://results.com'
+    expect(cache.isFeatureAvailable()).toBe(true)
+  })
+
+  test('returns true for cache service v2 when ACTIONS_RESULTS_URL is set', () => {
+    process.env['ACTIONS_CACHE_SERVICE_V2'] = 'true'
+    process.env['ACTIONS_RESULTS_URL'] = 'http://results.com'
+    expect(cache.isFeatureAvailable()).toBe(true)
+  })
+
+  test('returns false for cache service v2 when only ACTIONS_CACHE_URL is set', () => {
+    process.env['ACTIONS_CACHE_SERVICE_V2'] = 'true'
+    process.env['ACTIONS_CACHE_URL'] = 'http://cache.com'
+    expect(cache.isFeatureAvailable()).toBe(false)
+  })
+
+  test('returns false when no cache URLs are set', () => {
+    expect(cache.isFeatureAvailable()).toBe(false)
+  })
+
+  test('returns false for cache service v2 when no URLs are set', () => {
+    process.env['ACTIONS_CACHE_SERVICE_V2'] = 'true'
+    expect(cache.isFeatureAvailable()).toBe(false)
+  })
+
+  test('returns true for GHES with v1 even when v2 flag is set', () => {
+    process.env['GITHUB_SERVER_URL'] = 'https://my-enterprise.github.com'
+    process.env['ACTIONS_CACHE_SERVICE_V2'] = 'true'
+    process.env['ACTIONS_CACHE_URL'] = 'http://cache.com'
+    expect(cache.isFeatureAvailable()).toBe(true)
+  })
+
+  test('returns true for GHES with ACTIONS_RESULTS_URL', () => {
+    process.env['GITHUB_SERVER_URL'] = 'https://my-enterprise.github.com'
+    process.env['ACTIONS_RESULTS_URL'] = 'http://results.com'
+    expect(cache.isFeatureAvailable()).toBe(true)
+  })
 })
diff --git a/packages/cache/src/cache.ts b/packages/cache/src/cache.ts
index f7b2d193..15b064cc 100644
--- a/packages/cache/src/cache.ts
+++ b/packages/cache/src/cache.ts
@@ -57,7 +57,20 @@ function checkKey(key: string): void {
  * @returns boolean return true if Actions cache service feature is available, otherwise false
  */
 export function isFeatureAvailable(): boolean {
-  return !!process.env['ACTIONS_CACHE_URL']
+  const cacheServiceVersion = getCacheServiceVersion()
+
+  // Check availability based on cache service version
+  switch (cacheServiceVersion) {
+    case 'v2':
+      // For v2, we need ACTIONS_RESULTS_URL
+      return !!process.env['ACTIONS_RESULTS_URL']
+    case 'v1':
+    default:
+      // For v1, we need either ACTIONS_CACHE_URL or ACTIONS_RESULTS_URL
+      return !!(
+        process.env['ACTIONS_CACHE_URL'] || process.env['ACTIONS_RESULTS_URL']
+      )
+  }
 }
 
 /**
@@ -186,8 +199,8 @@ async function restoreCacheV1(
     if (typedError.name === ValidationError.name) {
       throw error
     } else {
-      // Supress all non-validation cache related errors because caching should be optional
-      core.warning(`Failed to restore: ${(error as Error).message}`)
+      // Log cache related errors
+      core.error(`Failed to restore: ${(error as Error).message}`)
     }
   } finally {
     // Try to delete the archive to save space
@@ -304,8 +317,8 @@ async function restoreCacheV2(
     if (typedError.name === ValidationError.name) {
       throw error
     } else {
-      // Supress all non-validation cache related errors because caching should be optional
-      core.warning(`Failed to restore: ${(error as Error).message}`)
+      // Log cache related errors
+      core.error(`Failed to restore: ${(error as Error).message}`)
     }
   } finally {
     try {
@@ -437,7 +450,7 @@ async function saveCacheV1(
     } else if (typedError.name === ReserveCacheError.name) {
       core.info(`Failed to save: ${typedError.message}`)
     } else {
-      core.warning(`Failed to save: ${typedError.message}`)
+      core.error(`Failed to save: ${typedError.message}`)
     }
   } finally {
     // Try to delete the archive to save space
@@ -576,7 +589,7 @@ async function saveCacheV2(
     } else if (typedError.name === ReserveCacheError.name) {
       core.info(`Failed to save: ${typedError.message}`)
     } else {
-      core.warning(`Failed to save: ${typedError.message}`)
+      core.error(`Failed to save: ${typedError.message}`)
     }
   } finally {
     // Try to delete the archive to save space