diff --git a/packages/cache/RELEASES.md b/packages/cache/RELEASES.md
index 08d484e0..140f17db 100644
--- a/packages/cache/RELEASES.md
+++ b/packages/cache/RELEASES.md
@@ -1,5 +1,9 @@
 # @actions/cache Releases
 
+### 5.0.2
+
+Fail cache saves on rate limit errors from the cache service to prevent slowing down impacted runs
+
 ### 5.0.1
 
 - Fix Node.js 24 punycode deprecation warning by updating `@azure/storage-blob` from `^12.13.0` to `^12.29.1` [#2213](https://github.com/actions/toolkit/pull/2213)
diff --git a/packages/cache/__tests__/cacheTwirpClient.test.ts b/packages/cache/__tests__/cacheTwirpClient.test.ts
new file mode 100644
index 00000000..d74bfd3a
--- /dev/null
+++ b/packages/cache/__tests__/cacheTwirpClient.test.ts
@@ -0,0 +1,174 @@
+import * as http from 'http'
+import * as net from 'net'
+import {HttpClient} from '@actions/http-client'
+import * as core from '@actions/core'
+import * as config from '../src/internal/config'
+import * as cacheUtils from '../src/internal/cacheUtils'
+import {internalCacheTwirpClient} from '../src/internal/shared/cacheTwirpClient'
+
+jest.mock('@actions/http-client')
+
+const clientOptions = {
+  maxAttempts: 5,
+  retryIntervalMs: 1,
+  retryMultiplier: 1.5
+}
+
+// noopLogs mocks the console.log and core.* functions to prevent output in the console while testing
+const noopLogs = (): void => {
+  jest.spyOn(console, 'log').mockImplementation(() => {})
+  jest.spyOn(core, 'debug').mockImplementation(() => {})
+  jest.spyOn(core, 'info').mockImplementation(() => {})
+  jest.spyOn(core, 'warning').mockImplementation(() => {})
+}
+
+describe('cacheTwirpClient', () => {
+  beforeAll(() => {
+    noopLogs()
+    jest
+      .spyOn(config, 'getCacheServiceURL')
+      .mockReturnValue('http://localhost:8080')
+    jest.spyOn(cacheUtils, 'getRuntimeToken').mockReturnValue('token')
+  })
+
+  beforeEach(() => {
+    jest.clearAllMocks()
+  })
+
+  it('should fail immediately on 429 rate limit without retrying', async () => {
+    const mockPost = jest.fn(() => {
+      const msg = new http.IncomingMessage(new net.Socket())
+      msg.statusCode = 429
+      msg.statusMessage = 'Too Many Requests'
+      return {
+        message: msg,
+        readBody: async () => {
+          return Promise.resolve(`{"ok": false}`)
+        }
+      }
+    })
+
+    ;(HttpClient as unknown as jest.Mock).mockImplementation(() => {
+      return {
+        post: mockPost
+      }
+    })
+
+    const client = internalCacheTwirpClient(clientOptions)
+    await expect(
+      client.CreateCacheEntry({
+        key: 'test-key',
+        version: 'test-version'
+      })
+    ).rejects.toThrow(
+      'Failed to CreateCacheEntry: Rate limited: Failed request: (429) Too Many Requests'
+    )
+
+    // Should only be called once - no retries for 429
+    expect(mockPost).toHaveBeenCalledTimes(1)
+  })
+
+  it('should log warning with retry-after header on 429', async () => {
+    const warningSpy = jest.spyOn(core, 'warning')
+
+    const mockPost = jest.fn(() => {
+      const msg = new http.IncomingMessage(new net.Socket())
+      msg.statusCode = 429
+      msg.statusMessage = 'Too Many Requests'
+      msg.headers = {'retry-after': '60'}
+      return {
+        message: msg,
+        readBody: async () => {
+          return Promise.resolve(`{"ok": false}`)
+        }
+      }
+    })
+
+    ;(HttpClient as unknown as jest.Mock).mockImplementation(() => {
+      return {
+        post: mockPost
+      }
+    })
+
+    const client = internalCacheTwirpClient(clientOptions)
+    await expect(
+      client.CreateCacheEntry({
+        key: 'test-key',
+        version: 'test-version'
+      })
+    ).rejects.toThrow('Rate limited')
+
+    expect(mockPost).toHaveBeenCalledTimes(1)
+    expect(warningSpy).toHaveBeenCalledWith(
+      "You've hit a rate limit, your rate limit will reset in 60 seconds"
+    )
+  })
+
+  it('should not log warning if retry-after header is missing on 429', async () => {
+    const warningSpy = jest.spyOn(core, 'warning')
+
+    const mockPost = jest.fn(() => {
+      const msg = new http.IncomingMessage(new net.Socket())
+      msg.statusCode = 429
+      msg.statusMessage = 'Too Many Requests'
+      // No retry-after header
+      return {
+        message: msg,
+        readBody: async () => {
+          return Promise.resolve(`{"ok": false}`)
+        }
+      }
+    })
+
+    ;(HttpClient as unknown as jest.Mock).mockImplementation(() => {
+      return {
+        post: mockPost
+      }
+    })
+
+    const client = internalCacheTwirpClient(clientOptions)
+    await expect(
+      client.CreateCacheEntry({
+        key: 'test-key',
+        version: 'test-version'
+      })
+    ).rejects.toThrow('Rate limited')
+
+    expect(mockPost).toHaveBeenCalledTimes(1)
+    expect(warningSpy).not.toHaveBeenCalled()
+  })
+
+  it('should not log warning if retry-after header is invalid on 429', async () => {
+    const warningSpy = jest.spyOn(core, 'warning')
+
+    const mockPost = jest.fn(() => {
+      const msg = new http.IncomingMessage(new net.Socket())
+      msg.statusCode = 429
+      msg.statusMessage = 'Too Many Requests'
+      msg.headers = {'retry-after': 'invalid'}
+      return {
+        message: msg,
+        readBody: async () => {
+          return Promise.resolve(`{"ok": false}`)
+        }
+      }
+    })
+
+    ;(HttpClient as unknown as jest.Mock).mockImplementation(() => {
+      return {
+        post: mockPost
+      }
+    })
+
+    const client = internalCacheTwirpClient(clientOptions)
+    await expect(
+      client.CreateCacheEntry({
+        key: 'test-key',
+        version: 'test-version'
+      })
+    ).rejects.toThrow('Rate limited')
+
+    expect(mockPost).toHaveBeenCalledTimes(1)
+    expect(warningSpy).not.toHaveBeenCalled()
+  })
+})
diff --git a/packages/cache/src/internal/shared/cacheTwirpClient.ts b/packages/cache/src/internal/shared/cacheTwirpClient.ts
index ade1b8c9..72bd6c0a 100644
--- a/packages/cache/src/internal/shared/cacheTwirpClient.ts
+++ b/packages/cache/src/internal/shared/cacheTwirpClient.ts
@@ -136,6 +136,11 @@ class CacheServiceClient implements Rpc {
           throw new NetworkError(error?.code)
         }
 
+        // Re-throw rate limit errors without retry
+        if (error.message?.startsWith('Rate limited:')) {
+          throw error
+        }
+
         isRetryable = true
         errorMessage = error.message
       }