diff --git a/packages/cache/__tests__/restoreCacheV2.test.ts b/packages/cache/__tests__/restoreCacheV2.test.ts
new file mode 100644
index 0000000000..87b2d1d0fc
--- /dev/null
+++ b/packages/cache/__tests__/restoreCacheV2.test.ts
@@ -0,0 +1,327 @@
+import * as core from '@actions/core'
+import * as path from 'path'
+import * as tar from '../src/internal/tar'
+import * as config from '../src/internal/config'
+import * as cacheUtils from '../src/internal/cacheUtils'
+import * as cacheHttpClient from '../src/internal/cacheHttpClient'
+import { restoreCache } from '../src/cache'
+import { CacheFilename, CompressionMethod } from '../src/internal/constants'
+import { ArtifactCacheEntry } from '../src/internal/contracts'
+import { CacheServiceClientJSON } from '../src/generated/results/api/v1/cache.twirp'
+
+jest.mock('../src/internal/cacheHttpClient')
+jest.mock('../src/internal/cacheUtils')
+jest.mock('../src/internal/config')
+jest.mock('../src/internal/tar')
+
+beforeAll(() => {
+    jest.spyOn(console, 'log').mockImplementation(() => { })
+    jest.spyOn(core, 'debug').mockImplementation(() => { })
+    jest.spyOn(core, 'info').mockImplementation(() => { })
+    jest.spyOn(core, 'warning').mockImplementation(() => { })
+    jest.spyOn(core, 'error').mockImplementation(() => { })
+
+    jest.spyOn(cacheUtils, 'getCacheFileName').mockImplementation(cm => {
+        const actualUtils = jest.requireActual('../src/internal/cacheUtils')
+        return actualUtils.getCacheFileName(cm)
+    })
+
+    // Ensure that we're using v2 for these tests
+    jest.spyOn(config, 'getCacheServiceVersion').mockReturnValue('v2')
+})
+
+test('restore with no path should fail', async () => {
+    const paths: string[] = []
+    const key = 'node-test'
+    await expect(restoreCache(paths, key)).rejects.toThrowError(
+        `Path Validation Error: At least one directory or file path is required`
+    )
+})
+
+test('restore with too many keys should fail', async () => {
+    const paths = ['node_modules']
+    const key = 'node-test'
+    const restoreKeys = [...Array(20).keys()].map(x => x.toString())
+    await expect(restoreCache(paths, key, restoreKeys)).rejects.toThrowError(
+        `Key Validation Error: Keys are limited to a maximum of 10.`
+    )
+})
+
+test('restore with large key should fail', async () => {
+    const paths = ['node_modules']
+    const key = 'foo'.repeat(512) // Over the 512 character limit
+    await expect(restoreCache(paths, key)).rejects.toThrowError(
+        `Key Validation Error: ${key} cannot be larger than 512 characters.`
+    )
+})
+
+test('restore with invalid key should fail', async () => {
+    const paths = ['node_modules']
+    const key = 'comma,comma'
+    await expect(restoreCache(paths, key)).rejects.toThrowError(
+        `Key Validation Error: ${key} cannot contain commas.`
+    )
+})
+
+test('restore with no cache found', async () => {
+    const paths = ['node_modules']
+    const key = 'node-test'
+
+    jest
+        .spyOn(CacheServiceClientJSON.prototype, 'GetCacheEntryDownloadURL')
+        .mockReturnValue(Promise.resolve({ ok: false, signedDownloadUrl: '' }))
+
+    const cacheKey = await restoreCache(paths, key)
+
+    expect(cacheKey).toBe(undefined)
+})
+
+test('restore with server error should fail', async () => {
+    const paths = ['node_modules']
+    const key = 'node-test'
+    const logWarningMock = jest.spyOn(core, 'warning')
+
+    jest
+        .spyOn(CacheServiceClientJSON.prototype, 'GetCacheEntryDownloadURL')
+        .mockImplementation(() => {
+            throw new Error('HTTP Error Occurred')
+        })
+
+    const cacheKey = await restoreCache(paths, key)
+    expect(cacheKey).toBe(undefined)
+    expect(logWarningMock).toHaveBeenCalledTimes(1)
+    expect(logWarningMock).toHaveBeenCalledWith(
+        'Failed to restore: HTTP Error Occurred'
+    )
+})
+
+// test('restore with restore keys and no cache found', async () => {
+//     const paths = ['node_modules']
+//     const key = 'node-test'
+//     const restoreKey = 'node-'
+
+//     jest
+//         .spyOn(CacheServiceClientJSON.prototype, 'GetCacheEntryDownloadURL')
+//         .mockImplementation(() => {
+//             return Promise.resolve(null)
+//         })
+//     jest.spyOn(cacheHttpClient, 'getCacheEntry').mockImplementation(async () => {
+//         return Promise.resolve(null)
+//     })
+
+//     const cacheKey = await restoreCache(paths, key, [restoreKey])
+
+//     expect(cacheKey).toBe(undefined)
+// })
+
+// test('restore with gzip compressed cache found', async () => {
+//     const paths = ['node_modules']
+//     const key = 'node-test'
+
+//     const cacheEntry: ArtifactCacheEntry = {
+//         cacheKey: key,
+//         scope: 'refs/heads/main',
+//         archiveLocation: 'www.actionscache.test/download'
+//     }
+//     const getCacheMock = jest.spyOn(cacheHttpClient, 'getCacheEntry')
+//     getCacheMock.mockImplementation(async () => {
+//         return Promise.resolve(cacheEntry)
+//     })
+
+//     const tempPath = '/foo/bar'
+
+//     const createTempDirectoryMock = jest.spyOn(cacheUtils, 'createTempDirectory')
+//     createTempDirectoryMock.mockImplementation(async () => {
+//         return Promise.resolve(tempPath)
+//     })
+
+//     const archivePath = path.join(tempPath, CacheFilename.Gzip)
+//     const downloadCacheMock = jest.spyOn(cacheHttpClient, 'downloadCache')
+
+//     const fileSize = 142
+//     const getArchiveFileSizeInBytesMock = jest
+//         .spyOn(cacheUtils, 'getArchiveFileSizeInBytes')
+//         .mockReturnValue(fileSize)
+
+//     const extractTarMock = jest.spyOn(tar, 'extractTar')
+//     const unlinkFileMock = jest.spyOn(cacheUtils, 'unlinkFile')
+
+//     const compression = CompressionMethod.Gzip
+//     const getCompressionMock = jest
+//         .spyOn(cacheUtils, 'getCompressionMethod')
+//         .mockReturnValue(Promise.resolve(compression))
+
+//     const cacheKey = await restoreCache(paths, key)
+
+//     expect(cacheKey).toBe(key)
+//     expect(getCacheMock).toHaveBeenCalledWith([key], paths, {
+//         compressionMethod: compression,
+//         enableCrossOsArchive: false
+//     })
+//     expect(createTempDirectoryMock).toHaveBeenCalledTimes(1)
+//     expect(downloadCacheMock).toHaveBeenCalledWith(
+//         cacheEntry.archiveLocation,
+//         archivePath,
+//         undefined
+//     )
+//     expect(getArchiveFileSizeInBytesMock).toHaveBeenCalledWith(archivePath)
+
+//     expect(extractTarMock).toHaveBeenCalledTimes(1)
+//     expect(extractTarMock).toHaveBeenCalledWith(archivePath, compression)
+
+//     expect(unlinkFileMock).toHaveBeenCalledTimes(1)
+//     expect(unlinkFileMock).toHaveBeenCalledWith(archivePath)
+
+//     expect(getCompressionMock).toHaveBeenCalledTimes(1)
+// })
+
+// test('restore with zstd compressed cache found', async () => {
+//     const paths = ['node_modules']
+//     const key = 'node-test'
+
+//     const infoMock = jest.spyOn(core, 'info')
+
+//     const cacheEntry: ArtifactCacheEntry = {
+//         cacheKey: key,
+//         scope: 'refs/heads/main',
+//         archiveLocation: 'www.actionscache.test/download'
+//     }
+//     const getCacheMock = jest.spyOn(cacheHttpClient, 'getCacheEntry')
+//     getCacheMock.mockImplementation(async () => {
+//         return Promise.resolve(cacheEntry)
+//     })
+//     const tempPath = '/foo/bar'
+
+//     const createTempDirectoryMock = jest.spyOn(cacheUtils, 'createTempDirectory')
+//     createTempDirectoryMock.mockImplementation(async () => {
+//         return Promise.resolve(tempPath)
+//     })
+
+//     const archivePath = path.join(tempPath, CacheFilename.Zstd)
+//     const downloadCacheMock = jest.spyOn(cacheHttpClient, 'downloadCache')
+
+//     const fileSize = 62915000
+//     const getArchiveFileSizeInBytesMock = jest
+//         .spyOn(cacheUtils, 'getArchiveFileSizeInBytes')
+//         .mockReturnValue(fileSize)
+
+//     const extractTarMock = jest.spyOn(tar, 'extractTar')
+//     const compression = CompressionMethod.Zstd
+//     const getCompressionMock = jest
+//         .spyOn(cacheUtils, 'getCompressionMethod')
+//         .mockReturnValue(Promise.resolve(compression))
+
+//     const cacheKey = await restoreCache(paths, key)
+
+//     expect(cacheKey).toBe(key)
+//     expect(getCacheMock).toHaveBeenCalledWith([key], paths, {
+//         compressionMethod: compression,
+//         enableCrossOsArchive: false
+//     })
+//     expect(createTempDirectoryMock).toHaveBeenCalledTimes(1)
+//     expect(downloadCacheMock).toHaveBeenCalledWith(
+//         cacheEntry.archiveLocation,
+//         archivePath,
+//         undefined
+//     )
+//     expect(getArchiveFileSizeInBytesMock).toHaveBeenCalledWith(archivePath)
+//     expect(infoMock).toHaveBeenCalledWith(`Cache Size: ~60 MB (62915000 B)`)
+
+//     expect(extractTarMock).toHaveBeenCalledTimes(1)
+//     expect(extractTarMock).toHaveBeenCalledWith(archivePath, compression)
+//     expect(getCompressionMock).toHaveBeenCalledTimes(1)
+// })
+
+// test('restore with cache found for restore key', async () => {
+//     const paths = ['node_modules']
+//     const key = 'node-test'
+//     const restoreKey = 'node-'
+
+//     const infoMock = jest.spyOn(core, 'info')
+
+//     const cacheEntry: ArtifactCacheEntry = {
+//         cacheKey: restoreKey,
+//         scope: 'refs/heads/main',
+//         archiveLocation: 'www.actionscache.test/download'
+//     }
+//     const getCacheMock = jest.spyOn(cacheHttpClient, 'getCacheEntry')
+//     getCacheMock.mockImplementation(async () => {
+//         return Promise.resolve(cacheEntry)
+//     })
+//     const tempPath = '/foo/bar'
+
+//     const createTempDirectoryMock = jest.spyOn(cacheUtils, 'createTempDirectory')
+//     createTempDirectoryMock.mockImplementation(async () => {
+//         return Promise.resolve(tempPath)
+//     })
+
+//     const archivePath = path.join(tempPath, CacheFilename.Zstd)
+//     const downloadCacheMock = jest.spyOn(cacheHttpClient, 'downloadCache')
+
+//     const fileSize = 142
+//     const getArchiveFileSizeInBytesMock = jest
+//         .spyOn(cacheUtils, 'getArchiveFileSizeInBytes')
+//         .mockReturnValue(fileSize)
+
+//     const extractTarMock = jest.spyOn(tar, 'extractTar')
+//     const compression = CompressionMethod.Zstd
+//     const getCompressionMock = jest
+//         .spyOn(cacheUtils, 'getCompressionMethod')
+//         .mockReturnValue(Promise.resolve(compression))
+
+//     const cacheKey = await restoreCache(paths, key, [restoreKey])
+
+//     expect(cacheKey).toBe(restoreKey)
+//     expect(getCacheMock).toHaveBeenCalledWith([key, restoreKey], paths, {
+//         compressionMethod: compression,
+//         enableCrossOsArchive: false
+//     })
+//     expect(createTempDirectoryMock).toHaveBeenCalledTimes(1)
+//     expect(downloadCacheMock).toHaveBeenCalledWith(
+//         cacheEntry.archiveLocation,
+//         archivePath,
+//         undefined
+//     )
+//     expect(getArchiveFileSizeInBytesMock).toHaveBeenCalledWith(archivePath)
+//     expect(infoMock).toHaveBeenCalledWith(`Cache Size: ~0 MB (142 B)`)
+
+//     expect(extractTarMock).toHaveBeenCalledTimes(1)
+//     expect(extractTarMock).toHaveBeenCalledWith(archivePath, compression)
+//     expect(getCompressionMock).toHaveBeenCalledTimes(1)
+// })
+
+// test('restore with dry run', async () => {
+//     const paths = ['node_modules']
+//     const key = 'node-test'
+//     const options = { lookupOnly: true }
+
+//     const cacheEntry: ArtifactCacheEntry = {
+//         cacheKey: key,
+//         scope: 'refs/heads/main',
+//         archiveLocation: 'www.actionscache.test/download'
+//     }
+//     const getCacheMock = jest.spyOn(cacheHttpClient, 'getCacheEntry')
+//     getCacheMock.mockImplementation(async () => {
+//         return Promise.resolve(cacheEntry)
+//     })
+
+//     const createTempDirectoryMock = jest.spyOn(cacheUtils, 'createTempDirectory')
+//     const downloadCacheMock = jest.spyOn(cacheHttpClient, 'downloadCache')
+
+//     const compression = CompressionMethod.Gzip
+//     const getCompressionMock = jest
+//         .spyOn(cacheUtils, 'getCompressionMethod')
+//         .mockReturnValue(Promise.resolve(compression))
+
+//     const cacheKey = await restoreCache(paths, key, undefined, options)
+
+//     expect(cacheKey).toBe(key)
+//     expect(getCompressionMock).toHaveBeenCalledTimes(1)
+//     expect(getCacheMock).toHaveBeenCalledWith([key], paths, {
+//         compressionMethod: compression,
+//         enableCrossOsArchive: false
+//     })
+//     // creating a tempDir and downloading the cache are skipped
+//     expect(createTempDirectoryMock).toHaveBeenCalledTimes(0)
+//     expect(downloadCacheMock).toHaveBeenCalledTimes(0)
+// })
diff --git a/packages/cache/src/cache.ts b/packages/cache/src/cache.ts
index 1450c8ace9..f9863b14b5 100644
--- a/packages/cache/src/cache.ts
+++ b/packages/cache/src/cache.ts
@@ -3,18 +3,18 @@ import * as path from 'path'
 import * as utils from './internal/cacheUtils'
 import * as cacheHttpClient from './internal/cacheHttpClient'
 import * as cacheTwirpClient from './internal/shared/cacheTwirpClient'
-import {getCacheServiceVersion, isGhes} from './internal/config'
-import {DownloadOptions, UploadOptions} from './options'
-import {createTar, extractTar, listTar} from './internal/tar'
+import { getCacheServiceVersion, isGhes } from './internal/config'
+import { DownloadOptions, UploadOptions } from './options'
+import { createTar, extractTar, listTar } from './internal/tar'
 import {
   CreateCacheEntryRequest,
   FinalizeCacheEntryUploadRequest,
   FinalizeCacheEntryUploadResponse,
   GetCacheEntryDownloadURLRequest
 } from './generated/results/api/v1/cache'
-import {CacheFileSizeLimit} from './internal/constants'
-import {uploadCacheFile} from './internal/blob/upload-cache'
-import {downloadCacheFile} from './internal/blob/download-cache'
+import { CacheFileSizeLimit } from './internal/constants'
+import { uploadCacheFile } from './internal/blob/upload-cache'
+import { downloadCacheFile } from './internal/blob/download-cache'
 export class ValidationError extends Error {
   constructor(message: string) {
     super(message)
@@ -287,7 +287,13 @@ async function restoreCacheV2(
 
     return request.key
   } catch (error) {
-    throw new Error(`Failed to restore: ${error.message}`)
+    const typedError = error as Error
+    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}`)
+    }
   } finally {
     try {
       if (archivePath) {
@@ -297,6 +303,8 @@ async function restoreCacheV2(
       core.debug(`Failed to delete archive: ${error}`)
     }
   }
+
+  return undefined
 }
 
 /**
@@ -397,9 +405,9 @@ async function saveCacheV1(
     } else if (reserveCacheResponse?.statusCode === 400) {
       throw new Error(
         reserveCacheResponse?.error?.message ??
-          `Cache size of ~${Math.round(
-            archiveFileSize / (1024 * 1024)
-          )} MB (${archiveFileSize} B) is over the data cap limit, not saving cache.`
+        `Cache size of ~${Math.round(
+          archiveFileSize / (1024 * 1024)
+        )} MB (${archiveFileSize} B) is over the data cap limit, not saving cache.`
       )
     } else {
       throw new ReserveCacheError(
@@ -525,7 +533,13 @@ async function saveCacheV2(
     cacheId = parseInt(finalizeResponse.entryId)
   } catch (error) {
     const typedError = error as Error
-    core.warning(`Failed to save: ${typedError.message}`)
+    if (typedError.name === ValidationError.name) {
+      throw error
+    } else if (typedError.name === ReserveCacheError.name) {
+      core.info(`Failed to save: ${typedError.message}`)
+    } else {
+      core.warning(`Failed to save: ${typedError.message}`)
+    }
   } finally {
     // Try to delete the archive to save space
     try {