diff --git a/packages/cache/RELEASES.md b/packages/cache/RELEASES.md
index dc3901f9..201b1a8d 100644
--- a/packages/cache/RELEASES.md
+++ b/packages/cache/RELEASES.md
@@ -36,4 +36,7 @@
 
 ### 1.0.6
 - Make caching more verbose [#650](https://github.com/actions/toolkit/pull/650)
-- Use GNU tar on macOS if available [#701](https://github.com/actions/toolkit/pull/701)
\ No newline at end of file
+- Use GNU tar on macOS if available [#701](https://github.com/actions/toolkit/pull/701)
+
+### 1.0.7
+- Fixes permissions issue extracting archives with GNU tar on macOS ([issue](https://github.com/actions/cache/issues/527))
diff --git a/packages/cache/__tests__/tar.test.ts b/packages/cache/__tests__/tar.test.ts
index 3f7a1b3b..fa81af95 100644
--- a/packages/cache/__tests__/tar.test.ts
+++ b/packages/cache/__tests__/tar.test.ts
@@ -11,6 +11,7 @@ jest.mock('@actions/exec')
 jest.mock('@actions/io')
 
 const IS_WINDOWS = process.platform === 'win32'
+const IS_MAC = process.platform === 'darwin'
 
 const defaultTarPath = process.platform === 'darwin' ? 'gtar' : 'tar'
 
@@ -55,7 +56,9 @@ test('zstd extract tar', async () => {
       '-P',
       '-C',
       IS_WINDOWS ? workspace?.replace(/\\/g, '/') : workspace
-    ].concat(IS_WINDOWS ? ['--force-local'] : []),
+    ]
+      .concat(IS_WINDOWS ? ['--force-local'] : [])
+      .concat(IS_MAC ? ['--delay-directory-restore'] : []),
     {cwd: undefined}
   )
 })
@@ -84,7 +87,7 @@ test('gzip extract tar', async () => {
       '-P',
       '-C',
       IS_WINDOWS ? workspace?.replace(/\\/g, '/') : workspace
-    ],
+    ].concat(IS_MAC ? ['--delay-directory-restore'] : []),
     {cwd: undefined}
   )
 })
@@ -145,7 +148,9 @@ test('zstd create tar', async () => {
       IS_WINDOWS ? workspace?.replace(/\\/g, '/') : workspace,
       '--files-from',
       'manifest.txt'
-    ].concat(IS_WINDOWS ? ['--force-local'] : []),
+    ]
+      .concat(IS_WINDOWS ? ['--force-local'] : [])
+      .concat(IS_MAC ? ['--delay-directory-restore'] : []),
     {
       cwd: archiveFolder
     }
@@ -180,7 +185,7 @@ test('gzip create tar', async () => {
       IS_WINDOWS ? workspace?.replace(/\\/g, '/') : workspace,
       '--files-from',
       'manifest.txt'
-    ],
+    ].concat(IS_MAC ? ['--delay-directory-restore'] : []),
     {
       cwd: archiveFolder
     }
@@ -205,7 +210,9 @@ test('zstd list tar', async () => {
       '-tf',
       IS_WINDOWS ? archivePath.replace(/\\/g, '/') : archivePath,
       '-P'
-    ].concat(IS_WINDOWS ? ['--force-local'] : []),
+    ]
+      .concat(IS_WINDOWS ? ['--force-local'] : [])
+      .concat(IS_MAC ? ['--delay-directory-restore'] : []),
     {cwd: undefined}
   )
 })
@@ -228,7 +235,9 @@ test('zstdWithoutLong list tar', async () => {
       '-tf',
       IS_WINDOWS ? archivePath.replace(/\\/g, '/') : archivePath,
       '-P'
-    ].concat(IS_WINDOWS ? ['--force-local'] : []),
+    ]
+      .concat(IS_WINDOWS ? ['--force-local'] : [])
+      .concat(IS_MAC ? ['--delay-directory-restore'] : []),
     {cwd: undefined}
   )
 })
@@ -252,7 +261,7 @@ test('gzip list tar', async () => {
       '-tf',
       IS_WINDOWS ? archivePath.replace(/\\/g, '/') : archivePath,
       '-P'
-    ],
+    ].concat(IS_MAC ? ['--delay-directory-restore'] : []),
     {cwd: undefined}
   )
 })
diff --git a/packages/cache/package-lock.json b/packages/cache/package-lock.json
index ab004147..a1a9f8d3 100644
--- a/packages/cache/package-lock.json
+++ b/packages/cache/package-lock.json
@@ -1,6 +1,6 @@
 {
   "name": "@actions/cache",
-  "version": "1.0.6",
+  "version": "1.0.7",
   "lockfileVersion": 1,
   "requires": true,
   "dependencies": {
diff --git a/packages/cache/package.json b/packages/cache/package.json
index 62dd2bea..7b03e2f5 100644
--- a/packages/cache/package.json
+++ b/packages/cache/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@actions/cache",
-  "version": "1.0.6",
+  "version": "1.0.7",
   "preview": true,
   "description": "Actions cache lib",
   "keywords": [
diff --git a/packages/cache/src/internal/tar.ts b/packages/cache/src/internal/tar.ts
index 1b70dac0..fbea7c2e 100644
--- a/packages/cache/src/internal/tar.ts
+++ b/packages/cache/src/internal/tar.ts
@@ -26,6 +26,8 @@ async function getTarPath(
     case 'darwin': {
       const gnuTar = await io.which('gtar', false)
       if (gnuTar) {
+        // fix permission denied errors when extracting BSD tar archive with GNU tar - https://github.com/actions/cache/issues/527
+        args.push('--delay-directory-restore')
         return gnuTar
       }
       break