diff --git a/packages/cache/__tests__/saveCacheV2.test.ts b/packages/cache/__tests__/saveCacheV2.test.ts
new file mode 100644
index 00000000..fdbf596f
--- /dev/null
+++ b/packages/cache/__tests__/saveCacheV2.test.ts
@@ -0,0 +1,311 @@
+import * as core from '@actions/core'
+import * as path from 'path'
+import { saveCache } from '../src/cache'
+import * as cacheUtils from '../src/internal/cacheUtils'
+import { CacheFilename, CompressionMethod } from '../src/internal/constants'
+import * as config from '../src/internal/config'
+import * as tar from '../src/internal/tar'
+import { CacheServiceClientJSON } from '../src/generated/results/api/v1/cache.twirp'
+import * as uploadCacheModule from '../src/internal/blob/upload-cache'
+import { BlobUploadCommonResponse } from '@azure/storage-blob'
+
+let logDebugMock: jest.SpyInstance
+
+jest.mock('../src/internal/cacheUtils')
+jest.mock('../src/internal/tar')
+
+beforeAll(() => {
+  process.env['ACTIONS_RUNTIME_TOKEN'] = 'token'
+  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)
+  })
+  jest.spyOn(cacheUtils, 'getCacheVersion').mockImplementation((paths, cm) => {
+    const actualUtils = jest.requireActual('../src/internal/cacheUtils')
+    return actualUtils.getCacheVersion(paths, cm)
+  })
+  jest.spyOn(cacheUtils, 'resolvePaths').mockImplementation(async filePaths => {
+    return filePaths.map(x => path.resolve(x))
+  })
+  jest.spyOn(cacheUtils, 'createTempDirectory').mockImplementation(async () => {
+    return Promise.resolve('/foo/bar')
+  })
+
+  // Ensure that we're using v2 for these tests
+  jest.spyOn(config, 'getCacheServiceVersion').mockReturnValue('v2')
+
+  logDebugMock = jest.spyOn(core, 'debug')
+})
+
+afterEach(() => {
+  expect(logDebugMock).toHaveBeenCalledWith('Cache service version: v2')
+  jest.clearAllMocks()
+})
+
+test('save with missing input should fail', async () => {
+  const paths: string[] = []
+  const primaryKey = 'Linux-node-bb828da54c148048dd17899ba9fda624811cfb43'
+
+  await expect(saveCache(paths, primaryKey)).rejects.toThrowError(
+    `Path Validation Error: At least one directory or file path is required`
+  )
+})
+
+test('save with large cache outputs should fail using v2 saveCache', async () => {
+  const filePath = 'node_modules'
+  const primaryKey = 'Linux-node-bb828da54c148048dd17899ba9fda624811cfb43'
+  const cachePaths = [path.resolve(filePath)]
+
+  const createTarMock = jest.spyOn(tar, 'createTar')
+  const logWarningMock = jest.spyOn(core, 'warning')
+
+  const cacheSize = 11 * 1024 * 1024 * 1024 //~11GB, over the 10GB limit
+  jest
+    .spyOn(cacheUtils, 'getArchiveFileSizeInBytes')
+    .mockReturnValueOnce(cacheSize)
+  const compression = CompressionMethod.Gzip
+  const getCompressionMock = jest
+    .spyOn(cacheUtils, 'getCompressionMethod')
+    .mockReturnValueOnce(Promise.resolve(compression))
+
+  const cacheId = await saveCache([filePath], primaryKey)
+  expect(cacheId).toBe(-1)
+  expect(logWarningMock).toHaveBeenCalledTimes(1)
+  expect(logWarningMock).toHaveBeenCalledWith(
+    'Failed to save: Cache size of ~11264 MB (11811160064 B) is over the 10GB limit, not saving cache.'
+  )
+
+  const archiveFolder = '/foo/bar'
+
+  expect(createTarMock).toHaveBeenCalledTimes(1)
+  expect(createTarMock).toHaveBeenCalledWith(
+    archiveFolder,
+    cachePaths,
+    compression
+  )
+  expect(getCompressionMock).toHaveBeenCalledTimes(1)
+})
+
+test('create cache entry failure', async () => {
+  const paths = ['node_modules']
+  const primaryKey = 'Linux-node-bb828da54c148048dd17899ba9fda624811cfb43'
+  const infoLogMock = jest.spyOn(core, 'info')
+
+  const createCacheEntryMock = jest
+    .spyOn(CacheServiceClientJSON.prototype, 'CreateCacheEntry')
+    .mockReturnValue(Promise.resolve({ ok: false, signedUploadUrl: '' }))
+
+  const createTarMock = jest.spyOn(tar, 'createTar')
+  const finalizeCacheEntryMock = jest.spyOn(
+    CacheServiceClientJSON.prototype,
+    'FinalizeCacheEntryUpload'
+  )
+  const compression = CompressionMethod.Zstd
+  const getCompressionMock = jest
+    .spyOn(cacheUtils, 'getCompressionMethod')
+    .mockReturnValueOnce(Promise.resolve(compression))
+  const cacheVersion = cacheUtils.getCacheVersion(paths, compression)
+  const uploadCacheFileMock = jest
+    .spyOn(uploadCacheModule, 'uploadCacheFile')
+    .mockReturnValue(
+      Promise.resolve({
+        _response: {
+          status: 200
+        }
+      } as BlobUploadCommonResponse)
+    )
+
+  const cacheId = await saveCache(paths, primaryKey)
+  expect(cacheId).toBe(-1)
+  expect(infoLogMock).toHaveBeenCalledTimes(1)
+  expect(infoLogMock).toHaveBeenCalledWith(
+    `Failed to save: Unable to reserve cache with key ${primaryKey}, another job may be creating this cache.`
+  )
+
+  expect(createCacheEntryMock).toHaveBeenCalledTimes(1)
+  expect(createCacheEntryMock).toHaveBeenCalledWith({
+    key: primaryKey,
+    version: cacheVersion
+  })
+  expect(createTarMock).toHaveBeenCalledTimes(1)
+  expect(getCompressionMock).toHaveBeenCalledTimes(1)
+  expect(finalizeCacheEntryMock).toHaveBeenCalledTimes(0)
+  expect(uploadCacheFileMock).toHaveBeenCalledTimes(0)
+})
+
+test('finalize save cache failure', async () => {
+  const filePath = 'node_modules'
+  const primaryKey = 'Linux-node-bb828da54c148048dd17899ba9fda624811cfb43'
+  const cachePaths = [path.resolve(filePath)]
+  const logWarningMock = jest.spyOn(core, 'warning')
+  const signedUploadURL = 'https://blob-storage.local?signed=true'
+
+  const createCacheEntryMock = jest
+    .spyOn(CacheServiceClientJSON.prototype, 'CreateCacheEntry')
+    .mockReturnValue(
+      Promise.resolve({ ok: true, signedUploadUrl: signedUploadURL })
+    )
+
+  const createTarMock = jest.spyOn(tar, 'createTar')
+
+  const uploadCacheMock = jest.spyOn(uploadCacheModule, 'uploadCacheFile')
+  uploadCacheMock.mockReturnValue(
+    Promise.resolve({
+      _response: {
+        status: 200
+      }
+    } as BlobUploadCommonResponse)
+  )
+
+  const compression = CompressionMethod.Zstd
+  const getCompressionMock = jest
+    .spyOn(cacheUtils, 'getCompressionMethod')
+    .mockReturnValueOnce(Promise.resolve(compression))
+
+  const cacheVersion = cacheUtils.getCacheVersion([filePath], compression)
+  const archiveFileSize = 1024
+  jest
+    .spyOn(cacheUtils, 'getArchiveFileSizeInBytes')
+    .mockReturnValueOnce(archiveFileSize)
+
+  const finalizeCacheEntryMock = jest
+    .spyOn(CacheServiceClientJSON.prototype, 'FinalizeCacheEntryUpload')
+    .mockReturnValue(Promise.resolve({ ok: false, entryId: '' }))
+
+  const cacheId = await saveCache([filePath], primaryKey)
+
+  expect(createCacheEntryMock).toHaveBeenCalledTimes(1)
+  expect(createCacheEntryMock).toHaveBeenCalledWith({
+    key: primaryKey,
+    version: cacheVersion
+  })
+
+  const archiveFolder = '/foo/bar'
+  const archiveFile = path.join(archiveFolder, CacheFilename.Zstd)
+  expect(createTarMock).toHaveBeenCalledTimes(1)
+  expect(createTarMock).toHaveBeenCalledWith(
+    archiveFolder,
+    cachePaths,
+    compression
+  )
+
+  expect(uploadCacheMock).toHaveBeenCalledTimes(1)
+  expect(uploadCacheMock).toHaveBeenCalledWith(signedUploadURL, archiveFile)
+  expect(getCompressionMock).toHaveBeenCalledTimes(1)
+
+  expect(finalizeCacheEntryMock).toHaveBeenCalledTimes(1)
+  expect(finalizeCacheEntryMock).toHaveBeenCalledWith({
+    key: primaryKey,
+    version: cacheVersion,
+    sizeBytes: archiveFileSize.toString()
+  })
+
+  expect(cacheId).toBe(-1)
+  expect(logWarningMock).toHaveBeenCalledTimes(1)
+  expect(logWarningMock).toHaveBeenCalledWith(
+    `Failed to save: Unable to finalize cache with key ${primaryKey}, another job may be finalizing this cache.`
+  )
+})
+
+test('save with uploadCache Server error will fail', async () => {
+  const filePath = 'node_modules'
+  const primaryKey = 'Linux-node-bb828da54c148048dd17899ba9fda624811cfb43'
+  const logWarningMock = jest.spyOn(core, 'warning')
+  const signedUploadURL = 'https://signed-upload-url.com'
+  jest
+    .spyOn(CacheServiceClientJSON.prototype, 'CreateCacheEntry')
+    .mockReturnValue(
+      Promise.resolve({ ok: true, signedUploadUrl: signedUploadURL })
+    )
+
+  jest
+    .spyOn(uploadCacheModule, 'uploadCacheFile')
+    .mockReturnValueOnce(Promise.reject(new Error('HTTP Error Occurred')))
+
+  const cacheId = await saveCache([filePath], primaryKey)
+
+  expect(logWarningMock).toHaveBeenCalledTimes(1)
+  expect(logWarningMock).toHaveBeenCalledWith(
+    `Failed to save: HTTP Error Occurred`
+  )
+  expect(cacheId).toBe(-1)
+})
+
+test('save with valid inputs uploads a cache', async () => {
+  const filePath = 'node_modules'
+  const primaryKey = 'Linux-node-bb828da54c148048dd17899ba9fda624811cfb43'
+  const cachePaths = [path.resolve(filePath)]
+  const signedUploadURL = 'https://blob-storage.local?signed=true'
+  const createTarMock = jest.spyOn(tar, 'createTar')
+
+  const archiveFileSize = 1024
+  jest
+    .spyOn(cacheUtils, 'getArchiveFileSizeInBytes')
+    .mockReturnValueOnce(archiveFileSize)
+
+  const cacheId = 4
+  jest
+    .spyOn(CacheServiceClientJSON.prototype, 'CreateCacheEntry')
+    .mockReturnValue(
+      Promise.resolve({ ok: true, signedUploadUrl: signedUploadURL })
+    )
+
+  const uploadCacheMock = jest
+    .spyOn(uploadCacheModule, 'uploadCacheFile')
+    .mockReturnValue(
+      Promise.resolve({
+        _response: {
+          status: 200
+        }
+      } as BlobUploadCommonResponse)
+    )
+
+  const compression = CompressionMethod.Zstd
+  const getCompressionMock = jest
+    .spyOn(cacheUtils, 'getCompressionMethod')
+    .mockReturnValue(Promise.resolve(compression))
+  const cacheVersion = cacheUtils.getCacheVersion([filePath], compression)
+
+  const finalizeCacheEntryMock = jest
+    .spyOn(CacheServiceClientJSON.prototype, 'FinalizeCacheEntryUpload')
+    .mockReturnValue(Promise.resolve({ ok: true, entryId: cacheId.toString() }))
+
+  const expectedCacheId = await saveCache([filePath], primaryKey)
+
+  const archiveFolder = '/foo/bar'
+  const archiveFile = path.join(archiveFolder, CacheFilename.Zstd)
+  expect(uploadCacheMock).toHaveBeenCalledTimes(1)
+  expect(uploadCacheMock).toHaveBeenCalledWith(signedUploadURL, archiveFile)
+  expect(createTarMock).toHaveBeenCalledTimes(1)
+  expect(createTarMock).toHaveBeenCalledWith(
+    archiveFolder,
+    cachePaths,
+    compression
+  )
+
+  expect(finalizeCacheEntryMock).toHaveBeenCalledTimes(1)
+  expect(finalizeCacheEntryMock).toHaveBeenCalledWith({
+    key: primaryKey,
+    version: cacheVersion,
+    sizeBytes: archiveFileSize.toString()
+  })
+
+  expect(getCompressionMock).toHaveBeenCalledTimes(1)
+  expect(expectedCacheId).toBe(cacheId)
+})
+
+test('save with non existing path should not save cache using v2 saveCache', async () => {
+  const path = 'node_modules'
+  const primaryKey = 'Linux-node-bb828da54c148048dd17899ba9fda624811cfb43'
+  jest.spyOn(cacheUtils, 'resolvePaths').mockImplementation(async () => {
+    return []
+  })
+  await expect(saveCache([path], primaryKey)).rejects.toThrowError(
+    `Path Validation Error: Path(s) specified in the action for caching do(es) not exist, hence no cache is being saved.`
+  )
+})
diff --git a/packages/cache/src/cache.ts b/packages/cache/src/cache.ts
index 8b7a8d02..53813f85 100644
--- a/packages/cache/src/cache.ts
+++ b/packages/cache/src/cache.ts
@@ -328,10 +328,10 @@ export async function saveCache(
   options?: UploadOptions,
   enableCrossOsArchive = false
 ): Promise<number> {
+  const cacheServiceVersion: string = getCacheServiceVersion()
+  core.debug(`Cache service version: ${cacheServiceVersion}`)
   checkPaths(paths)
   checkKey(key)
-
-  const cacheServiceVersion: string = getCacheServiceVersion()
   switch (cacheServiceVersion) {
     case 'v2':
       return await saveCacheV2(paths, key, options, enableCrossOsArchive)
diff --git a/packages/cache/src/internal/blob/upload-cache.ts b/packages/cache/src/internal/blob/upload-cache.ts
index 15c913ed..a171c9da 100644
--- a/packages/cache/src/internal/blob/upload-cache.ts
+++ b/packages/cache/src/internal/blob/upload-cache.ts
@@ -1,6 +1,7 @@
 import * as core from '@actions/core'
 import {
   BlobClient,
+  BlobUploadCommonResponse,
   BlockBlobClient,
   BlockBlobParallelUploadOptions
 } from '@azure/storage-blob'
@@ -8,7 +9,7 @@ import {
 export async function uploadCacheFile(
   signedUploadURL: string,
   archivePath: string
-): Promise<{}> {
+): Promise<BlobUploadCommonResponse> {
   // Specify data transfer options
   const uploadOptions: BlockBlobParallelUploadOptions = {
     blockSize: 4 * 1024 * 1024, // 4 MiB max block size