diff --git a/packages/cache/README.md b/packages/cache/README.md
index 5fec54ae..55185032 100644
--- a/packages/cache/README.md
+++ b/packages/cache/README.md
@@ -44,6 +44,8 @@ const cacheKey = await cache.restoreCache(paths, key, restoreKeys)
 
 ##### Cache segment restore timeout
 
-A cache gets downloaded in multiple segments of fixed sizes (`1GB` for a `32-bit` runner and `2GB` for a `64-bit` runner). Sometimes, a segment download gets stuck which causes the workflow job to be stuck forever and fail. Version `v3.0.4` of cache package introduces a segment download timeout. The segment download timeout will allow the segment download to get aborted and hence allow the job to proceed with a cache miss.
+A cache gets downloaded in multiple segments of fixed sizes (now `128MB` to fail-fast, previously `1GB` for a `32-bit` runner and `2GB` for a `64-bit` runner were used). Sometimes, a segment download gets stuck which causes the workflow job to be stuck forever and fail. Version `v3.0.4` of cache package introduces a segment download timeout. The segment download timeout will allow the segment download to get aborted and hence allow the job to proceed with a cache miss.
+
+Default value of this timeout is 10 minutes (starting `v3.2.1` and higher, previously 60 minutes in versions between `v.3.0.4` and `v3.2.0`, both included) and can be customized by specifying an [environment variable](https://docs.github.com/en/actions/learn-github-actions/environment-variables) named `SEGMENT_DOWNLOAD_TIMEOUT_MINS` with timeout value in minutes.
+
 
-Default value of this timeout is 60 minutes and can be customized by specifying an [environment variable](https://docs.github.com/en/actions/learn-github-actions/environment-variables) named `SEGMENT_DOWNLOAD_TIMEOUT_MINS` with timeout value in minutes.
diff --git a/packages/cache/RELEASES.md b/packages/cache/RELEASES.md
index b1d52116..7f6ae719 100644
--- a/packages/cache/RELEASES.md
+++ b/packages/cache/RELEASES.md
@@ -5,113 +5,158 @@
 - Initial release
 
 ### 0.2.0
+
 - Fixes issues with the zstd compression algorithm on Windows and Ubuntu 16.04 [#469](https://github.com/actions/toolkit/pull/469)
 
 ### 0.2.1
+
 - Fix to await async function getCompressionMethod
 
 ### 1.0.0
+
 - Downloads Azure-hosted caches using the Azure SDK for speed and reliability
 - Displays download progress
 - Includes changes that break compatibility with earlier versions, including:
   - `retry`, `retryTypedResponse`, and `retryHttpClientResponse` moved from `cacheHttpClient` to `requestUtils`
 
 ### 1.0.1
+
 - Fix bug in downloading large files (> 2 GBs) with the Azure SDK
 
 ### 1.0.2
+
 - Use posix archive format to add support for some tools
 
 ### 1.0.3
+
 - Use http-client v1.0.9
 - Fixes error handling so retries are not attempted on non-retryable errors (409 Conflict, for example)
 - Adds 5 second delay between retry attempts
 
 ### 1.0.4
+
 - Use @actions/core v1.2.6
 - Fixes uploadChunk to throw an error if any unsuccessful response code is received
 
 ### 1.0.5
+
 - Fix to ensure Windows cache paths get resolved correctly
 
 ### 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)
 
 ### 1.0.7
+
 - Fixes permissions issue extracting archives with GNU tar on macOS ([issue](https://github.com/actions/cache/issues/527))
 
 ### 1.0.8
+
 - Increase the allowed artifact cache size from 5GB to 10GB ([issue](https://github.com/actions/cache/discussions/497))
 
 ### 1.0.9
-  - Use @azure/ms-rest-js v2.6.0
-  - Use @azure/storage-blob v12.8.0
+
+- Use @azure/ms-rest-js v2.6.0
+- Use @azure/storage-blob v12.8.0
 
 ### 1.0.10
+
 - Update `lockfileVersion` to `v2` in `package-lock.json [#1022](https://github.com/actions/toolkit/pull/1022)
 
 ### 1.0.11
+
 - Fix file downloads > 2GB([issue](https://github.com/actions/cache/issues/773))
 
 ### 2.0.0
+
 - Added support to check if Actions cache service feature is available or not [#1028](https://github.com/actions/toolkit/pull/1028)
 
 ### 2.0.3
+
 - Update to v2.0.0 of `@actions/http-client`
 
 ### 2.0.4
+
 - Update to v2.0.1 of `@actions/http-client` [#1087](https://github.com/actions/toolkit/pull/1087)
 
 ### 2.0.5
+
 - Fix to avoid saving empty cache when no files are available for caching. ([issue](https://github.com/actions/cache/issues/624))
 
 ### 2.0.6
+
 - Fix `Tar failed with error: The process '/usr/bin/tar' failed with exit code 1` issue when temp directory where tar is getting created is actually the subdirectory of the path mentioned by the user for caching. ([issue](https://github.com/actions/cache/issues/689))
 
 ### 3.0.0
+
 - Updated actions/cache to suppress Actions cache server error and log warning for those error  [#1122](https://github.com/actions/toolkit/pull/1122)
 
 ### 3.0.1
+
 - Fix [#833](https://github.com/actions/cache/issues/833) - cache doesn't work with github workspace directory.
 - Fix [#809](https://github.com/actions/cache/issues/809) `zstd -d: no such file or directory` error on AWS self-hosted runners.
 
 ### 3.0.2
+
 - Added 1 hour timeout for the download stuck issue [#810](https://github.com/actions/cache/issues/810).
 
 ### 3.0.3
+
 - Bug fixes for download stuck issue [#810](https://github.com/actions/cache/issues/810).
 
 ### 3.0.4
+
 - Fix zstd not working for windows on gnu tar in issues [#888](https://github.com/actions/cache/issues/888) and [#891](https://github.com/actions/cache/issues/891).
 - Allowing users to provide a custom timeout as input for aborting download of a cache segment using an environment variable `SEGMENT_DOWNLOAD_TIMEOUT_MINS`. Default is 60 minutes.
 
 ### 3.0.5
+
 - Update `@actions/cache` to use `@actions/core@^1.10.0`
 
 ### 3.0.6
+
 - Added `@azure/abort-controller` to dependencies to fix compatibility issue with ESM [#1208](https://github.com/actions/toolkit/issues/1208)
 
 ### 3.1.0-beta.1
+
 - Update actions/cache on windows to use gnu tar and zstd by default and fallback to bsdtar and zstd if gnu tar is not available. ([issue](https://github.com/actions/cache/issues/984))
 
 ### 3.1.0-beta.2
+
 - Added support for fallback to gzip to restore old caches on windows.
 
 ### 3.1.0-beta.3
+
 - Bug Fixes for fallback to gzip to restore old caches on windows and bsdtar if gnutar is not available.
 
 ### 3.1.0
+
 - Update actions/cache on windows to use gnu tar and zstd by default
 - Update actions/cache on windows to fallback to bsdtar and zstd if gnu tar is not available.
 - Added support for fallback to gzip to restore old caches on windows.
 
 ### 3.1.1
+
 - Reverted changes in 3.1.0 to fix issue with symlink restoration on windows.
 - Added support for verbose logging about cache version during cache miss.
 
 ### 3.1.2
+
 - Fix issue with symlink restoration on windows.
 
 ### 3.1.3
-- Fix to prevent from setting MYSYS environement variable globally [#1329](https://github.com/actions/toolkit/pull/1329).
\ No newline at end of file
+
+- Fix to prevent from setting MYSYS environement variable globally [#1329](https://github.com/actions/toolkit/pull/1329).
+
+### 3.1.4
+
+- Fix zstd not being used due to `zstd --version` output change in zstd 1.5.4 release. See [#1353](https://github.com/actions/toolkit/pull/1353).
+
+### 3.2.0
+
+- Add `lookupOnly` to cache restore `DownloadOptions`.
+
+### 3.2.1
+
+- Updated @azure/storage-blob to `v12.13.0`
diff --git a/packages/cache/__tests__/options.test.ts b/packages/cache/__tests__/options.test.ts
index 83d9b227..bcb478d1 100644
--- a/packages/cache/__tests__/options.test.ts
+++ b/packages/cache/__tests__/options.test.ts
@@ -8,7 +8,8 @@ import {
 const useAzureSdk = true
 const downloadConcurrency = 8
 const timeoutInMs = 30000
-const segmentTimeoutInMs = 3600000
+const segmentTimeoutInMs = 600000
+const lookupOnly = false
 const uploadConcurrency = 4
 const uploadChunkSize = 32 * 1024 * 1024
 
@@ -19,7 +20,8 @@ test('getDownloadOptions sets defaults', async () => {
     useAzureSdk,
     downloadConcurrency,
     timeoutInMs,
-    segmentTimeoutInMs
+    segmentTimeoutInMs,
+    lookupOnly
   })
 })
 
@@ -28,7 +30,8 @@ test('getDownloadOptions overrides all settings', async () => {
     useAzureSdk: false,
     downloadConcurrency: 14,
     timeoutInMs: 20000,
-    segmentTimeoutInMs: 3600000
+    segmentTimeoutInMs: 3600000,
+    lookupOnly: true
   }
 
   const actualOptions = getDownloadOptions(expectedOptions)
@@ -61,7 +64,8 @@ test('getDownloadOptions overrides download timeout minutes', async () => {
     useAzureSdk: false,
     downloadConcurrency: 14,
     timeoutInMs: 20000,
-    segmentTimeoutInMs: 3600000
+    segmentTimeoutInMs: 3600000,
+    lookupOnly: true
   }
   process.env.SEGMENT_DOWNLOAD_TIMEOUT_MINS = '10'
   const actualOptions = getDownloadOptions(expectedOptions)
@@ -72,4 +76,5 @@ test('getDownloadOptions overrides download timeout minutes', async () => {
   )
   expect(actualOptions.timeoutInMs).toEqual(expectedOptions.timeoutInMs)
   expect(actualOptions.segmentTimeoutInMs).toEqual(600000)
+  expect(actualOptions.lookupOnly).toEqual(expectedOptions.lookupOnly)
 })
diff --git a/packages/cache/__tests__/restoreCache.test.ts b/packages/cache/__tests__/restoreCache.test.ts
index 5318a007..7992490e 100644
--- a/packages/cache/__tests__/restoreCache.test.ts
+++ b/packages/cache/__tests__/restoreCache.test.ts
@@ -276,3 +276,39 @@ test('restore with cache found for restore key', async () => {
   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/package-lock.json b/packages/cache/package-lock.json
index f9a20106..5e6ffac8 100644
--- a/packages/cache/package-lock.json
+++ b/packages/cache/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "@actions/cache",
-  "version": "3.1.3",
+  "version": "3.2.1",
   "lockfileVersion": 2,
   "requires": true,
   "packages": {
     "": {
       "name": "@actions/cache",
-      "version": "3.1.3",
+      "version": "3.2.1",
       "license": "MIT",
       "dependencies": {
         "@actions/core": "^1.10.0",
@@ -16,14 +16,14 @@
         "@actions/io": "^1.0.1",
         "@azure/abort-controller": "^1.1.0",
         "@azure/ms-rest-js": "^2.6.0",
-        "@azure/storage-blob": "^12.8.0",
+        "@azure/storage-blob": "^12.13.0",
         "semver": "^6.1.0",
         "uuid": "^3.3.3"
       },
       "devDependencies": {
         "@types/semver": "^6.0.0",
         "@types/uuid": "^3.4.5",
-        "typescript": "^3.8.3"
+        "typescript": "^4.8.0"
       }
     },
     "node_modules/@actions/core": {
@@ -112,28 +112,27 @@
       "integrity": "sha512-77EbyPPpMz+FRFRuAFlWMtmgUWGe9UOG2Z25NqCwiIjRhOf5iKGuzSe5P2w1laq+FkRy4p+PCuVkJSGkzTEKVw=="
     },
     "node_modules/@azure/core-http": {
-      "version": "2.2.3",
-      "resolved": "https://registry.npmjs.org/@azure/core-http/-/core-http-2.2.3.tgz",
-      "integrity": "sha512-xr8AeszxP418rI//W38NfJDDr0kbVAPZkURZnZ+Fle+lLWeURjDE5zNIuocA1wUPoKSP8iXc0ApW6nPtbLGswA==",
+      "version": "3.0.0",
+      "resolved": "https://registry.npmjs.org/@azure/core-http/-/core-http-3.0.0.tgz",
+      "integrity": "sha512-BxI2SlGFPPz6J1XyZNIVUf0QZLBKFX+ViFjKOkzqD18J1zOINIQ8JSBKKr+i+v8+MB6LacL6Nn/sP/TE13+s2Q==",
       "dependencies": {
         "@azure/abort-controller": "^1.0.0",
-        "@azure/core-asynciterator-polyfill": "^1.0.0",
         "@azure/core-auth": "^1.3.0",
         "@azure/core-tracing": "1.0.0-preview.13",
+        "@azure/core-util": "^1.1.1",
         "@azure/logger": "^1.0.0",
         "@types/node-fetch": "^2.5.0",
         "@types/tunnel": "^0.0.3",
         "form-data": "^4.0.0",
-        "node-fetch": "^2.6.6",
+        "node-fetch": "^2.6.7",
         "process": "^0.11.10",
-        "tough-cookie": "^4.0.0",
         "tslib": "^2.2.0",
         "tunnel": "^0.0.6",
         "uuid": "^8.3.0",
         "xml2js": "^0.4.19"
       },
       "engines": {
-        "node": ">=12.0.0"
+        "node": ">=14.0.0"
       }
     },
     "node_modules/@azure/core-http/node_modules/form-data": {
@@ -149,23 +148,10 @@
         "node": ">= 6"
       }
     },
-    "node_modules/@azure/core-http/node_modules/tough-cookie": {
-      "version": "4.0.0",
-      "resolved": "https://registry.npmjs.org/tough-cookie/-/tough-cookie-4.0.0.tgz",
-      "integrity": "sha512-tHdtEpQCMrc1YLrMaqXXcj6AxhYi/xgit6mZu1+EDWUn+qhUf8wMQoFIy9NXuq23zAwtcB0t/MjACGR18pcRbg==",
-      "dependencies": {
-        "psl": "^1.1.33",
-        "punycode": "^2.1.1",
-        "universalify": "^0.1.2"
-      },
-      "engines": {
-        "node": ">=6"
-      }
-    },
     "node_modules/@azure/core-http/node_modules/tslib": {
-      "version": "2.3.1",
-      "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.3.1.tgz",
-      "integrity": "sha512-77EbyPPpMz+FRFRuAFlWMtmgUWGe9UOG2Z25NqCwiIjRhOf5iKGuzSe5P2w1laq+FkRy4p+PCuVkJSGkzTEKVw=="
+      "version": "2.5.0",
+      "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.5.0.tgz",
+      "integrity": "sha512-336iVw3rtn2BUK7ORdIAHTyxHGRIHVReokCR3XjbckJMK7ms8FysBfhLR8IXnAgy7T0PTPNBWKiH514FOW/WSg=="
     },
     "node_modules/@azure/core-http/node_modules/uuid": {
       "version": "8.3.2",
@@ -228,6 +214,23 @@
       "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.3.1.tgz",
       "integrity": "sha512-77EbyPPpMz+FRFRuAFlWMtmgUWGe9UOG2Z25NqCwiIjRhOf5iKGuzSe5P2w1laq+FkRy4p+PCuVkJSGkzTEKVw=="
     },
+    "node_modules/@azure/core-util": {
+      "version": "1.2.0",
+      "resolved": "https://registry.npmjs.org/@azure/core-util/-/core-util-1.2.0.tgz",
+      "integrity": "sha512-ffGIw+Qs8bNKNLxz5UPkz4/VBM/EZY07mPve1ZYFqYUdPwFqRj0RPk0U7LZMOfT7GCck9YjuT1Rfp1PApNl1ng==",
+      "dependencies": {
+        "@azure/abort-controller": "^1.0.0",
+        "tslib": "^2.2.0"
+      },
+      "engines": {
+        "node": ">=14.0.0"
+      }
+    },
+    "node_modules/@azure/core-util/node_modules/tslib": {
+      "version": "2.5.0",
+      "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.5.0.tgz",
+      "integrity": "sha512-336iVw3rtn2BUK7ORdIAHTyxHGRIHVReokCR3XjbckJMK7ms8FysBfhLR8IXnAgy7T0PTPNBWKiH514FOW/WSg=="
+    },
     "node_modules/@azure/logger": {
       "version": "1.0.3",
       "resolved": "https://registry.npmjs.org/@azure/logger/-/logger-1.0.3.tgz",
@@ -269,12 +272,12 @@
       }
     },
     "node_modules/@azure/storage-blob": {
-      "version": "12.8.0",
-      "resolved": "https://registry.npmjs.org/@azure/storage-blob/-/storage-blob-12.8.0.tgz",
-      "integrity": "sha512-c8+Wz19xauW0bGkTCoqZH4dYfbtBniPiGiRQOn1ca6G5jsjr4azwaTk9gwjVY8r3vY2Taf95eivLzipfIfiS4A==",
+      "version": "12.13.0",
+      "resolved": "https://registry.npmjs.org/@azure/storage-blob/-/storage-blob-12.13.0.tgz",
+      "integrity": "sha512-t3Q2lvBMJucgTjQcP5+hvEJMAsJSk0qmAnjDLie2td017IiduZbbC9BOcFfmwzR6y6cJdZOuewLCNFmEx9IrXA==",
       "dependencies": {
         "@azure/abort-controller": "^1.0.0",
-        "@azure/core-http": "^2.0.0",
+        "@azure/core-http": "^3.0.0",
         "@azure/core-lro": "^2.2.0",
         "@azure/core-paging": "^1.1.1",
         "@azure/core-tracing": "1.0.0-preview.13",
@@ -283,7 +286,7 @@
         "tslib": "^2.2.0"
       },
       "engines": {
-        "node": ">=12.0.0"
+        "node": ">=14.0.0"
       }
     },
     "node_modules/@azure/storage-blob/node_modules/tslib": {
@@ -300,14 +303,14 @@
       }
     },
     "node_modules/@types/node": {
-      "version": "17.0.14",
-      "resolved": "https://registry.npmjs.org/@types/node/-/node-17.0.14.tgz",
-      "integrity": "sha512-SbjLmERksKOGzWzPNuW7fJM7fk3YXVTFiZWB/Hs99gwhk+/dnrQRPBQjPW9aO+fi1tAffi9PrwFvsmOKmDTyng=="
+      "version": "18.14.6",
+      "resolved": "https://registry.npmjs.org/@types/node/-/node-18.14.6.tgz",
+      "integrity": "sha512-93+VvleD3mXwlLI/xASjw0FzKcwzl3OdTCzm1LaRfqgS21gfFtK3zDXM5Op9TeeMsJVOaJ2VRDpT9q4Y3d0AvA=="
     },
     "node_modules/@types/node-fetch": {
-      "version": "2.5.12",
-      "resolved": "https://registry.npmjs.org/@types/node-fetch/-/node-fetch-2.5.12.tgz",
-      "integrity": "sha512-MKgC4dlq4kKNa/mYrwpKfzQMB5X3ee5U6fSprkKpToBqBmX4nFZL9cW5jl6sWn+xpRJ7ypWh2yyqqr8UUCstSw==",
+      "version": "2.6.2",
+      "resolved": "https://registry.npmjs.org/@types/node-fetch/-/node-fetch-2.6.2.tgz",
+      "integrity": "sha512-DHqhlq5jeESLy19TYhLakJ07kNumXWjcDdxXsLUMJZ6ue8VZJj4kLPQVE/2mdHh3xZziNF1xppu5lwmS53HR+A==",
       "dependencies": {
         "@types/node": "*",
         "form-data": "^3.0.0"
@@ -489,7 +492,7 @@
     "node_modules/process": {
       "version": "0.11.10",
       "resolved": "https://registry.npmjs.org/process/-/process-0.11.10.tgz",
-      "integrity": "sha1-czIwDoQBYb2j5podHZGn1LwW8YI=",
+      "integrity": "sha512-cdGef/drWFoydD1JsMzuFf8100nZl+GT+yacc2bEced5f9Rjk4z+WtFUTBu9PhOi9j/jfmBPu0mMEY4wIdAF8A==",
       "engines": {
         "node": ">= 0.6.0"
       }
@@ -552,9 +555,9 @@
       }
     },
     "node_modules/typescript": {
-      "version": "3.8.3",
-      "resolved": "https://registry.npmjs.org/typescript/-/typescript-3.8.3.tgz",
-      "integrity": "sha512-MYlEfn5VrLNsgudQTVJeNaQFUAI7DkhnOjdpAp4T+ku1TfQClewlbSuTVHiA+8skNBgaf02TL/kLOvig4y3G8w==",
+      "version": "4.8.4",
+      "resolved": "https://registry.npmjs.org/typescript/-/typescript-4.8.4.tgz",
+      "integrity": "sha512-QCh+85mCy+h0IGff8r5XWzOVSbBO+KfeYrMQh7NJ58QujwcE22u+NUSmUxqF+un70P9GXKxa2HCNiTTMJknyjQ==",
       "dev": true,
       "bin": {
         "tsc": "bin/tsc",
@@ -564,14 +567,6 @@
         "node": ">=4.2.0"
       }
     },
-    "node_modules/universalify": {
-      "version": "0.1.2",
-      "resolved": "https://registry.npmjs.org/universalify/-/universalify-0.1.2.tgz",
-      "integrity": "sha512-rBJeI5CXAlmy1pV+617WB9J63U6XcazHHF2f2dbJix4XzpUF0RS3Zbj0FGIOCAva5P/d/GBOYaACQ1w+0azUkg==",
-      "engines": {
-        "node": ">= 4.0.0"
-      }
-    },
     "node_modules/uuid": {
       "version": "3.4.0",
       "resolved": "https://registry.npmjs.org/uuid/-/uuid-3.4.0.tgz",
@@ -700,21 +695,20 @@
       }
     },
     "@azure/core-http": {
-      "version": "2.2.3",
-      "resolved": "https://registry.npmjs.org/@azure/core-http/-/core-http-2.2.3.tgz",
-      "integrity": "sha512-xr8AeszxP418rI//W38NfJDDr0kbVAPZkURZnZ+Fle+lLWeURjDE5zNIuocA1wUPoKSP8iXc0ApW6nPtbLGswA==",
+      "version": "3.0.0",
+      "resolved": "https://registry.npmjs.org/@azure/core-http/-/core-http-3.0.0.tgz",
+      "integrity": "sha512-BxI2SlGFPPz6J1XyZNIVUf0QZLBKFX+ViFjKOkzqD18J1zOINIQ8JSBKKr+i+v8+MB6LacL6Nn/sP/TE13+s2Q==",
       "requires": {
         "@azure/abort-controller": "^1.0.0",
-        "@azure/core-asynciterator-polyfill": "^1.0.0",
         "@azure/core-auth": "^1.3.0",
         "@azure/core-tracing": "1.0.0-preview.13",
+        "@azure/core-util": "^1.1.1",
         "@azure/logger": "^1.0.0",
         "@types/node-fetch": "^2.5.0",
         "@types/tunnel": "^0.0.3",
         "form-data": "^4.0.0",
-        "node-fetch": "^2.6.6",
+        "node-fetch": "^2.6.7",
         "process": "^0.11.10",
-        "tough-cookie": "^4.0.0",
         "tslib": "^2.2.0",
         "tunnel": "^0.0.6",
         "uuid": "^8.3.0",
@@ -731,20 +725,10 @@
             "mime-types": "^2.1.12"
           }
         },
-        "tough-cookie": {
-          "version": "4.0.0",
-          "resolved": "https://registry.npmjs.org/tough-cookie/-/tough-cookie-4.0.0.tgz",
-          "integrity": "sha512-tHdtEpQCMrc1YLrMaqXXcj6AxhYi/xgit6mZu1+EDWUn+qhUf8wMQoFIy9NXuq23zAwtcB0t/MjACGR18pcRbg==",
-          "requires": {
-            "psl": "^1.1.33",
-            "punycode": "^2.1.1",
-            "universalify": "^0.1.2"
-          }
-        },
         "tslib": {
-          "version": "2.3.1",
-          "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.3.1.tgz",
-          "integrity": "sha512-77EbyPPpMz+FRFRuAFlWMtmgUWGe9UOG2Z25NqCwiIjRhOf5iKGuzSe5P2w1laq+FkRy4p+PCuVkJSGkzTEKVw=="
+          "version": "2.5.0",
+          "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.5.0.tgz",
+          "integrity": "sha512-336iVw3rtn2BUK7ORdIAHTyxHGRIHVReokCR3XjbckJMK7ms8FysBfhLR8IXnAgy7T0PTPNBWKiH514FOW/WSg=="
         },
         "uuid": {
           "version": "8.3.2",
@@ -803,6 +787,22 @@
         }
       }
     },
+    "@azure/core-util": {
+      "version": "1.2.0",
+      "resolved": "https://registry.npmjs.org/@azure/core-util/-/core-util-1.2.0.tgz",
+      "integrity": "sha512-ffGIw+Qs8bNKNLxz5UPkz4/VBM/EZY07mPve1ZYFqYUdPwFqRj0RPk0U7LZMOfT7GCck9YjuT1Rfp1PApNl1ng==",
+      "requires": {
+        "@azure/abort-controller": "^1.0.0",
+        "tslib": "^2.2.0"
+      },
+      "dependencies": {
+        "tslib": {
+          "version": "2.5.0",
+          "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.5.0.tgz",
+          "integrity": "sha512-336iVw3rtn2BUK7ORdIAHTyxHGRIHVReokCR3XjbckJMK7ms8FysBfhLR8IXnAgy7T0PTPNBWKiH514FOW/WSg=="
+        }
+      }
+    },
     "@azure/logger": {
       "version": "1.0.3",
       "resolved": "https://registry.npmjs.org/@azure/logger/-/logger-1.0.3.tgz",
@@ -842,12 +842,12 @@
       }
     },
     "@azure/storage-blob": {
-      "version": "12.8.0",
-      "resolved": "https://registry.npmjs.org/@azure/storage-blob/-/storage-blob-12.8.0.tgz",
-      "integrity": "sha512-c8+Wz19xauW0bGkTCoqZH4dYfbtBniPiGiRQOn1ca6G5jsjr4azwaTk9gwjVY8r3vY2Taf95eivLzipfIfiS4A==",
+      "version": "12.13.0",
+      "resolved": "https://registry.npmjs.org/@azure/storage-blob/-/storage-blob-12.13.0.tgz",
+      "integrity": "sha512-t3Q2lvBMJucgTjQcP5+hvEJMAsJSk0qmAnjDLie2td017IiduZbbC9BOcFfmwzR6y6cJdZOuewLCNFmEx9IrXA==",
       "requires": {
         "@azure/abort-controller": "^1.0.0",
-        "@azure/core-http": "^2.0.0",
+        "@azure/core-http": "^3.0.0",
         "@azure/core-lro": "^2.2.0",
         "@azure/core-paging": "^1.1.1",
         "@azure/core-tracing": "1.0.0-preview.13",
@@ -869,14 +869,14 @@
       "integrity": "sha512-BuJuXRSJNQ3QoKA6GWWDyuLpOUck+9hAXNMCnrloc1aWVoy6Xq6t9PUV08aBZ4Lutqq2LEHM486bpZqoViScog=="
     },
     "@types/node": {
-      "version": "17.0.14",
-      "resolved": "https://registry.npmjs.org/@types/node/-/node-17.0.14.tgz",
-      "integrity": "sha512-SbjLmERksKOGzWzPNuW7fJM7fk3YXVTFiZWB/Hs99gwhk+/dnrQRPBQjPW9aO+fi1tAffi9PrwFvsmOKmDTyng=="
+      "version": "18.14.6",
+      "resolved": "https://registry.npmjs.org/@types/node/-/node-18.14.6.tgz",
+      "integrity": "sha512-93+VvleD3mXwlLI/xASjw0FzKcwzl3OdTCzm1LaRfqgS21gfFtK3zDXM5Op9TeeMsJVOaJ2VRDpT9q4Y3d0AvA=="
     },
     "@types/node-fetch": {
-      "version": "2.5.12",
-      "resolved": "https://registry.npmjs.org/@types/node-fetch/-/node-fetch-2.5.12.tgz",
-      "integrity": "sha512-MKgC4dlq4kKNa/mYrwpKfzQMB5X3ee5U6fSprkKpToBqBmX4nFZL9cW5jl6sWn+xpRJ7ypWh2yyqqr8UUCstSw==",
+      "version": "2.6.2",
+      "resolved": "https://registry.npmjs.org/@types/node-fetch/-/node-fetch-2.6.2.tgz",
+      "integrity": "sha512-DHqhlq5jeESLy19TYhLakJ07kNumXWjcDdxXsLUMJZ6ue8VZJj4kLPQVE/2mdHh3xZziNF1xppu5lwmS53HR+A==",
       "requires": {
         "@types/node": "*",
         "form-data": "^3.0.0"
@@ -1016,7 +1016,7 @@
     "process": {
       "version": "0.11.10",
       "resolved": "https://registry.npmjs.org/process/-/process-0.11.10.tgz",
-      "integrity": "sha1-czIwDoQBYb2j5podHZGn1LwW8YI="
+      "integrity": "sha512-cdGef/drWFoydD1JsMzuFf8100nZl+GT+yacc2bEced5f9Rjk4z+WtFUTBu9PhOi9j/jfmBPu0mMEY4wIdAF8A=="
     },
     "psl": {
       "version": "1.8.0",
@@ -1064,16 +1064,11 @@
       "integrity": "sha512-1h/Lnq9yajKY2PEbBadPXj3VxsDDu844OnaAo52UVmIzIvwwtBPIuNvkjuzBlTWpfJyUbG3ez0KSBibQkj4ojg=="
     },
     "typescript": {
-      "version": "3.8.3",
-      "resolved": "https://registry.npmjs.org/typescript/-/typescript-3.8.3.tgz",
-      "integrity": "sha512-MYlEfn5VrLNsgudQTVJeNaQFUAI7DkhnOjdpAp4T+ku1TfQClewlbSuTVHiA+8skNBgaf02TL/kLOvig4y3G8w==",
+      "version": "4.8.4",
+      "resolved": "https://registry.npmjs.org/typescript/-/typescript-4.8.4.tgz",
+      "integrity": "sha512-QCh+85mCy+h0IGff8r5XWzOVSbBO+KfeYrMQh7NJ58QujwcE22u+NUSmUxqF+un70P9GXKxa2HCNiTTMJknyjQ==",
       "dev": true
     },
-    "universalify": {
-      "version": "0.1.2",
-      "resolved": "https://registry.npmjs.org/universalify/-/universalify-0.1.2.tgz",
-      "integrity": "sha512-rBJeI5CXAlmy1pV+617WB9J63U6XcazHHF2f2dbJix4XzpUF0RS3Zbj0FGIOCAva5P/d/GBOYaACQ1w+0azUkg=="
-    },
     "uuid": {
       "version": "3.4.0",
       "resolved": "https://registry.npmjs.org/uuid/-/uuid-3.4.0.tgz",
diff --git a/packages/cache/package.json b/packages/cache/package.json
index f274e00c..319e8067 100644
--- a/packages/cache/package.json
+++ b/packages/cache/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@actions/cache",
-  "version": "3.1.3",
+  "version": "3.2.1",
   "preview": true,
   "description": "Actions cache lib",
   "keywords": [
@@ -44,13 +44,13 @@
     "@actions/io": "^1.0.1",
     "@azure/abort-controller": "^1.1.0",
     "@azure/ms-rest-js": "^2.6.0",
-    "@azure/storage-blob": "^12.8.0",
+    "@azure/storage-blob": "^12.13.0",
     "semver": "^6.1.0",
     "uuid": "^3.3.3"
   },
   "devDependencies": {
     "@types/semver": "^6.0.0",
     "@types/uuid": "^3.4.5",
-    "typescript": "^3.8.3"
+    "typescript": "^4.8.0"
   }
 }
diff --git a/packages/cache/src/cache.ts b/packages/cache/src/cache.ts
index ffa13e78..f7fadb6f 100644
--- a/packages/cache/src/cache.ts
+++ b/packages/cache/src/cache.ts
@@ -100,6 +100,11 @@ export async function restoreCache(
       return undefined
     }
 
+    if (options?.lookupOnly) {
+      core.info('Lookup only - skipping download')
+      return cacheEntry.cacheKey
+    }
+
     archivePath = path.join(
       await utils.createTempDirectory(),
       utils.getCacheFileName(compressionMethod)
diff --git a/packages/cache/src/internal/cacheUtils.ts b/packages/cache/src/internal/cacheUtils.ts
index ea1e7de6..650653ad 100644
--- a/packages/cache/src/internal/cacheUtils.ts
+++ b/packages/cache/src/internal/cacheUtils.ts
@@ -71,11 +71,15 @@ export async function unlinkFile(filePath: fs.PathLike): Promise<void> {
   return util.promisify(fs.unlink)(filePath)
 }
 
-async function getVersion(app: string): Promise<string> {
-  core.debug(`Checking ${app} --version`)
+async function getVersion(
+  app: string,
+  additionalArgs: string[] = []
+): Promise<string> {
   let versionOutput = ''
+  additionalArgs.push('--version')
+  core.debug(`Checking ${app} ${additionalArgs.join(' ')}`)
   try {
-    await exec.exec(`${app} --version`, [], {
+    await exec.exec(`${app}`, additionalArgs, {
       ignoreReturnCode: true,
       silent: true,
       listeners: {
@@ -94,18 +98,14 @@ async function getVersion(app: string): Promise<string> {
 
 // Use zstandard if possible to maximize cache performance
 export async function getCompressionMethod(): Promise<CompressionMethod> {
-  const versionOutput = await getVersion('zstd')
+  const versionOutput = await getVersion('zstd', ['--quiet'])
   const version = semver.clean(versionOutput)
+  core.debug(`zstd version: ${version}`)
 
-  if (!versionOutput.toLowerCase().includes('zstd command line interface')) {
-    // zstd is not installed
+  if (versionOutput === '') {
     return CompressionMethod.Gzip
-  } else if (!version || semver.lt(version, 'v1.3.2')) {
-    // zstd is installed but using a version earlier than v1.3.2
-    // v1.3.2 is required to use the `--long` options in zstd
-    return CompressionMethod.ZstdWithoutLong
   } else {
-    return CompressionMethod.Zstd
+    return CompressionMethod.ZstdWithoutLong
   }
 }
 
diff --git a/packages/cache/src/internal/downloadUtils.ts b/packages/cache/src/internal/downloadUtils.ts
index 265c34f7..7e1b1e8a 100644
--- a/packages/cache/src/internal/downloadUtils.ts
+++ b/packages/cache/src/internal/downloadUtils.ts
@@ -242,7 +242,9 @@ export async function downloadCacheStorageSDK(
     // If the file exceeds the buffer maximum length (~1 GB on 32-bit systems and ~2 GB
     // on 64-bit systems), split the download into multiple segments
     // ~2 GB = 2147483647, beyond this, we start getting out of range error. So, capping it accordingly.
-    const maxSegmentSize = Math.min(2147483647, buffer.constants.MAX_LENGTH)
+
+    // Updated segment size to 128MB = 134217728 bytes, to complete a segment faster and fail fast
+    const maxSegmentSize = Math.min(134217728, buffer.constants.MAX_LENGTH)
     const downloadProgress = new DownloadProgress(contentLength)
 
     const fd = fs.openSync(archivePath, 'w')
diff --git a/packages/cache/src/options.ts b/packages/cache/src/options.ts
index 652899a2..a518d207 100644
--- a/packages/cache/src/options.ts
+++ b/packages/cache/src/options.ts
@@ -53,6 +53,15 @@ export interface DownloadOptions {
    * @default 3600000
    */
   segmentTimeoutInMs?: number
+
+  /**
+   * Weather to skip downloading the cache entry.
+   * If lookupOnly is set to true, the restore function will only check if
+   * a matching cache entry exists and return the cache key if it does.
+   *
+   * @default false
+   */
+  lookupOnly?: boolean
 }
 
 /**
@@ -92,7 +101,8 @@ export function getDownloadOptions(copy?: DownloadOptions): DownloadOptions {
     useAzureSdk: true,
     downloadConcurrency: 8,
     timeoutInMs: 30000,
-    segmentTimeoutInMs: 3600000
+    segmentTimeoutInMs: 600000,
+    lookupOnly: false
   }
 
   if (copy) {
@@ -111,6 +121,10 @@ export function getDownloadOptions(copy?: DownloadOptions): DownloadOptions {
     if (typeof copy.segmentTimeoutInMs === 'number') {
       result.segmentTimeoutInMs = copy.segmentTimeoutInMs
     }
+
+    if (typeof copy.lookupOnly === 'boolean') {
+      result.lookupOnly = copy.lookupOnly
+    }
   }
   const segmentDownloadTimeoutMins =
     process.env['SEGMENT_DOWNLOAD_TIMEOUT_MINS']
@@ -129,6 +143,7 @@ export function getDownloadOptions(copy?: DownloadOptions): DownloadOptions {
     `Cache segment download timeout mins env var: ${process.env['SEGMENT_DOWNLOAD_TIMEOUT_MINS']}`
   )
   core.debug(`Segment download timeout (ms): ${result.segmentTimeoutInMs}`)
+  core.debug(`Lookup only: ${result.lookupOnly}`)
 
   return result
 }
diff --git a/packages/cache/tsconfig.json b/packages/cache/tsconfig.json
index 2cddd408..1fbe66c8 100644
--- a/packages/cache/tsconfig.json
+++ b/packages/cache/tsconfig.json
@@ -4,7 +4,8 @@
     "baseUrl": "./",
     "outDir": "./lib",
     "rootDir": "./src",
-    "lib": ["es6", "dom"]
+    "lib": ["es6", "dom"],
+    "useUnknownInCatchVariables": false
   },
   "include": [
     "./src"
diff --git a/packages/http-client/RELEASES.md b/packages/http-client/RELEASES.md
index 344555f9..d3195080 100644
--- a/packages/http-client/RELEASES.md
+++ b/packages/http-client/RELEASES.md
@@ -1,5 +1,9 @@
 ## Releases
 
+## 2.1.0
+- Add support for `*` and subdomains in `no_proxy` [#1355](https://github.com/actions/toolkit/pull/1355) [#1223](https://github.com/actions/toolkit/pull/1223)
+- Bypass proxy for loopback IP adresses [#1360](https://github.com/actions/toolkit/pull/1360))
+
 ## 2.0.1
 - Fix an issue with missing `tunnel` dependency [#1085](https://github.com/actions/toolkit/pull/1085)
 
diff --git a/packages/http-client/__tests__/proxy.test.ts b/packages/http-client/__tests__/proxy.test.ts
index ccbceec2..98d85c86 100644
--- a/packages/http-client/__tests__/proxy.test.ts
+++ b/packages/http-client/__tests__/proxy.test.ts
@@ -176,11 +176,16 @@ describe('proxy', () => {
     expect(bypass).toBeTruthy()
   })
 
-  // Do not match wildcard ("*") as per https://github.com/actions/runner/blob/97195bad5870e2ad0915ebfef1616083aacf5818/docs/adrs/0263-proxy-support.md
   it('checkBypass returns true if no_proxy is "*"', () => {
     process.env['no_proxy'] = '*'
     const bypass = pm.checkBypass(new URL('https://anything.whatsoever.com'))
-    expect(bypass).toBeFalsy()
+    expect(bypass).toBeTruthy()
+  })
+
+  it('checkBypass returns true if no_proxy contains comma separated "*"', () => {
+    process.env['no_proxy'] = 'domain.com,* , example.com'
+    const bypass = pm.checkBypass(new URL('https://anything.whatsoever.com'))
+    expect(bypass).toBeTruthy()
   })
 
   it('HttpClient does basic http get request through proxy', async () => {
@@ -237,6 +242,31 @@ describe('proxy', () => {
     expect(_proxyConnects).toHaveLength(0)
   })
 
+  it('HttpClient bypasses proxy for loopback addresses (localhost, ::1, 127.*)', async () => {
+    // setup a server listening on localhost:8091
+    const server = http.createServer((request, response) => {
+      response.writeHead(200)
+      request.pipe(response)
+    })
+    server.listen(8091)
+    try {
+      process.env['http_proxy'] = _proxyUrl
+      const httpClient = new httpm.HttpClient()
+      let res = await httpClient.get('http://localhost:8091')
+      expect(res.message.statusCode).toBe(200)
+      res = await httpClient.get('http://127.0.0.1:8091')
+      expect(res.message.statusCode).toBe(200)
+
+      // no support for ipv6 for now
+      expect(httpClient.get('http://[::1]:8091')).rejects.toThrow()
+
+      // proxy at _proxyUrl was ignored
+      expect(_proxyConnects).toEqual([])
+    } finally {
+      server.close()
+    }
+  })
+
   it('proxyAuth not set in tunnel agent when authentication is not provided', async () => {
     process.env['https_proxy'] = 'http://127.0.0.1:8080'
     const httpClient = new httpm.HttpClient()
diff --git a/packages/http-client/package.json b/packages/http-client/package.json
index c1de2213..7f5c8ec3 100644
--- a/packages/http-client/package.json
+++ b/packages/http-client/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@actions/http-client",
-  "version": "2.0.1",
+  "version": "2.1.0",
   "description": "Actions Http Client",
   "keywords": [
     "github",
diff --git a/packages/http-client/src/proxy.ts b/packages/http-client/src/proxy.ts
index e4e43a54..1a967e34 100644
--- a/packages/http-client/src/proxy.ts
+++ b/packages/http-client/src/proxy.ts
@@ -25,6 +25,11 @@ export function checkBypass(reqUrl: URL): boolean {
     return false
   }
 
+  const reqHost = reqUrl.hostname
+  if (isLoopbackAddress(reqHost)) {
+    return true
+  }
+
   const noProxy = process.env['no_proxy'] || process.env['NO_PROXY'] || ''
   if (!noProxy) {
     return false
@@ -52,6 +57,7 @@ export function checkBypass(reqUrl: URL): boolean {
     .map(x => x.trim().toUpperCase())
     .filter(x => x)) {
     if (
+      upperNoProxyItem === '*' ||
       upperReqHosts.some(
         x =>
           x === upperNoProxyItem ||
@@ -66,3 +72,13 @@ export function checkBypass(reqUrl: URL): boolean {
 
   return false
 }
+
+function isLoopbackAddress(host: string): boolean {
+  const hostLower = host.toLowerCase()
+  return (
+    hostLower === 'localhost' ||
+    hostLower.startsWith('127.') ||
+    hostLower.startsWith('[::1]') ||
+    hostLower.startsWith('[0:0:0:0:0:0:0:1]')
+  )
+}
diff --git a/packages/io/__tests__/io.test.ts b/packages/io/__tests__/io.test.ts
index 3fd1c64a..b336317e 100644
--- a/packages/io/__tests__/io.test.ts
+++ b/packages/io/__tests__/io.test.ts
@@ -343,13 +343,8 @@ describe('rmRF', () => {
     await fs.appendFile(filePath, 'some data')
     await assertExists(filePath)
 
-    // we need to open the file with an explicit executive lock
-    // otherwise node will allow the file to be deleted even though it's open
-    // https://github.com/nodejs/node/blob/c2e4b1fa9ad0b744616c4e4c13a5017772a630c4/deps/uv/src/win/fs.c#L499-L513
-    const fd = await fs.open(
-      filePath,
-      fs.constants.O_RDONLY | ioUtil.UV_FS_O_EXLOCK
-    )
+    const fd = await fs.open(filePath, fs.constants.O_RDONLY | 0x10000000)
+    await io.rmRF(testPath)
 
     // // can't remove folder with locked file on windows
     if (ioUtil.IS_WINDOWS) {