diff --git a/opencl/doc/FAQ.md b/opencl/doc/FAQ.md
index 2fa7f7cf4a..0a0421d571 100644
--- a/opencl/doc/FAQ.md
+++ b/opencl/doc/FAQ.md
@@ -119,7 +119,7 @@ reuse previously cached kernel binaries instead of compiling kernels from source
 ##### Environment flags
 
 NEO_CACHE_PERSISTENT - integer value to enable (1)/disable (0) on-disk binary cache. When enabled 
-                       Neo will try to cache and reuse compiled binaries. Default is off.
+                       Neo will try to cache and reuse compiled binaries. Default is on.
 
 NEO_CACHE_DIR        - path to persistent cache directory. Default values are %LocalAppData%\NEO\neo_compiler_cache
                        if %LocalAppData% is found. If none of environment
diff --git a/opencl/test/unit_test/compiler_interface/windows/default_cl_cache_config_tests.cpp b/opencl/test/unit_test/compiler_interface/windows/default_cl_cache_config_tests.cpp
index 0898e5d66b..4eddf7cc14 100644
--- a/opencl/test/unit_test/compiler_interface/windows/default_cl_cache_config_tests.cpp
+++ b/opencl/test/unit_test/compiler_interface/windows/default_cl_cache_config_tests.cpp
@@ -267,4 +267,23 @@ TEST_F(CompilerCacheTest, GivenCacheMaxSizeSetTo0WhenGetDefaultConfigThenCacheSi
     EXPECT_EQ(cacheConfig.cacheDir, "ult\\directory\\");
 }
 
+TEST_F(CompilerCacheTest, GivenCachePathExistsAndNoEnvVarsSetWhenGetDefaultCompilerCacheConfigThenCacheIsEnabled) {
+    bool pathExistsMock = true;
+    VariableBackup<bool> pathExistsMockBackup(&NEO::SysCalls::pathExistsMock, pathExistsMock);
+
+    SysCalls::shGetKnownFolderPathResult = S_OK;
+
+    const wchar_t *localAppDataPath = L"C:\\Users\\user1\\AppData\\Local";
+    wcscpy(SysCalls::shGetKnownFolderSetPath, localAppDataPath);
+
+    auto cacheConfig = NEO::getDefaultCompilerCacheConfig();
+
+    const std::string expectedCacheDirPath = "C:\\Users\\user1\\AppData\\Local\\NEO\\neo_compiler_cache";
+
+    EXPECT_TRUE(cacheConfig.enabled);
+    EXPECT_EQ(cacheConfig.cacheFileExtension, ".cl_cache");
+    EXPECT_EQ(cacheConfig.cacheSize, static_cast<size_t>(MemoryConstants::gigaByte));
+    EXPECT_EQ(cacheConfig.cacheDir, expectedCacheDirPath);
+}
+
 } // namespace NEO
diff --git a/shared/source/compiler_interface/windows/os_compiler_cache_helper.cpp b/shared/source/compiler_interface/windows/os_compiler_cache_helper.cpp
index db034d1c3b..89e5fabebd 100644
--- a/shared/source/compiler_interface/windows/os_compiler_cache_helper.cpp
+++ b/shared/source/compiler_interface/windows/os_compiler_cache_helper.cpp
@@ -16,7 +16,7 @@
 
 namespace NEO {
 int64_t defaultCacheEnabled() {
-    return 0l;
+    return 1l;
 }
 
 std::string getKnownFolderPath(REFKNOWNFOLDERID rfid) {
diff --git a/shared/test/unit_test/compiler_interface/windows/compiler_cache_tests_windows.cpp b/shared/test/unit_test/compiler_interface/windows/compiler_cache_tests_windows.cpp
index af7ae9dc90..588315daec 100644
--- a/shared/test/unit_test/compiler_interface/windows/compiler_cache_tests_windows.cpp
+++ b/shared/test/unit_test/compiler_interface/windows/compiler_cache_tests_windows.cpp
@@ -807,6 +807,10 @@ TEST_F(CompilerCacheWindowsTest, givenCacheBinaryWhenRenameTempFileBinaryToPrope
     EXPECT_EQ(0u, SysCalls::writeFileCalled);
 }
 
+TEST(CompilerCacheHelperWindowsTest, whenDefaultCacheEnabledIsCalledThenReturnCorrectValue) {
+    EXPECT_EQ(1l, NEO::defaultCacheEnabled());
+}
+
 TEST(CompilerCacheHelperWindowsTest, givenFindFirstFileASuccessWhenGetFileModificationTimeThenFindCloseIsCalled) {
     VariableBackup<HANDLE> findFirstFileAResultBackup(&SysCalls::findFirstFileAResult, reinterpret_cast<HANDLE>(0x1234));
     VariableBackup<size_t> findCloseCalledBackup(&SysCalls::findCloseCalled, 0u);