diff --git a/opencl/doc/FAQ.md b/opencl/doc/FAQ.md
index 7210b69f0b..69e6641d34 100644
--- a/opencl/doc/FAQ.md
+++ b/opencl/doc/FAQ.md
@@ -57,7 +57,7 @@ which improves performance.
 ##### Environment flags (Linux only)
 
 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 $XDG_CACHE_HOME/neo_compiler_cache
                        if $XDG_CACHE_HOME is set, $HOME/.cache/neo_compiler_cache otherwise. If none of environment
diff --git a/opencl/source/compiler_interface/default_cache_config.cpp b/opencl/source/compiler_interface/default_cache_config.cpp
index 860ba08219..6fdfe68214 100644
--- a/opencl/source/compiler_interface/default_cache_config.cpp
+++ b/opencl/source/compiler_interface/default_cache_config.cpp
@@ -32,7 +32,7 @@ CompilerCacheConfig getDefaultCompilerCacheConfig() {
 
     auto cachePersistentKey = oclRegPath + NeoCachePersistent;
 
-    if (settingsReader->getSetting(settingsReader->appSpecificLocation(cachePersistentKey), 0l) != 0) {
+    if (settingsReader->getSetting(settingsReader->appSpecificLocation(cachePersistentKey), defaultCacheEnabled()) != 0) {
         ret.enabled = true;
         std::string emptyString = "";
         ret.cacheDir = settingsReader->getSetting(settingsReader->appSpecificLocation(NeoCacheDir), emptyString);
diff --git a/opencl/test/unit_test/compiler_interface/CMakeLists.txt b/opencl/test/unit_test/compiler_interface/CMakeLists.txt
index ba445daa83..b197034340 100644
--- a/opencl/test/unit_test/compiler_interface/CMakeLists.txt
+++ b/opencl/test/unit_test/compiler_interface/CMakeLists.txt
@@ -7,11 +7,12 @@
 set(IGDRCL_SRCS_tests_compiler_interface
     ${CMAKE_CURRENT_SOURCE_DIR}/CMakeLists.txt
     ${CMAKE_CURRENT_SOURCE_DIR}/cl_compiler_interface_tests.cpp
-    ${CMAKE_CURRENT_SOURCE_DIR}/default_cl_cache_config_tests.cpp
 )
 
 target_sources(igdrcl_tests PRIVATE ${IGDRCL_SRCS_tests_compiler_interface})
 
 if(NOT WIN32)
   target_sources(igdrcl_tests PRIVATE ${CMAKE_CURRENT_SOURCE_DIR}/linux/default_cl_cache_config_tests.cpp)
+else()
+  target_sources(igdrcl_tests PRIVATE ${CMAKE_CURRENT_SOURCE_DIR}/windows/default_cl_cache_config_tests.cpp)
 endif()
diff --git a/opencl/test/unit_test/compiler_interface/linux/default_cl_cache_config_tests.cpp b/opencl/test/unit_test/compiler_interface/linux/default_cl_cache_config_tests.cpp
index 20207315ef..68663d193d 100644
--- a/opencl/test/unit_test/compiler_interface/linux/default_cl_cache_config_tests.cpp
+++ b/opencl/test/unit_test/compiler_interface/linux/default_cl_cache_config_tests.cpp
@@ -19,6 +19,47 @@ namespace SysCalls {
 extern bool pathExistsMock;
 }
 
+namespace LegacyPathWorksIfNewEnvIsSetToDisabled {
+bool pathExistsMock(const std::string &path) {
+    if (path.find("cl_cache") != path.npos)
+        return true;
+
+    return false;
+}
+} // namespace LegacyPathWorksIfNewEnvIsSetToDisabled
+
+TEST(CompilerCache, GivenDefaultClCacheConfigWithPathExistsAndNewEnvSetToDisabledThenValuesAreProperlyPopulated) {
+    std::unordered_map<std::string, std::string> mockableEnvs;
+    mockableEnvs["NEO_CACHE_PERSISTENT"] = "0";
+
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&NEO::IoFunctions::mockableEnvValues, &mockableEnvs);
+    VariableBackup<decltype(NEO::SysCalls::sysCallsPathExists)> pathExistsBackup(&NEO::SysCalls::sysCallsPathExists, LegacyPathWorksIfNewEnvIsSetToDisabled::pathExistsMock);
+
+    auto cacheConfig = NEO::getDefaultCompilerCacheConfig();
+    EXPECT_STREQ("cl_cache", cacheConfig.cacheDir.c_str());
+    EXPECT_STREQ(".cl_cache", cacheConfig.cacheFileExtension.c_str());
+    EXPECT_TRUE(cacheConfig.enabled);
+}
+
+namespace NewEnvIsDisabledAndLegacyPathDoesNotExist {
+bool pathExistsMock(const std::string &path) {
+    return false;
+}
+} // namespace NewEnvIsDisabledAndLegacyPathDoesNotExist
+
+TEST(CompilerCache, GivenDefaultClCacheConfigWithNotExistingPathAndNewEnvSetToDisabledThenValuesAreProperlyPopulated) {
+    std::unordered_map<std::string, std::string> mockableEnvs;
+    mockableEnvs["NEO_CACHE_PERSISTENT"] = "0";
+
+    VariableBackup<std::unordered_map<std::string, std::string> *> mockableEnvValuesBackup(&NEO::IoFunctions::mockableEnvValues, &mockableEnvs);
+    VariableBackup<decltype(NEO::SysCalls::sysCallsPathExists)> pathExistsBackup(&NEO::SysCalls::sysCallsPathExists, NewEnvIsDisabledAndLegacyPathDoesNotExist::pathExistsMock);
+
+    auto cacheConfig = NEO::getDefaultCompilerCacheConfig();
+    EXPECT_STREQ("cl_cache", cacheConfig.cacheDir.c_str());
+    EXPECT_STREQ(".cl_cache", cacheConfig.cacheFileExtension.c_str());
+    EXPECT_FALSE(cacheConfig.enabled);
+}
+
 namespace AllVariablesCorrectlySet {
 bool pathExistsMock(const std::string &path) {
     if (path.find("ult/directory/") != path.npos)
diff --git a/opencl/test/unit_test/compiler_interface/default_cl_cache_config_tests.cpp b/opencl/test/unit_test/compiler_interface/windows/default_cl_cache_config_tests.cpp
similarity index 100%
rename from opencl/test/unit_test/compiler_interface/default_cl_cache_config_tests.cpp
rename to opencl/test/unit_test/compiler_interface/windows/default_cl_cache_config_tests.cpp
diff --git a/shared/source/compiler_interface/linux/os_compiler_cache_helper.cpp b/shared/source/compiler_interface/linux/os_compiler_cache_helper.cpp
index 919ba9d339..bb4022083a 100644
--- a/shared/source/compiler_interface/linux/os_compiler_cache_helper.cpp
+++ b/shared/source/compiler_interface/linux/os_compiler_cache_helper.cpp
@@ -17,6 +17,10 @@
 #include <link.h>
 
 namespace NEO {
+int64_t defaultCacheEnabled() {
+    return 1l;
+}
+
 std::string makePath(const std::string &lhs, const std::string &rhs) {
     if (lhs.size() == 0) {
         return rhs;
diff --git a/shared/source/compiler_interface/os_compiler_cache_helper.h b/shared/source/compiler_interface/os_compiler_cache_helper.h
index 9da4a650de..3a9b426568 100644
--- a/shared/source/compiler_interface/os_compiler_cache_helper.h
+++ b/shared/source/compiler_interface/os_compiler_cache_helper.h
@@ -10,6 +10,7 @@
 
 namespace NEO {
 class SettingsReader;
+int64_t defaultCacheEnabled();
 std::string makePath(const std::string &lhs, const std::string &rhs);
 bool checkDefaultCacheDirSettings(std::string &cacheDir, SettingsReader *reader);
 time_t getFileModificationTime(const std::string &path);
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 8438c07552..9a84be4c8b 100644
--- a/shared/source/compiler_interface/windows/os_compiler_cache_helper.cpp
+++ b/shared/source/compiler_interface/windows/os_compiler_cache_helper.cpp
@@ -8,7 +8,9 @@
 #include "shared/source/compiler_interface/os_compiler_cache_helper.h"
 
 namespace NEO {
-
+int64_t defaultCacheEnabled() {
+    return 0l;
+}
 std::string makePath(const std::string &lhs, const std::string &rhs) {
     return lhs + rhs;
 }