diff --git a/dist/cache-save/index.js b/dist/cache-save/index.js
index adcf2d4b1..fed07dce9 100644
--- a/dist/cache-save/index.js
+++ b/dist/cache-save/index.js
@@ -60548,7 +60548,7 @@ const getProjectDirectoriesFromCacheDependencyPath = (cacheDependencyPath) => __
 const getCacheDirectoriesFromCacheDependencyPath = (packageManagerInfo, cacheDependencyPath) => __awaiter(void 0, void 0, void 0, function* () {
     const projectDirectories = yield getProjectDirectoriesFromCacheDependencyPath(cacheDependencyPath);
     const cacheFoldersPaths = yield Promise.all(projectDirectories.map((projectDirectory) => __awaiter(void 0, void 0, void 0, function* () {
-        const cacheFolderPath = packageManagerInfo.getCacheFolderPath(projectDirectory);
+        const cacheFolderPath = yield packageManagerInfo.getCacheFolderPath(projectDirectory);
         core.debug(`${packageManagerInfo.name}'s cache folder "${cacheFolderPath}" configured for the directory "${projectDirectory}"`);
         return cacheFolderPath;
     })));
@@ -60594,14 +60594,27 @@ exports.getCacheDirectories = getCacheDirectories;
  */
 const isCacheManagedByYarn3 = (directory) => __awaiter(void 0, void 0, void 0, function* () {
     const workDir = directory || process.env.GITHUB_WORKSPACE || '.';
+    core.debug(`check if "${workDir}" has locally managed yarn3 dependencies`);
     // if .yarn/cache directory exists the cache is managed by version control system
     const yarnCacheFile = path_1.default.join(workDir, '.yarn', 'cache');
-    if (fs_1.default.existsSync(yarnCacheFile) && fs_1.default.lstatSync(yarnCacheFile).isDirectory())
+    if (fs_1.default.existsSync(yarnCacheFile) &&
+        fs_1.default.lstatSync(yarnCacheFile).isDirectory()) {
+        core.debug(`"${workDir}" has .yarn/cache - dependencies are kept in the repository`);
         return Promise.resolve(false);
+    }
     // NOTE: yarn1 returns 'undefined' with rc = 0
     const enableGlobalCache = yield exports.getCommandOutput('yarn config get enableGlobalCache', workDir);
+    core.debug(` ===> output "${enableGlobalCache}" ${enableGlobalCache === 'false'} ${enableGlobalCache.trim() === 'false'}`);
     // only local cache is not managed by yarn
-    return enableGlobalCache === 'false';
+    const managed = enableGlobalCache.trim() === 'false';
+    if (managed) {
+        core.debug(`"${workDir}" dependencies are managed by yarn 3 locally`);
+        return Promise.resolve(true);
+    }
+    else {
+        core.debug(`"${workDir}" dependencies are not managed by yarn 3 locally`);
+        return Promise.resolve(false);
+    }
 });
 /**
  * A function to report the repo contains Yarn managed projects
diff --git a/dist/setup/index.js b/dist/setup/index.js
index 0bbe9052f..4b3fcd45d 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -71157,9 +71157,15 @@ const restoreCache = (packageManager, cacheDependencyPath) => __awaiter(void 0,
     const primaryKey = `${keyPrefix}-${fileHash}`;
     core.debug(`primary key is ${primaryKey}`);
     core.saveState(constants_1.State.CachePrimaryKey, primaryKey);
-    const cacheKey = (yield cache_utils_1.repoHasYarn3ManagedCache(packageManagerInfo, cacheDependencyPath))
-        ? yield cache.restoreCache(cachePaths, primaryKey, [keyPrefix])
-        : yield cache.restoreCache(cachePaths, primaryKey);
+    const isManagedByYarn3 = yield cache_utils_1.repoHasYarn3ManagedCache(packageManagerInfo, cacheDependencyPath);
+    let cacheKey;
+    if (isManagedByYarn3) {
+        core.debug('All dependencies are managed locally by yarn3, the previous cache can be used');
+        cacheKey = yield cache.restoreCache(cachePaths, primaryKey, [keyPrefix]);
+    }
+    else {
+        cacheKey = yield cache.restoreCache(cachePaths, primaryKey);
+    }
     core.setOutput('cache-hit', Boolean(cacheKey));
     if (!cacheKey) {
         core.info(`${packageManager} cache is not found`);
@@ -71334,7 +71340,7 @@ const getProjectDirectoriesFromCacheDependencyPath = (cacheDependencyPath) => __
 const getCacheDirectoriesFromCacheDependencyPath = (packageManagerInfo, cacheDependencyPath) => __awaiter(void 0, void 0, void 0, function* () {
     const projectDirectories = yield getProjectDirectoriesFromCacheDependencyPath(cacheDependencyPath);
     const cacheFoldersPaths = yield Promise.all(projectDirectories.map((projectDirectory) => __awaiter(void 0, void 0, void 0, function* () {
-        const cacheFolderPath = packageManagerInfo.getCacheFolderPath(projectDirectory);
+        const cacheFolderPath = yield packageManagerInfo.getCacheFolderPath(projectDirectory);
         core.debug(`${packageManagerInfo.name}'s cache folder "${cacheFolderPath}" configured for the directory "${projectDirectory}"`);
         return cacheFolderPath;
     })));
@@ -71380,14 +71386,27 @@ exports.getCacheDirectories = getCacheDirectories;
  */
 const isCacheManagedByYarn3 = (directory) => __awaiter(void 0, void 0, void 0, function* () {
     const workDir = directory || process.env.GITHUB_WORKSPACE || '.';
+    core.debug(`check if "${workDir}" has locally managed yarn3 dependencies`);
     // if .yarn/cache directory exists the cache is managed by version control system
     const yarnCacheFile = path_1.default.join(workDir, '.yarn', 'cache');
-    if (fs_1.default.existsSync(yarnCacheFile) && fs_1.default.lstatSync(yarnCacheFile).isDirectory())
+    if (fs_1.default.existsSync(yarnCacheFile) &&
+        fs_1.default.lstatSync(yarnCacheFile).isDirectory()) {
+        core.debug(`"${workDir}" has .yarn/cache - dependencies are kept in the repository`);
         return Promise.resolve(false);
+    }
     // NOTE: yarn1 returns 'undefined' with rc = 0
     const enableGlobalCache = yield exports.getCommandOutput('yarn config get enableGlobalCache', workDir);
+    core.debug(` ===> output "${enableGlobalCache}" ${enableGlobalCache === 'false'} ${enableGlobalCache.trim() === 'false'}`);
     // only local cache is not managed by yarn
-    return enableGlobalCache === 'false';
+    const managed = enableGlobalCache.trim() === 'false';
+    if (managed) {
+        core.debug(`"${workDir}" dependencies are managed by yarn 3 locally`);
+        return Promise.resolve(true);
+    }
+    else {
+        core.debug(`"${workDir}" dependencies are not managed by yarn 3 locally`);
+        return Promise.resolve(false);
+    }
 });
 /**
  * A function to report the repo contains Yarn managed projects
diff --git a/src/cache-restore.ts b/src/cache-restore.ts
index 3342ddc30..c215c762b 100644
--- a/src/cache-restore.ts
+++ b/src/cache-restore.ts
@@ -44,12 +44,19 @@ export const restoreCache = async (
 
   core.saveState(State.CachePrimaryKey, primaryKey);
 
-  const cacheKey = (await repoHasYarn3ManagedCache(
+  const isManagedByYarn3 = await repoHasYarn3ManagedCache(
     packageManagerInfo,
     cacheDependencyPath
-  ))
-    ? await cache.restoreCache(cachePaths, primaryKey, [keyPrefix])
-    : await cache.restoreCache(cachePaths, primaryKey);
+  );
+  let cacheKey: string | undefined;
+  if (isManagedByYarn3) {
+    core.debug(
+      'All dependencies are managed locally by yarn3, the previous cache can be used'
+    );
+    cacheKey = await cache.restoreCache(cachePaths, primaryKey, [keyPrefix]);
+  } else {
+    cacheKey = await cache.restoreCache(cachePaths, primaryKey);
+  }
 
   core.setOutput('cache-hit', Boolean(cacheKey));
 
diff --git a/src/cache-utils.ts b/src/cache-utils.ts
index c7f55670d..6d1f8b9c1 100644
--- a/src/cache-utils.ts
+++ b/src/cache-utils.ts
@@ -171,8 +171,9 @@ const getCacheDirectoriesFromCacheDependencyPath = async (
   );
   const cacheFoldersPaths = await Promise.all(
     projectDirectories.map(async projectDirectory => {
-      const cacheFolderPath =
-        packageManagerInfo.getCacheFolderPath(projectDirectory);
+      const cacheFolderPath = await packageManagerInfo.getCacheFolderPath(
+        projectDirectory
+      );
       core.debug(
         `${packageManagerInfo.name}'s cache folder "${cacheFolderPath}" configured for the directory "${projectDirectory}"`
       );
@@ -233,19 +234,39 @@ export const getCacheDirectories = async (
  */
 const isCacheManagedByYarn3 = async (directory: string): Promise<boolean> => {
   const workDir = directory || process.env.GITHUB_WORKSPACE || '.';
+  core.debug(`check if "${workDir}" has locally managed yarn3 dependencies`);
 
   // if .yarn/cache directory exists the cache is managed by version control system
   const yarnCacheFile = path.join(workDir, '.yarn', 'cache');
-  if (fs.existsSync(yarnCacheFile) && fs.lstatSync(yarnCacheFile).isDirectory())
+  if (
+    fs.existsSync(yarnCacheFile) &&
+    fs.lstatSync(yarnCacheFile).isDirectory()
+  ) {
+    core.debug(
+      `"${workDir}" has .yarn/cache - dependencies are kept in the repository`
+    );
     return Promise.resolve(false);
+  }
 
   // NOTE: yarn1 returns 'undefined' with rc = 0
   const enableGlobalCache = await getCommandOutput(
     'yarn config get enableGlobalCache',
     workDir
   );
+  core.debug(
+    ` ===> output "${enableGlobalCache}" ${enableGlobalCache === 'false'} ${
+      enableGlobalCache.trim() === 'false'
+    }`
+  );
   // only local cache is not managed by yarn
-  return enableGlobalCache === 'false';
+  const managed = enableGlobalCache.trim() === 'false';
+  if (managed) {
+    core.debug(`"${workDir}" dependencies are managed by yarn 3 locally`);
+    return Promise.resolve(true);
+  } else {
+    core.debug(`"${workDir}" dependencies are not managed by yarn 3 locally`);
+    return Promise.resolve(false);
+  }
 };
 
 /**