diff --git a/README.md b/README.md
index 1c4542b9..1660107a 100644
--- a/README.md
+++ b/README.md
@@ -123,7 +123,7 @@ Enable verbose logging. You can use `JITI_DEBUG=1 <your command>` to enable it.
 
 Filesystem source cache (enabled by default)
 
-By default (when is `true`), jiti uses `node_modules/.cache/jiti` (if exists) or `{TMP_DIR}/node-jiti`.
+By default (when is `true`), jiti uses `node_modules/.cache/jiti` (if exists) or `{TMP_DIR}/jiti`.
 
 **Note:** It is recommended to keep this option enabled for better performance.
 
diff --git a/lib/types.d.ts b/lib/types.d.ts
index 22de3d8d..c39d4566 100644
--- a/lib/types.d.ts
+++ b/lib/types.d.ts
@@ -39,7 +39,7 @@ export interface JitiOptions {
    *
    * An string can be passed to set the custom cache directory.
    *
-   * By default (when is `true`), jiti uses  `node_modules/.cache/jiti` (if exists) or `{TMP_DIR}/node-jiti`.
+   * By default (when is `true`), jiti uses  `node_modules/.cache/jiti` (if exists) or `{TMP_DIR}/jiti`.
    *
    * This option can also be disabled using `JITI_FS_CACHE=false` environment variable.
    *
diff --git a/src/cache.ts b/src/cache.ts
index deaec639..74ebf2e9 100644
--- a/src/cache.ts
+++ b/src/cache.ts
@@ -1,7 +1,7 @@
 import type { Context } from "./types";
 import { existsSync, mkdirSync, readFileSync, writeFileSync } from "node:fs";
 import { tmpdir } from "node:os";
-import { dirname, join, basename } from "pathe";
+import { dirname, join, basename, resolve } from "pathe";
 import { debug, isWritable, md5 } from "./utils";
 
 const CACHE_VERSION = "8";
@@ -52,7 +52,7 @@ export function getCache(
 
 export function prepareCacheDir(ctx: Context) {
   if (ctx.opts.fsCache === true) {
-    ctx.opts.fsCache = getCacheDir();
+    ctx.opts.fsCache = getCacheDir(ctx);
   }
   if (ctx.opts.fsCache) {
     try {
@@ -67,7 +67,12 @@ export function prepareCacheDir(ctx: Context) {
   }
 }
 
-export function getCacheDir() {
+export function getCacheDir(ctx: Context) {
+  const nmDir = ctx.filename && resolve(ctx.filename, "../node_modules");
+  if (nmDir && existsSync(nmDir)) {
+    return join(nmDir, ".cache/jiti");
+  }
+
   let _tmpDir = tmpdir();
 
   // Workaround for pnpm setting an incorrect `TMPDIR`.
@@ -85,5 +90,5 @@ export function getCacheDir() {
     process.env.TMPDIR = _env;
   }
 
-  return join(_tmpDir, "node-jiti");
+  return join(_tmpDir, "jiti");
 }
diff --git a/test/utils.test.ts b/test/utils.test.ts
index 8419c104..28bd355f 100644
--- a/test/utils.test.ts
+++ b/test/utils.test.ts
@@ -19,25 +19,25 @@ describe("utils", () => {
     it("returns the system's TMPDIR when TMPDIR is not set", () => {
       const originalTmpdir = process.env.TMPDIR;
       delete process.env.TMPDIR;
-      expect(getCacheDir()).toBe("/tmp/node-jiti");
+      expect(getCacheDir({} as any)).toBe("/tmp/jiti");
       process.env.TMPDIR = originalTmpdir;
     });
 
     it("returns TMPDIR when TMPDIR is not CWD", () => {
       vi.stubEnv("TMPDIR", notCwd);
-      expect(getCacheDir()).toBe("/cwd__NOT__/node-jiti");
+      expect(getCacheDir({} as any)).toBe("/cwd__NOT__/jiti");
     });
 
     it("returns the system's TMPDIR when TMPDIR is CWD", () => {
       vi.stubEnv("TMPDIR", cwd);
-      expect(getCacheDir()).toBe("/tmp/node-jiti");
+      expect(getCacheDir({} as any)).toBe("/tmp/jiti");
     });
 
     it("returns TMPDIR when TMPDIR is CWD and TMPDIR is kept", () => {
       vi.stubEnv("TMPDIR", cwd);
       vi.stubEnv("JITI_RESPECT_TMPDIR_ENV", "true");
 
-      expect(getCacheDir()).toBe("/cwd/node-jiti");
+      expect(getCacheDir({} as any)).toBe("/cwd/jiti");
     });
   });
 });