diff --git a/Cargo.lock b/Cargo.lock
index 5484193aed37e..073d6a1fbf966 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -4086,6 +4086,7 @@ dependencies = [
  "swc_relay",
  "testing",
  "tracing",
+ "turbo-rcstr",
  "turbopack-ecmascript-plugins",
  "walkdir",
 ]
diff --git a/crates/next-core/src/next_client/transforms.rs b/crates/next-core/src/next_client/transforms.rs
index 67dec64380538..f21dccffe193e 100644
--- a/crates/next-core/src/next_client/transforms.rs
+++ b/crates/next-core/src/next_client/transforms.rs
@@ -47,12 +47,8 @@ pub async fn get_next_client_transforms_rules(
         rules.push(get_debug_fn_name_rule(enable_mdx_rs));
     }
 
-    let dynamic_io_enabled = next_config
-        .experimental()
-        .await?
-        .dynamic_io
-        .unwrap_or(false);
-
+    let dynamic_io_enabled = *next_config.enable_dynamic_io().await?;
+    let cache_kinds = next_config.cache_kinds().to_resolved().await?;
     let mut is_app_dir = false;
 
     match context_ty {
@@ -79,6 +75,7 @@ pub async fn get_next_client_transforms_rules(
                 ActionsTransform::Client,
                 enable_mdx_rs,
                 dynamic_io_enabled,
+                cache_kinds,
             ));
         }
         ClientContextType::Fallback | ClientContextType::Other => {}
diff --git a/crates/next-core/src/next_config.rs b/crates/next-core/src/next_config.rs
index e5b20e16c45b7..8a133d939ecd2 100644
--- a/crates/next-core/src/next_config.rs
+++ b/crates/next-core/src/next_config.rs
@@ -1,6 +1,7 @@
 use std::collections::HashSet;
 
 use anyhow::{bail, Context, Result};
+use rustc_hash::FxHashSet;
 use serde::{Deserialize, Deserializer, Serialize};
 use serde_json::Value as JsonValue;
 use turbo_rcstr::RcStr;
@@ -40,6 +41,9 @@ struct CustomRoutes {
 #[turbo_tasks::value(transparent)]
 pub struct ModularizeImports(FxIndexMap<String, ModularizeImportPackageConfig>);
 
+#[turbo_tasks::value(transparent)]
+pub struct CacheKinds(FxHashSet<RcStr>);
+
 #[turbo_tasks::value(serialization = "custom", eq = "manual")]
 #[derive(Clone, Debug, Default, PartialEq, Serialize, Deserialize)]
 #[serde(rename_all = "camelCase")]
@@ -520,7 +524,7 @@ pub struct ExperimentalConfig {
     pub sri: Option<SubResourceIntegrity>,
     react_compiler: Option<ReactCompilerOptionsOrBoolean>,
     #[serde(rename = "dynamicIO")]
-    pub dynamic_io: Option<bool>,
+    dynamic_io: Option<bool>,
     // ---
     // UNSUPPORTED
     // ---
@@ -529,6 +533,7 @@ pub struct ExperimentalConfig {
     after: Option<bool>,
     amp: Option<serde_json::Value>,
     app_document_preloading: Option<bool>,
+    cache_handlers: Option<FxIndexMap<RcStr, RcStr>>,
     cache_life: Option<FxIndexMap<String, CacheLifeProfile>>,
     case_sensitive_routes: Option<bool>,
     cpus: Option<f64>,
@@ -1150,10 +1155,24 @@ impl NextConfig {
     }
 
     #[turbo_tasks::function]
-    pub async fn enable_react_owner_stack(self: Vc<Self>) -> Result<Vc<bool>> {
-        Ok(Vc::cell(
-            self.await?.experimental.react_owner_stack.unwrap_or(false),
-        ))
+    pub fn enable_react_owner_stack(&self) -> Vc<bool> {
+        Vc::cell(self.experimental.react_owner_stack.unwrap_or(false))
+    }
+
+    #[turbo_tasks::function]
+    pub fn enable_dynamic_io(&self) -> Vc<bool> {
+        Vc::cell(self.experimental.dynamic_io.unwrap_or(false))
+    }
+
+    #[turbo_tasks::function]
+    pub fn cache_kinds(&self) -> Vc<CacheKinds> {
+        Vc::cell(
+            self.experimental
+                .cache_handlers
+                .as_ref()
+                .map(|handlers| handlers.keys().cloned().collect())
+                .unwrap_or_default(),
+        )
     }
 
     #[turbo_tasks::function]
diff --git a/crates/next-core/src/next_server/transforms.rs b/crates/next-core/src/next_server/transforms.rs
index b37be21a37f83..d3321d87213ae 100644
--- a/crates/next-core/src/next_server/transforms.rs
+++ b/crates/next-core/src/next_server/transforms.rs
@@ -54,12 +54,8 @@ pub async fn get_next_server_transforms_rules(
         ));
     }
 
-    let dynamic_io_enabled = next_config
-        .experimental()
-        .await?
-        .dynamic_io
-        .unwrap_or(false);
-
+    let dynamic_io_enabled = *next_config.enable_dynamic_io().await?;
+    let cache_kinds = next_config.cache_kinds().to_resolved().await?;
     let mut is_app_dir = false;
 
     let is_server_components = match context_ty {
@@ -96,6 +92,7 @@ pub async fn get_next_server_transforms_rules(
                 ActionsTransform::Client,
                 mdx_rs,
                 dynamic_io_enabled,
+                cache_kinds,
             ));
 
             is_app_dir = true;
@@ -107,6 +104,7 @@ pub async fn get_next_server_transforms_rules(
                 ActionsTransform::Server,
                 mdx_rs,
                 dynamic_io_enabled,
+                cache_kinds,
             ));
 
             is_app_dir = true;
@@ -118,6 +116,7 @@ pub async fn get_next_server_transforms_rules(
                 ActionsTransform::Server,
                 mdx_rs,
                 dynamic_io_enabled,
+                cache_kinds,
             ));
 
             is_app_dir = true;
diff --git a/crates/next-core/src/next_shared/transforms/next_react_server_components.rs b/crates/next-core/src/next_shared/transforms/next_react_server_components.rs
index aa93f1845cc48..da5cff9e26286 100644
--- a/crates/next-core/src/next_shared/transforms/next_react_server_components.rs
+++ b/crates/next-core/src/next_shared/transforms/next_react_server_components.rs
@@ -34,11 +34,7 @@ pub async fn get_next_react_server_components_transform_rule(
     app_dir: Option<Vc<FileSystemPath>>,
 ) -> Result<ModuleRule> {
     let enable_mdx_rs = next_config.mdx_rs().await?.is_some();
-    let dynamic_io_enabled = next_config
-        .experimental()
-        .await?
-        .dynamic_io
-        .unwrap_or(false);
+    let dynamic_io_enabled = *next_config.enable_dynamic_io().await?;
     Ok(get_ecma_transform_rule(
         Box::new(NextJsReactServerComponents::new(
             is_react_server_layer,
diff --git a/crates/next-core/src/next_shared/transforms/server_actions.rs b/crates/next-core/src/next_shared/transforms/server_actions.rs
index ff120b7a5b624..8c79704ef5d08 100644
--- a/crates/next-core/src/next_shared/transforms/server_actions.rs
+++ b/crates/next-core/src/next_shared/transforms/server_actions.rs
@@ -7,6 +7,7 @@ use turbopack::module_options::{ModuleRule, ModuleRuleEffect};
 use turbopack_ecmascript::{CustomTransformer, EcmascriptInputTransform, TransformContext};
 
 use super::module_rule_match_js_no_url;
+use crate::next_config::CacheKinds;
 
 #[derive(Debug)]
 pub enum ActionsTransform {
@@ -19,11 +20,13 @@ pub fn get_server_actions_transform_rule(
     transform: ActionsTransform,
     enable_mdx_rs: bool,
     dynamic_io_enabled: bool,
+    cache_kinds: ResolvedVc<CacheKinds>,
 ) -> ModuleRule {
     let transformer =
         EcmascriptInputTransform::Plugin(ResolvedVc::cell(Box::new(NextServerActions {
             transform,
             dynamic_io_enabled,
+            cache_kinds,
         }) as _));
     ModuleRule::new(
         module_rule_match_js_no_url(enable_mdx_rs),
@@ -38,6 +41,7 @@ pub fn get_server_actions_transform_rule(
 struct NextServerActions {
     transform: ActionsTransform,
     dynamic_io_enabled: bool,
+    cache_kinds: ResolvedVc<CacheKinds>,
 }
 
 #[async_trait]
@@ -50,6 +54,7 @@ impl CustomTransformer for NextServerActions {
                 is_react_server_layer: matches!(self.transform, ActionsTransform::Server),
                 dynamic_io_enabled: self.dynamic_io_enabled,
                 hash_salt: "".into(),
+                cache_kinds: self.cache_kinds.await?.clone_value(),
             },
             ctx.comments.clone(),
         );
diff --git a/crates/next-custom-transforms/Cargo.toml b/crates/next-custom-transforms/Cargo.toml
index 9b0c03304ad5b..7d0f5e82b4fea 100644
--- a/crates/next-custom-transforms/Cargo.toml
+++ b/crates/next-custom-transforms/Cargo.toml
@@ -56,6 +56,7 @@ styled_jsx = { workspace = true }
 swc_emotion = { workspace = true }
 swc_relay = { workspace = true }
 turbopack-ecmascript-plugins = { workspace = true, optional = true }
+turbo-rcstr = { workspace = true }
 
 react_remove_properties = "0.24.25"
 remove_console = "0.25.25"
diff --git a/crates/next-custom-transforms/src/transforms/server_actions.rs b/crates/next-custom-transforms/src/transforms/server_actions.rs
index 8ac7be9becdee..f8949d3db7c20 100644
--- a/crates/next-custom-transforms/src/transforms/server_actions.rs
+++ b/crates/next-custom-transforms/src/transforms/server_actions.rs
@@ -6,6 +6,7 @@ use std::{
 
 use hex::encode as hex_encode;
 use indoc::formatdoc;
+use rustc_hash::FxHashSet;
 use serde::Deserialize;
 use sha1::{Digest, Sha1};
 use swc_core::{
@@ -22,6 +23,7 @@ use swc_core::{
         visit::{noop_visit_mut_type, visit_mut_pass, VisitMut, VisitMutWith},
     },
 };
+use turbo_rcstr::RcStr;
 
 #[derive(Clone, Debug, Deserialize)]
 #[serde(deny_unknown_fields, rename_all = "camelCase")]
@@ -29,6 +31,7 @@ pub struct Config {
     pub is_react_server_layer: bool,
     pub dynamic_io_enabled: bool,
     pub hash_salt: String,
+    pub cache_kinds: FxHashSet<RcStr>,
 }
 
 enum DirectiveLocation {
@@ -65,6 +68,10 @@ enum ServerActionsErrorKind {
         directive: String,
         expected_directive: String,
     },
+    UnknownCacheKind {
+        span: Span,
+        cache_kind: RcStr,
+    },
     UseCacheWithoutDynamicIO {
         span: Span,
         directive: String,
@@ -79,6 +86,12 @@ enum ServerActionsErrorKind {
 // Using BTreeMap to ensure the order of the actions is deterministic.
 pub type ActionsMap = BTreeMap<String, String>;
 
+// Directive-level information about a function body
+struct BodyInfo {
+    is_action_fn: bool,
+    cache_kind: Option<RcStr>,
+}
+
 #[tracing::instrument(level = tracing::Level::TRACE, skip_all)]
 pub fn server_actions<C: Comments>(file_name: &FileName, config: Config, comments: C) -> impl Pass {
     visit_mut_pass(ServerActions {
@@ -87,7 +100,7 @@ pub fn server_actions<C: Comments>(file_name: &FileName, config: Config, comment
         file_name: file_name.to_string(),
         start_pos: BytePos(0),
         in_action_file: false,
-        in_cache_file: None,
+        file_cache_kind: None,
         in_exported_expr: false,
         in_default_export_decl: false,
         in_callee: false,
@@ -137,7 +150,7 @@ struct ServerActions<C: Comments> {
 
     start_pos: BytePos,
     in_action_file: bool,
-    in_cache_file: Option<String>,
+    file_cache_kind: Option<RcStr>,
     in_exported_expr: bool,
     in_default_export_decl: bool,
     in_callee: bool,
@@ -296,9 +309,9 @@ impl<C: Comments> ServerActions<C> {
     }
 
     // Check if the function or arrow function is an action or cache function
-    fn get_body_info(&mut self, maybe_body: Option<&mut BlockStmt>) -> (bool, Option<String>) {
+    fn get_body_info(&mut self, maybe_body: Option<&mut BlockStmt>) -> BodyInfo {
         let mut is_action_fn = false;
-        let mut cache_type = None;
+        let mut cache_kind = None;
 
         // Even if it's a file-level action or cache module, the function body
         // might still have directives that override the module-level annotations.
@@ -309,9 +322,9 @@ impl<C: Comments> ServerActions<C> {
             remove_server_directive_index_in_fn(
                 &mut body.stmts,
                 &mut is_action_fn,
-                &mut cache_type,
+                &mut cache_kind,
                 &mut span,
-                self.config.dynamic_io_enabled,
+                &self.config,
             );
 
             if !self.config.is_react_server_layer {
@@ -321,7 +334,7 @@ impl<C: Comments> ServerActions<C> {
                     })
                 }
 
-                if cache_type.is_some() && self.in_cache_file.is_none() && !self.in_action_file {
+                if cache_kind.is_some() && self.file_cache_kind.is_none() && !self.in_action_file {
                     emit_error(ServerActionsErrorKind::InlineUseCacheInClientComponent {
                         span: span.unwrap_or(body.span),
                     });
@@ -330,17 +343,20 @@ impl<C: Comments> ServerActions<C> {
         }
 
         // Self-annotations take precedence over module-level annotations.
-        if self.in_exported_expr && !is_action_fn && cache_type.is_none() {
+        if self.in_exported_expr && !is_action_fn && cache_kind.is_none() {
             if self.in_action_file {
                 // All export functions in a server file are actions
                 is_action_fn = true;
-            } else if let Some(cache_file_type) = &self.in_cache_file {
+            } else if let Some(cache_file_type) = &self.file_cache_kind {
                 // All export functions in a cache file are cache functions
-                cache_type = Some(cache_file_type.clone());
+                cache_kind = Some(cache_file_type.clone());
             }
         }
 
-        (is_action_fn, cache_type)
+        BodyInfo {
+            is_action_fn,
+            cache_kind,
+        }
     }
 
     fn maybe_hoist_and_create_proxy_for_server_action_arrow_expr(
@@ -601,7 +617,7 @@ impl<C: Comments> ServerActions<C> {
     fn maybe_hoist_and_create_proxy_for_cache_arrow_expr(
         &mut self,
         ids_from_closure: Vec<Name>,
-        cache_type: &str,
+        cache_kind: &str,
         arrow: &mut ArrowExpr,
     ) -> Box<Expr> {
         let mut new_params: Vec<Param> = vec![];
@@ -673,7 +689,7 @@ impl<C: Comments> ServerActions<C> {
                                     ..Default::default()
                                 }),
                             })),
-                            cache_type,
+                            cache_kind,
                             &reference_id,
                             ids_from_closure.len(),
                         )),
@@ -736,7 +752,7 @@ impl<C: Comments> ServerActions<C> {
         &mut self,
         ids_from_closure: Vec<Name>,
         fn_name: Option<Ident>,
-        cache_type: &str,
+        cache_kind: &str,
         function: &mut Box<Function>,
     ) -> Box<Expr> {
         let mut new_params: Vec<Param> = vec![];
@@ -795,7 +811,7 @@ impl<C: Comments> ServerActions<C> {
                                     ..*function.take()
                                 }),
                             })),
-                            cache_type,
+                            cache_kind,
                             &reference_id,
                             ids_from_closure.len(),
                         )),
@@ -881,7 +897,10 @@ impl<C: Comments> VisitMut for ServerActions<C> {
     }
 
     fn visit_mut_fn_expr(&mut self, f: &mut FnExpr) {
-        let (is_action_fn, cache_type) = self.get_body_info(f.function.body.as_mut());
+        let BodyInfo {
+            is_action_fn,
+            cache_kind,
+        } = self.get_body_info(f.function.body.as_mut());
 
         let declared_idents_until = self.declared_idents.len();
         let current_names = take(&mut self.names);
@@ -894,7 +913,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             let old_in_default_export_decl = self.in_default_export_decl;
             self.in_module_level = false;
             self.should_track_names =
-                is_action_fn || cache_type.is_some() || self.should_track_names;
+                is_action_fn || cache_kind.is_some() || self.should_track_names;
             self.in_exported_expr = false;
             self.in_default_export_decl = false;
             f.visit_mut_children_with(self);
@@ -913,7 +932,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             take(&mut self.names)
         };
 
-        if (is_action_fn || cache_type.is_some()) && !f.function.is_async {
+        if (is_action_fn || cache_kind.is_some()) && !f.function.is_async {
             emit_error(ServerActionsErrorKind::InlineSyncFunction {
                 span: f.function.span,
                 is_action_fn,
@@ -922,11 +941,11 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             return;
         }
 
-        if !is_action_fn && cache_type.is_none() || !self.config.is_react_server_layer {
+        if !is_action_fn && cache_kind.is_none() || !self.config.is_react_server_layer {
             return;
         }
 
-        if let Some(cache_type_str) = cache_type {
+        if let Some(cache_kind_str) = cache_kind {
             // Collect all the identifiers defined inside the closure and used
             // in the cache function. With deduplication.
             retain_names_from_declared_idents(
@@ -937,7 +956,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             let new_expr = self.maybe_hoist_and_create_proxy_for_cache_function(
                 child_names.clone(),
                 f.ident.clone().or(self.arrow_or_fn_expr_ident.clone()),
-                cache_type_str.as_str(),
+                cache_kind_str.as_str(),
                 &mut f.function,
             );
 
@@ -996,7 +1015,10 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             self.in_exported_expr = true
         }
 
-        let (is_action_fn, cache_type) = self.get_body_info(f.function.body.as_mut());
+        let BodyInfo {
+            is_action_fn,
+            cache_kind,
+        } = self.get_body_info(f.function.body.as_mut());
 
         let declared_idents_until = self.declared_idents.len();
         let current_names = take(&mut self.names);
@@ -1009,7 +1031,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             let old_in_default_export_decl = self.in_default_export_decl;
             self.in_module_level = false;
             self.should_track_names =
-                is_action_fn || cache_type.is_some() || self.should_track_names;
+                is_action_fn || cache_kind.is_some() || self.should_track_names;
             self.in_exported_expr = false;
             self.in_default_export_decl = false;
             f.visit_mut_children_with(self);
@@ -1019,7 +1041,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             self.in_default_export_decl = old_in_default_export_decl;
         }
 
-        if !is_action_fn && cache_type.is_none() || !self.config.is_react_server_layer {
+        if !is_action_fn && cache_kind.is_none() || !self.config.is_react_server_layer {
             self.in_exported_expr = old_in_exported_expr;
 
             return;
@@ -1034,7 +1056,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             take(&mut self.names)
         };
 
-        if let Some(cache_type_str) = cache_type {
+        if let Some(cache_kind_str) = cache_kind {
             if !f.function.is_async {
                 emit_error(ServerActionsErrorKind::InlineSyncFunction {
                     span: f.ident.span,
@@ -1056,7 +1078,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             let new_expr = self.maybe_hoist_and_create_proxy_for_cache_function(
                 child_names,
                 Some(f.ident.clone()),
-                cache_type_str.as_str(),
+                cache_kind_str.as_str(),
                 &mut f.function,
             );
 
@@ -1136,12 +1158,14 @@ impl<C: Comments> VisitMut for ServerActions<C> {
     fn visit_mut_arrow_expr(&mut self, a: &mut ArrowExpr) {
         // Arrow expressions need to be visited in prepass to determine if it's
         // an action function or not.
-        let (is_action_fn, cache_type) =
-            self.get_body_info(if let BlockStmtOrExpr::BlockStmt(block) = &mut *a.body {
-                Some(block)
-            } else {
-                None
-            });
+        let BodyInfo {
+            is_action_fn,
+            cache_kind,
+        } = self.get_body_info(if let BlockStmtOrExpr::BlockStmt(block) = &mut *a.body {
+            Some(block)
+        } else {
+            None
+        });
 
         let declared_idents_until = self.declared_idents.len();
         let current_names = take(&mut self.names);
@@ -1154,7 +1178,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             let old_in_default_export_decl = self.in_default_export_decl;
             self.in_module_level = false;
             self.should_track_names =
-                is_action_fn || cache_type.is_some() || self.should_track_names;
+                is_action_fn || cache_kind.is_some() || self.should_track_names;
             self.in_exported_expr = false;
             self.in_default_export_decl = false;
             {
@@ -1178,7 +1202,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             take(&mut self.names)
         };
 
-        if !a.is_async && (is_action_fn || cache_type.is_some()) {
+        if !a.is_async && (is_action_fn || cache_kind.is_some()) {
             emit_error(ServerActionsErrorKind::InlineSyncFunction {
                 span: a.span,
                 is_action_fn,
@@ -1187,7 +1211,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             return;
         }
 
-        if !is_action_fn && cache_type.is_none() || !self.config.is_react_server_layer {
+        if !is_action_fn && cache_kind.is_none() || !self.config.is_react_server_layer {
             return;
         }
 
@@ -1201,10 +1225,10 @@ impl<C: Comments> VisitMut for ServerActions<C> {
         let maybe_new_expr = if is_action_fn && !self.in_action_file {
             Some(self.maybe_hoist_and_create_proxy_for_server_action_arrow_expr(child_names, a))
         } else {
-            cache_type.map(|cache_type_str| {
+            cache_kind.map(|cache_kind_str| {
                 self.maybe_hoist_and_create_proxy_for_cache_arrow_expr(
                     child_names,
-                    cache_type_str.as_str(),
+                    cache_kind_str.as_str(),
                     a,
                 )
             })
@@ -1304,10 +1328,10 @@ impl<C: Comments> VisitMut for ServerActions<C> {
         remove_server_directive_index_in_module(
             stmts,
             &mut self.in_action_file,
-            &mut self.in_cache_file,
+            &mut self.file_cache_kind,
             &mut self.has_action,
             &mut self.has_cache,
-            self.config.dynamic_io_enabled,
+            &self.config,
         );
 
         // If we're in a "use cache" file, collect all original IDs from export
@@ -1320,7 +1344,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
         // export { foo }
         // export default Bar
         // ```
-        if self.in_cache_file.is_some() {
+        if self.file_cache_kind.is_some() {
             for stmt in stmts.iter() {
                 match stmt {
                     ModuleItem::ModuleDecl(ModuleDecl::ExportDefaultExpr(export_default_expr)) => {
@@ -1347,7 +1371,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
         }
 
         // Only track exported identifiers in action files or cache files.
-        let is_cache_file = self.in_cache_file.is_some();
+        let is_cache_file = self.file_cache_kind.is_some();
         let should_track_exports = self.in_action_file || is_cache_file;
 
         let old_annotations = self.annotations.take();
@@ -1682,7 +1706,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
             }
 
             if self.config.is_react_server_layer
-                || (!self.in_action_file && self.in_cache_file.is_none())
+                || (!self.in_action_file && self.file_cache_kind.is_none())
             {
                 new.append(&mut self.hoisted_extra_items);
                 new.push(new_stmt);
@@ -1802,7 +1826,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
                             }));
                         new.push(export_expr);
                     }
-                } else if self.in_cache_file.is_none() {
+                } else if self.file_cache_kind.is_none() {
                     self.annotations.push(Stmt::Expr(ExprStmt {
                         span: DUMMY_SP,
                         expr: Box::new(annotate_ident_as_server_reference(
@@ -1825,7 +1849,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
                 new.append(&mut self.extra_items);
 
                 // For "use cache" files, there's no need to do extra annotations.
-                if self.in_cache_file.is_none() && !self.exported_idents.is_empty() {
+                if self.file_cache_kind.is_none() && !self.exported_idents.is_empty() {
                     let ensure_ident = private_ident!("ensureServerEntryExports");
                     new.push(ModuleItem::ModuleDecl(ModuleDecl::Import(ImportDecl {
                         span: DUMMY_SP,
@@ -1880,7 +1904,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
 
             // All exported values are considered as actions if the file is an action file.
             if self.in_action_file
-                || self.in_cache_file.is_some() && !self.config.is_react_server_layer
+                || self.file_cache_kind.is_some() && !self.config.is_react_server_layer
             {
                 actions.extend(
                     self.exported_idents
@@ -2346,10 +2370,10 @@ fn detect_similar_strings(a: &str, b: &str) -> bool {
 fn remove_server_directive_index_in_module(
     stmts: &mut Vec<ModuleItem>,
     in_action_file: &mut bool,
-    in_cache_file: &mut Option<String>,
+    file_cache_kind: &mut Option<RcStr>,
     has_action: &mut bool,
     has_cache: &mut bool,
-    dynamic_io_enabled: bool,
+    config: &Config,
 ) {
     let mut is_directive = true;
 
@@ -2375,19 +2399,29 @@ fn remove_server_directive_index_in_module(
                 // `use cache` or `use cache: foo`
                 if value == "use cache" || value.starts_with("use cache: ") {
                     if is_directive {
-                        if !dynamic_io_enabled {
+                        if !config.dynamic_io_enabled {
                             emit_error(ServerActionsErrorKind::UseCacheWithoutDynamicIO {
                                 span: *span,
                                 directive: value.to_string(),
                             });
                         }
 
-                        *in_cache_file = Some(if value == "use cache" {
-                            "default".into()
+                        if value == "use cache" {
+                            *file_cache_kind = Some("default".into());
                         } else {
                             // Slice the value after "use cache: "
-                            value.split_at("use cache: ".len()).1.into()
-                        });
+                            let cache_kind_str = RcStr::from(value.split_at("use cache: ".len()).1);
+
+                            if !config.cache_kinds.contains(&cache_kind_str) {
+                                emit_error(ServerActionsErrorKind::UnknownCacheKind {
+                                    span: *span,
+                                    cache_kind: cache_kind_str.clone(),
+                                });
+                            }
+
+                            *file_cache_kind = Some(cache_kind_str)
+                        }
+
                         *has_cache = true;
                         return false;
                     } else {
@@ -2486,9 +2520,9 @@ fn has_body_directive(maybe_body: &Option<BlockStmt>) -> (bool, bool) {
 fn remove_server_directive_index_in_fn(
     stmts: &mut Vec<Stmt>,
     is_action_fn: &mut bool,
-    cache_type: &mut Option<String>,
+    cache_kind: &mut Option<RcStr>,
     action_span: &mut Option<Span>,
-    dynamic_io_enabled: bool,
+    config: &Config,
 ) {
     let mut is_directive = true;
 
@@ -2520,19 +2554,28 @@ fn remove_server_directive_index_in_fn(
                 });
             } else if value == "use cache" || value.starts_with("use cache: ") {
                 if is_directive {
-                    if !dynamic_io_enabled {
+                    if !config.dynamic_io_enabled {
                         emit_error(ServerActionsErrorKind::UseCacheWithoutDynamicIO {
                             span: *span,
                             directive: value.to_string(),
                         });
                     }
 
-                    *cache_type = Some(if value == "use cache" {
-                        "default".into()
+                    if value == "use cache" {
+                        *cache_kind = Some("default".into());
                     } else {
                         // Slice the value after "use cache: "
-                        value.split_at("use cache: ".len()).1.into()
-                    });
+                        let cache_kind_str = RcStr::from(value.split_at("use cache: ".len()).1);
+
+                        if !config.cache_kinds.contains(&cache_kind_str) {
+                            emit_error(ServerActionsErrorKind::UnknownCacheKind {
+                                span: *span,
+                                cache_kind: cache_kind_str.clone(),
+                            });
+                        }
+
+                        *cache_kind = Some(cache_kind_str);
+                    };
                     return false;
                 } else {
                     emit_error(ServerActionsErrorKind::MisplacedDirective {
@@ -2891,6 +2934,14 @@ fn emit_error(error_kind: ServerActionsErrorKind) {
                 "#
             },
         ),
+        ServerActionsErrorKind::UnknownCacheKind { span, cache_kind } => (
+            span,
+            formatdoc! {
+                r#"
+                    Unknown cache kind "{cache_kind}". Please configure a cache handler for this kind in the "experimental.cacheHandlers" object in your Next.js config.
+                "#
+            },
+        ),
         ServerActionsErrorKind::UseCacheWithoutDynamicIO { span, directive } => (
             span,
             formatdoc! {
diff --git a/crates/next-custom-transforms/tests/errors.rs b/crates/next-custom-transforms/tests/errors.rs
index eaf15623992ba..7bee850a1c62e 100644
--- a/crates/next-custom-transforms/tests/errors.rs
+++ b/crates/next-custom-transforms/tests/errors.rs
@@ -1,4 +1,4 @@
-use std::path::PathBuf;
+use std::{iter::FromIterator, path::PathBuf};
 
 use next_custom_transforms::transforms::{
     disallow_re_export_all_in_page::disallow_re_export_all_in_page,
@@ -11,6 +11,7 @@ use next_custom_transforms::transforms::{
     },
     strip_page_exports::{next_transform_strip_page_exports, ExportFilter},
 };
+use rustc_hash::FxHashSet;
 use swc_core::{
     common::{FileName, Mark},
     ecma::{
@@ -187,6 +188,7 @@ fn react_server_actions_server_errors(input: PathBuf) {
                         is_react_server_layer: true,
                         dynamic_io_enabled: true,
                         hash_salt: "".into(),
+                        cache_kinds: FxHashSet::default(),
                     },
                     tr.comments.as_ref().clone(),
                 ),
@@ -226,6 +228,7 @@ fn react_server_actions_client_errors(input: PathBuf) {
                         is_react_server_layer: false,
                         dynamic_io_enabled: true,
                         hash_salt: "".into(),
+                        cache_kinds: FxHashSet::default(),
                     },
                     tr.comments.as_ref().clone(),
                 ),
@@ -283,6 +286,7 @@ fn use_cache_not_allowed(input: PathBuf) {
                         is_react_server_layer: true,
                         dynamic_io_enabled: false,
                         hash_salt: "".into(),
+                        cache_kinds: FxHashSet::from_iter(["x".into()]),
                     },
                     tr.comments.as_ref().clone(),
                 ),
diff --git a/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/input.js b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/input.js
new file mode 100644
index 0000000000000..be374144ada15
--- /dev/null
+++ b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/input.js
@@ -0,0 +1,5 @@
+'use cache: x'
+
+export async function foo() {
+  return 'data'
+}
diff --git a/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/output.js b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/output.js
new file mode 100644
index 0000000000000..fd8981f7b00a2
--- /dev/null
+++ b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/output.js
@@ -0,0 +1,11 @@
+/* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
+import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
+import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+export var $$RSC_SERVER_CACHE_0 = $$cache__("x", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {
+    return 'data';
+});
+Object.defineProperty($$RSC_SERVER_CACHE_0, "name", {
+    "value": "foo",
+    "writable": false
+});
+export var foo = registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
diff --git a/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/output.stderr b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/output.stderr
new file mode 100644
index 0000000000000..5354e8d5920c6
--- /dev/null
+++ b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/16/output.stderr
@@ -0,0 +1,6 @@
+  x Unknown cache kind "x". Please configure a cache handler for this kind in the "experimental.cacheHandlers" object in your Next.js config.
+  | 
+   ,-[input.js:1:1]
+ 1 | 'use cache: x'
+   : ^^^^^^^^^^^^^^
+   `----
diff --git a/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/input.js b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/input.js
new file mode 100644
index 0000000000000..583e0663a9a77
--- /dev/null
+++ b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/input.js
@@ -0,0 +1,5 @@
+export async function foo() {
+  'use cache: x'
+
+  return 'data'
+}
diff --git a/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/output.js b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/output.js
new file mode 100644
index 0000000000000..fd8981f7b00a2
--- /dev/null
+++ b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/output.js
@@ -0,0 +1,11 @@
+/* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
+import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
+import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+export var $$RSC_SERVER_CACHE_0 = $$cache__("x", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {
+    return 'data';
+});
+Object.defineProperty($$RSC_SERVER_CACHE_0, "name", {
+    "value": "foo",
+    "writable": false
+});
+export var foo = registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
diff --git a/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/output.stderr b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/output.stderr
new file mode 100644
index 0000000000000..99bae2533eecc
--- /dev/null
+++ b/crates/next-custom-transforms/tests/errors/server-actions/server-graph/17/output.stderr
@@ -0,0 +1,7 @@
+  x Unknown cache kind "x". Please configure a cache handler for this kind in the "experimental.cacheHandlers" object in your Next.js config.
+  | 
+   ,-[input.js:2:1]
+ 1 | export async function foo() {
+ 2 |   'use cache: x'
+   :   ^^^^^^^^^^^^^^
+   `----
diff --git a/crates/next-custom-transforms/tests/fixture.rs b/crates/next-custom-transforms/tests/fixture.rs
index 4275d58e3825f..27e0203fdb7a2 100644
--- a/crates/next-custom-transforms/tests/fixture.rs
+++ b/crates/next-custom-transforms/tests/fixture.rs
@@ -1,5 +1,6 @@
 use std::{
     env::current_dir,
+    iter::FromIterator,
     path::{Path, PathBuf},
 };
 
@@ -21,6 +22,7 @@ use next_custom_transforms::transforms::{
     strip_page_exports::{next_transform_strip_page_exports, ExportFilter},
     warn_for_edge_runtime::warn_for_edge_runtime,
 };
+use rustc_hash::FxHashSet;
 use serde::de::DeserializeOwned;
 use swc_core::{
     common::{comments::SingleThreadedComments, FileName, Mark, SyntaxContext},
@@ -416,6 +418,7 @@ fn server_actions_server_fixture(input: PathBuf) {
                         is_react_server_layer: true,
                         dynamic_io_enabled: true,
                         hash_salt: "".into(),
+                        cache_kinds: FxHashSet::from_iter(["x".into()]),
                     },
                     _tr.comments.as_ref().clone(),
                 ),
@@ -448,6 +451,7 @@ fn next_font_with_directive_fixture(input: PathBuf) {
                         is_react_server_layer: true,
                         dynamic_io_enabled: true,
                         hash_salt: "".into(),
+                        cache_kinds: FxHashSet::default(),
                     },
                     _tr.comments.as_ref().clone(),
                 ),
@@ -473,6 +477,7 @@ fn server_actions_client_fixture(input: PathBuf) {
                         is_react_server_layer: false,
                         dynamic_io_enabled: true,
                         hash_salt: "".into(),
+                        cache_kinds: FxHashSet::default(),
                     },
                     _tr.comments.as_ref().clone(),
                 ),
diff --git a/packages/next/src/build/swc/options.ts b/packages/next/src/build/swc/options.ts
index 4b5d3717657fa..1e90db96857dd 100644
--- a/packages/next/src/build/swc/options.ts
+++ b/packages/next/src/build/swc/options.ts
@@ -65,6 +65,7 @@ function getBaseSWCOptions({
   serverReferenceHashSalt,
   bundleLayer,
   isDynamicIo,
+  cacheHandlers,
 }: {
   filename: string
   jest?: boolean
@@ -82,6 +83,7 @@ function getBaseSWCOptions({
   serverReferenceHashSalt: string
   bundleLayer?: WebpackLayerName
   isDynamicIo?: boolean
+  cacheHandlers?: ExperimentalConfig['cacheHandlers']
 }) {
   const isReactServerLayer = isWebpackServerOnlyLayer(bundleLayer)
   const isAppRouterPagesLayer = isWebpackAppPagesLayer(bundleLayer)
@@ -211,6 +213,7 @@ function getBaseSWCOptions({
             isReactServerLayer,
             dynamicIoEnabled: isDynamicIo,
             hashSalt: serverReferenceHashSalt,
+            cacheKinds: cacheHandlers ? Object.keys(cacheHandlers) : [],
           }
         : undefined,
     // For app router we prefer to bundle ESM,
@@ -355,6 +358,7 @@ export function getLoaderSWCOptions({
   serverReferenceHashSalt,
   bundleLayer,
   esm,
+  cacheHandlers,
 }: {
   filename: string
   development: boolean
@@ -379,6 +383,7 @@ export function getLoaderSWCOptions({
   serverComponents?: boolean
   serverReferenceHashSalt: string
   bundleLayer?: WebpackLayerName
+  cacheHandlers: ExperimentalConfig['cacheHandlers']
 }) {
   let baseOptions: any = getBaseSWCOptions({
     filename,
@@ -396,6 +401,7 @@ export function getLoaderSWCOptions({
     serverReferenceHashSalt,
     esm: !!esm,
     isDynamicIo,
+    cacheHandlers,
   })
   baseOptions.fontLoaders = {
     fontLoaders: ['next/font/local', 'next/font/google'],
diff --git a/packages/next/src/build/webpack/loaders/next-swc-loader.ts b/packages/next/src/build/webpack/loaders/next-swc-loader.ts
index 8b89aba642047..bce034cfeb410 100644
--- a/packages/next/src/build/webpack/loaders/next-swc-loader.ts
+++ b/packages/next/src/build/webpack/loaders/next-swc-loader.ts
@@ -142,6 +142,7 @@ async function loaderTransform(
     serverReferenceHashSalt,
     bundleLayer,
     esm,
+    cacheHandlers: nextConfig.experimental?.cacheHandlers,
   })
 
   const programmaticOptions = {
diff --git a/test/e2e/app-dir/use-cache-unknown-cache-kind/app/layout.tsx b/test/e2e/app-dir/use-cache-unknown-cache-kind/app/layout.tsx
new file mode 100644
index 0000000000000..888614deda3ba
--- /dev/null
+++ b/test/e2e/app-dir/use-cache-unknown-cache-kind/app/layout.tsx
@@ -0,0 +1,8 @@
+import { ReactNode } from 'react'
+export default function Root({ children }: { children: ReactNode }) {
+  return (
+    <html>
+      <body>{children}</body>
+    </html>
+  )
+}
diff --git a/test/e2e/app-dir/use-cache-unknown-cache-kind/app/page.tsx b/test/e2e/app-dir/use-cache-unknown-cache-kind/app/page.tsx
new file mode 100644
index 0000000000000..7fa0f0ec81336
--- /dev/null
+++ b/test/e2e/app-dir/use-cache-unknown-cache-kind/app/page.tsx
@@ -0,0 +1,5 @@
+'use cache: custom'
+
+export default async function Page() {
+  return <p>hello world</p>
+}
diff --git a/test/e2e/app-dir/use-cache-unknown-cache-kind/next.config.js b/test/e2e/app-dir/use-cache-unknown-cache-kind/next.config.js
new file mode 100644
index 0000000000000..ac4afcf432196
--- /dev/null
+++ b/test/e2e/app-dir/use-cache-unknown-cache-kind/next.config.js
@@ -0,0 +1,10 @@
+/**
+ * @type {import('next').NextConfig}
+ */
+const nextConfig = {
+  experimental: {
+    dynamicIO: true,
+  },
+}
+
+module.exports = nextConfig
diff --git a/test/e2e/app-dir/use-cache-unknown-cache-kind/use-cache-unknown-cache-kind.test.ts b/test/e2e/app-dir/use-cache-unknown-cache-kind/use-cache-unknown-cache-kind.test.ts
new file mode 100644
index 0000000000000..75e50a62cc4f8
--- /dev/null
+++ b/test/e2e/app-dir/use-cache-unknown-cache-kind/use-cache-unknown-cache-kind.test.ts
@@ -0,0 +1,155 @@
+import { nextTestSetup } from 'e2e-utils'
+import { NextConfig } from 'next'
+import {
+  assertHasRedbox,
+  assertNoRedbox,
+  getRedboxDescription,
+  getRedboxSource,
+  retry,
+} from 'next-test-utils'
+import stripAnsi from 'strip-ansi'
+
+const nextConfigWithCacheHandler: NextConfig = {
+  experimental: {
+    dynamicIO: true,
+    cacheHandlers: {
+      custom: require.resolve('next/dist/server/lib/cache-handlers/default'),
+    },
+  },
+}
+
+describe('use-cache-unknown-cache-kind', () => {
+  const { next, isNextStart, isTurbopack, skipped } = nextTestSetup({
+    files: __dirname,
+    skipStart: process.env.NEXT_TEST_MODE !== 'dev',
+    skipDeployment: true,
+  })
+
+  if (skipped) {
+    return
+  }
+
+  if (isNextStart) {
+    it('should fail the build with an error', async () => {
+      const { cliOutput } = await next.build()
+      const buildOutput = getBuildOutput(cliOutput)
+
+      if (isTurbopack) {
+        expect(buildOutput).toMatchInlineSnapshot(`
+          "Error: Turbopack build failed with 1 errors:
+          Page: {"type":"app","side":"server","page":"/page"}
+          ./app/page.tsx:1:1
+          Ecmascript file had an error
+          > 1 | 'use cache: custom'
+              | ^^^^^^^^^^^^^^^^^^^
+            2 |
+            3 | export default async function Page() {
+            4 |   return <p>hello world</p>
+
+          Unknown cache kind "custom". Please configure a cache handler for this kind in the "experimental.cacheHandlers" object in your Next.js config.
+
+
+
+              at <unknown> (./app/page.tsx:1:1)"
+        `)
+      } else {
+        expect(buildOutput).toMatchInlineSnapshot(`
+          "
+          ./app/page.tsx
+          Error:   x Unknown cache kind "custom". Please configure a cache handler for this kind in the "experimental.cacheHandlers" object in your Next.js config.
+            | 
+             ,-[1:1]
+           1 | 'use cache: custom'
+             : ^^^^^^^^^^^^^^^^^^^
+           2 | 
+           3 | export default async function Page() {
+           4 |   return <p>hello world</p>
+             \`----
+
+          Import trace for requested module:
+          ./app/page.tsx
+
+
+          > Build failed because of webpack errors
+          "
+        `)
+      }
+    })
+  } else {
+    it('should show a build error', async () => {
+      const browser = await next.browser('/')
+
+      await assertHasRedbox(browser)
+
+      const errorDescription = await getRedboxDescription(browser)
+      const errorSource = await getRedboxSource(browser)
+
+      expect(errorDescription).toBe('Failed to compile')
+
+      if (isTurbopack) {
+        expect(errorSource).toMatchInlineSnapshot(`
+            "./app/page.tsx:1:1
+            Ecmascript file had an error
+            > 1 | 'use cache: custom'
+                | ^^^^^^^^^^^^^^^^^^^
+              2 |
+              3 | export default async function Page() {
+              4 |   return <p>hello world</p>
+
+            Unknown cache kind "custom". Please configure a cache handler for this kind in the "experimental.cacheHandlers" object in your Next.js config."
+          `)
+      } else {
+        expect(errorSource).toMatchInlineSnapshot(`
+            "./app/page.tsx
+            Error:   x Unknown cache kind "custom". Please configure a cache handler for this kind in the "experimental.cacheHandlers" object in your Next.js config.
+              | 
+               ,-[1:1]
+             1 | 'use cache: custom'
+               : ^^^^^^^^^^^^^^^^^^^
+             2 | 
+             3 | export default async function Page() {
+             4 |   return <p>hello world</p>
+               \`----"
+          `)
+      }
+    })
+
+    it('should recover from the build error if the cache handler is defined', async () => {
+      const browser = await next.browser('/')
+
+      await assertHasRedbox(browser)
+
+      await next.patchFile(
+        'next.config.js',
+        `module.exports = ${JSON.stringify(nextConfigWithCacheHandler)}`,
+        () =>
+          retry(async () => {
+            expect(await browser.elementByCss('p').text()).toBe('hello world')
+            await assertNoRedbox(browser)
+          })
+      )
+    })
+  }
+})
+
+function getBuildOutput(cliOutput: string): string {
+  const lines: string[] = []
+  let skipLines = true
+
+  for (const line of cliOutput.split('\n')) {
+    if (!skipLines) {
+      if (line.includes('at turbopackBuild')) {
+        break
+      }
+
+      lines.push(stripAnsi(line))
+    } else if (
+      line.includes('Build error occurred') ||
+      line.includes('Failed to compile')
+    ) {
+      skipLines = false
+    }
+  }
+
+  return lines.join('\n')
+}