diff --git a/SYCL/KernelAndProgram/cache_env_vars_dg1.cpp b/SYCL/KernelAndProgram/cache_env_vars_dg1.cpp
new file mode 100644
index 0000000000..e1d0a767bb
--- /dev/null
+++ b/SYCL/KernelAndProgram/cache_env_vars_dg1.cpp
@@ -0,0 +1,43 @@
+// No JITing for host devices.
+// REQUIRES: (opencl || level_zero) && gpu-intel-dg1
+//
+// Default format test cases.
+// RUN: rm -rf %t/cache_dir
+// RUN: %clangxx -fsycl -fsycl-targets=spir64_gen -Xsycl-target-backend=spir64_gen "-device dg1" %s -o %t.out -DTARGET_IMAGE=INC100
+// Build program and add item to cache
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=1 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 %t.out | FileCheck %s --check-prefixes=CHECK-BUILD
+// Ignore caching because image size is less than threshold
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=1 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 SYCL_CACHE_MIN_DEVICE_IMAGE_SIZE=100000 %t.out | FileCheck %s --check-prefixes=CHECK-BUILD
+// Ignore caching because image size is more than threshold
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=1 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 SYCL_CACHE_MAX_DEVICE_IMAGE_SIZE=1000 %t.out | FileCheck %s --check-prefixes=CHECK-BUILD
+// Use cache
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=1 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 %t.out | FileCheck %s --check-prefixes=CHECK-CACHE
+// Ignore cache because of environment variable
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=0 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 %t.out | FileCheck %s --check-prefixes=CHECK-BUILD
+//
+// ZEBIN format test cases.
+// RUN: rm -rf %t/cache_dir
+// RUN: %clangxx -fsycl -fsycl-targets=spir64_gen -Xsycl-target-backend=spir64_gen "--format zebin -device dg1" %s -o %t.out -DTARGET_IMAGE=INC100
+// Build program and add item to cache
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=1 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 %t.out | FileCheck %s --check-prefixes=CHECK-BUILD
+// Ignore caching because image size is less than threshold
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=1 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 SYCL_CACHE_MIN_DEVICE_IMAGE_SIZE=100000 %t.out | FileCheck %s --check-prefixes=CHECK-BUILD
+// Ignore caching because image size is more than threshold
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=1 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 SYCL_CACHE_MAX_DEVICE_IMAGE_SIZE=1000 %t.out | FileCheck %s --check-prefixes=CHECK-BUILD
+// Use cache
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=1 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 %t.out | FileCheck %s --check-prefixes=CHECK-CACHE
+// Ignore cache because of environment variable
+// RUN: %BE_RUN_PLACEHOLDER SYCL_CACHE_PERSISTENT=0 SYCL_CACHE_DIR=%t/cache_dir SYCL_PI_TRACE=-1 %t.out | FileCheck %s --check-prefixes=CHECK-BUILD
+//
+// The test checks environment variables which may disable caching for native
+// binaries on DG1.
+
+// CHECK-BUILD-NOT: piProgramCreateWithBinary(
+// CHECK-BUILD: piProgramCreate(
+// CHECK-BUILD: piProgramBuild(
+
+// CHECK-CACHE-NOT: piProgramCreate(
+// CHECK-CACHE: piProgramCreateWithBinary(
+// CHECK-CACHE: piProgramBuild(
+
+#include "cache_env_vars.hpp"