diff --git a/.github/workflows/prod.yml b/.github/workflows/prod.yml
index b1f31f9..450eaa5 100644
--- a/.github/workflows/prod.yml
+++ b/.github/workflows/prod.yml
@@ -7,7 +7,7 @@ on:
   workflow_dispatch:
 
 env:
-  CACHE_KEY_SEED: ${{github.workflow}}#${{github.run_number}}-
+  CACHE_KEY_PREFIX: ${{github.workflow}}#${{github.run_number}}-
 
 jobs:
   # Run initial Gradle builds to push initial cache entries
diff --git a/__tests__/cache-utils.test.ts b/__tests__/cache-utils.test.ts
index 89a7715..ded9021 100644
--- a/__tests__/cache-utils.test.ts
+++ b/__tests__/cache-utils.test.ts
@@ -2,30 +2,14 @@ import * as cacheUtils from '../src/cache-utils'
 import * as path from 'path'
 
 describe('cacheUtils-utils', () => {
-    describe('can truncate args', () => {
-        test('handles zero-length string', () => {
-            expect(cacheUtils.truncateArgs('')).toBe('')
+    describe('can hash', () => {
+        it('a string', async () => {
+            const hash = cacheUtils.hashStrings(['foo'])
+            expect(hash).toBe('acbd18db4cc2f85cedef654fccc4a4d8')
         })
-        test('leaves short string untouched', () => {
-            expect(
-                cacheUtils.truncateArgs('short string that-should-be-untouched')
-            ).toBe('short string that-should-be-untouched')
-        })
-        test('truncates long string', () => {
-            const longString = 'a'.repeat(500)
-            expect(cacheUtils.truncateArgs(longString)).toBe('a'.repeat(400))
-        })
-        test('trims leading and trailing whitespace', () => {
-            expect(cacheUtils.truncateArgs('    this is an arg      ')).toBe(
-                'this is an arg'
-            )
-        })
-        test('removes repeated whitespace', () => {
-            expect(
-                cacheUtils.truncateArgs(
-                    '   this     one     has long   \t\n\t\r  spaces    '
-                )
-            ).toBe('this one has long spaces')
+        it('multiple strings', async () => {
+            const hash = cacheUtils.hashStrings(['foo', 'bar', 'baz'])
+            expect(hash).toBe('6df23dc03f9b54cc38a0fc1483df6e21')
         })
     })
 })
diff --git a/src/cache-utils.ts b/src/cache-utils.ts
index b5dcfe6..afd5d81 100644
--- a/src/cache-utils.ts
+++ b/src/cache-utils.ts
@@ -1,5 +1,6 @@
 import * as core from '@actions/core'
 import * as github from '@actions/github'
+import * as crypto from 'crypto'
 
 export function isCacheReadEnabled(cacheName: string): boolean {
     const configValue = getCacheEnabledValue(cacheName)
@@ -25,19 +26,48 @@ function getCacheEnabledValue(cacheName: string): string {
 }
 
 export function generateCacheKey(cacheName: string): CacheKey {
-    const cacheKeySeed = process.env[`CACHE_KEY_SEED`] || ''
-    const runnerOs = process.env[`RUNNER_OS`] || ''
-    const cacheKeyPrefix = `${cacheKeySeed}${runnerOs}|${cacheName}|`
+    // Prefix can be used to force change all cache keys
+    const cacheKeyPrefix = process.env['CACHE_KEY_PREFIX'] || ''
 
-    const args = truncateArgs(core.getInput('arguments'))
-    const cacheKeyWithArgs = `${cacheKeyPrefix}${args}|`
+    // At the most general level, share caches for all executions on the same OS
+    const runnerOs = process.env['RUNNER_OS'] || ''
+    const cacheKeyForOs = `${cacheKeyPrefix}${cacheName}|${runnerOs}`
 
-    const cacheKey = `${cacheKeyWithArgs}${github.context.sha}`
-    return new CacheKey(cacheKey, [cacheKeyWithArgs, cacheKeyPrefix])
+    // Prefer caches that run this job
+    const cacheKeyForJob = `${cacheKeyForOs}|${github.context.job}`
+
+    // Prefer (even more) jobs that run this job with the same context (matrix)
+    const cacheKeyForJobContext = `${cacheKeyForJob}[${determineJobContext()}]`
+
+    // Exact match on Git SHA
+    const cacheKey = `${cacheKeyForJobContext}-${github.context.sha}`
+
+    return new CacheKey(cacheKey, [
+        cacheKeyForJobContext,
+        cacheKeyForJob,
+        cacheKeyForOs
+    ])
 }
 
-function truncateArgs(args: string): string {
-    return args.trim().replace(/\s+/g, ' ').substr(0, 400)
+function determineJobContext(): string {
+    // Ideally we'd serialize the entire matrix values here, but matrix is not available within the action invocation.
+    // Use the JAVA_HOME value as a proxy for the java version
+    const javaHome = process.env['JAVA_HOME'] || ''
+
+    // Approximate overall context based on the first gradle invocation in the Job
+    const args = core.getInput('arguments')
+    const buildRootDirectory = core.getInput('build-root-directory')
+    const gradleVersion = core.getInput('gradle-version')
+
+    return hashStrings([javaHome, args, buildRootDirectory, gradleVersion])
+}
+
+export function hashStrings(values: string[]): string {
+    const hash = crypto.createHash('md5')
+    for (const value of values) {
+        hash.update(value)
+    }
+    return hash.digest('hex')
 }
 
 export class CacheKey {