diff --git a/__tests__/cacheUtils.test.ts b/__tests__/cacheUtils.test.ts
index 25124b4..4388026 100644
--- a/__tests__/cacheUtils.test.ts
+++ b/__tests__/cacheUtils.test.ts
@@ -2,6 +2,10 @@ import {promises as fs} from 'fs'
 import * as path from 'path'
 import * as cacheUtils from '../src/internal/cacheUtils'
 
+beforeEach(() => {
+  jest.resetModules()
+})
+
 test('getArchiveFileSizeInBytes returns file size', () => {
   const filePath = path.join(__dirname, '__fixtures__', 'helloWorld.txt')
 
@@ -38,3 +42,23 @@ test('resolvePaths works on github workspace directory', async () => {
   const paths = await cacheUtils.resolvePaths([workspace])
   expect(paths.length).toBeGreaterThan(0)
 })
+
+test('isGhes returns false for github.com', async () => {
+  process.env.GITHUB_SERVER_URL = 'https://github.com'
+  expect(cacheUtils.isGhes()).toBe(false)
+})
+
+test('isGhes returns false for ghe.com', async () => {
+  process.env.GITHUB_SERVER_URL = 'https://somedomain.ghe.com'
+  expect(cacheUtils.isGhes()).toBe(false)
+})
+
+test('isGhes returns true for enterprise URL', async () => {
+  process.env.GITHUB_SERVER_URL = 'https://my-enterprise.github.com'
+  expect(cacheUtils.isGhes()).toBe(true)
+})
+
+test('isGhes returns false for ghe.localhost', () => {
+  process.env.GITHUB_SERVER_URL = 'https://my.domain.ghe.localhost'
+  expect(cacheUtils.isGhes()).toBe(false)
+})
diff --git a/src/internal/cacheUtils.ts b/src/internal/cacheUtils.ts
index 650653a..91bae9a 100644
--- a/src/internal/cacheUtils.ts
+++ b/src/internal/cacheUtils.ts
@@ -135,5 +135,11 @@ export function isGhes(): boolean {
   const ghUrl = new URL(
     process.env['GITHUB_SERVER_URL'] || 'https://github.com'
   )
-  return ghUrl.hostname.toUpperCase() !== 'GITHUB.COM'
+
+  const hostname = ghUrl.hostname.trimEnd().toUpperCase()
+  const isGitHubHost = hostname === 'GITHUB.COM'
+  const isGheHost =
+    hostname.endsWith('.GHE.COM') || hostname.endsWith('.GHE.LOCALHOST')
+
+  return !isGitHubHost && !isGheHost
 }