diff --git a/src/test/kotlin/org/hiero/gradle/test/RustTasksTest.kt b/src/test/kotlin/org/hiero/gradle/test/RustTasksTest.kt
index bc0b118..0864efc 100644
--- a/src/test/kotlin/org/hiero/gradle/test/RustTasksTest.kt
+++ b/src/test/kotlin/org/hiero/gradle/test/RustTasksTest.kt
@@ -9,25 +9,55 @@ import org.junit.jupiter.api.Test
 
 class RustTasksTest {
 
-    @Test
-    fun `installRustToolchains installs all toolchains defined in CargoToolchain`() {
-        val p = GradleProject().withMinimalStructure()
-        val rustToolchainsDir = p.file("product/module-a/build/rust-toolchains/rustup/toolchains")
-        p.moduleBuildFile("""plugins { id("org.hiero.gradle.feature.rust") }""")
-        p.toolchainVersionsFile(
-            """
+    private val toolchainVersions =
+        """
             jdk=17.0.12
             rust=1.81.0
             cargo-zigbuild=0.19.5
             zig=0.13.0
             xwin=0.6.5
         """
-                .trimIndent()
+            .trimIndent()
+
+    private val cargoToml =
+        """
+        [package]
+        name = "module-a"
+        version = "0.0.1"
+        edition = "2021"
+        [lib]
+        path = "src/main/rust/lib.rs"
+        crate-type = ["cdylib"]
+    """
+            .trimIndent()
+
+    // This test asserts multiple things in one test method as installing the toolchains is quite expensive.
+    @Test
+    fun `rust toolchain installation and caching works`() {
+        val push = GradleProject().withMinimalStructure()
+        val pull = GradleProject().withMinimalStructure()
+        push.settingsFile.appendText(
+            """buildCache.local.directory = File("${push.file("build-cache").absolutePath}")"""
         )
+        pull.settingsFile.appendText(
+            """buildCache.local.directory = File("${push.file("build-cache").absolutePath}")"""
+        )
+        push.moduleBuildFile("""plugins { id("org.hiero.gradle.feature.rust") }""")
+        pull.moduleBuildFile("""plugins { id("org.hiero.gradle.feature.rust") }""")
+        push.toolchainVersionsFile(toolchainVersions)
+        pull.toolchainVersionsFile(toolchainVersions)
+        push.file("product/module-a/src/main/rust/lib.rs", "pub fn public_api() {}")
+        pull.file("product/module-a/src/main/rust/lib.rs", "pub fn public_api() {}")
+        push.file("product/module-a/Cargo.toml", cargoToml)
+        pull.file("product/module-a/Cargo.toml", cargoToml)
+
+        val rustToolchainsDir = push.file("product/module-a/build/rust-toolchains/rustup/toolchains")
 
-        val result = p.run("installRustToolchains")
+        val pushResult = push.run("assemble --build-cache")
+        val pullResult = pull.run("assemble --build-cache -PskipInstallRustToolchains=true")
 
-        assertThat(result.output).doesNotContain("warning: Force-skipping unavailable component")
+        // installRustToolchains installs all toolchains defined in CargoToolchain
+        assertThat(pushResult.output).doesNotContain("warning: Force-skipping unavailable component")
         CargoToolchain.values().forEach { toolchain ->
             val toolchainDir =
                 rustToolchainsDir
@@ -36,7 +66,32 @@ class RustTasksTest {
                     .single()
             assertThat(toolchainDir).isNotEmptyDirectory()
         }
-        assertThat(result.task(":module-a:installRustToolchains")?.outcome)
+        assertThat(pushResult.task(":module-a:installRustToolchains")?.outcome)
+            .isEqualTo(TaskOutcome.SUCCESS)
+
+        // rust build results are taken FROM-CACHE and installRustToolchains can be skipped
+        assertThat(pushResult.task(":module-a:installRustToolchains")?.outcome)
+            .isEqualTo(TaskOutcome.SUCCESS)
+        assertThat(pullResult.task(":module-a:installRustToolchains")).isNull()
+        assertThat(pushResult.task(":module-a:cargoBuildAarch64Darwin")?.outcome)
+            .isEqualTo(TaskOutcome.SUCCESS)
+        assertThat(pullResult.task(":module-a:cargoBuildAarch64Darwin")?.outcome)
+            .isEqualTo(TaskOutcome.FROM_CACHE)
+        assertThat(pushResult.task(":module-a:cargoBuildAarch64Linux")?.outcome)
+            .isEqualTo(TaskOutcome.SUCCESS)
+        assertThat(pullResult.task(":module-a:cargoBuildAarch64Linux")?.outcome)
+            .isEqualTo(TaskOutcome.FROM_CACHE)
+        assertThat(pushResult.task(":module-a:cargoBuildX86Darwin")?.outcome)
+            .isEqualTo(TaskOutcome.SUCCESS)
+        assertThat(pullResult.task(":module-a:cargoBuildX86Darwin")?.outcome)
+            .isEqualTo(TaskOutcome.FROM_CACHE)
+        assertThat(pushResult.task(":module-a:cargoBuildX86Linux")?.outcome)
+            .isEqualTo(TaskOutcome.SUCCESS)
+        assertThat(pullResult.task(":module-a:cargoBuildX86Linux")?.outcome)
+            .isEqualTo(TaskOutcome.FROM_CACHE)
+        assertThat(pushResult.task(":module-a:cargoBuildX86Windows")?.outcome)
             .isEqualTo(TaskOutcome.SUCCESS)
+        assertThat(pullResult.task(":module-a:cargoBuildX86Windows")?.outcome)
+            .isEqualTo(TaskOutcome.FROM_CACHE)
     }
 }
diff --git a/src/test/kotlin/org/hiero/gradle/test/fixtures/GradleProject.kt b/src/test/kotlin/org/hiero/gradle/test/fixtures/GradleProject.kt
index 07f46da..39f236b 100644
--- a/src/test/kotlin/org/hiero/gradle/test/fixtures/GradleProject.kt
+++ b/src/test/kotlin/org/hiero/gradle/test/fixtures/GradleProject.kt
@@ -34,6 +34,7 @@ class GradleProject {
     private val env =
         mutableMapOf<String, String>().also {
             it["PATH"] = System.getenv("PATH") // to find 'git' command
+            it["HOME"] = System.getenv("HOME") // needed for Rust compilation
         }
 
     fun withMinimalStructure(): GradleProject {