diff --git a/Wabbajack.Lib/CompilationSteps/IgnoreExtension.cs b/Wabbajack.Lib/CompilationSteps/IgnoreExtension.cs
new file mode 100644
index 00000000..db93aea6
--- /dev/null
+++ b/Wabbajack.Lib/CompilationSteps/IgnoreExtension.cs
@@ -0,0 +1,27 @@
+using System.Threading.Tasks;
+using Wabbajack.Common;
+
+namespace Wabbajack.Lib.CompilationSteps
+{
+    public class IgnoreExtension : ACompilationStep
+    {
+        private readonly Extension _ext;
+        private readonly string _reason;
+
+        public IgnoreExtension(ACompiler compiler, Extension ext) : base(compiler)
+        {
+            _ext = ext;
+            _reason = $"Ignoring {_ext} files";
+        }
+
+        public override async ValueTask<Directive?> Run(RawSourceFile source)
+        {
+            if (source.Path.Extension != _ext)
+                return null;
+
+            var result = source.EvolveTo<IgnoredDirectly>();
+            result.Reason = _reason;
+            return result;
+        }
+    }
+}
diff --git a/Wabbajack.Lib/MO2Compiler.cs b/Wabbajack.Lib/MO2Compiler.cs
index 6632fe86..91971f6b 100644
--- a/Wabbajack.Lib/MO2Compiler.cs
+++ b/Wabbajack.Lib/MO2Compiler.cs
@@ -479,6 +479,7 @@ namespace Wabbajack.Lib
                 new zEditIntegration.IncludeZEditPatches(this),
                 new IncludeTaggedMods(this, Consts.WABBAJACK_NOMATCH_INCLUDE),
                 new IgnorePathContains(this,@"\Edit Scripts\Export\"),
+                new IgnoreExtension(this, new Extension(".CACHE")),
                 new DropAll(this)
             };
         }