diff --git a/docker-compose.yml b/docker-compose.yml
index e63df946..f511eec5 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -29,7 +29,6 @@ services:
       - SKYD_DISK_CACHE_SIZE=${SKYD_DISK_CACHE_SIZE:-53690000000} # 50GB
       - SKYD_DISK_CACHE_MIN_HITS=${SKYD_DISK_CACHE_MIN_HITS:-3}
       - SKYD_DISK_CACHE_HIT_PERIOD=${SKYD_DISK_CACHE_HIT_PERIOD:-3600} # 1h
-
     env_file:
       - .env
     volumes:
@@ -65,6 +64,8 @@ services:
     logging: *default-logging
     env_file:
       - .env
+    environment:
+      - SKYD_DISK_CACHE_ENABLED=${SKYD_DISK_CACHE_ENABLED:-false}
     volumes:
       - ./docker/data/nginx/cache:/data/nginx/cache
       - ./docker/data/nginx/blocker:/data/nginx/blocker
diff --git a/docker/nginx/conf.d/include/proxy-cache-downloads b/docker/nginx/conf.d/include/proxy-cache-downloads
index 8481ebb9..c7405857 100644
--- a/docker/nginx/conf.d/include/proxy-cache-downloads
+++ b/docker/nginx/conf.d/include/proxy-cache-downloads
@@ -11,4 +11,11 @@ proxy_cache_bypass $cookie_nocache $arg_nocache;
 # no cache - this will ignore cache on request (status MISS)
 # and does not store file in cache under no condition
 set_if_empty $nocache "0";
-proxy_no_cache $nocache;
+
+# map skyd env variable value to "1" for true and "0" for false (expected by proxy_no_cache)
+set_by_lua_block $skyd_disk_cache_enabled {
+    return os.getenv("SKYD_DISK_CACHE_ENABLED") == "true" and "1" or "0"
+}
+
+# disable cache when nocache is set or skyd cache is enabled
+proxy_no_cache $nocache $skyd_disk_cache_enabled;
diff --git a/docker/nginx/nginx.conf b/docker/nginx/nginx.conf
index eb5494c9..5d7e5944 100644
--- a/docker/nginx/nginx.conf
+++ b/docker/nginx/nginx.conf
@@ -31,6 +31,7 @@ env SKYNET_SERVER_API;
 env PORTAL_MODULES;
 env ACCOUNTS_LIMIT_ACCESS;
 env SIA_API_PASSWORD;
+env SKYD_DISK_CACHE_ENABLED;
 
 events {
     worker_connections 8192;