diff --git a/__tests__/cache-utils.test.ts b/__tests__/cache-utils.test.ts
index 695c561..edb5f25 100644
--- a/__tests__/cache-utils.test.ts
+++ b/__tests__/cache-utils.test.ts
@@ -209,3 +209,41 @@ describe('isCacheFeatureAvailable', () => {
     expect(warningSpy).toHaveBeenCalledWith(warningMessage);
   });
 });
+
+describe('isGhes', () => {
+  const pristineEnv = process.env;
+
+  beforeEach(() => {
+    jest.resetModules();
+    process.env = { ...pristineEnv };
+  });
+
+  afterAll(() => {
+    process.env = pristineEnv;
+  });  
+
+  it('returns false when the GITHUB_SERVER_URL environment variable is not defined', async () => {
+    process.env['GITHUB_SERVER_URL'] = undefined;
+    expect(cacheUtils.isGhes()).toBeFalsy();
+  });
+
+  it('returns false when the GITHUB_SERVER_URL environment variable is set to github.com', async () => {
+    process.env['GITHUB_SERVER_URL'] = 'https://github.com';
+    expect(cacheUtils.isGhes()).toBeFalsy();
+  });
+
+  it('returns false when the GITHUB_SERVER_URL environment variable is set to a GitHub Enterprise Cloud-style URL', async () => {
+    process.env['GITHUB_SERVER_URL'] = 'https://contoso.ghe.com';
+    expect(cacheUtils.isGhes()).toBeFalsy();
+  });
+
+  it('returns false when the GITHUB_SERVER_URL environment variable has a .localhost suffix', async () => {
+    process.env['GITHUB_SERVER_URL'] = 'https://mock-github.localhost';
+    expect(cacheUtils.isGhes()).toBeFalsy();
+  });
+
+  it('returns true when the GITHUB_SERVER_URL environment variable is set to some other URL', async () => {
+    process.env['GITHUB_SERVER_URL'] = 'https://src.onpremise.fabrikam.com';
+    expect(cacheUtils.isGhes()).toBeTruthy();
+  });
+});