diff --git a/lib/bundler.rb b/lib/bundler.rb
index 78e2e875984..e68817a95aa 100644
--- a/lib/bundler.rb
+++ b/lib/bundler.rb
@@ -234,6 +234,10 @@ def app_cache(custom_path = nil)
       path.join(self.settings.app_cache_path)
     end
 
+    def global_cache
+      Pathname.new(File.expand_path(self.settings.global_cache_path))
+    end
+
     def tmp(name = Process.pid.to_s)
       Pathname.new(Dir.mktmpdir(["bundler", name]))
     end
diff --git a/lib/bundler/settings.rb b/lib/bundler/settings.rb
index afa76fcb790..4b20f571ef6 100644
--- a/lib/bundler/settings.rb
+++ b/lib/bundler/settings.rb
@@ -222,6 +222,10 @@ def app_cache_path
       end
     end
 
+    def global_cache_path
+      self["path.global_cache"] || File.join(Bundler.rubygems.user_home, ".bundle/cache")
+    end
+
   private
 
     def key_for(key)
diff --git a/lib/bundler/source/rubygems.rb b/lib/bundler/source/rubygems.rb
index 12d50e8017d..a9f8019e79e 100644
--- a/lib/bundler/source/rubygems.rb
+++ b/lib/bundler/source/rubygems.rb
@@ -79,7 +79,8 @@ def specs
           # sources, and large_idx.use small_idx is way faster than
           # small_idx.use large_idx.
           idx = @allow_remote ? remote_specs.dup : Index.new
-          idx.use(cached_specs, :override_dupes) if @allow_cached || @allow_remote
+          idx.use(cached_specs(:local), :override_dupes) if @allow_cached || @allow_remote
+          idx.use(cached_specs(:global), :override_dupes)
           idx.use(installed_specs, :override_dupes)
           idx
         end
@@ -88,6 +89,7 @@ def specs
       def install(spec, opts = {})
         force = opts[:force]
         ensure_builtin_gems_cached = opts[:ensure_builtin_gems_cached]
+        cache_globally(cached_path(spec), spec) if spec && cached_path(spec)
 
         if ensure_builtin_gems_cached && builtin_gem?(spec)
           if !cached_path(spec)
@@ -306,12 +308,32 @@ def installed_specs
         end
       end
 
-      def cached_specs
+      def cache_globally(gemfile, spec = nil)
+        unless File.exist?("#{Bundler.global_cache}/#{File.basename(gemfile)}")
+          if spec
+            uri = spec.source.remotes.first
+            source_dir = [uri.hostname, uri.port, Digest::MD5.hexdigest(uri.path)].compact.join(".")
+            cache_dir = Bundler.global_cache.join("gems", source_dir)
+          else
+            cache_dir = Bundler.global_cache.join("gems")
+          end
+          FileUtils.mkdir_p(cache_dir)
+          FileUtils.cp(gemfile, cache_dir)
+        end
+      end
+
+      def cached_specs(scope)
         @cached_specs ||= begin
           idx = installed_specs.dup
-
-          path = Bundler.app_cache
-          Dir["#{path}/*.gem"].each do |gemfile|
+          path =
+           case scope
+           when :local then Bundler.app_cache
+           when :global then Bundler.global_cache
+           else
+             raise "scope must be :local or :global"
+           end
+
+          Dir["#{path}/**/*.gem"].each do |gemfile|
             next if gemfile =~ /^bundler\-[\d\.]+?\.gem/
             s ||= Bundler.rubygems.spec_from_gem(gemfile)
             s.source = self
@@ -397,13 +419,16 @@ def fetch_gem(spec)
         spec.fetch_platform
 
         download_path = Bundler.requires_sudo? ? Bundler.tmp(spec.full_name) : Bundler.rubygems.gem_dir
-        gem_path = "#{Bundler.rubygems.gem_dir}/cache/#{spec.full_name}.gem"
+        local_gem_path = "#{Bundler.rubygems.gem_dir}/cache"
+        gem_path = "#{local_gem_path}/#{spec.full_name}.gem"
 
         FileUtils.mkdir_p("#{download_path}/cache")
         Bundler.rubygems.download_gem(spec, uri, download_path)
+        cache_globally(gem_path, spec)
+        # TODO: Maybe do something in this method: Check when download_gem is called?
 
         if Bundler.requires_sudo?
-          Bundler.mkdir_p "#{Bundler.rubygems.gem_dir}/cache"
+          Bundler.mkdir_p local_gem_path
           Bundler.sudo "mv #{download_path}/cache/#{spec.full_name}.gem #{gem_path}"
         end
 
diff --git a/spec/commands/install_spec.rb b/spec/commands/install_spec.rb
index 7e36eeeed02..7c6e1dc2328 100644
--- a/spec/commands/install_spec.rb
+++ b/spec/commands/install_spec.rb
@@ -404,4 +404,162 @@
       expect(err).to include("Please use `bundle config path")
     end
   end
+
+  describe "using the global cache" do
+    let(:source_hostname) { "localgemserver.test" }
+    let(:source_uri) { "http://#{source_hostname}" }
+
+    it "creates the global cache directory" do
+      gemfile <<-G
+        source "file://#{gem_repo1}"
+        gem "rack", "1.0"
+      G
+
+      bundle :install
+      expect(bundle_cache).to exist
+    end
+
+    it "copies .gem files to the global cache" do
+      gemfile <<-G
+        source "file://#{gem_repo1}"
+        gem "rack", "1.0"
+      G
+
+      bundle :install
+      expect(bundle_cached_gem("rack-1.0.0", gem_repo1)).to exist
+    end
+
+    it "does not remove .gem files from the global cache" do
+      gemfile <<-G
+        source "file://#{gem_repo1}"
+        gem "rack", "1.0"
+      G
+
+      bundle :install
+      expect(bundle_cached_gem("rack-1.0.0", gem_repo1)).to exist
+
+      gemfile <<-G
+        source "file://#{gem_repo1}"
+      G
+
+      bundle :install
+      expect(bundle_cached_gem("rack-1.0.0", gem_repo1)).to exist
+    end
+
+    # FIXME: check what behavior is being tested
+    it "does not download gems to the global cache when caching globally" do
+      gemfile <<-G
+        source "#{source_uri}"
+        gem "rack", "1.0"
+      G
+
+      bundle :install, :artifice => "endpoint"
+      expect(out).to include("Fetching gem metadata from #{source_uri}")
+      expect(bundle_cached_gem("rack-1.0.0", source_uri)).to exist
+      FileUtils.rm_r(bundle_cache)
+      expect(bundle_cache).not_to exist
+
+      bundle :install, :artifice => "endpoint"
+      expect(out).not_to include("Fetching gem metadata from #{source_uri}")
+      expect(bundle_cached_gem("rack-1.0.0", source_uri)).to exist
+    end
+
+    it "uses the global cache as a source when installing gems" do
+      install_gemfile <<-G
+        source "file://#{gem_repo1}"
+        gem "rack", "1.0"
+      G
+
+      FileUtils.rm_r(default_bundle_path)
+      # build_gem "rack", :path => bundle_cache_source_dir("https://rubygems.org")
+
+      install_gemfile <<-G, :artifice => "endpoint_no_gem"
+        source "https://rubygems.org"
+        gem "rack"
+      G
+      $stderr.puts out
+
+      should_be_installed "rack 1.0.0"
+    end
+
+    it "uses the global cache as a source when installing local gems from a different directory" do
+      build_gem "omg", :path => bundle_cache_source_dir(gem_repo1)
+      build_gem "foo", :path => bundle_cache_source_dir(gem_repo1)
+
+      install_gemfile <<-G
+        source "file://#{gem_repo1}"
+        gem "omg"
+      G
+
+      should_be_installed "omg 1.0.0"
+      should_not_be_installed "foo 1.0.0"
+
+      Dir.chdir bundled_app2 do
+        create_file "gems.rb", Pathname.new(bundled_app2("gems.rb")), <<-G
+          source "file://#{gem_repo1}"
+          gem "foo"
+        G
+
+        should_not_be_installed "omg 1.0.0"
+        should_not_be_installed "foo 1.0.0"
+
+        bundle :install
+
+        should_be_installed "foo 1.0.0"
+        should_not_be_installed "omg 1.0.0"
+      end
+    end
+
+    it "uses the global cache as a source when installing remote gems from a different directory" do
+      install_gemfile <<-G
+        source "file://#{gem_repo1}"
+        gem "rack"
+      G
+
+      should_be_installed "rack 1.0.0"
+
+      Dir.chdir bundled_app2 do
+        create_file "gems.rb", Pathname.new(bundled_app2("gems.rb")), <<-G
+          source "#{source_uri}"
+          gem "rack"
+        G
+
+        should_not_be_installed "rack 1.0.0"
+
+        bundle :install, :artifice => "endpoint_no_gem"
+        expect(out).not_to include("Fetching gem metadata from #{source_uri}")
+        should_be_installed "rack 1.0.0"
+      end
+    end
+
+    it "allows the global cache path to be configured" do
+      bundle "config path.global_cache #{home}/machine_cache"
+      build_gem "omg", :path => "#{home}/machine_cache/gems/#{source_dir(gem_repo1)}"
+
+      install_gemfile <<-G
+        source "file://#{gem_repo1}"
+        gem "omg"
+      G
+
+      should_be_installed "omg 1.0.0"
+    end
+
+    it "copies gems from the local cache to the global cache" do
+      gemfile <<-G
+        source "file://#{gem_repo1}"
+        gem "rack", "1.0"
+      G
+
+      bundle :install
+      bundle :cache
+      FileUtils.rm_r(default_bundle_path)
+      FileUtils.rm_r(bundle_cache)
+      expect(default_bundle_path).not_to exist
+      expect(bundle_cache).not_to exist
+      expect(cached_gem("rack-1.0.0")).to exist
+
+      bundle :install
+      expect(bundle_cached_gem("rack-1.0.0", gem_repo1)).to exist
+    end
+  end
 end
diff --git a/spec/support/artifice/endpoint_no_gem.rb b/spec/support/artifice/endpoint_no_gem.rb
new file mode 100644
index 00000000000..54efbb2193d
--- /dev/null
+++ b/spec/support/artifice/endpoint_no_gem.rb
@@ -0,0 +1,11 @@
+require File.expand_path("../endpoint", __FILE__)
+
+Artifice.deactivate
+
+class EndpointNoGem < Endpoint
+  get "/gems/:id" do
+    halt 500
+  end
+end
+
+Artifice.activate_with(EndpointNoGem)
diff --git a/spec/support/path.rb b/spec/support/path.rb
index bebc9c4146f..0703909c1f7 100644
--- a/spec/support/path.rb
+++ b/spec/support/path.rb
@@ -40,6 +40,28 @@ def cached_gem(path)
       bundled_app("vendor/cache/#{path}.gem")
     end
 
+    def bundle_cache(*path)
+      home(".bundle/cache", *path)
+    end
+
+    def source_dir(source)
+      prefix = %r(https?:\/\/) =~ source.to_s ? "" : "file:"
+      uri = Bundler::Source::Rubygems::Remote.new(URI("#{prefix}#{source}/")).uri
+      [uri.hostname, uri.port, Digest::MD5.hexdigest(uri.path)].compact.join(".")
+    end
+
+    def bundle_cache_source_dir(source)
+      bundle_cache("gems", source_dir(source))
+    end
+
+    def bundle_cached_gem(gem, source = nil)
+      if source
+        bundle_cache_source_dir(source).join("#{gem}.gem")
+      else
+        bundle_cache("gems", "#{gem}.gem")
+      end
+    end
+
     def base_system_gems
       tmp.join("gems/base")
     end