diff --git a/projects/clr/rocclr/runtime/device/gpu/gpusettings.cpp b/projects/clr/rocclr/runtime/device/gpu/gpusettings.cpp
index 201523c659..ab74023527 100644
--- a/projects/clr/rocclr/runtime/device/gpu/gpusettings.cpp
+++ b/projects/clr/rocclr/runtime/device/gpu/gpusettings.cpp
@@ -77,9 +77,6 @@ Settings::Settings()
     // GPU device by default
     apuSystem_  = false;
 
-    // Save resource cache size
-    resourceCacheSize_ = GPU_RESOURCE_CACHE_SIZE * Mi;
-
     // Disable 64 bit pointers support by default
     use64BitPtr_ = false;
 
@@ -157,6 +154,9 @@ Settings::create(
     // Disable thread trace by default for all devices
     threadTraceEnable_ = false;
 
+    // Save resource cache size
+    resourceCacheSize_ = std::max((calAttr.localRAM / 8) * Mi, GPU_RESOURCE_CACHE_SIZE * Mi);
+
     if (calAttr.doublePrecision) {
         // Report FP_FAST_FMA define if double precision HW
         reportFMA_ = true;
@@ -485,6 +485,9 @@ Settings::override()
     if (!flagIsDefault(GPU_ASSUME_ALIASES)) {
         assumeAliases_ = GPU_ASSUME_ALIASES;
     }
+    if (!flagIsDefault(GPU_RESOURCE_CACHE_SIZE)) {
+        resourceCacheSize_ = GPU_RESOURCE_CACHE_SIZE * Mi;
+    }
 }
 
 } // namespace gpu