diff --git a/etc/murano-repository.conf b/etc/murano-repository.conf
index 78ed421..6169ab7 100644
--- a/etc/murano-repository.conf
+++ b/etc/murano-repository.conf
@@ -3,6 +3,8 @@
 host =  0.0.0.0
 # Port the bind the server to
 port = 8084
+# Directory for cache, OS temp directory is used by default
+#cache_dir =
 
 # Provide information about data types
 # absolute or relative path to manifest location(root directory)
diff --git a/muranorepository/api/utils.py b/muranorepository/api/utils.py
index 3ba2a02..aa9329e 100644
--- a/muranorepository/api/utils.py
+++ b/muranorepository/api/utils.py
@@ -13,7 +13,6 @@ from muranorepository.consts import DATA_TYPES, MANIFEST
 from muranorepository.consts import CLIENTS_DICT
 from muranorepository.consts import ARCHIVE_PKG_NAME
 from muranorepository.config import cfg
-from muranorepository.consts import CACHE_DIR
 import logging as log
 CONF = cfg.CONF
 
@@ -26,7 +25,7 @@ def update_cache(data_type):
             break
     if not client:
         abort(404)
-    cache_dir = os.path.join(CACHE_DIR, client)
+    cache_dir = os.path.join(CONF.cache_dir, client)
     if not os.path.exists(cache_dir):
         os.mkdir(cache_dir)
     manifests = ManifestParser().parse()
@@ -40,7 +39,7 @@ def update_cache(data_type):
 def get_archive(client, hash_sum):
     types = CLIENTS_DICT.get(client)
     archive_manager = Archiver()
-    cache_dir = os.path.join(CACHE_DIR, client)
+    cache_dir = os.path.join(CONF.cache_dir, client)
     if not os.path.exists(cache_dir):
         os.mkdir(cache_dir)
     existing_hash = archive_manager.get_existing_hash(cache_dir)
@@ -195,6 +194,6 @@ def save_archive(request):
             filename = secure_filename(file_to_upload.filename)
         else:
             return err_resp
-        path_to_archive = os.path.join(CACHE_DIR, filename)
+        path_to_archive = os.path.join(CONF.cache_dir, filename)
         file_to_upload.save(path_to_archive)
     return path_to_archive
diff --git a/muranorepository/api/v1.py b/muranorepository/api/v1.py
index 6810099..6b48e62 100644
--- a/muranorepository/api/v1.py
+++ b/muranorepository/api/v1.py
@@ -22,9 +22,11 @@ from muranorepository.api import utils as api
 from muranorepository.utils.parser import ManifestParser
 from muranorepository.utils.archiver import Archiver
 from muranorepository.consts import DATA_TYPES, MANIFEST
-from muranorepository.consts import CLIENTS_DICT, CACHE_DIR
+from muranorepository.consts import CLIENTS_DICT
+from oslo.config import cfg
 import logging as log
 v1_api = Blueprint('v1', __name__)
+CONF = cfg.CONF
 
 
 @v1_api.route('/client/<path:client_type>')
@@ -210,8 +212,8 @@ def toggleEnabled(service_name):
 @v1_api.route('/admin/reset_caches', methods=['POST'])
 def reset_caches():
     try:
-        shutil.rmtree(CACHE_DIR, ignore_errors=True)
-        os.mkdir(CACHE_DIR)
+        shutil.rmtree(CONF.cache_dir, ignore_errors=True)
+        os.mkdir(CONF.cache_dir)
         return jsonify(result='success')
     except:
         return make_response('Unable to perform operation', 500)
diff --git a/muranorepository/cmd/run.py b/muranorepository/cmd/run.py
index 1728794..cd7ccbc 100644
--- a/muranorepository/cmd/run.py
+++ b/muranorepository/cmd/run.py
@@ -18,6 +18,7 @@
 import os
 import sys
 import eventlet
+import tempfile
 from eventlet import wsgi
 from oslo.config import cfg
 # If ../murano_service/__init__.py exists, add ../ to Python search path,
@@ -51,6 +52,15 @@ def main():
     config.parse_configs(sys.argv[1:], config_files)
     log.setup('muranorepository')
 
+    #configuring and initializing cache directory
+    if cfg.CONF.cache_dir is None:
+        cfg.CONF.cache_dir = os.path.join(
+            tempfile.gettempdir(), 'murano-cache'
+        )
+    if not os.path.exists(cfg.CONF.cache_dir):
+        os.mkdir(cfg.CONF.cache_dir)
+    log.debug('Cache is located at: {0}'.format(cfg.CONF.cache_dir))
+
     app = server.make_app({
         'auth_host': cfg.CONF.keystone.auth_host,
         'auth_port': cfg.CONF.keystone.auth_port,
diff --git a/muranorepository/config.py b/muranorepository/config.py
index 08659c3..4f2a45c 100644
--- a/muranorepository/config.py
+++ b/muranorepository/config.py
@@ -20,6 +20,8 @@ server_opts = [
     cfg.StrOpt('host', default='127.0.0.1'),
     cfg.IntOpt('port', default=5000)]
 
+cache_opt = cfg.StrOpt('cache_dir')
+
 keystone_opts = [
     cfg.StrOpt('auth_host', default='localhost'),
     cfg.IntOpt('auth_port', default=5000),
@@ -40,7 +42,7 @@ CONF.register_cli_opts(server_opts)
 CONF.register_opts(type_dirs_opts)
 CONF.register_opts(type_dirs_opts, group='output')
 CONF.register_opts(keystone_opts, group='keystone')
-
+CONF.register_opt(cache_opt)
 
 ARGV = []
 
diff --git a/muranorepository/consts.py b/muranorepository/consts.py
index 2b35225..a09a33b 100644
--- a/muranorepository/consts.py
+++ b/muranorepository/consts.py
@@ -27,10 +27,3 @@ CLIENTS_DICT = {'conductor': (WORKFLOW, HEAT, AGENT, SCRIPTS),
                 'ui': (UI,)}
 
 ARCHIVE_PKG_NAME = 'data.tar.gz'
-
-CACHE_DIR = os.path.normpath(os.path.join(os.path.abspath(__file__),
-                                          os.pardir,
-                                          'cache'))
-
-if not os.path.exists(CACHE_DIR):
-    os.mkdir(CACHE_DIR)