diff --git a/.changeset/proud-windows-sleep.md b/.changeset/proud-windows-sleep.md
new file mode 100644
index 0000000000..43ad8d5cd5
--- /dev/null
+++ b/.changeset/proud-windows-sleep.md
@@ -0,0 +1,5 @@
+---
+"@medusajs/caching": patch
+---
+
+chore(): Caching improvements
diff --git a/packages/modules/caching/integration-tests/__tests__/index.spec.ts b/packages/modules/caching/integration-tests/__tests__/index.spec.ts
index 898c055255..4fd585f885 100644
--- a/packages/modules/caching/integration-tests/__tests__/index.spec.ts
+++ b/packages/modules/caching/integration-tests/__tests__/index.spec.ts
@@ -48,6 +48,11 @@ jest.spyOn(MedusaModule, "getAllJoinerConfigs").mockReturnValue([
 
 moduleIntegrationTestRunner<ICachingModuleService>({
   moduleName: Modules.CACHING,
+  moduleOptions: {
+    in_memory: {
+      enable: true,
+    },
+  },
   testSuite: ({ service }) => {
     describe("Caching Module Service", () => {
       beforeEach(async () => {
diff --git a/packages/modules/caching/integration-tests/__tests__/invalidation.spec.ts b/packages/modules/caching/integration-tests/__tests__/invalidation.spec.ts
index 1354dc98d1..7ddc03af47 100644
--- a/packages/modules/caching/integration-tests/__tests__/invalidation.spec.ts
+++ b/packages/modules/caching/integration-tests/__tests__/invalidation.spec.ts
@@ -61,6 +61,11 @@ moduleIntegrationTestRunner<ICachingModuleService>({
   injectedDependencies: {
     [Modules.EVENT_BUS]: mockEventBus,
   },
+  moduleOptions: {
+    in_memory: {
+      enable: true,
+    },
+  },
   testSuite: ({ service }) => {
     describe("Cache Invalidation with Entity Relationships", () => {
       afterEach(async () => {
diff --git a/packages/modules/caching/integration-tests/__tests__/max-size.spec.ts b/packages/modules/caching/integration-tests/__tests__/max-size.spec.ts
new file mode 100644
index 0000000000..d6a5dec6ab
--- /dev/null
+++ b/packages/modules/caching/integration-tests/__tests__/max-size.spec.ts
@@ -0,0 +1,159 @@
+import { Modules } from "@medusajs/framework/utils"
+import { moduleIntegrationTestRunner } from "@medusajs/test-utils"
+import { ICachingModuleService } from "@medusajs/framework/types"
+import { MedusaModule } from "@medusajs/framework/modules-sdk"
+
+jest.setTimeout(10000)
+
+jest.spyOn(MedusaModule, "getAllJoinerConfigs").mockReturnValue([
+  {
+    schema: `
+   type Product {
+    id: ID
+    title: String
+    handle: String
+    status: String
+    type_id: String
+    collection_id: String
+    is_giftcard: Boolean
+    external_id: String
+    created_at: DateTime
+    updated_at: DateTime
+
+    variants: [ProductVariant]
+    sales_channels: [SalesChannel]
+  }
+
+  type ProductVariant {
+    id: ID
+    product_id: String
+    sku: String
+
+    prices: [Price]
+  }
+  
+  type Price {
+    id: ID
+    amount: Float
+    currency_code: String
+  }
+
+  type SalesChannel {
+    id: ID
+    is_disabled: Boolean
+  }
+`,
+  },
+])
+
+moduleIntegrationTestRunner<ICachingModuleService>({
+  moduleName: Modules.CACHING,
+  moduleOptions: {
+    in_memory: {
+      enable: true,
+      maxSize: 1000,
+    },
+  },
+  testSuite: ({ service }) => {
+    describe("Memory Cache maxSize Integration", () => {
+      beforeEach(async () => {
+        await service.clear({ tags: ["*"] }).catch(() => {})
+      })
+
+      it("should respect maxSize limit and stop caching when exceeded", async () => {
+        // Create test data that will use most of the 1000 byte limit
+        const largeData = {
+          id: "large-test",
+          name: "Large Test Item",
+          description: "A".repeat(400), // 400 characters
+          metadata: { info: "B".repeat(300) }, // Another 300 characters
+        }
+
+        await service.set({
+          key: "first-key",
+          data: largeData,
+          tags: ["large-data"],
+        })
+
+        let result = await service.get({ key: "first-key" })
+        expect(result).toEqual(largeData)
+
+        const anotherLargeData = {
+          id: "another-large",
+          content: "C".repeat(500), // This should push us over the 1000 byte limit but accepted because we are still bellow
+        }
+
+        await service.set({
+          key: "second-key",
+          data: anotherLargeData,
+          tags: ["overflow-data"],
+        })
+
+        result = await service.get({ key: "second-key" })
+        expect(result).toEqual(anotherLargeData)
+
+        const anotherLargeData2 = {
+          id: "another-large-2",
+          content: "D".repeat(500), // This should push us over the 1000 byte limit but rejected because we are over the limit
+        }
+
+        await service.set({
+          key: "third-key",
+          data: anotherLargeData2,
+          tags: ["overflow-data-2"],
+        })
+
+        result = await service.get({ key: "third-key" })
+        expect(result).toBeNull()
+
+        const firstResult = await service.get({ key: "first-key" })
+        expect(firstResult).toEqual(largeData)
+      })
+
+      it("should allow small entries after reaching the limit", async () => {
+        const largeData = {
+          id: "large-test",
+          description: "A".repeat(800), // Use most of the 1000 byte limit
+        }
+
+        await service.set({
+          key: "large-key",
+          data: largeData,
+          tags: ["large"],
+        })
+
+        let result = await service.get({ key: "large-key" })
+        expect(result).toEqual(largeData)
+
+        await service.set({
+          key: "overflow-key",
+          data: { content: "B".repeat(500) },
+        })
+
+        result = await service.get({ key: "overflow-key" })
+        expect(result).toEqual({ content: "B".repeat(500) })
+
+        await service.set({
+          key: "overflow-key-2",
+          data: { content: "C".repeat(500) },
+        })
+
+        result = await service.get({ key: "overflow-key-2" })
+        expect(result).toBeNull()
+
+        // Remove the large entry to free up space
+        await service.clear({ key: "large-key" })
+
+        // Now small entries should work again
+        const smallData = { id: "small", name: "Small Item" }
+        await service.set({
+          key: "small-key",
+          data: smallData,
+        })
+
+        result = await service.get({ key: "small-key" })
+        expect(result).toEqual(smallData)
+      })
+    })
+  },
+})
diff --git a/packages/modules/caching/src/loaders/providers.ts b/packages/modules/caching/src/loaders/providers.ts
index e91b9a175d..c2d9382a01 100644
--- a/packages/modules/caching/src/loaders/providers.ts
+++ b/packages/modules/caching/src/loaders/providers.ts
@@ -49,21 +49,29 @@ export default async ({
   const strategy = DefaultCacheStrategy // Re enable custom strategy another time
   container.register("strategy", asValue(strategy))
 
-  // MemoryCachingProvider - default provider
-  container.register({
-    [CachingProviderRegistrationPrefix + MemoryCachingProvider.identifier]:
-      asFunction(() => new MemoryCachingProvider(), {
-        lifetime: Lifetime.SINGLETON,
-      }),
-  })
-  container.registerAdd(
-    CachingIdentifiersRegistrationName,
-    asValue(MemoryCachingProvider.identifier)
-  )
-  container.register(
-    CachingDefaultProvider,
-    asValue(MemoryCachingProvider.identifier)
-  )
+  const inMemoryOptions = options?.in_memory ?? {}
+  const { enable: isInMemoryEnabled, ...restInmemoryOptions } = inMemoryOptions
+
+  if (isInMemoryEnabled) {
+    // MemoryCachingProvider - default provider
+    container.register({
+      [CachingProviderRegistrationPrefix + MemoryCachingProvider.identifier]:
+        asFunction(
+          (cradle) => new MemoryCachingProvider(cradle, restInmemoryOptions),
+          {
+            lifetime: Lifetime.SINGLETON,
+          }
+        ),
+    })
+    container.registerAdd(
+      CachingIdentifiersRegistrationName,
+      asValue(MemoryCachingProvider.identifier)
+    )
+    container.register(
+      CachingDefaultProvider,
+      asValue(MemoryCachingProvider.identifier)
+    )
+  }
 
   // Load other providers
   await moduleProviderLoader({
@@ -85,10 +93,16 @@ export default async ({
 
   const logger = container.resolve(ContainerRegistrationKeys.LOGGER)
   if (!hasDefaultProvider) {
-    logger.warn(
-      `[caching-module]: No default caching provider defined. Using "${container.resolve(
-        CachingDefaultProvider
-      )}" as default.`
-    )
+    if (isInMemoryEnabled) {
+      logger.warn(
+        `[caching-module]: No default caching provider defined. Using "${container.resolve(
+          CachingDefaultProvider
+        )}" as default.`
+      )
+    } else {
+      throw new Error(
+        "[caching-module]: No providers have been configured and the built in memory cache has not been enabled."
+      )
+    }
   }
 }
diff --git a/packages/modules/caching/src/providers/memory-cache.ts b/packages/modules/caching/src/providers/memory-cache.ts
index ef93483e04..de956f6a9b 100644
--- a/packages/modules/caching/src/providers/memory-cache.ts
+++ b/packages/modules/caching/src/providers/memory-cache.ts
@@ -1,40 +1,45 @@
 import NodeCache from "node-cache"
-import type { ICachingProviderService } from "@medusajs/framework/types"
+import type { ICachingProviderService, Logger } from "@medusajs/framework/types"
+import { MemoryCacheModuleOptions } from "@types"
 
-export interface MemoryCacheModuleOptions {
-  /**
-   * TTL in seconds
-   */
-  ttl?: number
-  /**
-   * Maximum number of keys to store (see node-cache documentation)
-   */
-  maxKeys?: number
-  /**
-   * Check period for expired keys in seconds (see node-cache documentation)
-   */
-  checkPeriod?: number
-  /**
-   * Use clones for cached data (see node-cache documentation)
-   */
-  useClones?: boolean
+const THREE_HUNDRED_MB = 300 * 1024 * 1024
+
+const formatBytes = (bytes: number): string => {
+  if (bytes < 1024) return `${bytes} B`
+  if (bytes < 1024 * 1024) return `${Math.round(bytes / 1024)} KB`
+  return `${Math.round(bytes / 1024 / 1024)} MB`
 }
 
 export class MemoryCachingProvider implements ICachingProviderService {
   static identifier = "cache-memory"
 
+  protected logger: Logger
   protected cacheClient: NodeCache
   protected tagIndex: Map<string, Set<string>> = new Map() // tag -> keys
   protected keyTags: Map<string, Set<string>> = new Map() // key -> tags
   protected entryOptions: Map<string, { autoInvalidate?: boolean }> = new Map() // key -> options
+  protected keySizes: Map<string, number> = new Map() // key -> approximate size in bytes
+  protected approximateMemoryUsage: number = 0
   protected options: MemoryCacheModuleOptions
+  protected maxSize: number
+  protected hasher: (key: string) => string
+
+  constructor(
+    { logger, hasher }: { logger?: Logger; hasher: (key: string) => string },
+    options: MemoryCacheModuleOptions = {}
+  ) {
+    this.logger = logger ?? (console as unknown as Logger)
+    const { maxSize, ...rest } = options
+    this.maxSize = maxSize ?? THREE_HUNDRED_MB
+
+    this.hasher = hasher
 
-  constructor() {
     this.options = {
       ttl: 3600,
       maxKeys: 25000,
       checkPeriod: 60, // 10 minutes
-      useClones: false, // Default to false for speed, true would be slower but safer. we can discuss
+      useClones: false, // Default to false for speed, true would be slower but safer. we can ...discuss
+      ...rest,
     }
 
     const cacheClient = new NodeCache({
@@ -47,15 +52,31 @@ export class MemoryCachingProvider implements ICachingProviderService {
     this.cacheClient = cacheClient
 
     // Clean up tag indices when keys expire
-    this.cacheClient.on("expired", (key: string, value: any) => {
+    this.cacheClient.on("expired", (key: string) => {
       this.cleanupTagReferences(key)
     })
 
-    this.cacheClient.on("del", (key: string, value: any) => {
+    this.cacheClient.on("del", (key: string) => {
       this.cleanupTagReferences(key)
     })
   }
 
+  private calculateEntrySize(
+    key: string,
+    data: object,
+    tags?: string[]
+  ): number {
+    const dataSize = Buffer.byteLength(JSON.stringify(data), "utf8")
+    const keySize = Buffer.byteLength(key, "utf8")
+
+    let tagsSize = 0
+    if (tags?.length) {
+      tagsSize = Buffer.byteLength(JSON.stringify(tags), "utf8")
+    }
+
+    return dataSize + keySize + tagsSize
+  }
+
   private cleanupTagReferences(key: string): void {
     const tags = this.keyTags.get(key)
     if (tags) {
@@ -70,20 +91,30 @@ export class MemoryCachingProvider implements ICachingProviderService {
       })
       this.keyTags.delete(key)
     }
+
+    // Clean up memory tracking
+    const keySize = this.keySizes.get(key)
+    if (keySize) {
+      this.approximateMemoryUsage -= keySize
+      this.keySizes.delete(key)
+    }
+
     // Also clean up entry options
     this.entryOptions.delete(key)
   }
 
   async get({ key, tags }: { key?: string; tags?: string[] }): Promise<any> {
     if (key) {
-      return this.cacheClient.get(key) ?? null
+      const hashedKey = this.hasher(key)
+      return this.cacheClient.get(hashedKey) ?? null
     }
 
-    if (tags && tags.length) {
+    if (tags?.length) {
       const allKeys = new Set<string>()
 
       tags.forEach((tag) => {
-        const keysForTag = this.tagIndex.get(tag)
+        const hashedTag = this.hasher(tag)
+        const keysForTag = this.tagIndex.get(hashedTag)
         if (keysForTag) {
           keysForTag.forEach((key) => allKeys.add(key))
         }
@@ -122,24 +153,39 @@ export class MemoryCachingProvider implements ICachingProviderService {
       autoInvalidate?: boolean
     }
   }): Promise<void> {
+    // Only reject if we're already over the limit
+    if (this.approximateMemoryUsage > this.maxSize) {
+      this.logger.warn(
+        `Cache is full. Current usage: ${formatBytes(
+          this.approximateMemoryUsage
+        )}, Max: ${formatBytes(this.maxSize)}. Skipping cache entry.`
+      )
+      return
+    }
+
+    const hashedKey = this.hasher(key)
+    const hashedTags = tags?.map((tag) => this.hasher(tag))
+
+    const totalSize = this.calculateEntrySize(hashedKey, data, hashedTags)
+
     // Set the cache entry
     const effectiveTTL = ttl ?? this.options.ttl ?? 3600
-    this.cacheClient.set(key, data, effectiveTTL)
+    this.cacheClient.set(hashedKey, data, effectiveTTL)
 
     // Handle tags if provided
-    if (tags && tags.length) {
+    if (hashedTags?.length) {
       // Clean up any existing tag references for this key
-      this.cleanupTagReferences(key)
+      this.cleanupTagReferences(hashedKey)
 
-      const tagSet = new Set(tags)
-      this.keyTags.set(key, tagSet)
+      const tagSet = new Set(hashedTags)
+      this.keyTags.set(hashedKey, tagSet)
 
       // Add this key to each tag's index
-      tags.forEach((tag) => {
+      hashedTags.forEach((tag) => {
         if (!this.tagIndex.has(tag)) {
           this.tagIndex.set(tag, new Set())
         }
-        this.tagIndex.get(tag)!.add(key)
+        this.tagIndex.get(tag)!.add(hashedKey)
       })
     }
 
@@ -148,8 +194,14 @@ export class MemoryCachingProvider implements ICachingProviderService {
       Object.keys(options ?? {}).length &&
       !Object.values(options ?? {}).every((value) => value === undefined)
     ) {
-      this.entryOptions.set(key, options!)
+      this.entryOptions.set(hashedKey, options!)
     }
+
+    // Track memory usage
+    const existingSize = this.keySizes.get(hashedKey) || 0
+    this.approximateMemoryUsage =
+      this.approximateMemoryUsage - existingSize + totalSize
+    this.keySizes.set(hashedKey, totalSize)
   }
 
   async clear({
@@ -164,13 +216,14 @@ export class MemoryCachingProvider implements ICachingProviderService {
     }
   }): Promise<void> {
     if (key) {
-      this.cacheClient.del(key)
+      const hashedKey = this.hasher(key)
+      this.cacheClient.del(hashedKey)
       return
     }
 
-    if (tags && tags.length) {
+    if (tags?.length) {
       // Handle wildcard tag to clear all cache data
-      if (tags.includes("*")) {
+      if (tags?.includes("*")) {
         this.cacheClient.flushAll()
         this.tagIndex.clear()
         this.keyTags.clear()
@@ -178,9 +231,10 @@ export class MemoryCachingProvider implements ICachingProviderService {
         return
       }
 
+      const hashedTags = tags.map((tag) => this.hasher(tag))
       const allKeys = new Set<string>()
 
-      tags.forEach((tag) => {
+      hashedTags.forEach((tag) => {
         const keysForTag = this.tagIndex.get(tag)
         if (keysForTag) {
           keysForTag.forEach((key) => allKeys.add(key))
diff --git a/packages/modules/caching/src/types/index.ts b/packages/modules/caching/src/types/index.ts
index 5773f18f50..99ba914ce0 100644
--- a/packages/modules/caching/src/types/index.ts
+++ b/packages/modules/caching/src/types/index.ts
@@ -23,6 +23,31 @@ export type InjectedDependencies = {
   [Modules.EVENT_BUS]: IEventBusModuleService
 }
 
+export interface MemoryCacheModuleOptions {
+  /**
+   * TTL in seconds
+   */
+  ttl?: number
+  /**
+   * Maximum number of keys to store (see node-cache documentation)
+   */
+  maxKeys?: number
+  /**
+   * Check period for expired keys in seconds (see node-cache documentation)
+   */
+  checkPeriod?: number
+  /**
+   * Use clones for cached data (see node-cache documentation)
+   */
+  useClones?: boolean
+  /**
+   * Maximum size of the cache in bytes (default 300MB).
+   * It is an approximation, if a new entry will make the limit exceeded, the entry will be cached
+   * but not the following ones
+   */
+  maxSize?: number
+}
+
 export type CachingModuleOptions = Partial<ModuleServiceInitializeOptions> & {
   /**
    * The strategy to be used. Default to the inbuilt default strategy.
@@ -32,6 +57,15 @@ export type CachingModuleOptions = Partial<ModuleServiceInitializeOptions> & {
    * Time to keep data in cache (in seconds)
    */
   ttl?: number
+
+  /**
+   * Enable and configure the built in memory cache
+   * @private
+   */
+  in_memory?: MemoryCacheModuleOptions & {
+    enable?: boolean
+  }
+
   /**
    * Providers to be registered
    */