diff --git a/pkg/repository/provider/unified_repo.go b/pkg/repository/provider/unified_repo.go
index 251845dac..8ec5c454c 100644
--- a/pkg/repository/provider/unified_repo.go
+++ b/pkg/repository/provider/unified_repo.go
@@ -20,6 +20,7 @@ import (
 	"context"
 	"encoding/base64"
 	"fmt"
+	"maps"
 	"net/url"
 	"path"
 	"strconv"
@@ -81,11 +82,16 @@ func NewUnifiedRepoProvider(
 		log:              log,
 	}
 
-	repo.repoService = createRepoService(log)
+	repo.repoService = createRepoService(repoBackend, log)
 
 	return &repo
 }
 
+func GetUnifiedRepoClientSideCacheLimit(repoOption map[string]string, repoBackend string, log logrus.FieldLogger) int64 {
+	repoService := createRepoService(repoBackend, log)
+	return repoService.ClientSideCacheLimit(repoOption)
+}
+
 func (urp *unifiedRepoProvider) InitRepo(ctx context.Context, param RepoParam) error {
 	log := urp.log.WithFields(logrus.Fields{
 		"BSL name":  param.BackupLocation.Name,
@@ -416,12 +422,11 @@ func (urp *unifiedRepoProvider) GetStoreOptions(param any) (map[string]string, e
 	}
 
 	storeOptions := make(map[string]string)
-	for k, v := range storeVar {
-		storeOptions[k] = v
-	}
+	maps.Copy(storeOptions, storeVar)
+	maps.Copy(storeOptions, storeCred)
 
-	for k, v := range storeCred {
-		storeOptions[k] = v
+	if repoParam.CacheDir != "" {
+		storeOptions[udmrepo.StoreOptionCacheDir] = repoParam.CacheDir
 	}
 
 	return storeOptions, nil
@@ -597,6 +602,6 @@ func getStorageVariables(backupLocation *velerov1api.BackupStorageLocation, repo
 	return result, nil
 }
 
-func createRepoService(log logrus.FieldLogger) udmrepo.BackupRepoService {
-	return reposervice.Create(log)
+func createRepoService(repoBackend string, log logrus.FieldLogger) udmrepo.BackupRepoService {
+	return reposervice.Create(repoBackend, log)
 }
diff --git a/pkg/repository/udmrepo/kopialib/backend/common.go b/pkg/repository/udmrepo/kopialib/backend/common.go
index 646811da9..a54923003 100644
--- a/pkg/repository/udmrepo/kopialib/backend/common.go
+++ b/pkg/repository/udmrepo/kopialib/backend/common.go
@@ -33,7 +33,7 @@ import (
 )
 
 const (
-	defaultCacheLimitMB    = 5000
+	DefaultCacheLimitMB    = 5000
 	maxCacheDurationSecond = 30
 )
 
@@ -66,7 +66,8 @@ func SetupNewRepositoryOptions(ctx context.Context, flags map[string]string) rep
 
 // SetupConnectOptions setups the options when connecting to an existing Kopia repository
 func SetupConnectOptions(ctx context.Context, repoOptions udmrepo.RepoOptions) repo.ConnectOptions {
-	cacheLimit := optionalHaveIntWithDefault(ctx, udmrepo.StoreOptionCacheLimit, repoOptions.StorageOptions, defaultCacheLimitMB) << 20
+	cacheLimit := optionalHaveIntWithDefault(ctx, udmrepo.StoreOptionCacheLimit, repoOptions.StorageOptions, DefaultCacheLimitMB) << 20
+	cacheDir := optionalHaveString(udmrepo.StoreOptionCacheDir, repoOptions.StorageOptions)
 
 	// 80% for data cache and 20% for metadata cache and align to KB
 	dataCacheLimit := (cacheLimit / 5 * 4) >> 10
@@ -74,6 +75,7 @@ func SetupConnectOptions(ctx context.Context, repoOptions udmrepo.RepoOptions) r
 
 	return repo.ConnectOptions{
 		CachingOptions: content.CachingOptions{
+			CacheDirectory: cacheDir,
 			// softLimit 80%
 			ContentCacheSizeBytes:  (dataCacheLimit / 5 * 4) << 10,
 			MetadataCacheSizeBytes: (metadataCacheLimit / 5 * 4) << 10,
diff --git a/pkg/repository/udmrepo/kopialib/lib_repo.go b/pkg/repository/udmrepo/kopialib/lib_repo.go
index d1eeb88d0..2bfa8901f 100644
--- a/pkg/repository/udmrepo/kopialib/lib_repo.go
+++ b/pkg/repository/udmrepo/kopialib/lib_repo.go
@@ -18,6 +18,7 @@ package kopialib
 
 import (
 	"context"
+	"encoding/json"
 	"os"
 	"strings"
 	"sync/atomic"
@@ -35,6 +36,7 @@ import (
 
 	"github.com/vmware-tanzu/velero/pkg/kopia"
 	"github.com/vmware-tanzu/velero/pkg/repository/udmrepo"
+	"github.com/vmware-tanzu/velero/pkg/repository/udmrepo/kopialib/backend"
 )
 
 type kopiaRepoService struct {
@@ -79,6 +81,7 @@ const (
 	defaultMaintainCheckPeriod     = time.Hour
 	overwriteFullMaintainInterval  = time.Duration(0)
 	overwriteQuickMaintainInterval = time.Duration(0)
+	repoBackend                    = "kopia"
 )
 
 var kopiaRepoOpen = repo.Open
@@ -211,6 +214,34 @@ func (ks *kopiaRepoService) DefaultMaintenanceFrequency() time.Duration {
 	return defaultMaintainCheckPeriod
 }
 
+func (ks *kopiaRepoService) ClientSideCacheLimit(repoOption map[string]string) int64 {
+	defaultLimit := int64(backend.DefaultCacheLimitMB << 20)
+	if repoOption == nil {
+		return defaultLimit
+	}
+
+	if v, found := repoOption[repoBackend]; found {
+		var configs map[string]any
+		if err := json.Unmarshal([]byte(v), &configs); err != nil {
+			ks.logger.WithError(err).Warnf("error unmarshalling config data from data %v", v)
+			return defaultLimit
+		}
+
+		limit := defaultLimit
+		if v, found := configs[udmrepo.StoreOptionCacheLimit]; found {
+			if iv, ok := v.(float64); ok {
+				limit = int64(iv) << 20
+			} else {
+				ks.logger.Warnf("ignore cache limit from data %v", v)
+			}
+		}
+
+		return limit
+	}
+
+	return defaultLimit
+}
+
 func (km *kopiaMaintenance) runMaintenance(ctx context.Context, rep repo.DirectRepositoryWriter) error {
 	err := snapshotmaintenance.Run(kopia.SetupKopiaLog(ctx, km.logger), rep, km.mode, false, maintenance.SafetyFull)
 	if err != nil {
diff --git a/pkg/repository/udmrepo/kopialib/lib_repo_test.go b/pkg/repository/udmrepo/kopialib/lib_repo_test.go
index ba7aaa93c..a363ef807 100644
--- a/pkg/repository/udmrepo/kopialib/lib_repo_test.go
+++ b/pkg/repository/udmrepo/kopialib/lib_repo_test.go
@@ -1345,3 +1345,63 @@ func TestMaintainProgress(t *testing.T) {
 		})
 	}
 }
+
+func TestClientSideCacheLimit(t *testing.T) {
+	testCases := []struct {
+		name       string
+		repoOption map[string]string
+		expected   int64
+	}{
+		{
+			name:     "nil option",
+			expected: 5000 << 20,
+		},
+		{
+			name: "no option",
+			repoOption: map[string]string{
+				"other-repo": "\"enableCompression\": true",
+			},
+			expected: 5000 << 20,
+		},
+		{
+			name: "unmarshall fails",
+			repoOption: map[string]string{
+				"kopia": "wrong-json",
+			},
+			expected: 5000 << 20,
+		},
+		{
+			name: "no cache limit",
+			repoOption: map[string]string{
+				"kopia": "{\"enableCompression\": true}",
+			},
+			expected: 5000 << 20,
+		},
+		{
+			name: "wrong cache value type",
+			repoOption: map[string]string{
+				"kopia": "{\"cacheLimitMB\": \"abcd\",\"enableCompression\": true}",
+			},
+			expected: 5000 << 20,
+		},
+		{
+			name: "succeed",
+			repoOption: map[string]string{
+				"kopia": "{\"cacheLimitMB\": 1,\"enableCompression\": true}",
+			},
+			expected: 1048576,
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			ks := &kopiaRepoService{
+				logger: velerotest.NewLogger(),
+			}
+
+			limit := ks.ClientSideCacheLimit(tc.repoOption)
+
+			assert.Equal(t, tc.expected, limit)
+		})
+	}
+}
diff --git a/pkg/repository/udmrepo/mocks/BackupRepoService.go b/pkg/repository/udmrepo/mocks/BackupRepoService.go
index 2acf94816..346901d38 100644
--- a/pkg/repository/udmrepo/mocks/BackupRepoService.go
+++ b/pkg/repository/udmrepo/mocks/BackupRepoService.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.39.1. DO NOT EDIT.
+// Code generated by mockery v2.53.2. DO NOT EDIT.
 
 package mocks
 
@@ -16,7 +16,25 @@ type BackupRepoService struct {
 	mock.Mock
 }
 
-// DefaultMaintenanceFrequency provides a mock function with given fields:
+// ClientSideCacheLimit provides a mock function with given fields: repoOption
+func (_m *BackupRepoService) ClientSideCacheLimit(repoOption map[string]string) int64 {
+	ret := _m.Called(repoOption)
+
+	if len(ret) == 0 {
+		panic("no return value specified for ClientSideCacheLimit")
+	}
+
+	var r0 int64
+	if rf, ok := ret.Get(0).(func(map[string]string) int64); ok {
+		r0 = rf(repoOption)
+	} else {
+		r0 = ret.Get(0).(int64)
+	}
+
+	return r0
+}
+
+// DefaultMaintenanceFrequency provides a mock function with no fields
 func (_m *BackupRepoService) DefaultMaintenanceFrequency() time.Duration {
 	ret := _m.Called()
 
diff --git a/pkg/repository/udmrepo/repo.go b/pkg/repository/udmrepo/repo.go
index 0adb39751..8ba2fb071 100644
--- a/pkg/repository/udmrepo/repo.go
+++ b/pkg/repository/udmrepo/repo.go
@@ -93,6 +93,9 @@ type BackupRepoService interface {
 	// DefaultMaintenanceFrequency returns the defgault frequency of maintenance, callers refer this
 	// frequency to maintain the backup repository to get the best maintenance performance
 	DefaultMaintenanceFrequency() time.Duration
+
+	// ClientSideCacheLimit returns the max cache size required on client side
+	ClientSideCacheLimit(repoOption map[string]string) int64
 }
 
 // BackupRepo provides the access to the backup repository
diff --git a/pkg/repository/udmrepo/repo_options.go b/pkg/repository/udmrepo/repo_options.go
index efddfdcd1..a8371b7c1 100644
--- a/pkg/repository/udmrepo/repo_options.go
+++ b/pkg/repository/udmrepo/repo_options.go
@@ -17,6 +17,7 @@ limitations under the License.
 package udmrepo
 
 import (
+	"maps"
 	"os"
 	"path/filepath"
 	"strings"
@@ -65,6 +66,7 @@ const (
 	StoreOptionGenReadOnly        = "readOnly"
 
 	StoreOptionCacheLimit = "cacheLimitMB"
+	StoreOptionCacheDir   = "cacheDir"
 
 	ThrottleOptionReadOps       = "readOPS"
 	ThrottleOptionWriteOps      = "writeOPS"
@@ -184,9 +186,7 @@ func WithStoreOptions(getter StoreOptionsGetter, param any) func(*RepoOptions) e
 
 		options.StorageType = storeType
 
-		for k, v := range storeOptions {
-			options.StorageOptions[k] = v
-		}
+		maps.Copy(options.StorageOptions, storeOptions)
 
 		return nil
 	}
diff --git a/pkg/repository/udmrepo/service/service.go b/pkg/repository/udmrepo/service/service.go
index c2f0a9b0e..195b67b11 100644
--- a/pkg/repository/udmrepo/service/service.go
+++ b/pkg/repository/udmrepo/service/service.go
@@ -24,6 +24,6 @@ import (
 )
 
 // Create creates an instance of BackupRepoService
-func Create(logger logrus.FieldLogger) udmrepo.BackupRepoService {
+func Create(repoBackend string, logger logrus.FieldLogger) udmrepo.BackupRepoService {
 	return kopialib.NewKopiaRepoService(logger)
 }
diff --git a/pkg/uploader/provider/kopia.go b/pkg/uploader/provider/kopia.go
index b09b8a571..7cde36911 100644
--- a/pkg/uploader/provider/kopia.go
+++ b/pkg/uploader/provider/kopia.go
@@ -74,7 +74,7 @@ func NewKopiaUploaderProvider(
 		return nil, errors.Wrapf(err, "error to get repo options")
 	}
 
-	repoSvc := BackupRepoServiceCreateFunc(log)
+	repoSvc := BackupRepoServiceCreateFunc(backupRepo.Spec.RepositoryType, log)
 	log.WithField("repoUID", repoUID).Info("Opening backup repo")
 
 	kp.bkRepo, err = repoSvc.Open(ctx, *repoOpt)
diff --git a/pkg/uploader/provider/kopia_test.go b/pkg/uploader/provider/kopia_test.go
index 6231d5d62..728c26da2 100644
--- a/pkg/uploader/provider/kopia_test.go
+++ b/pkg/uploader/provider/kopia_test.go
@@ -373,7 +373,7 @@ func TestNewKopiaUploaderProvider(t *testing.T) {
 	for _, tc := range testCases {
 		t.Run(tc.name, func(t *testing.T) {
 			credGetter := &credentials.CredentialGetter{FromSecret: tc.mockCredGetter}
-			BackupRepoServiceCreateFunc = func(logger logrus.FieldLogger) udmrepo.BackupRepoService {
+			BackupRepoServiceCreateFunc = func(string, logrus.FieldLogger) udmrepo.BackupRepoService {
 				return tc.mockBackupRepoService
 			}
 			// Call the function being tested.