diff --git a/src/spec-node/containerFeatures.ts b/src/spec-node/containerFeatures.ts
index dc750b045..8d1c0f10f 100644
--- a/src/spec-node/containerFeatures.ts
+++ b/src/spec-node/containerFeatures.ts
@@ -98,6 +98,9 @@ export async function extendImage(params: DockerResolverParameters, config: Subs
 			'build',
 		);
 	}
+	if (params.buildNoCache) {
+		args.push('--no-cache');
+	}
 	for (const buildArg in featureBuildInfo.buildArgs) {
 		args.push('--build-arg', `${buildArg}=${featureBuildInfo.buildArgs[buildArg]}`);
 	}
diff --git a/src/test/cli.build.test.ts b/src/test/cli.build.test.ts
index 633eba897..c22e3913f 100644
--- a/src/test/cli.build.test.ts
+++ b/src/test/cli.build.test.ts
@@ -64,6 +64,73 @@ describe('Dev Containers CLI', function () {
 			});
 		});
 
+		it('should not use docker cache for features when `--no-cache` flag is passed', async () => {
+			// Arrange
+			const testFolder = `${__dirname}/configs/image-with-features`;
+			const devContainerJson = `${testFolder}/.devcontainer.json`;
+
+			const devContainerFileContents = JSON.parse(fs.readFileSync(devContainerJson, 'utf8'));
+			const baseImage = devContainerFileContents.image;
+
+			const originalImageName = 'feature-cache-test-original-image';
+			const cachedImageName = 'feature-cache-test-rerun-image';
+			const nonCachedImageName = 'feature-cache-test-no-cache-image';
+
+			const commandBase = `${cli} build --workspace-folder ${testFolder}`;
+			const buildCommand = `${commandBase} --image-name ${originalImageName}`;
+			const cachedBuildCommand = `${commandBase} --image-name ${cachedImageName}`;
+			const buildWithoutCacheCommand = `${commandBase} --image-name ${nonCachedImageName} --no-cache`;
+
+			function arrayStartsWithArray(subject: string[], startsWith: string[]) {
+				if (subject.length < startsWith.length) {
+					return false;
+				}
+				for (let i = 0; i < startsWith.length; i++) {
+					if (subject[i] !== startsWith[i]) {
+						return false;
+					}
+				}
+				return true;
+			}
+
+			function haveCommonEntries(arr1: string[], arr2: string[]) {
+				return arr1.every(item => arr2.includes(item));
+			}
+
+			// Act
+			await shellExec(`docker pull ${baseImage}`); // pull base image so we can inspect it later
+			await shellExec(buildCommand);
+			await shellExec(cachedBuildCommand);
+			await shellExec(buildWithoutCacheCommand);
+
+			// Assert
+			const baseImageInspectCommandResult = await shellExec(`docker inspect ${baseImage}`);
+			const originalImageInspectCommandResult = await shellExec(`docker inspect ${originalImageName}`);
+			const cachedImageInspectCommandResult = await shellExec(`docker inspect ${cachedImageName}`);
+			const noCacheImageInspectCommandResult = await shellExec(`docker inspect ${nonCachedImageName}`);
+
+			const baseImageDetails = JSON.parse(baseImageInspectCommandResult.stdout);
+			const originalImageDetails = JSON.parse(originalImageInspectCommandResult.stdout);
+			const cachedImageDetails = JSON.parse(cachedImageInspectCommandResult.stdout);
+			const noCacheImageDetails = JSON.parse(noCacheImageInspectCommandResult.stdout);
+
+			const baseImageLayers: string[] = baseImageDetails[0].RootFS.Layers;
+			const originalImageLayers: string[] = originalImageDetails[0].RootFS.Layers;
+			const cachedImageLayers: string[] = cachedImageDetails[0].RootFS.Layers;
+			const nonCachedImageLayers: string[] = noCacheImageDetails[0].RootFS.Layers;
+
+			assert.equal(arrayStartsWithArray(originalImageLayers, baseImageLayers), true, 'because the image is made up of feature layers on top of the base image');
+			assert.equal(arrayStartsWithArray(cachedImageLayers, baseImageLayers), true, 'because the image is made up of feature layers on top of the base image');
+			assert.equal(arrayStartsWithArray(nonCachedImageLayers, baseImageLayers), true, 'because the image is made up of feature layers on top of the base image');
+
+			const originalImageWithoutBaseImageLayers = originalImageLayers.slice(baseImageLayers.length);
+			const cachedImageWithoutBaseImageLayers = cachedImageLayers.slice(baseImageLayers.length);
+			const nonCachedImageWithoutBaseImageLayers = nonCachedImageLayers.slice(baseImageLayers.length);
+
+			assert.deepEqual(originalImageWithoutBaseImageLayers, cachedImageWithoutBaseImageLayers, 'because they are the same image built sequentially therefore the second should have used caching');
+			assert.equal(haveCommonEntries(cachedImageWithoutBaseImageLayers, nonCachedImageWithoutBaseImageLayers), false, 'because we passed the --no-cache argument which disables the use of the cache, therefore the non-base image layers should have nothin in common');
+		});
+
 		it('should fail with "not found" error when config is not found', async () => {
 			let success = false;
 			try {