diff --git a/Dockerfile b/Dockerfile
index 9e5e3de..9dd2835 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -2,6 +2,8 @@ ARG VERSION=latest
 
 FROM ghcr.io/esphome/esphome:${VERSION}
 
+ENV PLATFORMIO_GLOBALLIB_DIR=
+
 COPY entrypoint.py /entrypoint.py
 
 ENTRYPOINT ["/entrypoint.py"]
diff --git a/README.md b/README.md
index 7ba3dc3..f92150f 100644
--- a/README.md
+++ b/README.md
@@ -26,6 +26,7 @@ Name        | Default       | Description
 `yaml_file` | _None_        | The YAML file to be compiled.
 `version`   | `latest`      | The ESPHome version to build using.
 `platform`  | `linux/amd64` | The docker platform to use during build. (linux/amd64, linux/arm64, linux/arm/v7)
+`cache`     | `false`       | Whether to cache the build folder.
 
 ## Outputs
 
diff --git a/action.yml b/action.yml
index a63fae6..9da875e 100644
--- a/action.yml
+++ b/action.yml
@@ -13,6 +13,10 @@ inputs:
     description: Platform (OS/Arch) to use
     required: false
     default: linux/amd64
+  cache:
+    description: Cache build directory
+    required: false
+    default: false
 
 outputs:
   name:
@@ -39,6 +43,32 @@ runs:
         tags: esphome:${{ inputs.version }}
         build-args: VERSION=${{ inputs.version }}
         platforms: ${{ inputs.platform }}
+    - if: ${{ inputs.cache == 'true' }}
+      id: data-dir
+      shell: bash
+      run: |
+        data_dir=$(dirname ${{ inputs.yaml_file }})/.esphome
+        echo "data_dir=$data_dir" >> $GITHUB_OUTPUT
+    - if: ${{ inputs.cache == 'true' }}
+      name: Cache platformio directory
+      uses: actions/cache@v4.0.0
+      with:
+        path: ~/.platformio
+        key: ${{ runner.os }}-esphome-${{ inputs.yaml_file }}-${{ inputs.version }}-platformio
+    - if: ${{ inputs.cache == 'true' }}
+      name: Cache build directory
+      uses: actions/cache@v4.0.0
+      with:
+        path: ${{ steps.data-dir.outputs.data_dir }}/build
+        key: ${{ runner.os }}-esphome-${{ inputs.yaml_file }}-${{ inputs.version }}-build
+        save-always: true
+    - if: ${{ inputs.cache == 'true' }}
+      name: Cache storage directory
+      uses: actions/cache@v4.0.0
+      with:
+        path: ${{ steps.data-dir.outputs.data_dir }}/storage
+        key: ${{ runner.os }}-esphome-${{ inputs.yaml_file }}-${{ inputs.version }}-storage
+        save-always: true
     - name: Run container
       shell: bash
       id: build-step
@@ -47,6 +77,7 @@ runs:
         --platform ${{ inputs.platform }} \
         --workdir /github/workspace \
         -v "$(pwd)":"/github/workspace" -v "$HOME:$HOME" \
+        --user $(id -u):$(id -g) \
         -e INPUT_YAML_FILE -e HOME \
         -e GITHUB_JOB -e GITHUB_REF -e GITHUB_SHA -e GITHUB_REPOSITORY \
         -e GITHUB_REPOSITORY_OWNER -e GITHUB_RUN_ID -e GITHUB_RUN_NUMBER \
@@ -56,5 +87,5 @@ runs:
         ${{ inputs.yaml_file }}
 
 branding:
-  icon: 'archive'
-  color: 'white'
+  icon: "archive"
+  color: "white"
diff --git a/entrypoint.py b/entrypoint.py
index bf95a85..c3cbe09 100755
--- a/entrypoint.py
+++ b/entrypoint.py
@@ -9,8 +9,6 @@
 import re
 import yaml
 
-GH_RUNNER_USER_UID = 1001
-GH_RUNNER_USER_GID = 121
 
 ESP32_CHIP_FAMILIES = {
     "ESP32": "ESP32",
@@ -27,11 +25,15 @@
 filename = Path(sys.argv[1])
 
 print("::group::Compile firmware")
-rc = subprocess.run(["esphome", "compile", filename], stdout=subprocess.PIPE, stderr=subprocess.STDOUT)
+rc = subprocess.run(
+    ["esphome", "compile", filename],
+    stdout=sys.stdout,
+    stderr=sys.stderr,
+    check=False,
+)
 if rc.returncode != 0:
     sys.exit(rc)
 
-print(rc.stdout.decode("utf-8"))
 print("::endgroup::")
 
 print("::group::Get ESPHome version")
@@ -42,7 +44,7 @@
 version = version.decode("utf-8")
 print(version)
 version = version.split(" ")[1]
-with open(os.environ["GITHUB_OUTPUT"], "a") as github_output:
+with open(os.environ["GITHUB_OUTPUT"], "a", encoding="utf-8") as github_output:
     print(f"esphome-version={version}", file=github_output)
 print("::endgroup::")
 
@@ -70,7 +72,7 @@
 
 name += f"-{platform}"
 
-with open(os.environ["GITHUB_OUTPUT"], "a") as github_output:
+with open(os.environ["GITHUB_OUTPUT"], "a", encoding="utf-8") as github_output:
     print(f"name={name}", file=github_output)
 print("::endgroup::")
 
@@ -78,7 +80,9 @@
 
 print("::group::Get IDEData")
 try:
-    idedata = subprocess.check_output(["esphome", "idedata", filename], stderr=sys.stderr)
+    idedata = subprocess.check_output(
+        ["esphome", "idedata", filename], stderr=sys.stderr
+    )
 except subprocess.CalledProcessError as e:
     sys.exit(e.returncode)
 
@@ -97,12 +101,7 @@
 print("::group::Copy firmware file(s) to folder")
 file_base.mkdir(parents=True, exist_ok=True)
 
-if os.environ.get("GITHUB_JOB") is not None:
-    shutil.chown(file_base, GH_RUNNER_USER_UID, GH_RUNNER_USER_GID)
-
 shutil.copyfile(source_bin, dest_bin)
-if os.environ.get("GITHUB_JOB") is not None:
-    shutil.chown(dest_bin, GH_RUNNER_USER_UID, GH_RUNNER_USER_GID)
 
 print("::endgroup::")
 
@@ -117,7 +116,7 @@
     if define == "USE_ESP8266":
         chip_family = "ESP8266"
         break
-    elif m := re.match(r"USE_ESP32_VARIANT_(\w+)", define):
+    if m := re.match(r"USE_ESP32_VARIANT_(\w+)", define):
         chip_family = m.group(1)
         if chip_family not in ESP32_CHIP_FAMILIES:
             raise Exception(f"Unsupported chip family: {chip_family}")
@@ -135,13 +134,10 @@
     ],
 }
 
-print(f"Writing manifest file:")
+print("Writing manifest file:")
 print(json.dumps(manifest, indent=2))
 
-with open(file_base / "manifest.json", "w") as f:
+with open(file_base / "manifest.json", "w", encoding="utf-8") as f:
     json.dump(manifest, f, indent=2)
 
-if os.environ.get("GITHUB_JOB") is not None:
-    shutil.chown(file_base / "manifest.json", GH_RUNNER_USER_UID, GH_RUNNER_USER_GID)
-
 print("::endgroup::")