diff --git a/.ci/ci-gradle-build-cache-init.sh b/.ci/ci-gradle-build-cache-init.sh
new file mode 100755
index 0000000000..1b076beb0d
--- /dev/null
+++ b/.ci/ci-gradle-build-cache-init.sh
@@ -0,0 +1,9 @@
+#!/bin/bash
+
+export GRADLE_BUILD_CACHE_URL="${GRADLE_BUILD_CACHE_URL:-http://localhost:5071/cache/}"
+export USE_GRADLE_DAEMON="${USE_GRADLE_DAEMON:-false}"
+export GRADLE_CACHE_DEBUG="${GRADLE_CACHE_DEBUG:-false}"
+export PERFORM_GRADLE_SCAN="${PERFORM_GRADLE_SCAN:---scan}"
+
+# cd %teamcity.build.checkoutDir%
+echo "Using Gradle Build Cache: $GRADLE_BUILD_CACHE_URL"
\ No newline at end of file
diff --git a/build.gradle b/build.gradle
index 6283e44342..d4a6733558 100644
--- a/build.gradle
+++ b/build.gradle
@@ -120,6 +120,7 @@ plugins {
 
     // Add the shadow plugin to the plugins classpath for the entire project.
     id 'com.github.johnrengelman.shadow' version '2.0.4' apply false
+    id "com.gradle.build-scan" version "1.16"
 }
 
 ext {
@@ -204,6 +205,12 @@ allprojects {
         if (project.path.startsWith(':experimental') && System.getProperty("experimental.test.enable") == null) {
             enabled = false
         }
+
+        // Required to use Gradle build cache (until Gradle 5.0 is released with default value of "append" set to false)
+        // See https://github.com/gradle/gradle/issues/5269 and https://github.com/gradle/gradle/pull/6419
+        extensions.configure(TypeOf.typeOf(JacocoTaskExtension)) { ex ->
+            ex.append = false
+        }
     }
 
     group 'net.corda'
@@ -438,3 +445,8 @@ wrapper {
     gradleVersion = "4.10.1"
     distributionType = Wrapper.DistributionType.ALL
 }
+
+buildScan {
+    termsOfServiceUrl = 'https://gradle.com/terms-of-service'
+    termsOfServiceAgree = 'yes'
+}
\ No newline at end of file
diff --git a/buildCacheSettings.gradle b/buildCacheSettings.gradle
new file mode 100644
index 0000000000..fcfc1513bf
--- /dev/null
+++ b/buildCacheSettings.gradle
@@ -0,0 +1,15 @@
+// Gradle Build Cache configuration recommendation: https://docs.gradle.org/current/userguide/build_cache.html
+ext {
+    isCiServer = System.getenv().containsKey("CORDA_CI")
+    gradleBuildCacheURL = System.getenv().containsKey("GRADLE_BUILD_CACHE_URL") ? System.getenv().get("GRADLE_BUILD_CACHE_URL") : 'http://localhost:5071/cache/'
+}
+
+buildCache {
+    local {
+        enabled = !isCiServer
+    }
+    remote(HttpBuildCache) {
+        url = gradleBuildCacheURL
+        push = isCiServer
+    }
+}
diff --git a/buildSrc/settings.gradle b/buildSrc/settings.gradle
index c46d96de90..2449091bd9 100644
--- a/buildSrc/settings.gradle
+++ b/buildSrc/settings.gradle
@@ -1,2 +1,4 @@
 rootProject.name = 'buildSrc'
 include 'canonicalizer'
+
+apply from: '../buildCacheSettings.gradle'
\ No newline at end of file
diff --git a/gradle.properties b/gradle.properties
index 59e65ce554..0c6bf2d49f 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -1,2 +1,3 @@
 kotlin.incremental=true
-org.gradle.jvmargs=-XX:+UseG1GC -Xmx1g
+org.gradle.jvmargs=-XX:+UseG1GC -Xmx1g -Dfile.encoding=UTF-8
+org.gradle.caching=true
diff --git a/settings.gradle b/settings.gradle
index 596d28d790..026a092f27 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -60,6 +60,8 @@ include 'samples:cordapp-configuration'
 include 'samples:network-verifier'
 include 'serialization'
 
+apply from: 'buildCacheSettings.gradle'
+
 if (JavaVersion.current() == JavaVersion.VERSION_1_8) {
     include 'core-deterministic'
     include 'core-deterministic:testing'