diff --git a/main/src/main/scala/sbt/Defaults.scala b/main/src/main/scala/sbt/Defaults.scala
index 35dfd27f0..661404a47 100644
--- a/main/src/main/scala/sbt/Defaults.scala
+++ b/main/src/main/scala/sbt/Defaults.scala
@@ -3373,7 +3373,7 @@ object Classpaths {
       val ac = appConfiguration.value
       val ip = ivyPaths.value
       // if ivyPaths is customized, create coursier-cache directory in it
-      val defaultIvyCache = bootIvyHome(ac)
+      val defaultIvyCache = bootIvyHome(ac).map(_.toString)
       if (old != LMCoursier.defaultCacheLocation) old
       else if (ip.ivyHome == defaultIvyCache) old
       else
diff --git a/sbt-app/src/sbt-test/lm-coursier/coursier-cache/build.sbt b/sbt-app/src/sbt-test/lm-coursier/coursier-cache/build.sbt
new file mode 100644
index 000000000..7566b5462
--- /dev/null
+++ b/sbt-app/src/sbt-test/lm-coursier/coursier-cache/build.sbt
@@ -0,0 +1,12 @@
+TaskKey[Unit]("checkIsDefaultCache") := {
+  val csrCacheDir = csrCacheDirectory.value
+  assert(csrCacheDir == sbt.coursierint.LMCoursier.defaultCacheLocation, csrCacheDir.toString)
+  val expectedPath = if Util.isWindows then "Coursier\\Cache\\v1" else ".cache/coursier/v1"
+  assert(csrCacheDir.toString.endsWith(expectedPath), csrCacheDir.toString)
+}
+
+TaskKey[Unit]("checkIsCustomCache") := {
+  val csrCacheDir = csrCacheDirectory.value
+  val ip = ivyPaths.value
+  assert(csrCacheDir == file(ip.ivyHome.get) / "coursier-cache", csrCacheDir.toString)
+}
diff --git a/sbt-app/src/sbt-test/lm-coursier/coursier-cache/test b/sbt-app/src/sbt-test/lm-coursier/coursier-cache/test
new file mode 100644
index 000000000..7fbc219b3
--- /dev/null
+++ b/sbt-app/src/sbt-test/lm-coursier/coursier-cache/test
@@ -0,0 +1,3 @@
+> checkIsDefaultCache
+> 'set ivyPaths := ivyPaths.value.withIvyHome("ivy-cache")'
+> checkIsCustomCache