diff --git a/src/cache.rs b/src/cache.rs
index 081dea2..fb55349 100644
--- a/src/cache.rs
+++ b/src/cache.rs
@@ -16,6 +16,8 @@ use walkdir::{DirEntry, WalkDir};
 use crate::error::TealdeerError::{self, CacheError, UpdateError};
 use crate::types::{OsType, PathSource};
 
+static CACHE_DIR_ENV_VAR: &str = "TEALDEER_CACHE_DIR";
+
 #[derive(Debug)]
 pub struct Cache {
     url: String,
@@ -59,19 +61,32 @@ impl Cache {
 
     /// Return the path to the cache directory.
     pub fn get_cache_dir() -> Result<(PathBuf, PathSource), TealdeerError> {
-        // Allow overriding the cache directory by setting the
-        // $TEALDEER_CACHE_DIR env variable.
-        if let Ok(value) = env::var("TEALDEER_CACHE_DIR") {
+        // Allow overriding the cache directory by setting the env variable.
+        if let Ok(value) = env::var(CACHE_DIR_ENV_VAR) {
             let path = PathBuf::from(value);
-
-            if path.exists() && path.is_dir() {
-                return Ok((path, PathSource::EnvVar));
+            let (path_exists, path_is_dir) = path
+                .metadata()
+                .map_or((false, false), |md| (true, md.is_dir()));
+            if path_exists && !path_is_dir {
+                return Err(CacheError(format!(
+                    "Path specified by ${} is not a directory.",
+                    CACHE_DIR_ENV_VAR
+                )));
             }
-            return Err(CacheError(
-                "Path specified by $TEALDEER_CACHE_DIR \
-                     does not exist or is not a directory."
-                    .into(),
-            ));
+            if !path_exists {
+                // Try to create the complete directory path.
+                fs::create_dir_all(&path).map_err(|_| {
+                    CacheError(format!(
+                        "Directory path specified by ${} cannot be created.",
+                        CACHE_DIR_ENV_VAR
+                    ))
+                })?;
+                eprintln!(
+                    "Successfully created cache directory path `{}`.",
+                    path.to_str().unwrap()
+                );
+            }
+            return Ok((path, PathSource::EnvVar));
         };
 
         // Otherwise, fall back to user cache directory.
diff --git a/tests/lib.rs b/tests/lib.rs
index 769901a..686fcaf 100644
--- a/tests/lib.rs
+++ b/tests/lib.rs
@@ -10,6 +10,9 @@ use predicates::boolean::PredicateBooleanExt;
 use predicates::prelude::predicate::str::{contains, is_empty, similar};
 use tempfile::{Builder, TempDir};
 
+// TODO: Should be 'cache::CACHE_DIR_ENV_VAR'. This requires to have a library crate for the logic.
+static CACHE_DIR_ENV_VAR: &str = "TEALDEER_CACHE_DIR";
+
 struct TestEnv {
     pub cache_dir: TempDir,
     pub custom_pages_dir: TempDir,
@@ -106,10 +109,7 @@ impl TestEnv {
         }
         let run = build.run().unwrap();
         let mut cmd = run.command();
-        cmd.env(
-            "TEALDEER_CACHE_DIR",
-            self.cache_dir.path().to_str().unwrap(),
-        );
+        cmd.env(CACHE_DIR_ENV_VAR, self.cache_dir.path().to_str().unwrap());
         cmd.env(
             "TEALDEER_CONFIG_DIR",
             self.config_dir.path().to_str().unwrap(),
@@ -218,6 +218,50 @@ fn test_quiet_old_cache() {
         .stderr(contains("The cache hasn't been updated for more than ").not());
 }
 
+#[test]
+fn test_create_cache_directory_path() {
+    let testenv = TestEnv::new();
+    let cache_dir = testenv.cache_dir.path();
+    let internal_cache_dir = cache_dir.join("internal");
+
+    let mut command = testenv.command();
+    command.env(CACHE_DIR_ENV_VAR, internal_cache_dir.to_str().unwrap());
+
+    assert!(!internal_cache_dir.exists());
+
+    command
+        .arg("-u")
+        .assert()
+        .success()
+        .stderr(contains(format!(
+            "Successfully created cache directory path `{}`.",
+            internal_cache_dir.to_str().unwrap()
+        )))
+        .stderr(contains("Successfully updated cache."));
+
+    assert!(internal_cache_dir.is_dir());
+}
+
+#[test]
+fn test_cache_location_not_a_directory() {
+    let testenv = TestEnv::new();
+    let cache_dir = testenv.cache_dir.path();
+    let internal_file = cache_dir.join("internal");
+    File::create(&internal_file).unwrap();
+
+    let mut command = testenv.command();
+    command.env(CACHE_DIR_ENV_VAR, internal_file.to_str().unwrap());
+
+    command
+        .arg("-u")
+        .assert()
+        .failure()
+        .stderr(contains(format!(
+            "Path specified by ${} is not a directory.",
+            CACHE_DIR_ENV_VAR
+        )));
+}
+
 #[test]
 fn test_setup_seed_config() {
     let testenv = TestEnv::new();