diff --git a/python/cudf/cudf/core/udf/groupby_utils.py b/python/cudf/cudf/core/udf/groupby_utils.py
index dc31cf43292..ebf8c677e55 100644
--- a/python/cudf/cudf/core/udf/groupby_utils.py
+++ b/python/cudf/cudf/core/udf/groupby_utils.py
@@ -19,11 +19,13 @@
     groupby_apply_kernel_template,
 )
 from cudf.core.udf.utils import (
+    _generate_cache_key,
     _get_extensionty_size,
     _get_kernel,
     _get_udf_return_type,
     _supported_cols_from_frame,
     _supported_dtypes_from_frame,
+    precompiled,
 )
 from cudf.utils.utils import _cudf_nvtx_annotate
 
@@ -147,12 +149,19 @@ def jit_groupby_apply(offsets, grouped_values, function, *args):
     offsets = cp.asarray(offsets)
     ngroups = len(offsets) - 1
 
-    kernel, return_type = _get_groupby_apply_kernel(
-        grouped_values, function, args
+    cache_key = _generate_cache_key(
+        grouped_values, function, suffix="__GROUPBY_APPLY_UDF"
     )
-    return_type = numpy_support.as_dtype(return_type)
 
+    if cache_key not in precompiled:
+        precompiled[cache_key] = _get_groupby_apply_kernel(
+            grouped_values, function, args
+        )
+    kernel, return_type = precompiled[cache_key]
+
+    return_type = numpy_support.as_dtype(return_type)
     output = cudf.core.column.column_empty(ngroups, dtype=return_type)
+
     launch_args = [
         offsets,
         output,
diff --git a/python/cudf/cudf/core/udf/utils.py b/python/cudf/cudf/core/udf/utils.py
index edc1a16353f..ed0c3332499 100644
--- a/python/cudf/cudf/core/udf/utils.py
+++ b/python/cudf/cudf/core/udf/utils.py
@@ -245,7 +245,7 @@ def _mask_get(mask, pos):
     return (mask[pos // MASK_BITSIZE] >> (pos % MASK_BITSIZE)) & 1
 
 
-def _generate_cache_key(frame, func: Callable):
+def _generate_cache_key(frame, func: Callable, suffix="__APPLY_UDF"):
     """Create a cache key that uniquely identifies a compilation.
 
     A new compilation is needed any time any of the following things change:
@@ -259,6 +259,7 @@ def _generate_cache_key(frame, func: Callable):
         ),
         *(col.mask is None for col in frame._data.values()),
         *frame._data.keys(),
+        suffix,
     )
 
 
diff --git a/python/cudf/cudf/tests/test_groupby.py b/python/cudf/cudf/tests/test_groupby.py
index 35a01b81042..424db5d4bb5 100644
--- a/python/cudf/cudf/tests/test_groupby.py
+++ b/python/cudf/cudf/tests/test_groupby.py
@@ -18,6 +18,7 @@
 from cudf import DataFrame, Series
 from cudf.core._compat import PANDAS_GE_150, PANDAS_LT_140
 from cudf.core.udf.groupby_typing import SUPPORTED_GROUPBY_NUMPY_TYPES
+from cudf.core.udf.utils import precompiled
 from cudf.testing._utils import (
     DATETIME_TYPES,
     SIGNED_TYPES,
@@ -532,6 +533,42 @@ def diverging_block(grp_df):
     run_groupby_apply_jit_test(df, diverging_block, ["a"])
 
 
+def test_groupby_apply_caching():
+    # Make sure similar functions that differ
+    # by simple things like constants actually
+    # recompile
+
+    # begin with a clear cache
+    precompiled.clear()
+    assert precompiled.currsize == 0
+
+    data = cudf.DataFrame({"a": [1, 1, 1, 2, 2, 2], "b": [1, 2, 3, 4, 5, 6]})
+
+    def f(group):
+        return group["b"].mean() * 2
+
+    # a single run should result in a cache size of 1
+    run_groupby_apply_jit_test(data, f, ["a"])
+    assert precompiled.currsize == 1
+
+    # a second run with f should not increase the count
+    run_groupby_apply_jit_test(data, f, ["a"])
+    assert precompiled.currsize == 1
+
+    # changing a constant value inside the UDF should miss
+    def f(group):
+        return group["b"].mean() * 3
+
+    run_groupby_apply_jit_test(data, f, ["a"])
+    assert precompiled.currsize == 2
+
+    # changing the dtypes of the columns should miss
+    data["b"] = data["b"].astype("float64")
+    run_groupby_apply_jit_test(data, f, ["a"])
+
+    assert precompiled.currsize == 3
+
+
 @pytest.mark.parametrize("nelem", [2, 3, 100, 500, 1000])
 @pytest.mark.parametrize(
     "func",