diff --git a/src/Microsoft.Identity.Web.TokenAcquisition/TokenAcquisition.cs b/src/Microsoft.Identity.Web.TokenAcquisition/TokenAcquisition.cs
index a0f4cf5d0..dc966f12a 100644
--- a/src/Microsoft.Identity.Web.TokenAcquisition/TokenAcquisition.cs
+++ b/src/Microsoft.Identity.Web.TokenAcquisition/TokenAcquisition.cs
@@ -1068,11 +1068,6 @@ private async Task<IConfidentialClientApplication> BuildConfidentialClientApplic
                             enablePiiLogging: mergedOptions.ConfidentialClientApplicationOptions.EnablePiiLogging)
                         .WithExperimentalFeatures();
 
-                if (_tokenCacheProvider is MsalMemoryTokenCacheProvider)
-                {
-                    builder.WithCacheOptions(CacheOptions.EnableSharedCacheOptions);
-                }
-
                 string? currentUri = _tokenAcquisitionHost.GetCurrentRedirectUri(mergedOptions);
 
                 // The redirect URI is not needed for OBO
@@ -1163,11 +1158,8 @@ await builder.WithClientCredentialsAsync(
                 NotifyCertificateSelection(mergedOptions, app, CerticateObserverAction.Selected, null);
 
                 // Initialize token cache providers
-                if (!(_tokenCacheProvider is MsalMemoryTokenCacheProvider))
-                {
-                    _tokenCacheProvider.Initialize(app.AppTokenCache);
-                    _tokenCacheProvider.Initialize(app.UserTokenCache);
-                }
+                _tokenCacheProvider.Initialize(app.AppTokenCache);
+                _tokenCacheProvider.Initialize(app.UserTokenCache);
 
                 return app;
             }
@@ -1664,7 +1656,7 @@ private void Log(
         /// Temporary. Replace with Builder.WithClientAssertion when MSAL.NET supports it.
         /// </summary>
         private static bool OverrideClientAssertionIfNeeded<T>(TokenAcquisitionOptions? tokenAcquisitionOptions, AbstractConfidentialClientAcquireTokenParameterBuilder<T> builder)
-            where T: AbstractAcquireTokenParameterBuilder<T>
+            where T : AbstractAcquireTokenParameterBuilder<T>
         {
             if (tokenAcquisitionOptions == null || tokenAcquisitionOptions.ExtraParameters == null)
             {
diff --git a/tests/Microsoft.Identity.Web.Test/TokenAcquisitionAuthorityTests.cs b/tests/Microsoft.Identity.Web.Test/TokenAcquisitionAuthorityTests.cs
index c93a0b8ae..0558a05d3 100644
--- a/tests/Microsoft.Identity.Web.Test/TokenAcquisitionAuthorityTests.cs
+++ b/tests/Microsoft.Identity.Web.Test/TokenAcquisitionAuthorityTests.cs
@@ -141,7 +141,7 @@ public async Task VerifyCorrectAuthorityUsedInTokenAcquisition_B2CAuthorityTests
 
             Assert.Equal(expectedAuthority, app.Authority);
         }
-
+      
         [Theory]
         [InlineData("https://localhost:1234")]
         [InlineData("")]
diff --git a/tests/Microsoft.Identity.Web.Test/TokenAcquisitionTests.cs b/tests/Microsoft.Identity.Web.Test/TokenAcquisitionTests.cs
index 65e4ee2d1..c6b168cf3 100644
--- a/tests/Microsoft.Identity.Web.Test/TokenAcquisitionTests.cs
+++ b/tests/Microsoft.Identity.Web.Test/TokenAcquisitionTests.cs
@@ -6,14 +6,20 @@
 using System.Net.Http;
 using System.Threading;
 using System.Threading.Tasks;
+using Microsoft.AspNetCore.Authentication.OpenIdConnect;
+using Microsoft.Extensions.Caching.Memory;
 using Microsoft.Extensions.DependencyInjection;
+using Microsoft.Extensions.Logging;
+using Microsoft.Extensions.Options;
 using Microsoft.Identity.Abstractions;
 using Microsoft.Identity.Client;
 using Microsoft.Identity.Web.Test.Common;
 using Microsoft.Identity.Web.Test.Common.Mocks;
+using Microsoft.Identity.Web.Test.Common.TestHelpers;
 using Microsoft.Identity.Web.TestOnly;
+using Microsoft.Identity.Web.TokenCacheProviders.InMemory;
 using Xunit;
-
+using TC = Microsoft.Identity.Web.Test.Common.TestConstants;
 
 namespace Microsoft.Identity.Web.Test
 {
@@ -126,6 +132,71 @@ public async Task ExtraBodyParametersAreSentToEndpointTest()
             Assert.Equal("Bearer header.payload.signature", result);
         }
 
+        // https://github.com/AzureAD/microsoft-identity-web/issues/3237
+        [Fact]
+        public async Task TokenAcquisitionUsesMemoryCacheWhenConfigured()
+        {
+            // Arrange
+            var microsoftIdentityOptionsMonitor = new TestOptionsMonitor<MicrosoftIdentityOptions>(new MicrosoftIdentityOptions
+            {
+                Authority = TC.AuthorityCommonTenant,
+                ClientId = TC.ConfidentialClientId,
+                CallbackPath = string.Empty,
+            });
+
+            var applicationOptionsMonitor = new TestOptionsMonitor<ConfidentialClientApplicationOptions>(new ConfidentialClientApplicationOptions
+            {
+                Instance = TC.AadInstance,
+                RedirectUri = "https://localhost:1234",
+                ClientSecret = TC.ClientSecret,
+            });
+
+            var services = new ServiceCollection();
+            services.AddTransient(
+                provider => microsoftIdentityOptionsMonitor);
+            services.AddTransient(
+                provider => applicationOptionsMonitor);
+            services.Configure<MergedOptions>(options => { });
+            services.AddTokenAcquisition();
+            services.AddLogging();
+            services.AddAuthentication();
+            services.AddSingleton<IMsalHttpClientFactory, MockHttpClientFactory>();
+            services.AddMemoryCache();
+            var provider = services.BuildServiceProvider();
+
+
+            MergedOptions mergedOptions = provider.GetRequiredService<IMergedOptionsStore>().Get(OpenIdConnectDefaults.AuthenticationScheme);
+            MergedOptions.UpdateMergedOptionsFromMicrosoftIdentityOptions(microsoftIdentityOptionsMonitor.Get(OpenIdConnectDefaults.AuthenticationScheme), mergedOptions);
+            MergedOptions.UpdateMergedOptionsFromConfidentialClientApplicationOptions(applicationOptionsMonitor.Get(OpenIdConnectDefaults.AuthenticationScheme), mergedOptions);
+
+            var credentialsLoader = new DefaultCredentialsLoader();
+            var tokenAcquisitionAspnetCoreHost = new TokenAcquisitionAspnetCoreHost(
+                MockHttpContextAccessor.CreateMockHttpContextAccessor(),
+                provider.GetService<IMergedOptionsStore>()!,
+                provider);
+            var tokenAcquisition = new TokenAcquisitionAspNetCore(
+                new MsalTestTokenCacheProvider(
+                    provider.GetService<IMemoryCache>()!,
+                    provider.GetService<IOptions<MsalMemoryTokenCacheOptions>>()!),
+                provider.GetService<IHttpClientFactory>()!,
+                provider.GetService<ILogger<TokenAcquisition>>()!,
+                tokenAcquisitionAspnetCoreHost,
+                provider,
+                credentialsLoader);
+            var mockHttpClient = provider.GetRequiredService<IMsalHttpClientFactory>() as MockHttpClientFactory;         
+
+            IConfidentialClientApplication app = await tokenAcquisition.GetOrBuildConfidentialClientApplicationAsync(mergedOptions);
+            mockHttpClient!.AddMockHandler(MockHttpCreator.CreateClientCredentialTokenHandler());
+
+            // Act
+            var result = await app.AcquireTokenForClient(new[] { "r" }).ExecuteAsync();
+
+            // Assert
+            Assert.Equal(TokenSource.IdentityProvider, result.AuthenticationResultMetadata.TokenSource);
+            IMemoryCache memoryCache = provider.GetService<IMemoryCache>()!;
+            Assert.Equal(1, (memoryCache as MemoryCache)!.Count);             // this proves that MemoryCache is used
+        }
+
         private TokenAcquirerFactory InitTokenAcquirerFactory()
         {
             TokenAcquirerFactoryTesting.ResetTokenAcquirerFactoryInTest();