diff --git a/src/azure-cli/azure/cli/command_modules/acr/cache.py b/src/azure-cli/azure/cli/command_modules/acr/cache.py
index a2ab97c6cee..26aa7897c1b 100644
--- a/src/azure-cli/azure/cli/command_modules/acr/cache.py
+++ b/src/azure-cli/azure/cli/command_modules/acr/cache.py
@@ -16,6 +16,9 @@
     IdentityProperties,
     UserIdentityProperties
 )
+from knack.log import get_logger
+
+logger = get_logger(__name__)
 
 
 def acr_cache_show(cmd,
@@ -66,6 +69,7 @@ def acr_cache_create(cmd,
                      identity=None):
 
     rg = get_resource_group_name_by_registry_name(cmd.cli_ctx, registry_name, resource_group_name)
+    logger.warning("If cache rule '%s' already exists, it will be overwritten.", name)
 
     # Handle credential set
     if cred_set:
diff --git a/src/azure-cli/azure/cli/command_modules/acr/tests/latest/test_acr_commands_mock.py b/src/azure-cli/azure/cli/command_modules/acr/tests/latest/test_acr_commands_mock.py
index 95c8e3c34db..4c6fa0bfff7 100644
--- a/src/azure-cli/azure/cli/command_modules/acr/tests/latest/test_acr_commands_mock.py
+++ b/src/azure-cli/azure/cli/command_modules/acr/tests/latest/test_acr_commands_mock.py
@@ -51,6 +51,7 @@
 )
 from azure.cli.command_modules.acr._docker_utils import ResourceNotFound
 from azure.cli.command_modules.acr._constants import ACR_AUDIENCE_RESOURCE_NAME
+from azure.cli.command_modules.acr.cache import acr_cache_create
 from azure.cli.core.mock import DummyCli
 
 
@@ -64,6 +65,26 @@
 
 class AcrMockCommandsTests(unittest.TestCase):
 
+    @mock.patch('azure.cli.command_modules.acr.cache.logger.warning')
+    @mock.patch('azure.cli.command_modules.acr.cache.get_resource_group_name_by_registry_name')
+    def test_cache_create_warns_that_existing_rule_is_overwritten(
+            self, mock_get_resource_group, mock_warning):
+        cmd = self._setup_cmd()
+        client = mock.MagicMock()
+        mock_get_resource_group.return_value = 'testresourcegroup'
+
+        acr_cache_create(
+            cmd=cmd,
+            client=client,
+            registry_name='testregistry',
+            name='testcache',
+            source_repo='mcr.microsoft.com/mcr/hello-world',
+            target_repo='hello-world')
+
+        mock_warning.assert_called_once_with(
+            "If cache rule '%s' already exists, it will be overwritten.",
+            'testcache')
+
     @mock.patch('azure.cli.command_modules.acr.repository.get_access_credentials', autospec=True)
     @mock.patch('requests.request', autospec=True)
     def test_repository_list(self, mock_requests_get, mock_get_access_credentials):