diff --git a/homeassistant/requirements.py b/homeassistant/requirements.py
index ca34a4bbae4..1164eff4eb8 100644
--- a/homeassistant/requirements.py
+++ b/homeassistant/requirements.py
@@ -44,12 +44,15 @@ async def async_process_requirements(hass: HomeAssistant, name: str,
 
 def pip_kwargs(config_dir: Optional[str]) -> Dict[str, Any]:
     """Return keyword arguments for PIP install."""
+    is_docker = pkg_util.is_docker_env()
     kwargs = {
-        'constraints': os.path.join(os.path.dirname(__file__), CONSTRAINT_FILE)
+        'constraints': os.path.join(os.path.dirname(__file__),
+                                    CONSTRAINT_FILE),
+        'no_cache_dir': is_docker,
     }
     if 'WHEELS_LINKS' in os.environ:
         kwargs['find_links'] = os.environ['WHEELS_LINKS']
     if not (config_dir is None or pkg_util.is_virtual_env()) and \
-            not pkg_util.is_docker_env():
+            not is_docker:
         kwargs['target'] = os.path.join(config_dir, 'deps')
     return kwargs
diff --git a/homeassistant/util/package.py b/homeassistant/util/package.py
index 272a097b24c..6f6d03d67b6 100644
--- a/homeassistant/util/package.py
+++ b/homeassistant/util/package.py
@@ -49,7 +49,8 @@ def is_installed(package: str) -> bool:
 def install_package(package: str, upgrade: bool = True,
                     target: Optional[str] = None,
                     constraints: Optional[str] = None,
-                    find_links: Optional[str] = None) -> bool:
+                    find_links: Optional[str] = None,
+                    no_cache_dir: Optional[bool] = False) -> bool:
     """Install a package on PyPi. Accepts pip compatible package strings.
 
     Return boolean if install successful.
@@ -58,6 +59,8 @@ def install_package(package: str, upgrade: bool = True,
     _LOGGER.info('Attempting install of %s', package)
     env = os.environ.copy()
     args = [sys.executable, '-m', 'pip', 'install', '--quiet', package]
+    if no_cache_dir:
+        args.append('--no-cache-dir')
     if upgrade:
         args.append('--upgrade')
     if constraints is not None:
diff --git a/tests/test_requirements.py b/tests/test_requirements.py
index 35264c2e1b4..bbf86278bd2 100644
--- a/tests/test_requirements.py
+++ b/tests/test_requirements.py
@@ -30,9 +30,8 @@ class TestRequirements:
     @patch('homeassistant.util.package.is_docker_env', return_value=False)
     @patch('homeassistant.util.package.install_package', return_value=True)
     def test_requirement_installed_in_venv(
-            self, mock_install, mock_venv, mock_denv, mock_dirname):
+            self, mock_install, mock_denv, mock_venv, mock_dirname):
         """Test requirement installed in virtual environment."""
-        mock_venv.return_value = True
         mock_dirname.return_value = 'ha_package_path'
         self.hass.config.skip_pip = False
         mock_integration(
@@ -42,14 +41,16 @@ class TestRequirements:
         assert 'comp' in self.hass.config.components
         assert mock_install.call_args == call(
             'package==0.0.1',
-            constraints=os.path.join('ha_package_path', CONSTRAINT_FILE))
+            constraints=os.path.join('ha_package_path', CONSTRAINT_FILE),
+            no_cache_dir=False,
+        )
 
     @patch('os.path.dirname')
     @patch('homeassistant.util.package.is_virtual_env', return_value=False)
     @patch('homeassistant.util.package.is_docker_env', return_value=False)
     @patch('homeassistant.util.package.install_package', return_value=True)
     def test_requirement_installed_in_deps(
-            self, mock_install, mock_venv, mock_denv, mock_dirname):
+            self, mock_install, mock_denv, mock_venv, mock_dirname):
         """Test requirement installed in deps directory."""
         mock_dirname.return_value = 'ha_package_path'
         self.hass.config.skip_pip = False
@@ -60,7 +61,9 @@ class TestRequirements:
         assert 'comp' in self.hass.config.components
         assert mock_install.call_args == call(
             'package==0.0.1', target=self.hass.config.path('deps'),
-            constraints=os.path.join('ha_package_path', CONSTRAINT_FILE))
+            constraints=os.path.join('ha_package_path', CONSTRAINT_FILE),
+            no_cache_dir=False,
+        )
 
 
 async def test_install_existing_package(hass):
@@ -108,7 +111,9 @@ async def test_install_with_wheels_index(hass):
         print(mock_inst.call_args)
         assert mock_inst.call_args == call(
             'hello==1.0.0', find_links="https://wheels.hass.io/test",
-            constraints=os.path.join('ha_package_path', CONSTRAINT_FILE))
+            constraints=os.path.join('ha_package_path', CONSTRAINT_FILE),
+            no_cache_dir=True,
+        )
 
 
 async def test_install_on_docker(hass):
@@ -135,4 +140,6 @@ async def test_install_on_docker(hass):
         print(mock_inst.call_args)
         assert mock_inst.call_args == call(
             'hello==1.0.0',
-            constraints=os.path.join('ha_package_path', CONSTRAINT_FILE))
+            constraints=os.path.join('ha_package_path', CONSTRAINT_FILE),
+            no_cache_dir=True,
+        )