diff --git a/capa/rules/cache.py b/capa/rules/cache.py
index 6f87570ef..27d7ecf54 100644
--- a/capa/rules/cache.py
+++ b/capa/rules/cache.py
@@ -9,8 +9,10 @@
 import sys
 import zlib
 import pickle
+import shutil
 import hashlib
 import logging
+import subprocess
 from typing import List, Optional
 from pathlib import Path
 from dataclasses import dataclass
@@ -26,6 +28,58 @@
 CacheIdentifier = str
 
 
+def is_dev_environment() -> bool:
+    if getattr(sys, "frozen", False):
+        # running as a PyInstaller executable
+        return False
+
+    if "site-packages" in __file__:
+        # running from a site-packages installation
+        return False
+
+    if not shutil.which("git"):
+        # git is found, but might not be always be in PATH
+        # we should handle this case
+        return False
+
+    return True
+
+
+def get_modified_files() -> List[str]:
+    try:
+        # use git status to retrieve tracked modified files
+        result = subprocess.run(
+            ["git", "--no-pager", "status", "--porcelain", "--untracked-files=no"],
+            capture_output=True,
+            text=True,
+            check=True,
+        )
+
+        # retrieve .py source files
+        # ' M': the file has staged modifications
+        # 'M ': the file has unstaged modifications
+        # 'MM': the file has both staged and unstaged modifications
+        files = []
+        for line in result.stdout.splitlines():
+            if line.startswith(("M ", "MM", " M")) and line.endswith(".py"):
+                file_path = line[3:]
+                files.append(file_path)
+
+        return files
+    except (subprocess.CalledProcessError, FileNotFoundError):
+        return []
+
+
+def get_git_commit_hash() -> Optional[str]:
+    try:
+        result = subprocess.run(["git", "rev-parse", "HEAD"], capture_output=True, text=True, check=True)
+        commit_hash = result.stdout.strip()
+        logger.debug("git commit hash %s", commit_hash)
+        return commit_hash
+    except (subprocess.CalledProcessError, FileNotFoundError):
+        return None
+
+
 def compute_cache_identifier(rule_content: List[bytes]) -> CacheIdentifier:
     hash = hashlib.sha256()
 
@@ -107,6 +161,41 @@ def get_ruleset_content(ruleset: capa.rules.RuleSet) -> List[bytes]:
 
 def compute_ruleset_cache_identifier(ruleset: capa.rules.RuleSet) -> CacheIdentifier:
     rule_contents = get_ruleset_content(ruleset)
+
+    if is_dev_environment():
+        modified_files = get_modified_files()
+        commit_hash = get_git_commit_hash()
+
+        if modified_files or commit_hash:
+            hash = hashlib.sha256()
+            hash.update(capa.version.__version__.encode("utf-8"))
+            hash.update(b"\x00")
+
+            for file in modified_files:
+                try:
+                    with Path(file).open("rb") as f:
+                        file_content = f.read()
+                        logger.debug("found modified source py %s", file)
+                        hash.update(file_content)
+                        hash.update(b"\x00")
+                except FileNotFoundError as e:
+                    logger.error("modified file not found: %s", file)
+                    logger.error("%s", e)
+
+            if commit_hash:
+                hash.update(commit_hash.encode("ascii"))
+                hash.update(b"\x00")
+
+            # include the hash of the rule contents
+            rule_hashes = sorted([hashlib.sha256(buf).hexdigest() for buf in rule_contents])
+            for rule_hash in rule_hashes:
+                hash.update(rule_hash.encode("ascii"))
+                hash.update(b"\x00")
+
+            logger.debug(
+                "developer environment detected, ruleset cache will be auto-generated upon each source modification"
+            )
+            return hash.hexdigest()
     return compute_cache_identifier(rule_contents)