diff --git a/computer-use-demo/computer_use_demo/loop.py b/computer-use-demo/computer_use_demo/loop.py
index bb959e4b..a4284ddb 100644
--- a/computer-use-demo/computer_use_demo/loop.py
+++ b/computer-use-demo/computer_use_demo/loop.py
@@ -24,8 +24,6 @@
 
 from .tools import BashTool, ComputerTool, EditTool, ToolCollection, ToolResult
 
-BETA_FLAG = "computer-use-2024-10-22"
-
 
 class APIProvider(StrEnum):
     ANTHROPIC = "anthropic"
@@ -74,6 +72,7 @@ async def sampling_loop(
     api_key: str,
     only_n_most_recent_images: int | None = None,
     max_tokens: int = 4096,
+    prompt_caching: bool = True,
 ):
     """
     Agentic sampling loop for the assistant/tool interaction of computer use.
@@ -98,6 +97,15 @@ async def sampling_loop(
         elif provider == APIProvider.BEDROCK:
             client = AnthropicBedrock()
 
+        betas = ["computer-use-2024-10-22"]
+        if prompt_caching:
+            betas.append("prompt-caching-2024-07-31")
+            for message in messages:
+                if isinstance(message.content, str):
+                    continue
+                for content_block_param in message.content:
+                    content_block_param["cache_control"] = {"type": "ephemeral"}
+
         # Call the API
         # we use raw_response to provide debug information to streamlit. Your
         # implementation may be able call the SDK directly with:
@@ -108,7 +116,7 @@ async def sampling_loop(
             model=model,
             system=system,
             tools=tool_collection.to_params(),
-            betas=["computer-use-2024-10-22"],
+            betas=betas,
         )
 
         api_response_callback(cast(APIResponse[BetaMessage], raw_response))
diff --git a/computer-use-demo/tests/loop_test.py b/computer-use-demo/tests/loop_test.py
index 4985dbee..751cbab9 100644
--- a/computer-use-demo/tests/loop_test.py
+++ b/computer-use-demo/tests/loop_test.py
@@ -49,7 +49,8 @@ async def test_loop():
         )
 
         assert len(result) == 4
-        assert result[0] == {"role": "user", "content": "Test message"}
+        assert result[0]["role"] == "user"
+        assert result[0]["content"] == "Test message"
         assert result[1]["role"] == "assistant"
         assert result[2]["role"] == "user"
         assert result[3]["role"] == "assistant"