diff --git a/common/changes/@microsoft/rush/include-local-only-in-build-cache-schema_2024-11-07-23-36.json b/common/changes/@microsoft/rush/include-local-only-in-build-cache-schema_2024-11-07-23-36.json
new file mode 100644
index 0000000000..f37ffe328f
--- /dev/null
+++ b/common/changes/@microsoft/rush/include-local-only-in-build-cache-schema_2024-11-07-23-36.json
@@ -0,0 +1,10 @@
+{
+  "changes": [
+    {
+      "packageName": "@microsoft/rush",
+      "comment": "Fix lack of \"local-only\" option for cacheProvider in build-cache.schema.json",
+      "type": "none"
+    }
+  ],
+  "packageName": "@microsoft/rush"
+}
\ No newline at end of file
diff --git a/libraries/rush-lib/src/schemas/build-cache.schema.json b/libraries/rush-lib/src/schemas/build-cache.schema.json
index 65962422b1..a26e40aeb2 100644
--- a/libraries/rush-lib/src/schemas/build-cache.schema.json
+++ b/libraries/rush-lib/src/schemas/build-cache.schema.json
@@ -148,7 +148,17 @@
           "properties": {
             "cacheProvider": {
               "type": "string",
-              "pattern": "^(?:(?!azure-blob-storage|amazon-s3|http).)*$"
+              "pattern": "^(?:(?!local-only|azure-blob-storage|amazon-s3|http).)*$"
+            }
+          }
+        },
+        {
+          "type": "object",
+          "additionalProperties": true,
+          "properties": {
+            "cacheProvider": {
+              "type": "string",
+              "enum": ["local-only"]
             }
           }
         },