diff --git a/src/url-utils.ts b/src/url-utils.ts
index 62b93ad..91b6816 100644
--- a/src/url-utils.ts
+++ b/src/url-utils.ts
@@ -7,22 +7,54 @@ const normalizedUrlCache = new QuickLRU<string, string | null>({
   maxSize: 4000
 })
 
+/**
+ * Generates a hash string from normalization options.
+ *
+ * The hash string is used as a key in the normalized URL cache to avoid re-normalizing the same URL multiple times. The function assumes that the full options object is passed, not just a subset of options.
+ *
+ *
+ * @param options - normalization options object
+ * @returns hash string representing the options
+ */
+function hashCustomOptions(options: Required<Options>): string {
+  let hashString = ''
+
+  // Sort keys to ensure the same hash for identical options regardless of their order:
+  const keys = Object.keys(options).sort()
+
+  for (let i = 0; i < keys.length; i++) {
+    const key = keys[i]
+    let value = options[key]
+
+    if (Array.isArray(value)) {
+      value = value.map((v) => v.toString()).join(',') // sufficient for RegExp and string arrays
+    } else if (typeof value === 'boolean') {
+      value = value ? 'T' : 'F'
+    }
+
+    hashString += `${i}:${value},`
+  }
+
+  return hashString
+}
+
+/**
+ * Normalizes a URL string.
+ *
+ * @param url - URL string to normalize
+ * @param options - options for normalization.
+ * @returns normalized URL string or null if an invalid URL was passed
+ */
 export function normalizeUrl(url: string, options?: Options): string | null {
   let normalizedUrl: string | null | undefined
 
+  let cacheKey
   try {
     if (!url || (isRelativeUrl(url) && !url.startsWith('//'))) {
       return null
     }
 
-    // TODO: caching doesn't take into account `options`
-    normalizedUrl = normalizedUrlCache.get(url)
-
-    if (normalizedUrl !== undefined) {
-      return normalizedUrl
-    }
-
-    normalizedUrl = normalizeUrlImpl(url, {
+    const opts = {
       stripWWW: false,
       defaultProtocol: 'https',
       normalizeProtocol: true,
@@ -35,12 +67,21 @@ export function normalizeUrl(url: string, options?: Options): string | null {
       removeExplicitPort: true,
       sortQueryParameters: true,
       ...options
-    })
+    } as Required<Options>
+    const optionsHash = hashCustomOptions(opts)
+    cacheKey = `${url}-${optionsHash}`
+    normalizedUrl = normalizedUrlCache.get(cacheKey)
+
+    if (normalizedUrl !== undefined) {
+      return normalizedUrl
+    }
+
+    normalizedUrl = normalizeUrlImpl(url, opts)
   } catch (err) {
     // ignore invalid urls
     normalizedUrl = null
   }
 
-  normalizedUrlCache.set(url, normalizedUrl!)
+  normalizedUrlCache.set(cacheKey, normalizedUrl!)
   return normalizedUrl
 }