diff --git a/__tests__/setup-python.test.ts b/__tests__/setup-python.test.ts
deleted file mode 100644
index bb27289de..000000000
--- a/__tests__/setup-python.test.ts
+++ /dev/null
@@ -1,149 +0,0 @@
-import * as core from '@actions/core';
-import * as fs from 'fs';
-import * as path from 'path';
-import {cacheDependencies} from '../src/setup-python';
-import {getCacheDistributor} from '../src/cache-distributions/cache-factory';
-
-jest.mock('fs', () => {
-  const actualFs = jest.requireActual('fs');
-  return {
-    ...actualFs,
-    promises: {
-      access: jest.fn(),
-      mkdir: jest.fn(),
-      copyFile: jest.fn(),
-      writeFile: jest.fn(),
-      appendFile: jest.fn()
-    }
-  };
-});
-jest.mock('@actions/core');
-jest.mock('../src/cache-distributions/cache-factory');
-
-const mockedFsPromises = fs.promises as jest.Mocked<typeof fs.promises>;
-const mockedCore = core as jest.Mocked<typeof core>;
-const mockedGetCacheDistributor = getCacheDistributor as jest.Mock;
-
-describe('cacheDependencies', () => {
-  const mockRestoreCache = jest.fn();
-
-  beforeEach(() => {
-    jest.clearAllMocks();
-    process.env.GITHUB_ACTION_PATH = '/github/action';
-    process.env.GITHUB_WORKSPACE = '/github/workspace';
-
-    mockedCore.getInput.mockReturnValue('nested/deps.lock');
-
-    // Simulate file exists by resolving access without error
-    mockedFsPromises.access.mockImplementation(async p => {
-      const pathStr = typeof p === 'string' ? p : p.toString();
-      if (pathStr === '/github/action/nested/deps.lock') {
-        return Promise.resolve();
-      }
-      // Simulate directory doesn't exist to test mkdir
-      if (pathStr === path.dirname('/github/workspace/nested/deps.lock')) {
-        return Promise.reject(new Error('no dir'));
-      }
-      return Promise.resolve();
-    });
-
-    // Simulate mkdir success
-    mockedFsPromises.mkdir.mockResolvedValue(undefined);
-
-    // Simulate copyFile success
-    mockedFsPromises.copyFile.mockResolvedValue(undefined);
-
-    mockedGetCacheDistributor.mockReturnValue({restoreCache: mockRestoreCache});
-  });
-
-  it('copies the dependency file and resolves the path with directory structure', async () => {
-    await cacheDependencies('pip', '3.12');
-
-    const sourcePath = path.resolve('/github/action', 'nested/deps.lock');
-    const targetPath = path.resolve('/github/workspace', 'nested/deps.lock');
-
-    expect(mockedFsPromises.access).toHaveBeenCalledWith(
-      sourcePath,
-      fs.constants.F_OK
-    );
-    expect(mockedFsPromises.mkdir).toHaveBeenCalledWith(
-      path.dirname(targetPath),
-      {
-        recursive: true
-      }
-    );
-    expect(mockedFsPromises.copyFile).toHaveBeenCalledWith(
-      sourcePath,
-      targetPath
-    );
-    expect(mockedCore.info).toHaveBeenCalledWith(
-      `Copied ${sourcePath} to ${targetPath}`
-    );
-    expect(mockedCore.info).toHaveBeenCalledWith(
-      `Resolved cache-dependency-path: nested/deps.lock`
-    );
-    expect(mockRestoreCache).toHaveBeenCalled();
-  });
-
-  it('warns if the dependency file does not exist', async () => {
-    // Simulate file does not exist by rejecting access
-    mockedFsPromises.access.mockRejectedValue(new Error('file not found'));
-
-    await cacheDependencies('pip', '3.12');
-
-    expect(mockedCore.warning).toHaveBeenCalledWith(
-      expect.stringContaining('does not exist')
-    );
-    expect(mockedFsPromises.copyFile).not.toHaveBeenCalled();
-    expect(mockRestoreCache).toHaveBeenCalled();
-  });
-
-  it('warns if file copy fails', async () => {
-    // Simulate copyFile failure
-    mockedFsPromises.copyFile.mockRejectedValue(new Error('copy failed'));
-
-    await cacheDependencies('pip', '3.12');
-
-    expect(mockedCore.warning).toHaveBeenCalledWith(
-      expect.stringContaining('Failed to copy file')
-    );
-    expect(mockRestoreCache).toHaveBeenCalled();
-  });
-
-  it('skips path logic if no input is provided', async () => {
-    mockedCore.getInput.mockReturnValue('');
-
-    await cacheDependencies('pip', '3.12');
-
-    expect(mockedFsPromises.copyFile).not.toHaveBeenCalled();
-    expect(mockedCore.warning).not.toHaveBeenCalled();
-    expect(mockRestoreCache).toHaveBeenCalled();
-  });
-
-  it('does not copy if dependency file is already inside the workspace but still sets resolved path', async () => {
-    // Simulate cacheDependencyPath inside workspace
-    mockedCore.getInput.mockReturnValue('deps.lock');
-
-    // Override sourcePath and targetPath to be equal
-    const actionPath = '/github/workspace'; // same path for action and workspace
-    process.env.GITHUB_ACTION_PATH = actionPath;
-    process.env.GITHUB_WORKSPACE = actionPath;
-
-    // access resolves to simulate file exists
-    mockedFsPromises.access.mockResolvedValue();
-
-    await cacheDependencies('pip', '3.12');
-
-    const sourcePath = path.resolve(actionPath, 'deps.lock');
-    const targetPath = sourcePath; // same path
-
-    expect(mockedFsPromises.copyFile).not.toHaveBeenCalled();
-    expect(mockedCore.info).toHaveBeenCalledWith(
-      `Dependency file is already inside the workspace: ${sourcePath}`
-    );
-    expect(mockedCore.info).toHaveBeenCalledWith(
-      `Resolved cache-dependency-path: deps.lock`
-    );
-    expect(mockRestoreCache).toHaveBeenCalled();
-  });
-});
diff --git a/dist/setup/index.js b/dist/setup/index.js
index 2f06fb35d..ba888f22f 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -97935,7 +97935,6 @@ var __importDefault = (this && this.__importDefault) || function (mod) {
     return (mod && mod.__esModule) ? mod : { "default": mod };
 };
 Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.cacheDependencies = void 0;
 const core = __importStar(__nccwpck_require__(7484));
 const finder = __importStar(__nccwpck_require__(6843));
 const finderPyPy = __importStar(__nccwpck_require__(2625));
@@ -97954,50 +97953,10 @@ function isGraalPyVersion(versionSpec) {
 function cacheDependencies(cache, pythonVersion) {
     return __awaiter(this, void 0, void 0, function* () {
         const cacheDependencyPath = core.getInput('cache-dependency-path') || undefined;
-        let resolvedDependencyPath = undefined;
-        if (cacheDependencyPath) {
-            const actionPath = process.env.GITHUB_ACTION_PATH || '';
-            const workspace = process.env.GITHUB_WORKSPACE || process.cwd();
-            const sourcePath = path.resolve(actionPath, cacheDependencyPath);
-            const relativePath = path.relative(actionPath, sourcePath);
-            const targetPath = path.resolve(workspace, relativePath);
-            try {
-                const sourceExists = yield fs_1.default.promises
-                    .access(sourcePath, fs_1.default.constants.F_OK)
-                    .then(() => true)
-                    .catch(() => false);
-                if (!sourceExists) {
-                    core.warning(`The resolved cache-dependency-path does not exist: ${sourcePath}`);
-                }
-                else {
-                    if (sourcePath !== targetPath) {
-                        const targetDir = path.dirname(targetPath);
-                        // Create target directory if it doesn't exist
-                        yield fs_1.default.promises.mkdir(targetDir, { recursive: true });
-                        // Copy file asynchronously
-                        yield fs_1.default.promises.copyFile(sourcePath, targetPath);
-                        core.info(`Copied ${sourcePath} to ${targetPath}`);
-                    }
-                    else {
-                        core.info(`Dependency file is already inside the workspace: ${sourcePath}`);
-                    }
-                    resolvedDependencyPath = path
-                        .relative(workspace, targetPath)
-                        .replace(/\\/g, '/');
-                    core.info(`Resolved cache-dependency-path: ${resolvedDependencyPath}`);
-                }
-            }
-            catch (error) {
-                core.warning(`Failed to copy file from ${sourcePath} to ${targetPath}: ${error}`);
-            }
-        }
-        // Pass resolvedDependencyPath if available, else fallback to original input
-        const dependencyPathForCache = resolvedDependencyPath !== null && resolvedDependencyPath !== void 0 ? resolvedDependencyPath : cacheDependencyPath;
-        const cacheDistributor = (0, cache_factory_1.getCacheDistributor)(cache, pythonVersion, dependencyPathForCache);
+        const cacheDistributor = (0, cache_factory_1.getCacheDistributor)(cache, pythonVersion, cacheDependencyPath);
         yield cacheDistributor.restoreCache();
     });
 }
-exports.cacheDependencies = cacheDependencies;
 function resolveVersionInputFromDefaultFile() {
     const couples = [
         ['.python-version', utils_1.getVersionsInputFromPlainFile]
diff --git a/docs/advanced-usage.md b/docs/advanced-usage.md
index 9642392e7..09c5f5ed8 100644
--- a/docs/advanced-usage.md
+++ b/docs/advanced-usage.md
@@ -421,7 +421,7 @@ steps:
 - run: pip install -e .
   # Or pip install -e '.[test]' to install test dependencies
 ```
-Note: cache-dependency-path supports files located outside the workspace root by copying them into the workspace to enable proper caching.
+
 # Outputs and environment variables
 
 ## Outputs
diff --git a/src/setup-python.ts b/src/setup-python.ts
index 106b415a6..5d585d734 100644
--- a/src/setup-python.ts
+++ b/src/setup-python.ts
@@ -22,62 +22,13 @@ function isGraalPyVersion(versionSpec: string) {
   return versionSpec.startsWith('graalpy');
 }
 
-export async function cacheDependencies(cache: string, pythonVersion: string) {
+async function cacheDependencies(cache: string, pythonVersion: string) {
   const cacheDependencyPath =
     core.getInput('cache-dependency-path') || undefined;
-  let resolvedDependencyPath: string | undefined = undefined;
-
-  if (cacheDependencyPath) {
-    const actionPath = process.env.GITHUB_ACTION_PATH || '';
-    const workspace = process.env.GITHUB_WORKSPACE || process.cwd();
-
-    const sourcePath = path.resolve(actionPath, cacheDependencyPath);
-    const relativePath = path.relative(actionPath, sourcePath);
-    const targetPath = path.resolve(workspace, relativePath);
-
-    try {
-      const sourceExists = await fs.promises
-        .access(sourcePath, fs.constants.F_OK)
-        .then(() => true)
-        .catch(() => false);
-
-      if (!sourceExists) {
-        core.warning(
-          `The resolved cache-dependency-path does not exist: ${sourcePath}`
-        );
-      } else {
-        if (sourcePath !== targetPath) {
-          const targetDir = path.dirname(targetPath);
-          // Create target directory if it doesn't exist
-          await fs.promises.mkdir(targetDir, {recursive: true});
-          // Copy file asynchronously
-          await fs.promises.copyFile(sourcePath, targetPath);
-          core.info(`Copied ${sourcePath} to ${targetPath}`);
-        } else {
-          core.info(
-            `Dependency file is already inside the workspace: ${sourcePath}`
-          );
-        }
-
-        resolvedDependencyPath = path
-          .relative(workspace, targetPath)
-          .replace(/\\/g, '/');
-        core.info(`Resolved cache-dependency-path: ${resolvedDependencyPath}`);
-      }
-    } catch (error) {
-      core.warning(
-        `Failed to copy file from ${sourcePath} to ${targetPath}: ${error}`
-      );
-    }
-  }
-
-  // Pass resolvedDependencyPath if available, else fallback to original input
-  const dependencyPathForCache = resolvedDependencyPath ?? cacheDependencyPath;
-
   const cacheDistributor = getCacheDistributor(
     cache,
     pythonVersion,
-    dependencyPathForCache
+    cacheDependencyPath
   );
   await cacheDistributor.restoreCache();
 }