diff --git a/src/test/java/org/apache/maven/buildcache/its/Issue218Test.java b/src/test/java/org/apache/maven/buildcache/its/Issue218Test.java
new file mode 100644
index 00000000..e94b5231
--- /dev/null
+++ b/src/test/java/org/apache/maven/buildcache/its/Issue218Test.java
@@ -0,0 +1,47 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.maven.buildcache.its;
+
+import org.apache.maven.buildcache.its.junit.IntegrationTest;
+import org.apache.maven.it.VerificationException;
+import org.apache.maven.it.Verifier;
+import org.junit.jupiter.api.Test;
+
+/**
+ * Regression test for <a href="https://github.com/apache/maven-build-cache-extension/issues/218">issue #218</a>.
+ *
+ * <p>When {@code -Dmaven.build.cache.enabled=false} is passed on the command line (globally disabling the cache)
+ * and a module has {@code <maven.build.cache.skipCache>true</maven.build.cache.skipCache>} set as a POM project
+ * property, the build used to fail with:
+ * <pre>IllegalStateException: Cache is not initialized. Actual state: DISABLED</pre>
+ */
+@IntegrationTest("src/test/projects/mbuildcache-218")
+class Issue218Test {
+
+    @Test
+    void cacheGloballyDisabledWithPerModuleSkipCachePropertyShouldNotFail(Verifier verifier)
+            throws VerificationException {
+        verifier.setAutoclean(false);
+        verifier.addCliOption("-Dmaven.build.cache.enabled=false");
+
+        verifier.executeGoal("package");
+
+        verifier.verifyErrorFreeLog();
+    }
+}
diff --git a/src/test/projects/mbuildcache-218/.mvn/extensions.xml b/src/test/projects/mbuildcache-218/.mvn/extensions.xml
new file mode 100644
index 00000000..637b22db
--- /dev/null
+++ b/src/test/projects/mbuildcache-218/.mvn/extensions.xml
@@ -0,0 +1,28 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements.  See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership.  The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License.  You may obtain a copy of the License at
+
+         http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied.  See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<extensions>
+    <extension>
+        <groupId>org.apache.maven.extensions</groupId>
+        <artifactId>maven-build-cache-extension</artifactId>
+        <version>${projectVersion}</version>
+    </extension>
+</extensions>
diff --git a/src/test/projects/mbuildcache-218/pom.xml b/src/test/projects/mbuildcache-218/pom.xml
new file mode 100644
index 00000000..ea99c2e9
--- /dev/null
+++ b/src/test/projects/mbuildcache-218/pom.xml
@@ -0,0 +1,40 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements.  See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership.  The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License.  You may obtain a copy of the License at
+
+         http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied.  See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+         xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/maven-v4_0_0.xsd">
+    <modelVersion>4.0.0</modelVersion>
+    <groupId>org.apache.maven.caching.test</groupId>
+    <artifactId>mbuildcache-218</artifactId>
+    <version>0.0.1-SNAPSHOT</version>
+
+    <properties>
+        <maven.compiler.source>1.8</maven.compiler.source>
+        <maven.compiler.target>1.8</maven.compiler.target>
+        <!--
+            Issue #218: setting maven.build.cache.skipCache=true as a project property
+            combined with -Dmaven.build.cache.enabled=false on the command line
+            used to cause: IllegalStateException: Cache is not initialized. Actual state: DISABLED
+        -->
+        <maven.build.cache.skipCache>true</maven.build.cache.skipCache>
+    </properties>
+
+</project>
diff --git a/src/test/projects/mbuildcache-218/src/main/java/Main.java b/src/test/projects/mbuildcache-218/src/main/java/Main.java
new file mode 100644
index 00000000..2d15bb73
--- /dev/null
+++ b/src/test/projects/mbuildcache-218/src/main/java/Main.java
@@ -0,0 +1,5 @@
+public class Main {
+    public static void main(String[] args) {
+        System.out.println("Hello World!");
+    }
+}