diff --git a/packages/cache/__tests__/tar.test.ts b/packages/cache/__tests__/tar.test.ts
index f1792217..36c0a38d 100644
--- a/packages/cache/__tests__/tar.test.ts
+++ b/packages/cache/__tests__/tar.test.ts
@@ -18,7 +18,7 @@ jest.mock('@actions/io')
 const IS_WINDOWS = process.platform === 'win32'
 const IS_MAC = process.platform === 'darwin'
 
-const defaultTarPath = process.platform === 'darwin' ? 'gtar' : 'tar'
+const defaultTarPath = IS_MAC ? 'gtar' : 'tar'
 
 function getTempDir(): string {
   return path.join(__dirname, '_temp', 'tar')
@@ -75,6 +75,41 @@ test('zstd extract tar', async () => {
   )
 })
 
+test('zstd extract tar with windows BSDtar', async () => {
+  if (IS_WINDOWS) {
+    const mkdirMock = jest.spyOn(io, 'mkdirP')
+    const execMock = jest.spyOn(exec, 'exec')
+    jest
+      .spyOn(utils, 'getGnuTarPathOnWindows')
+      .mockReturnValue(Promise.resolve(''))
+
+    const archivePath = `${process.env['windir']}\\fakepath\\cache.tar`
+    const workspace = process.env['GITHUB_WORKSPACE']
+    const tarPath = SystemTarPathOnWindows
+    const tarFilename = 'cache.tar'
+
+    await tar.extractTar(archivePath, CompressionMethod.Zstd)
+
+    expect(mkdirMock).toHaveBeenCalledWith(workspace)
+    expect(execMock).toHaveBeenCalledTimes(1)
+    expect(execMock).toHaveBeenCalledWith(
+      'zstd -d --long=30 -o',
+      [
+        tarFilename.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+        archivePath.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+        '&&',
+        `"${tarPath}"`,
+        '-xf',
+        tarFilename.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+        '-P',
+        '-C',
+        workspace?.replace(/\\/g, '/')
+      ],
+      {cwd: undefined}
+    )
+  }
+})
+
 test('gzip extract tar', async () => {
   const mkdirMock = jest.spyOn(io, 'mkdirP')
   const execMock = jest.spyOn(exec, 'exec')
@@ -107,7 +142,7 @@ test('gzip extract tar', async () => {
 test('gzip extract GNU tar on windows with GNUtar in path', async () => {
   if (IS_WINDOWS) {
     // GNU tar present in path but not at default location
-    const isGnuMock = jest
+    jest
       .spyOn(utils, 'getGnuTarPathOnWindows')
       .mockReturnValue(Promise.resolve('tar'))
     const execMock = jest.spyOn(exec, 'exec')
@@ -116,7 +151,6 @@ test('gzip extract GNU tar on windows with GNUtar in path', async () => {
 
     await tar.extractTar(archivePath, CompressionMethod.Gzip)
 
-    expect(isGnuMock).toHaveBeenCalledTimes(2)
     expect(execMock).toHaveBeenCalledTimes(1)
     expect(execMock).toHaveBeenCalledWith(
       `"tar"`,
@@ -177,7 +211,7 @@ test('zstd create tar', async () => {
 test('zstd create tar with windows BSDtar', async () => {
   if (IS_WINDOWS) {
     const execMock = jest.spyOn(exec, 'exec')
-    const isGnuMock = jest
+    jest
       .spyOn(utils, 'getGnuTarPathOnWindows')
       .mockReturnValue(Promise.resolve(''))
 
@@ -196,7 +230,6 @@ test('zstd create tar with windows BSDtar', async () => {
 
     const tarPath = SystemTarPathOnWindows
 
-    expect(isGnuMock).toHaveBeenCalledTimes(2)
     expect(execMock).toHaveBeenCalledTimes(1)
     expect(execMock).toHaveBeenCalledWith(
       `"${tarPath}"`,
@@ -284,6 +317,35 @@ test('zstd list tar', async () => {
   )
 })
 
+test('zstd list tar with windows BSDtar', async () => {
+  if (IS_WINDOWS) {
+    const execMock = jest.spyOn(exec, 'exec')
+    jest
+      .spyOn(utils, 'getGnuTarPathOnWindows')
+      .mockReturnValue(Promise.resolve(''))
+    const archivePath = `${process.env['windir']}\\fakepath\\cache.tar`
+
+    await tar.listTar(archivePath, CompressionMethod.Zstd)
+
+    const tarFilename = 'cache.tar'
+    const tarPath = SystemTarPathOnWindows
+    expect(execMock).toHaveBeenCalledTimes(1)
+    expect(execMock).toHaveBeenCalledWith(
+      'zstd -d --long=30 -o',
+      [
+        tarFilename.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+        archivePath.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+        '&&',
+        `"${tarPath}"`,
+        '-tf',
+        tarFilename.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+        '-P'
+      ],
+      {cwd: undefined}
+    )
+  }
+})
+
 test('zstdWithoutLong list tar', async () => {
   const execMock = jest.spyOn(exec, 'exec')
 
diff --git a/packages/cache/src/internal/tar.ts b/packages/cache/src/internal/tar.ts
index 8647fdc0..27fcf1ca 100644
--- a/packages/cache/src/internal/tar.ts
+++ b/packages/cache/src/internal/tar.ts
@@ -46,7 +46,9 @@ async function getTarArgs(
   const tarFile = 'cache.tar'
   const tarPath = await getTarPath()
   const workingDirectory = getWorkingDirectory()
-  const BSD_TAR_WINDOWS = IS_WINDOWS && tarPath === SystemTarPathOnWindows
+  const BSD_TAR_ZSTD =
+    tarPath === SystemTarPathOnWindows &&
+    compressionMethod !== CompressionMethod.Gzip
 
   // Method specific args
   switch (type) {
@@ -54,11 +56,11 @@ async function getTarArgs(
       args.push(
         '--posix',
         '-cf',
-        BSD_TAR_WINDOWS
+        BSD_TAR_ZSTD
           ? tarFile
           : cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
         '--exclude',
-        BSD_TAR_WINDOWS
+        BSD_TAR_ZSTD
           ? tarFile
           : cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
         '-P',
@@ -71,7 +73,7 @@ async function getTarArgs(
     case 'extract':
       args.push(
         '-xf',
-        BSD_TAR_WINDOWS
+        BSD_TAR_ZSTD
           ? tarFile
           : archivePath.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
         '-P',
@@ -79,11 +81,10 @@ async function getTarArgs(
         workingDirectory.replace(new RegExp(`\\${path.sep}`, 'g'), '/')
       )
       break
-    // TODO: Correct the below code especially archivePath for BSD_TAR_WINDOWS
     case 'list':
       args.push(
         '-tf',
-        BSD_TAR_WINDOWS
+        BSD_TAR_ZSTD
           ? tarFile
           : archivePath.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
         '-P'
@@ -149,31 +150,31 @@ async function getCompressionProgram(
   const tarPath = await getTarPath()
   const cacheFileName = utils.getCacheFileName(compressionMethod)
   const tarFile = 'cache.tar'
-  const BSD_TAR_WINDOWS = IS_WINDOWS && tarPath === SystemTarPathOnWindows
+  const BSD_TAR_ZSTD =
+    tarPath === SystemTarPathOnWindows &&
+    compressionMethod !== CompressionMethod.Gzip
   switch (compressionMethod) {
     case CompressionMethod.Zstd:
-      if (BSD_TAR_WINDOWS) {
-        return [
-          'zstd -d --long=30 -o',
-          tarFile,
-          cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
-          '&&'
-        ]
-      }
-      return [
-        '--use-compress-program',
-        IS_WINDOWS ? 'zstd -d --long=30' : 'unzstd --long=30'
-      ]
+      return BSD_TAR_ZSTD
+        ? [
+            'zstd -d --long=30 -o',
+            tarFile,
+            cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+            '&&'
+          ]
+        : [
+            '--use-compress-program',
+            IS_WINDOWS ? 'zstd -d --long=30' : 'unzstd --long=30'
+          ]
     case CompressionMethod.ZstdWithoutLong:
-      if (BSD_TAR_WINDOWS) {
-        return [
-          'zstd -d -o',
-          tarFile,
-          cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
-          '&&'
-        ]
-      }
-      return ['--use-compress-program', IS_WINDOWS ? 'zstd -d' : 'unzstd']
+      return BSD_TAR_ZSTD
+        ? [
+            'zstd -d -o',
+            tarFile,
+            cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+            '&&'
+          ]
+        : ['--use-compress-program', IS_WINDOWS ? 'zstd -d' : 'unzstd']
     default:
       return ['-z']
   }
@@ -184,13 +185,15 @@ export async function listTar(
   compressionMethod: CompressionMethod
 ): Promise<void> {
   const tarPath = await getTarPath()
-  const BSD_TAR_WINDOWS = IS_WINDOWS && tarPath === SystemTarPathOnWindows
+  const BSD_TAR_ZSTD =
+    tarPath === SystemTarPathOnWindows &&
+    compressionMethod !== CompressionMethod.Gzip
   const compressionArgs = await getCompressionProgram(compressionMethod)
   const tarArgs = await getTarArgs(compressionMethod, 'list', archivePath)
   // TODO: Add a test for BSD tar on windows
-  if (BSD_TAR_WINDOWS) {
+  if (BSD_TAR_ZSTD) {
     const command = compressionArgs[0]
-    const args = compressionArgs.slice(1).concat(tarArgs)
+    const args = compressionArgs.slice(1).concat([tarPath]).concat(tarArgs)
     await execCommand(command, args)
   } else {
     const args = tarArgs.concat(compressionArgs)
@@ -205,13 +208,15 @@ export async function extractTar(
   // Create directory to extract tar into
   const workingDirectory = getWorkingDirectory()
   const tarPath = await getTarPath()
-  const BSD_TAR_WINDOWS = IS_WINDOWS && tarPath === SystemTarPathOnWindows
+  const BSD_TAR_ZSTD =
+    tarPath === SystemTarPathOnWindows &&
+    compressionMethod !== CompressionMethod.Gzip
   await io.mkdirP(workingDirectory)
   const tarArgs = await getTarArgs(compressionMethod, 'extract', archivePath)
   const compressionArgs = await getCompressionProgram(compressionMethod)
-  if (BSD_TAR_WINDOWS) {
+  if (BSD_TAR_ZSTD) {
     const command = compressionArgs[0]
-    const args = compressionArgs.slice(1).concat(tarArgs)
+    const args = compressionArgs.slice(1).concat([tarPath]).concat(tarArgs)
     await execCommand(command, args)
   } else {
     const args = tarArgs.concat(compressionArgs)
@@ -229,12 +234,13 @@ export async function createTar(
   const cacheFileName = utils.getCacheFileName(compressionMethod)
   const tarFile = 'cache.tar'
   const tarPath = await getTarPath()
-  const BSD_TAR_WINDOWS = IS_WINDOWS && tarPath === SystemTarPathOnWindows
+  const BSD_TAR_ZSTD =
+    tarPath === SystemTarPathOnWindows &&
+    compressionMethod !== CompressionMethod.Gzip
   writeFileSync(
     path.join(archiveFolder, manifestFilename),
     sourceDirectories.join('\n')
   )
-  const workingDirectory = getWorkingDirectory()
 
   // -T#: Compress using # working thread. If # is 0, attempt to detect and use the number of physical CPU cores.
   // zstdmt is equivalent to 'zstd -T0'
@@ -244,28 +250,26 @@ export async function createTar(
   function getCompressionProgram(): string[] {
     switch (compressionMethod) {
       case CompressionMethod.Zstd:
-        if (BSD_TAR_WINDOWS) {
-          return [
-            '&&',
-            'zstd -T0 --long=30 -o',
-            cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
-            tarFile
-          ]
-        }
-        return [
-          '--use-compress-program',
-          IS_WINDOWS ? 'zstd -T0 --long=30' : 'zstdmt --long=30'
-        ]
+        return BSD_TAR_ZSTD
+          ? [
+              '&&',
+              'zstd -T0 --long=30 -o',
+              cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+              tarFile
+            ]
+          : [
+              '--use-compress-program',
+              IS_WINDOWS ? 'zstd -T0 --long=30' : 'zstdmt --long=30'
+            ]
       case CompressionMethod.ZstdWithoutLong:
-        if (BSD_TAR_WINDOWS) {
-          return [
-            '&&',
-            'zstd -T0 -o',
-            cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
-            tarFile
-          ]
-        }
-        return ['--use-compress-program', IS_WINDOWS ? 'zstd -T0' : 'zstdmt']
+        return BSD_TAR_ZSTD
+          ? [
+              '&&',
+              'zstd -T0 -o',
+              cacheFileName.replace(new RegExp(`\\${path.sep}`, 'g'), '/'),
+              tarFile
+            ]
+          : ['--use-compress-program', IS_WINDOWS ? 'zstd -T0' : 'zstdmt']
       default:
         return ['-z']
     }