diff --git a/src/utils/versionCache.ts b/src/utils/versionCache.ts
new file mode 100644
index 0000000..a83522a
--- /dev/null
+++ b/src/utils/versionCache.ts
@@ -0,0 +1,131 @@
+import { homedir } from 'os';
+import { join } from 'path';
+import { existsSync, mkdirSync, readFileSync, writeFileSync } from 'fs';
+import { Logger } from './logger.js';
+import semver from 'semver';
+
+const logger = new Logger({ name: 'version-cache' });
+
+/**
+ * Interface for the version cache data structure
+ */
+export interface VersionCacheData {
+  /** The cached version string */
+  version: string;
+}
+
+/**
+ * Class to manage version cache in the user's home directory
+ */
+export class VersionCache {
+  private readonly cacheDir: string;
+  private readonly cacheFile: string;
+
+  constructor() {
+    this.cacheDir = join(homedir(), '.mycoder');
+    this.cacheFile = join(this.cacheDir, 'version-cache.json');
+
+    // Ensure cache directory exists
+    this.ensureCacheDir();
+  }
+
+  /**
+   * Ensures the cache directory exists
+   */
+  private ensureCacheDir(): void {
+    try {
+      if (!existsSync(this.cacheDir)) {
+        mkdirSync(this.cacheDir, { recursive: true });
+      }
+    } catch (error) {
+      logger.warn(
+        'Failed to create cache directory ~/.mycoder:',
+        error instanceof Error ? error.message : String(error)
+      );
+    }
+  }
+
+  /**
+   * Reads the cache data from disk
+   * @returns The cached data or null if not found/invalid
+   */
+  read(): VersionCacheData | null {
+    try {
+      if (!existsSync(this.cacheFile)) {
+        return null;
+      }
+
+      const data = JSON.parse(
+        readFileSync(this.cacheFile, 'utf-8')
+      ) as VersionCacheData;
+
+      // Validate required fields
+      if (!data || typeof data.version !== 'string') {
+        return null;
+      }
+
+      return data;
+    } catch (error) {
+      logger.warn(
+        'Error reading version cache:',
+        error instanceof Error ? error.message : String(error)
+      );
+      return null;
+    }
+  }
+
+  /**
+   * Writes data to the cache file
+   * @param data The version cache data to write
+   */
+  write(data: VersionCacheData): void {
+    try {
+      writeFileSync(this.cacheFile, JSON.stringify(data, null, 2));
+    } catch (error) {
+      logger.warn(
+        'Error writing version cache:',
+        error instanceof Error ? error.message : String(error)
+      );
+    }
+  }
+
+  /**
+   * Checks if the cached version is greater than the current version
+   * @param currentVersion The current package version
+   * @returns true if cached version > current version, false otherwise
+   */
+  shouldCheckServer(currentVersion: string): boolean {
+    try {
+      const data = this.read();
+      if (!data) {
+        return true; // No cache, should check server
+      }
+
+      // If cached version is greater than current, we should check server
+      // as an upgrade is likely available
+      return semver.gt(data.version, currentVersion);
+    } catch (error) {
+      logger.warn(
+        'Error comparing versions:',
+        error instanceof Error ? error.message : String(error)
+      );
+      return true; // On error, check server to be safe
+    }
+  }
+
+  /**
+   * Clears the cache file
+   */
+  clear(): void {
+    try {
+      if (existsSync(this.cacheFile)) {
+        writeFileSync(this.cacheFile, '');
+      }
+    } catch (error) {
+      logger.warn(
+        'Error clearing version cache:',
+        error instanceof Error ? error.message : String(error)
+      );
+    }
+  }
+}
\ No newline at end of file
diff --git a/src/utils/versionCheck.ts b/src/utils/versionCheck.ts
index 1c2d6da..23279ce 100644
--- a/src/utils/versionCheck.ts
+++ b/src/utils/versionCheck.ts
@@ -2,9 +2,12 @@ import { Logger } from "./logger.js";
 import chalk from "chalk";
 import { createRequire } from "module";
 import type { PackageJson } from "type-fest";
+import { VersionCache } from './versionCache.js';
+import semver from 'semver';
 
 const require = createRequire(import.meta.url);
 const logger = new Logger({ name: "version-check" });
+const versionCache = new VersionCache();
 
 /**
  * Gets the current package info from package.json
@@ -60,16 +63,53 @@ export function generateUpgradeMessage(
   latestVersion: string,
   packageName: string,
 ): string | null {
-  return currentVersion !== latestVersion
+  return semver.gt(latestVersion, currentVersion)
     ? chalk.green(
         `  Update available: ${currentVersion} → ${latestVersion}\n  Run 'npm install -g ${packageName}' to update`,
       )
     : null;
 }
 
+/**
+ * Updates the version cache
+ */
+async function updateVersionCache(
+  packageName: string,
+  version: string,
+): Promise<void> {
+  try {
+    versionCache.write({ version });
+  } catch (error) {
+    logger.warn(
+      "Error updating version cache:",
+      error instanceof Error ? error.message : String(error),
+    );
+  }
+}
+
+/**
+ * Performs a background version check and updates the cache
+ */
+async function backgroundVersionCheck(
+  packageName: string,
+): Promise<void> {
+  try {
+    const latestVersion = await fetchLatestVersion(packageName);
+    if (latestVersion) {
+      await updateVersionCache(packageName, latestVersion);
+    }
+  } catch (error) {
+    logger.warn(
+      "Background version check failed:",
+      error instanceof Error ? error.message : String(error),
+    );
+  }
+}
+
 /**
  * Checks if a newer version of the package is available on npm.
- * Only runs check when package is installed globally.
+ * - Immediately returns cached version check result if available
+ * - Always performs a background check to update cache for next time
  *
  * @returns Upgrade message string if update available, null otherwise
  */
@@ -82,13 +122,32 @@ export async function checkForUpdates(): Promise<string | null> {
       return null;
     }
 
-    const latestVersion = await fetchLatestVersion(packageName);
+    // Always trigger background version check for next time
+    setImmediate(() => {
+      backgroundVersionCheck(packageName).catch(error => {
+        logger.warn(
+          "Background version check failed:",
+          error instanceof Error ? error.message : String(error),
+        );
+      });
+    });
+
+    // Use cached data for immediate response if available
+    const cachedData = versionCache.read();
+    if (cachedData) {
+      return generateUpgradeMessage(currentVersion, cachedData.version, packageName);
+    }
 
+    // No cache available, need to check server
+    const latestVersion = await fetchLatestVersion(packageName);
     if (!latestVersion) {
       logger.warn("Unable to determine latest published version");
       return null;
     }
 
+    // Update cache with result
+    await updateVersionCache(packageName, latestVersion);
+
     return generateUpgradeMessage(currentVersion, latestVersion, packageName);
   } catch (error) {
     // Log error but don't throw to handle gracefully
@@ -98,4 +157,4 @@ export async function checkForUpdates(): Promise<string | null> {
     );
     return null;
   }
-}
+}
\ No newline at end of file