diff --git a/configs/development.ini b/configs/development.ini
--- a/configs/development.ini
+++ b/configs/development.ini
@@ -296,14 +296,24 @@ file_store.storage_path = /var/opt/rhode
 ; the repository. This path is important to be shared across filesystems and with
 ; RhodeCode and vcsserver
 
+; Redis url to acquire/check generation of archives locks
+archive_cache.locking.url = redis://redis:6379/1
+
+; Storage backend, only 'filesystem' is available now
+archive_cache.backend.type = filesystem
+
 ; Default is $cache_dir/archive_cache if not set
-archive_cache.store_dir = /var/opt/rhodecode_data/tarballcache
+archive_cache.filesystem.store_dir = /var/opt/rhodecode_data/archive_cache
 
 ; The limit in GB sets how much data we cache before recycling last used, defaults to 10 gb
-archive_cache.cache_size_gb = 10
+archive_cache.filesystem.cache_size_gb = 1
+
+; Eviction policy used to clear out after cache_size_gb limit is reached
+archive_cache.filesystem.eviction_policy = least-recently-stored
 
 ; By default cache uses sharding technique, this specifies how many shards are there
-archive_cache.cache_shards = 4
+archive_cache.filesystem.cache_shards = 8
+
 
 ; #############
 ; CELERY CONFIG
diff --git a/configs/production.ini b/configs/production.ini
--- a/configs/production.ini
+++ b/configs/production.ini
@@ -264,14 +264,24 @@ file_store.storage_path = /var/opt/rhode
 ; the repository. This path is important to be shared across filesystems and with
 ; RhodeCode and vcsserver
 
+; Redis url to acquire/check generation of archives locks
+archive_cache.locking.url = redis://redis:6379/1
+
+; Storage backend, only 'filesystem' is available now
+archive_cache.backend.type = filesystem
+
 ; Default is $cache_dir/archive_cache if not set
-archive_cache.store_dir = /var/opt/rhodecode_data/tarballcache
+archive_cache.filesystem.store_dir = /var/opt/rhodecode_data/archive_cache
 
 ; The limit in GB sets how much data we cache before recycling last used, defaults to 10 gb
-archive_cache.cache_size_gb = 40
+archive_cache.filesystem.cache_size_gb = 40
+
+; Eviction policy used to clear out after cache_size_gb limit is reached
+archive_cache.filesystem.eviction_policy = least-recently-stored
 
 ; By default cache uses sharding technique, this specifies how many shards are there
-archive_cache.cache_shards = 4
+archive_cache.filesystem.cache_shards = 8
+
 
 ; #############
 ; CELERY CONFIG
diff --git a/requirements.txt b/requirements.txt
--- a/requirements.txt
+++ b/requirements.txt
@@ -82,7 +82,6 @@ deform==2.0.15
   peppercorn==0.6
   translationstring==1.4
   zope.deprecation==5.0.0
-diskcache==5.6.3
 docutils==0.19
 dogpile.cache==1.3.3
   decorator==5.1.1
diff --git a/rhodecode/apps/repository/views/repo_files.py b/rhodecode/apps/repository/views/repo_files.py
--- a/rhodecode/apps/repository/views/repo_files.py
+++ b/rhodecode/apps/repository/views/repo_files.py
@@ -24,6 +24,8 @@ import urllib.request
 import urllib.parse
 import urllib.error
 import pathlib
+import time
+import random
 
 from pyramid.httpexceptions import HTTPNotFound, HTTPBadRequest, HTTPFound
 
@@ -37,7 +39,8 @@ from rhodecode.apps._base import RepoApp
 from rhodecode.lib import diffs, helpers as h, rc_cache
 from rhodecode.lib import audit_logger
 from rhodecode.lib.hash_utils import sha1_safe
-from rhodecode.lib.rc_cache.archive_cache import get_archival_cache_store, get_archival_config, ReentrantLock
+from rhodecode.lib.rc_cache.archive_cache import (
+    get_archival_cache_store, get_archival_config, ArchiveCacheLock, archive_iterator)
 from rhodecode.lib.str_utils import safe_bytes, convert_special_chars
 from rhodecode.lib.view_utils import parse_path_ref
 from rhodecode.lib.exceptions import NonRelativePathError
@@ -417,41 +420,45 @@ class RepoFilesView(RepoAppView):
         # NOTE: we get the config to pass to a call to lazy-init the SAME type of cache on vcsserver
         d_cache_conf = get_archival_config(config=CONFIG)
 
+        # This is also a cache key, and lock key
         reentrant_lock_key = archive_name_key + '.lock'
-        with ReentrantLock(d_cache, reentrant_lock_key):
-            # This is also a cache key
-            use_cached_archive = False
-            if not archive_cache_disable and archive_name_key in d_cache:
-                reader, tag = d_cache.get(archive_name_key, read=True, tag=True, retry=True)
-                use_cached_archive = True
-                log.debug('Found cached archive as key=%s tag=%s, serving archive from cache reader=%s',
-                          archive_name_key, tag, reader.name)
-            else:
-                reader = None
-                log.debug('Archive with key=%s is not yet cached, creating one now...', archive_name_key)
+
+        use_cached_archive = False
+        if not archive_cache_disable and archive_name_key in d_cache:
+            reader, metadata = d_cache.fetch(archive_name_key)
 
-            # generate new archive, as previous was not found in the cache
-            if not reader:
-
-                try:
-                    commit.archive_repo(archive_name_key, archive_dir_name=archive_dir_name,
-                                        kind=fileformat, subrepos=subrepos,
-                                        archive_at_path=at_path, cache_config=d_cache_conf)
-                except ImproperArchiveTypeError:
-                    return _('Unknown archive type')
-
-            reader, tag = d_cache.get(archive_name_key, read=True, tag=True, retry=True)
+            use_cached_archive = True
+            log.debug('Found cached archive as key=%s tag=%s, serving archive from cache reader=%s',
+                      archive_name_key, metadata, reader.name)
+        else:
+            reader = None
+            log.debug('Archive with key=%s is not yet cached, creating one now...', archive_name_key)
 
         if not reader:
-            raise ValueError('archive cache reader is empty, failed to fetch file from distributed archive cache')
+            # generate new archive, as previous was not found in the cache
+            try:
+                with d_cache.get_lock(reentrant_lock_key):
+                    try:
+                        commit.archive_repo(archive_name_key, archive_dir_name=archive_dir_name,
+                                            kind=fileformat, subrepos=subrepos,
+                                            archive_at_path=at_path, cache_config=d_cache_conf)
+                    except ImproperArchiveTypeError:
+                        return _('Unknown archive type')
+            except ArchiveCacheLock:
+                retry_after = round(random.uniform(0.3, 3.0), 1)
+                time.sleep(retry_after)
 
-        def archive_iterator(_reader, block_size: int = 4096*512):
-            # 4096 * 64 = 64KB
-            while 1:
-                data = _reader.read(block_size)
-                if not data:
-                    break
-                yield data
+                location = self.request.url
+                response = Response(
+                    f"archive {archive_name_key} generation in progress, Retry-After={retry_after}, Location={location}"
+                )
+                response.headers["Retry-After"] = str(retry_after)
+                response.status_code = 307 # temporary redirect
+
+                response.location = location
+                return response
+
+            reader, metadata = d_cache.fetch(archive_name_key)
 
         response = Response(app_iter=archive_iterator(reader))
         response.content_disposition = f'attachment; filename={response_archive_name}'
diff --git a/rhodecode/config/config_maker.py b/rhodecode/config/config_maker.py
--- a/rhodecode/config/config_maker.py
+++ b/rhodecode/config/config_maker.py
@@ -189,9 +189,13 @@ def sanitize_settings_and_apply_defaults
     settings_maker.make_setting('rc_cache.sql_cache_short.max_size', 10000, parser='int')
 
     # archive_cache
-    settings_maker.make_setting('archive_cache.store_dir', jn(default_cache_dir, 'archive_cache'), default_when_empty=True,)
-    settings_maker.make_setting('archive_cache.cache_size_gb', 10, parser='float')
-    settings_maker.make_setting('archive_cache.cache_shards', 10, parser='int')
+    settings_maker.make_setting('archive_cache.locking.url', 'redis://redis:6379/1')
+    settings_maker.make_setting('archive_cache.backend.type', 'filesystem')
+
+    settings_maker.make_setting('archive_cache.filesystem.store_dir', jn(default_cache_dir, 'archive_cache'), default_when_empty=True,)
+    settings_maker.make_setting('archive_cache.filesystem.cache_size_gb', 10, parser='float')
+    settings_maker.make_setting('archive_cache.filesystem.cache_shards', 8, parser='int')
+    settings_maker.make_setting('archive_cache.filesystem.eviction_policy', 'least-recently-stored')
 
     settings_maker.env_expand()
 
diff --git a/rhodecode/lib/rc_cache/archive_cache/__init__.py b/rhodecode/lib/rc_cache/archive_cache/__init__.py
new file mode 100644
--- /dev/null
+++ b/rhodecode/lib/rc_cache/archive_cache/__init__.py
@@ -0,0 +1,29 @@
+# Copyright (C) 2015-2024 RhodeCode GmbH
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU Affero General Public License, version 3
+# (only), as published by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU Affero General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+#
+# This program is dual-licensed. If you wish to learn more about the
+# RhodeCode Enterprise Edition, including its added features, Support services,
+# and proprietary license terms, please see https://rhodecode.com/licenses/
+
+from .fanout_cache import get_archival_cache_store
+from .fanout_cache import get_archival_config
+
+from .utils import archive_iterator
+from .utils import ArchiveCacheLock
+
+
+def includeme(config):
+    # init our cache at start
+    settings = config.get_settings()
+    get_archival_cache_store(settings)
diff --git a/rhodecode/lib/rc_cache/archive_cache.py b/rhodecode/lib/rc_cache/archive_cache/fanout_cache.py
rename from rhodecode/lib/rc_cache/archive_cache.py
rename to rhodecode/lib/rc_cache/archive_cache/fanout_cache.py
--- a/rhodecode/lib/rc_cache/archive_cache.py
+++ b/rhodecode/lib/rc_cache/archive_cache/fanout_cache.py
@@ -1,4 +1,4 @@
-# Copyright (C) 2015-2023 RhodeCode GmbH
+# Copyright (C) 2015-2024 RhodeCode GmbH
 #
 # This program is free software: you can redistribute it and/or modify
 # it under the terms of the GNU Affero General Public License, version 3
@@ -16,33 +16,210 @@
 # RhodeCode Enterprise Edition, including its added features, Support services,
 # and proprietary license terms, please see https://rhodecode.com/licenses/
 
-import logging
+import codecs
+import contextlib
+import functools
 import os
-import diskcache
-from diskcache import RLock
+import logging
+import time
+import typing
+import zlib
+
+from rhodecode.lib.ext_json import json
+from .lock import GenerationLock
 
 log = logging.getLogger(__name__)
 
 cache_meta = None
 
+UNKNOWN = -241
+NO_VAL = -917
 
-class ReentrantLock(RLock):
-    def __enter__(self):
-        reentrant_lock_key = self._key
+MODE_BINARY = 'BINARY'
+
+
+class FileSystemCache:
+
+    def __init__(self, index, directory, **settings):
+        self._index = index
+        self._directory = directory
+
+    def _write_file(self, full_path, iterator, mode, encoding=None):
+        full_dir, _ = os.path.split(full_path)
+
+        for count in range(1, 11):
+            with contextlib.suppress(OSError):
+                os.makedirs(full_dir)
+
+            try:
+                # Another cache may have deleted the directory before
+                # the file could be opened.
+                writer = open(full_path, mode, encoding=encoding)
+            except OSError:
+                if count == 10:
+                    # Give up after 10 tries to open the file.
+                    raise
+                continue
+
+            with writer:
+                size = 0
+                for chunk in iterator:
+                    size += len(chunk)
+                    writer.write(chunk)
+                return size
+
+    def _get_keyfile(self, key):
+        return os.path.join(self._directory, f'{key}.key')
+
+    def store(self, key, value_reader, metadata):
+        filename, full_path = self.random_filename()
+        key_file = self._get_keyfile(key)
+
+        # STORE METADATA
+        _metadata = {
+            "version": "v1",
+            "timestamp": time.time(),
+            "filename": filename,
+            "full_path": full_path,
+            "key_file": key_file,
+        }
+        if metadata:
+            _metadata.update(metadata)
+
+        reader = functools.partial(value_reader.read, 2**22)
+
+        iterator = iter(reader, b'')
+        size = self._write_file(full_path, iterator, 'xb')
+
+        # after archive is finished, we create a key to save the presence of the binary file
+        with open(key_file, 'wb') as f:
+            f.write(json.dumps(_metadata))
+
+        return key, size, MODE_BINARY, filename, _metadata
+
+    def fetch(self, key) -> tuple[typing.BinaryIO, dict]:
+        if key not in self:
+            raise KeyError(key)
+
+        key_file = self._get_keyfile(key)
+        with open(key_file, 'rb') as f:
+            metadata = json.loads(f.read())
+
+        filename = metadata['filename']
+
+        return open(os.path.join(self._directory, filename), 'rb'), metadata
+
+    def random_filename(self):
+        """Return filename and full-path tuple for file storage.
+
+        Filename will be a randomly generated 28 character hexadecimal string
+        with ".archive_cache" suffixed. Two levels of sub-directories will be used to
+        reduce the size of directories. On older filesystems, lookups in
+        directories with many files may be slow.
+        """
 
-        log.debug('Acquire ReentrantLock(key=%s) for archive cache generation...', reentrant_lock_key)
-        #self.acquire()
-        log.debug('Lock for key=%s acquired', reentrant_lock_key)
+        hex_name = codecs.encode(os.urandom(16), 'hex').decode('utf-8')
+        sub_dir = os.path.join(hex_name[:2], hex_name[2:4])
+        name = hex_name[4:] + '.archive_cache'
+        filename = os.path.join(sub_dir, name)
+        full_path = os.path.join(self._directory, filename)
+        return filename, full_path
+
+    def hash(self, key):
+        """Compute portable hash for `key`.
+
+        :param key: key to hash
+        :return: hash value
+
+        """
+        mask = 0xFFFFFFFF
+        return zlib.adler32(key.encode('utf-8')) & mask  # noqa
+
+    def __contains__(self, key):
+        """Return `True` if `key` matching item is found in cache.
+
+        :param key: key matching item
+        :return: True if key matching item
+
+        """
+        key_file = self._get_keyfile(key)
+        return os.path.exists(key_file)
+
+
+class FanoutCache:
+    """Cache that shards keys and values."""
+
+    def __init__(
+        self, directory=None, **settings
+    ):
+        """Initialize cache instance.
+
+        :param str directory: cache directory
+        :param settings: settings dict
+
+        """
+        if directory is None:
+            raise ValueError('directory cannot be None')
+
+        directory = str(directory)
+        directory = os.path.expanduser(directory)
+        directory = os.path.expandvars(directory)
+        self._directory = directory
 
-    def __exit__(self, *exc_info):
-        #self.release()
-        pass
+        self._count = settings.pop('cache_shards')
+        self._locking_url = settings.pop('locking_url')
+
+        self._shards = tuple(
+            FileSystemCache(
+                index=num,
+                directory=os.path.join(directory, 'shard_%03d' % num),
+                **settings,
+            )
+            for num in range(self._count)
+        )
+        self._hash = self._shards[0].hash
+
+    def get_lock(self, lock_key):
+        return GenerationLock(lock_key, self._locking_url)
+
+    def _get_shard(self, key) -> FileSystemCache:
+        index = self._hash(key) % self._count
+        shard = self._shards[index]
+        return shard
+
+    def store(self, key, value_reader, metadata=None):
+        shard = self._get_shard(key)
+        return shard.store(key, value_reader, metadata)
+
+    def fetch(self, key):
+        """Return file handle corresponding to `key` from cache.
+        """
+        shard = self._get_shard(key)
+        return shard.fetch(key)
+
+    def has_key(self, key):
+        """Return `True` if `key` matching item is found in cache.
+
+        :param key: key for item
+        :return: True if key is found
+
+        """
+        shard = self._get_shard(key)
+        return key in shard
+
+    def __contains__(self, item):
+        return self.has_key(item)
+
+    def evict(self):
+        """Remove old items based on the conditions"""
+        # TODO: Implement this...
+        return
 
 
 def get_archival_config(config):
 
     final_config = {
-        'archive_cache.eviction_policy': 'least-frequently-used'
+
     }
 
     for k, v in config.items():
@@ -59,11 +236,15 @@ def get_archival_cache_store(config):
         return cache_meta
 
     config = get_archival_config(config)
+    backend = config['archive_cache.backend.type']
+    if backend != 'filesystem':
+        raise ValueError('archive_cache.backend.type only supports "filesystem"')
 
-    archive_cache_dir = config['archive_cache.store_dir']
-    archive_cache_size_gb = config['archive_cache.cache_size_gb']
-    archive_cache_shards = config['archive_cache.cache_shards']
-    archive_cache_eviction_policy = config['archive_cache.eviction_policy']
+    archive_cache_locking_url = config['archive_cache.locking.url']
+    archive_cache_dir = config['archive_cache.filesystem.store_dir']
+    archive_cache_size_gb = config['archive_cache.filesystem.cache_size_gb']
+    archive_cache_shards = config['archive_cache.filesystem.cache_shards']
+    archive_cache_eviction_policy = config['archive_cache.filesystem.eviction_policy']
 
     log.debug('Initializing archival cache instance under %s', archive_cache_dir)
 
@@ -71,18 +252,13 @@ def get_archival_cache_store(config):
     if not os.path.isdir(archive_cache_dir):
         os.makedirs(archive_cache_dir, exist_ok=True)
 
-    d_cache = diskcache.FanoutCache(
-        archive_cache_dir, shards=archive_cache_shards,
-        cull_limit=0,  # manual eviction required
-        size_limit=archive_cache_size_gb * 1024 * 1024 * 1024,
-        eviction_policy=archive_cache_eviction_policy,
-        timeout=30
+    d_cache = FanoutCache(
+        archive_cache_dir,
+        locking_url=archive_cache_locking_url,
+        cache_shards=archive_cache_shards,
+        cache_size_limit=archive_cache_size_gb * 1024 * 1024 * 1024,
+        cache_eviction_policy=archive_cache_eviction_policy
     )
     cache_meta = d_cache
     return cache_meta
 
-
-def includeme(config):
-    # init our cache at start
-    settings = config.get_settings()
-    get_archival_cache_store(settings)
diff --git a/rhodecode/lib/rc_cache/archive_cache/lock.py b/rhodecode/lib/rc_cache/archive_cache/lock.py
new file mode 100644
--- /dev/null
+++ b/rhodecode/lib/rc_cache/archive_cache/lock.py
@@ -0,0 +1,60 @@
+# Copyright (C) 2015-2024 RhodeCode GmbH
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU Affero General Public License, version 3
+# (only), as published by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU Affero General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+#
+# This program is dual-licensed. If you wish to learn more about the
+# RhodeCode Enterprise Edition, including its added features, Support services,
+# and proprietary license terms, please see https://rhodecode.com/licenses/
+
+import redis
+from rhodecode.lib._vendor import redis_lock
+
+from .utils import ArchiveCacheLock
+
+
+class GenerationLock:
+    """
+    Locking mechanism that detects if a lock is acquired
+
+    with GenerationLock(lock_key):
+        compute_archive()
+    """
+    lock_timeout = 7200
+
+    def __init__(self, lock_key, url):
+        self.lock_key = lock_key
+        self._create_client(url)
+        self.lock = self.get_lock()
+
+    def _create_client(self, url):
+        connection_pool = redis.ConnectionPool.from_url(url)
+        self.writer_client = redis.StrictRedis(
+            connection_pool=connection_pool
+        )
+        self.reader_client = self.writer_client
+
+    def get_lock(self):
+        return redis_lock.Lock(
+            redis_client=self.writer_client,
+            name=self.lock_key,
+            expire=self.lock_timeout,
+            strict=True
+        )
+
+    def __enter__(self):
+        acquired = self.lock.acquire(blocking=False)
+        if not acquired:
+            raise ArchiveCacheLock('Failed to create a lock')
+
+    def __exit__(self, exc_type, exc_val, exc_tb):
+        self.lock.release()
diff --git a/rhodecode/lib/rc_cache/archive_cache/utils.py b/rhodecode/lib/rc_cache/archive_cache/utils.py
new file mode 100644
--- /dev/null
+++ b/rhodecode/lib/rc_cache/archive_cache/utils.py
@@ -0,0 +1,30 @@
+# Copyright (C) 2015-2024 RhodeCode GmbH
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU Affero General Public License, version 3
+# (only), as published by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU Affero General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+#
+# This program is dual-licensed. If you wish to learn more about the
+# RhodeCode Enterprise Edition, including its added features, Support services,
+# and proprietary license terms, please see https://rhodecode.com/licenses/
+
+
+class ArchiveCacheLock(Exception):
+    pass
+
+
+def archive_iterator(_reader, block_size: int = 4096 * 512):
+    # 4096 * 64 = 64KB
+    while 1:
+        data = _reader.read(block_size)
+        if not data:
+            break
+        yield data
diff --git a/rhodecode/lib/system_info.py b/rhodecode/lib/system_info.py
--- a/rhodecode/lib/system_info.py
+++ b/rhodecode/lib/system_info.py
@@ -401,13 +401,20 @@ def storage_archives():
     from rhodecode.lib.utils import safe_str
     from rhodecode.lib.helpers import format_byte_size_binary
 
-    msg = 'Archive cache storage is controlled by ' \
-          'archive_cache.store_dir=/path/to/cache option in the .ini file'
-    path = safe_str(rhodecode.CONFIG.get('archive_cache.store_dir', msg))
+    storage_type = rhodecode.ConfigGet().get_str('archive_cache.backend.type')
+    storage_key = 'archive_cache.filesystem.store_dir'
+
+    default_msg = 'Archive cache storage is controlled by '\
+                  f'{storage_key}=/path/to/cache option in the .ini file'
+    path = rhodecode.ConfigGet().get_str(storage_key, missing=default_msg)
 
     value = dict(percent=0, used=0, total=0, items=0, path=path, text='')
     state = STATE_OK_DEFAULT
     try:
+        if storage_type != 'filesystem':
+            # raise Exc to stop reporting on different type
+            raise ValueError('Storage type must be "filesystem"')
+
         items_count = 0
         used = 0
         for root, dirs, files in os.walk(path):