diff --git a/hgext/lfs/__init__.py b/hgext/lfs/__init__.py
--- a/hgext/lfs/__init__.py
+++ b/hgext/lfs/__init__.py
@@ -24,6 +24,10 @@ Configs::
 
     # how many times to retry before giving up on transferring an object
     retry = 5
+
+    # the local directory to store lfs files for sharing across local clones.
+    # If not set, the cache is located in an OS specific cache location.
+    usercache = /path/to/global/cache
 """
 
 from __future__ import absolute_import
@@ -62,6 +66,9 @@ configitem = registrar.configitem(config
 configitem('lfs', 'url',
     default=configitem.dynamicdefault,
 )
+configitem('lfs', 'usercache',
+    default=None,
+)
 configitem('lfs', 'threshold',
     default=None,
 )
diff --git a/hgext/lfs/blobstore.py b/hgext/lfs/blobstore.py
--- a/hgext/lfs/blobstore.py
+++ b/hgext/lfs/blobstore.py
@@ -20,6 +20,8 @@ from mercurial import (
     vfs as vfsmod,
 )
 
+from ..largefiles import lfutil
+
 # 64 bytes for SHA256
 _lfsre = re.compile(r'\A[a-f0-9]{64}\Z')
 
@@ -68,20 +70,29 @@ class local(object):
     def __init__(self, repo):
         fullpath = repo.svfs.join('lfs/objects')
         self.vfs = lfsvfs(fullpath)
+        usercache = lfutil._usercachedir(repo.ui, 'lfs')
+        self.cachevfs = lfsvfs(usercache)
 
     def write(self, oid, data):
         """Write blob to local blobstore."""
         with self.vfs(oid, 'wb', atomictemp=True) as fp:
             fp.write(data)
 
+        # XXX: should we verify the content of the cache, and hardlink back to
+        # the local store on success, but truncate, write and link on failure?
+        if not self.cachevfs.exists(oid):
+            lfutil.link(self.vfs.join(oid), self.cachevfs.join(oid))
+
     def read(self, oid):
         """Read blob from local blobstore."""
+        if not self.vfs.exists(oid):
+            lfutil.link(self.cachevfs.join(oid), self.vfs.join(oid))
         return self.vfs.read(oid)
 
     def has(self, oid):
         """Returns True if the local blobstore contains the requested blob,
         False otherwise."""
-        return self.vfs.exists(oid)
+        return self.cachevfs.exists(oid) or self.vfs.exists(oid)
 
 class _gitlfsremote(object):
 
diff --git a/tests/run-tests.py b/tests/run-tests.py
--- a/tests/run-tests.py
+++ b/tests/run-tests.py
@@ -1102,6 +1102,9 @@ class Test(unittest.TestCase):
         hgrc.write(b'[largefiles]\n')
         hgrc.write(b'usercache = %s\n' %
                    (os.path.join(self._testtmp, b'.cache/largefiles')))
+        hgrc.write(b'[lfs]\n')
+        hgrc.write(b'usercache = %s\n' %
+                   (os.path.join(self._testtmp, b'.cache/lfs')))
         hgrc.write(b'[web]\n')
         hgrc.write(b'address = localhost\n')
         hgrc.write(b'ipv6 = %s\n' % str(self._useipv6).encode('ascii'))
diff --git a/tests/test-basic.t b/tests/test-basic.t
--- a/tests/test-basic.t
+++ b/tests/test-basic.t
@@ -5,6 +5,7 @@ Create a repository:
   devel.default-date=0 0
   extensions.fsmonitor= (fsmonitor !)
   largefiles.usercache=$TESTTMP/.cache/largefiles (glob)
+  lfs.usercache=$TESTTMP/.cache/lfs (glob)
   ui.slash=True
   ui.interactive=False
   ui.mergemarkers=detailed
diff --git a/tests/test-commandserver.t b/tests/test-commandserver.t
--- a/tests/test-commandserver.t
+++ b/tests/test-commandserver.t
@@ -207,6 +207,7 @@ check that local configs for the cached 
   devel.default-date=0 0
   extensions.fsmonitor= (fsmonitor !)
   largefiles.usercache=$TESTTMP/.cache/largefiles
+  lfs.usercache=$TESTTMP/.cache/lfs
   ui.slash=True
   ui.interactive=False
   ui.mergemarkers=detailed
diff --git a/tests/test-lfs-test-server.t b/tests/test-lfs-test-server.t
--- a/tests/test-lfs-test-server.t
+++ b/tests/test-lfs-test-server.t
@@ -53,6 +53,8 @@
   adding file changes
   added 1 changesets with 1 changes to 1 files
 
+Clear the cache to force a download
+  $ rm -rf `hg config lfs.usercache`
   $ cd ../repo2
   $ hg update tip -v
   resolving manifests
@@ -79,6 +81,8 @@ When the server has some blobs already
   adding file changes
   added 1 changesets with 3 changes to 3 files
 
+Clear the cache to force a download
+  $ rm -rf `hg config lfs.usercache`
   $ hg --repo ../repo1 update tip -v
   resolving manifests
   getting b
@@ -95,6 +99,7 @@ Check error message when the remote miss
   $ echo FFFFF >> b
   $ hg commit -m b b
   $ rm -rf .hg/store/lfs
+  $ rm -rf `hg config lfs.usercache`
   $ hg update -C '.^'
   abort: LFS server claims required objects do not exist:
   8e6ea5f6c066b44a0efa43bcce86aea73f17e6e23f0663df0251e7524e140a13!
@@ -118,6 +123,7 @@ Check error message when object does not
   size 6
   x-is-binary 0
   $ cd ..
+  $ rm -rf `hg config lfs.usercache`
   $ hg --config 'lfs.url=https://dewey-lfs.vip.facebook.com/lfs' clone test test2
   updating to branch default
   abort: LFS server error. Remote object for file data/a.i not found:(.*)! (re)
diff --git a/tests/test-lfs.t b/tests/test-lfs.t
--- a/tests/test-lfs.t
+++ b/tests/test-lfs.t
@@ -566,9 +566,9 @@
   repo: repo9
   repo: repo10
 
-TODO: repo12 doesn't have any cached lfs files.  Figure out how to get the
-unpushed files from repo12's source instead of the remote store, where they
-don't exist.
+repo12 doesn't have any cached lfs files and its source never pushed its
+files.  Therefore, the files don't exist in the remote store.  Use the files in
+the user cache.
 
   $ find $TESTTMP/repo12/.hg/store/lfs/objects -type f
   find: */repo12/.hg/store/lfs/objects': $ENOENT$ (glob)
@@ -576,24 +576,28 @@ don't exist.
 
   $ hg --config extensions.share= share repo12 repo13
   updating working directory
-  abort: $TESTTMP/dummy-remote/09/66faba9a01f6c78082aa45899a4fef732002d0b26404e90093adf1e876ab8d: $ENOTDIR$ (glob)
-  [255]
+  1 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg -R repo13 -q verify
+
   $ hg clone repo12 repo14
   updating to branch default
-  abort: $TESTTMP/dummy-remote/09/66faba9a01f6c78082aa45899a4fef732002d0b26404e90093adf1e876ab8d: $ENOTDIR$ (glob)
-  [255]
+  1 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg -R repo14 -q verify
 
-TODO: If the source repo doesn't have the blob (maybe it was pulled or cloned
-with --noupdate), the blob should be accessible via the global cache to send to
-the remote store.
+If the source repo doesn't have the blob (maybe it was pulled or cloned with
+--noupdate), the blob is still accessible via the global cache to send to the
+remote store.
 
   $ rm -rf $TESTTMP/repo14/.hg/store/lfs
   $ hg init repo15
   $ hg -R repo14 push repo15
   pushing to repo15
   searching for changes
-  abort: $TESTTMP/repo14/.hg/store/lfs/objects/1c/896a0adcf9262119f4a98216aaa5ca00a58b9a0ce848914a02f9cd876f65a3: $ENOTDIR$ (glob)
-  [255]
+  adding changesets
+  adding manifests
+  adding file changes
+  added 3 changesets with 2 changes to 1 files
+  $ hg -R repo14 -q verify
 
 lfs -> normal -> lfs round trip conversions are possible.  The threshold for the
 lfs destination is specified here because it was originally listed in the local