diff --git a/src/Build.UnitTests/ProjectCache/ProjectCacheTests.cs b/src/Build.UnitTests/ProjectCache/ProjectCacheTests.cs
index 022ed16ed2c..7e5e12b3e9f 100644
--- a/src/Build.UnitTests/ProjectCache/ProjectCacheTests.cs
+++ b/src/Build.UnitTests/ProjectCache/ProjectCacheTests.cs
@@ -10,6 +10,7 @@
 using System.Text.RegularExpressions;
 using System.Threading;
 using System.Threading.Tasks;
+using Microsoft.Build.CommandLine;
 using Microsoft.Build.Construction;
 using Microsoft.Build.Execution;
 using Microsoft.Build.Experimental.ProjectCache;
@@ -18,10 +19,12 @@
 using Microsoft.Build.Shared;
 using Microsoft.Build.Unittest;
 using Microsoft.Build.UnitTests;
+using Microsoft.Build.UnitTests.Shared;
 using Microsoft.Build.Utilities;
 using Shouldly;
 using Xunit;
 using Xunit.Abstractions;
+using Xunit.Sdk;
 using Task = System.Threading.Tasks.Task;
 
 namespace Microsoft.Build.Engine.UnitTests.ProjectCache
@@ -1656,5 +1659,73 @@ private void SetEnvironmentForErrorLocations(ErrorLocations errorLocations, Erro
                 }
             }
         }
+
+        [Fact]
+        /// <summary>
+        /// https://github.com/dotnet/msbuild/issues/5334
+        /// </summary>
+        public void EmbeddedResourcesFileCompileCache()
+        {
+            var directory = _env.CreateFolder();
+            string content = ObjectModelHelpers.CleanupFileContents(
+            """
+            <Project Sdk="Microsoft.NET.Sdk">
+                <PropertyGroup>
+                    <TargetFramework>net8.0</TargetFramework>
+                    <OutputType>Exe</OutputType>
+                    <OutputPath>bin/</OutputPath>
+                </PropertyGroup>
+                <ItemGroup>
+                    <EmbeddedResource Include="*.txt"/>
+                </ItemGroup>
+            </Project>
+            """);
+            var projectPath = directory.CreateFile("app.csproj", content).Path;
+            directory.CreateFile("Program.cs",
+            """
+            using System;
+            using System.IO;
+            using System.Reflection;
+
+            class Program
+            {
+                static void Main()
+                {
+                    var assembly = Assembly.GetExecutingAssembly();
+                    var resourceNames = assembly.GetManifestResourceNames();
+
+                    foreach (var resourceName in resourceNames)
+                    {
+                        using (var stream = assembly.GetManifestResourceStream(resourceName))
+                        using (var reader = new StreamReader(stream))
+                        {
+                            var content = reader.ReadToEnd();
+                            Console.WriteLine($"Content of {resourceName}:");
+                            Console.WriteLine(content);
+                        }
+                    }
+                }
+            }
+            """);
+
+            // Create EmbeddedResources file
+            var file1 = directory.CreateFile("File1.txt", "A=1");
+            var file2 = directory.CreateFile("File2.txt", "B=1");
+
+            // Build and run the project
+            string output = RunnerUtilities.ExecBootstrapedMSBuild($"{projectPath} -restore", out bool success);
+            success.ShouldBeTrue(output);
+            output = RunnerUtilities.RunProcessAndGetOutput(Path.Combine(directory.Path, "bin/net8.0/app"), "", out success, false, _output);
+            output.ShouldContain("A=1");
+            output.ShouldContain("B=1");
+
+            // Delete a file and build
+            FileUtilities.DeleteNoThrow(file1.Path);
+            output = RunnerUtilities.ExecBootstrapedMSBuild($"{projectPath}", out success);
+            success.ShouldBeTrue(output);
+            output = RunnerUtilities.RunProcessAndGetOutput(Path.Combine(directory.Path, "bin/net8.0/app"), "", out success, false, _output);
+            output.ShouldNotContain("A=1");
+            output.ShouldContain("B=1");
+        }
     }
 }
diff --git a/src/Tasks/Microsoft.Common.CurrentVersion.targets b/src/Tasks/Microsoft.Common.CurrentVersion.targets
index b7e42801af8..27e477d539d 100644
--- a/src/Tasks/Microsoft.Common.CurrentVersion.targets
+++ b/src/Tasks/Microsoft.Common.CurrentVersion.targets
@@ -3810,7 +3810,7 @@ Copyright (C) Microsoft Corporation. All rights reserved.
     contribute to incremental build inconsistencies.
     ============================================================
     -->
-  <Target Name="_GenerateCompileDependencyCache" Condition="'$(DesignTimeBuild)' != 'true' and '$(BuildingProject)' == 'true'" DependsOnTargets="ResolveAssemblyReferences">
+  <Target Name="_GenerateCompileDependencyCache" Condition="'$(DesignTimeBuild)' != 'true' and '$(BuildingProject)' == 'true'" DependsOnTargets="ResolveAssemblyReferences;_GenerateCompileInputs">
     <ItemGroup>
       <CustomAdditionalCompileInputs Include="$(IntermediateOutputPath)$(MSBuildProjectFile).CoreCompileInputs.cache" />
       <CoreCompileCache Include="@(Compile)" />
@@ -3819,6 +3819,7 @@ Copyright (C) Microsoft Corporation. All rights reserved.
       <CoreCompileCache Include="$(LangVersion)" />
       <CoreCompileCache Include="$(Deterministic)" />
       <CoreCompileCache Include="$(PathMap)" />
+      <CoreCompileCache Include="@(_CoreCompileResourceInputs)"/>
     </ItemGroup>
 
     <Hash