diff --git a/gtk2_ardour/bundle_env_msvc.cc b/gtk2_ardour/bundle_env_msvc.cc
index bde3ed050a..6e56543728 100644
--- a/gtk2_ardour/bundle_env_msvc.cc
+++ b/gtk2_ardour/bundle_env_msvc.cc
@@ -161,6 +161,13 @@ bool  succeeded = false;
 								// Replace our token with the drive letter (and colon) for the user's Windows volume
 								str_replace_with = get_windows_drive_volume_letter();
 
+								// Replace the first occurrence of our token with the required string
+								i->erase(token_begin, ((token_end+1)-token_begin));
+								i->insert(token_begin, str_replace_with);
+							} else if (0 == str_to_replace.compare("$(LOCALCACHEDIR)")){
+								// Replace our token with the path to our Ardour cache directory
+								str_replace_with = user_cache_directory();
+
 								// Replace the first occurrence of our token with the required string
 								i->erase(token_begin, ((token_end+1)-token_begin));
 								i->insert(token_begin, str_replace_with);