diff --git a/changelogs/fragments/dnf_cache_path.yml b/changelogs/fragments/dnf_cache_path.yml
new file mode 100644
index 00000000000..50b72f9a109
--- /dev/null
+++ b/changelogs/fragments/dnf_cache_path.yml
@@ -0,0 +1,3 @@
+---
+bugfixes:
+  - dnf - Substitute variables in DNF cache path (https://github.com/ansible/ansible/pull/80094).
diff --git a/lib/ansible/modules/dnf.py b/lib/ansible/modules/dnf.py
index fb9fa6ae5d2..16b3bcc2b41 100644
--- a/lib/ansible/modules/dnf.py
+++ b/lib/ansible/modules/dnf.py
@@ -403,6 +403,7 @@ from ansible.module_utils.yumdnf import YumDnf, yumdnf_argument_spec
 # to set proper locale before importing dnf to be able to scrape
 # the output in some cases (FIXME?).
 dnf = None
+libdnf = None
 
 
 class DnfModule(YumDnf):
@@ -483,6 +484,7 @@ class DnfModule(YumDnf):
         os.environ['LANGUAGE'] = os.environ['LANG'] = locale
 
         global dnf
+        global libdnf
         try:
             import dnf
             import dnf.const
@@ -490,6 +492,7 @@ class DnfModule(YumDnf):
             import dnf.package
             import dnf.subject
             import dnf.util
+            import libdnf
             HAS_DNF = True
         except ImportError:
             HAS_DNF = False
@@ -557,6 +560,9 @@ class DnfModule(YumDnf):
         # Load substitutions from the filesystem
         conf.substitutions.update_from_etc(installroot)
 
+        # Substitute variables in cachedir path
+        conf.cachedir = libdnf.conf.ConfigParser.substitute(conf.cachedir, conf.substitutions)
+
         # Handle different DNF versions immutable mutable datatypes and
         # dnf v1/v2/v3
         #
diff --git a/test/lib/ansible_test/_util/controller/sanity/mypy/ansible-core.ini b/test/lib/ansible_test/_util/controller/sanity/mypy/ansible-core.ini
index 0251f674b51..0a8a3e6b40f 100644
--- a/test/lib/ansible_test/_util/controller/sanity/mypy/ansible-core.ini
+++ b/test/lib/ansible_test/_util/controller/sanity/mypy/ansible-core.ini
@@ -58,6 +58,9 @@ ignore_missing_imports = True
 [mypy-dnf.*]
 ignore_missing_imports = True
 
+[mypy-libdnf.*]
+ignore_missing_imports = True
+
 [mypy-apt.*]
 ignore_missing_imports = True
 
diff --git a/test/lib/ansible_test/_util/controller/sanity/mypy/modules.ini b/test/lib/ansible_test/_util/controller/sanity/mypy/modules.ini
index b4e7b05eb9f..ddabecdabb6 100644
--- a/test/lib/ansible_test/_util/controller/sanity/mypy/modules.ini
+++ b/test/lib/ansible_test/_util/controller/sanity/mypy/modules.ini
@@ -25,6 +25,9 @@ ignore_missing_imports = True
 [mypy-dnf.*]
 ignore_missing_imports = True
 
+[mypy-libdnf.*]
+ignore_missing_imports = True
+
 [mypy-apt.*]
 ignore_missing_imports = True