A method and system to perform caching based at least on one or more file-level heuristics. The caching of a storage medium in a caching device is performed by a cache policy engine. The cache policy engine receives file-level information of input/output access of data of the storage medium and caches or evicts the data of the storage medium in the caching device based on the received file-level information. By utilizing information about the files and file operations associated with the disk sectors or logical block addresses of the storage medium, the cache policy engine can make a better decision on the data selection of the storage medium to be cached in or evicted from the caching device in one embodiment of the invention. Higher cache hit rates can be achieved and the performance of the system utilizing the cache policy engine is improved.