A computing device-implemented method for implementing dynamic hierarchical memory cache (HMC) awareness within a storage system is described. Specifically, when performing dynamic read operations within a storage system, a data module evaluates a data prefetch policy according to a strategy of determining if data exists in a hierarchical memory cache and thereafter amending the data prefetch policy, if warranted. The system then uses the data prefetch policy to perform a read operation from the storage device to minimize future data retrievals from the storage device. Further, in a distributed storage environment that include multiple storage nodes cooperating to satisfy data retrieval requests, dynamic hierarchical memory cache awareness can be implemented for every storage node without degrading the overall performance of the distributed storage environment.