Dynamic Thermal Management (DTM) has become a major concern for the chip-designers, as it becomes a challenging task in recent power densed high performance Chip Multi-Processors (CMPs), due to integration of more on-chip components to meet ever increasing demand of processing power. The increased chip temperature incorporates severe circuit errors along with significant increment in leakage power consumption. Traditional DTM techniques apply DVFS or task migration to reduce core temperature, as cores are considered as the hottest on-chip components. Additionally, to commensurate high data demand of these high performance cores, large on-chip Last Level Caches (LLCs) are attached, which are the principal contributors to the on-chip leakage power consumption and occupy the largest on-chip area. As power consumption reduction plays the pivotal role in temperature reduction, hence, this work dynamically shrinks the cache size not only to reduce leakage power consumption, but also, to create on-chip thermal buffers for reducing average chip temperature by exploiting the heat transfer physics. Cache resizing decisions are taken based upon the generated cache hotspots and/or the access patterns, during process execution. Simulation results of the proposed thermal management method are compared with an existing DVFS based method (at cores) and a prior drowsy cache based technique to show its effectiveness.