AbstractComputing global illumination in complex scenes is even with todays computational power a demanding task. In this work we propose a novel irradiance caching scheme that combines the advantages of two state‐of‐the‐art algorithms for high‐quality global illumination rendering: lightcuts, an adaptive and hierarchical instant‐radiosity based algorithm and the widely used (ir)radiance caching algorithm for sparse sampling and interpolation of (ir)radiance in object space. Our adaptive radiance caching algorithm is based on anisotropic cache splatting, which adapts the cache footprints not only to the magnitude of the illumination gradient computed with light‐cuts but also to its orientation allowing larger interpolation errors along the direction of coherent illumination while reducing the error along the illumination gradient. Since lightcuts computes the direct and indirect lighting seamlessly, we use a two‐layer radiance cache, to store and control the interpolation of direct and indirect lighting individually with different error criteria. In multiple iterations our method detects cache interpolation errors above the visibility threshold of a pixel and reduces the anisotropic cache footprints accordingly. We achieve significantly better image quality while also speeding up the computation costs by one to two orders of magnitude with respect to the well‐known photon mapping with (ir)radiance caching procedure.