diff --git a/src/Webpack4Cache.js b/src/Webpack4Cache.js
index c4362de6..5dc5ae33 100644
--- a/src/Webpack4Cache.js
+++ b/src/Webpack4Cache.js
@@ -5,7 +5,7 @@ import findCacheDir from 'find-cache-dir';
 import serialize from 'serialize-javascript';
 
 export default class Webpack4Cache {
-  constructor(compilation, options) {
+  constructor(compiler, compilation, options) {
     this.options = options;
     this.cacheDir =
       options.cache === true
diff --git a/src/Webpack5Cache.js b/src/Webpack5Cache.js
index ff0e6d83..e610703c 100644
--- a/src/Webpack5Cache.js
+++ b/src/Webpack5Cache.js
@@ -1,13 +1,14 @@
-import crypto from 'crypto';
-
 // eslint-disable-next-line import/extensions,import/no-unresolved
 import getLazyHashedEtag from 'webpack/lib/cache/getLazyHashedEtag';
 import serialize from 'serialize-javascript';
 
+import TerserPlugin from './index';
+
 export default class Cache {
-  constructor(compilation, options) {
-    this.options = options;
+  constructor(compiler, compilation, options) {
+    this.compiler = compiler;
     this.compilation = compilation;
+    this.options = options;
   }
 
   isEnabled() {
@@ -15,8 +16,7 @@ export default class Cache {
   }
 
   createCacheIdent(task) {
-    const cacheKeys = crypto
-      .createHash('md4')
+    const cacheKeys = TerserPlugin.getHasher(this.compiler)
       .update(serialize(task.cacheKeys))
       .digest('hex');
 
diff --git a/src/index.js b/src/index.js
index 85e7d403..af55891c 100644
--- a/src/index.js
+++ b/src/index.js
@@ -1,4 +1,3 @@
-import crypto from 'crypto';
 import path from 'path';
 
 import { SourceMapConsumer } from 'source-map';
@@ -10,6 +9,7 @@ import {
   javascript,
   version as webpackVersion,
 } from 'webpack';
+import createHash from 'webpack/lib/util/createHash';
 import validateOptions from 'schema-utils';
 import serialize from 'serialize-javascript';
 import terserPackageJson from 'terser/package.json';
@@ -394,8 +394,7 @@ class TerserPlugin {
             'terser-webpack-plugin-options': this.options,
             nodeVersion: process.version,
             filename: file,
-            contentHash: crypto
-              .createHash('md4')
+            contentHash: TerserPlugin.getHasher(compiler)
               .update(input)
               .digest('hex'),
           };
@@ -499,7 +498,7 @@ class TerserPlugin {
       const taskRunner = new TaskRunner({
         taskGenerator,
         files,
-        cache: new CacheEngine(compilation, this.options),
+        cache: new CacheEngine(compiler, compilation, this.options),
         parallel: this.options.parallel,
       });
 
@@ -567,6 +566,13 @@ class TerserPlugin {
       );
     });
   }
+
+  static getHasher(compiler = null) {
+    const hashFunction =
+      compiler && compiler.output && compiler.output.hashFunction;
+
+    return createHash(hashFunction || 'md4');
+  }
 }
 
 export default TerserPlugin;
diff --git a/test/TerserPlugin.test.js b/test/TerserPlugin.test.js
index f73b614c..6fce4fc9 100644
--- a/test/TerserPlugin.test.js
+++ b/test/TerserPlugin.test.js
@@ -1,3 +1,5 @@
+import crypto from 'crypto';
+
 import RequestShortener from 'webpack/lib/RequestShortener';
 import { javascript } from 'webpack';
 import MainTemplate from 'webpack/lib/MainTemplate';
@@ -385,3 +387,46 @@ describe('TerserPlugin', () => {
     ).toMatchSnapshot();
   });
 });
+
+const UNHASHED = 'this is some text';
+const HASHED_MD4 = '565a21837631bdec2da173a5de2a2f87';
+const HASHED_SHA1 = '0393694d16b84deb612e47ce6252bd35f0d86c06';
+
+describe('getHasher', () => {
+  it('should return MD4 hasher with no compiler parameter', () => {
+    const hasher = TerserPlugin.getHasher();
+
+    expect(hasher).not.toBeNull();
+    expect(hasher.update(UNHASHED).digest('hex')).toEqual(HASHED_MD4);
+  });
+
+  it('should return MD4 hasher with incomplete compiler parameter', () => {
+    const compiler = { incomplete: { bad: {} } };
+    const hasher = TerserPlugin.getHasher(compiler);
+
+    expect(hasher).not.toBeNull();
+    expect(hasher.update(UNHASHED).digest('hex')).toEqual(HASHED_MD4);
+  });
+
+  it('should return hasher with string as hashFunction', () => {
+    const compiler = { output: { hashFunction: 'SHA1' } };
+    const hasher = TerserPlugin.getHasher(compiler);
+
+    expect(hasher).not.toBeNull();
+    expect(hasher.update(UNHASHED).digest('hex')).toEqual(HASHED_SHA1);
+  });
+
+  it('should return hasher with function as hashFunction', () => {
+    function sha1() {
+      return crypto.createHash('SHA1');
+    }
+
+    const compiler = {
+      output: { hashFunction: sha1 },
+    };
+    const hasher = TerserPlugin.getHasher(compiler);
+
+    expect(hasher).not.toBeNull();
+    expect(hasher.update(UNHASHED).digest('hex')).toEqual(HASHED_SHA1);
+  });
+});