diff --git a/modelscope/utils/config_ds.py b/modelscope/utils/config_ds.py
index 72a25887..eae85888 100644
--- a/modelscope/utils/config_ds.py
+++ b/modelscope/utils/config_ds.py
@@ -5,13 +5,14 @@ from pathlib import Path
 
 # Cache location
 from modelscope.hub.constants import DEFAULT_MODELSCOPE_DATA_ENDPOINT
-from modelscope.utils.file_utils import get_modelscope_cache_dir
+from modelscope.utils.file_utils import (get_dataset_cache_root,
+                                         get_modelscope_cache_dir)
 
 MS_CACHE_HOME = get_modelscope_cache_dir()
 
-DEFAULT_MS_DATASETS_CACHE = os.path.join(MS_CACHE_HOME, 'hub', 'datasets')
-MS_DATASETS_CACHE = Path(
-    os.getenv('MS_DATASETS_CACHE', DEFAULT_MS_DATASETS_CACHE))
+# NOTE: removed `MS_DATASETS_CACHE` env,
+# default is `~/.cache/modelscope/hub/datasets`
+MS_DATASETS_CACHE = get_dataset_cache_root()
 
 DOWNLOADED_DATASETS_DIR = 'downloads'
 DEFAULT_DOWNLOADED_DATASETS_PATH = os.path.join(MS_DATASETS_CACHE,
diff --git a/modelscope/utils/file_utils.py b/modelscope/utils/file_utils.py
index c00e8d26..50f66e34 100644
--- a/modelscope/utils/file_utils.py
+++ b/modelscope/utils/file_utils.py
@@ -60,11 +60,16 @@ def get_model_cache_root() -> str:
 
 def get_dataset_cache_root() -> str:
     """Get dataset raw file cache root path.
+    if `MODELSCOPE_CACHE` is set, return `MODELSCOPE_CACHE/datasets`,
+    else return `~/.cache/modelscope/hub/datasets`
 
     Returns:
         str: the modelscope dataset raw file cache root.
     """
-    return os.path.join(get_modelscope_cache_dir(), 'datasets')
+    if os.getenv('MODELSCOPE_CACHE'):
+        return os.path.join(get_modelscope_cache_dir(), 'datasets')
+    else:
+        return os.path.join(get_modelscope_cache_dir(), 'hub', 'datasets')
 
 
 def get_dataset_cache_dir(dataset_id: str) -> str: