diff --git a/vfs/vfscache/cache_test.go b/vfs/vfscache/cache_test.go
index 8c5510f6d..a86cb3c50 100644
--- a/vfs/vfscache/cache_test.go
+++ b/vfs/vfscache/cache_test.go
@@ -113,6 +113,9 @@ func newTestCache(t *testing.T) (r *fstest.Run, c *Cache) {
 	// Disable synchronous write
 	opt.WriteBack = 0
 
+	// Disable handle caching so existing tests get immediate close behavior
+	opt.HandleCaching = 0
+
 	return newTestCacheOpt(t, opt)
 }
 
diff --git a/vfs/vfscache/item.go b/vfs/vfscache/item.go
index 66adc9b66..9ea9a4d89 100644
--- a/vfs/vfscache/item.go
+++ b/vfs/vfscache/item.go
@@ -68,6 +68,8 @@ type Item struct {
 	pendingAccesses int                      // number of threads - cache reset not allowed if not zero
 	modified        bool                     // set if the file has been modified since the last Open
 	beingReset      bool                     // cache cleaner is resetting the cache file, access not allowed
+	graceTimer      *time.Timer              // timer for delayed close after grace period
+	graceStoreFn    StoreFn                  // saved StoreFn for use when grace timer fires
 }
 
 // Info is persisted to backing store
@@ -535,6 +537,20 @@ func (item *Item) open(o fs.Object) (err error) {
 		return nil
 	}
 
+	// Check if recovering from grace period (fd and downloaders still alive)
+	if item.graceTimer != nil {
+		item.graceTimer.Stop()
+		item.graceTimer = nil
+		item.graceStoreFn = nil
+		// fd and downloaders still alive - reuse them
+		// Still check object for changes
+		err = item._checkObject(o)
+		if err != nil {
+			return fmt.Errorf("vfs cache item: check object failed: %w", err)
+		}
+		return nil
+	}
+
 	err = item._createFile(osPath)
 	if err != nil {
 		item._remove("item.open failed on _createFile, remove cache data/metadata files")
@@ -647,10 +663,7 @@ func (item *Item) Close(storeFn StoreFn) (err error) {
 	// defer log.Trace(item.o, "Item.Close")("err=%v", &err)
 	item.preAccess()
 	defer item.postAccess()
-	var (
-		downloaders   *downloaders.Downloaders
-		syncWriteBack = item.c.opt.WriteBack <= 0
-	)
+	syncWriteBack := item.c.opt.WriteBack <= 0
 	item.mu.Lock()
 	defer item.mu.Unlock()
 
@@ -663,6 +676,46 @@ func (item *Item) Close(storeFn StoreFn) (err error) {
 		return nil
 	}
 
+	// opens == 0: check for grace period (only for non-dirty files,
+	// dirty files need immediate close so writeback can proceed)
+	gracePeriod := time.Duration(item.c.opt.HandleCaching)
+	if gracePeriod > 0 && !item.info.Dirty {
+		item.graceStoreFn = storeFn
+		item.graceTimer = time.AfterFunc(gracePeriod, item.closeAfterGrace)
+		return nil
+	}
+
+	return item._actualClose(storeFn, syncWriteBack)
+}
+
+// closeAfterGrace is called by the grace timer to perform the actual close
+func (item *Item) closeAfterGrace() {
+	item.preAccess()
+	defer item.postAccess()
+	syncWriteBack := item.c.opt.WriteBack <= 0
+	item.mu.Lock()
+	defer item.mu.Unlock()
+
+	// Someone re-opened or another timer took over
+	if item.opens > 0 || item.graceTimer == nil {
+		return
+	}
+	item.graceTimer = nil
+	storeFn := item.graceStoreFn
+	item.graceStoreFn = nil
+
+	err := item._actualClose(storeFn, syncWriteBack)
+	if err != nil {
+		fs.Errorf(item.name, "vfs cache: close after grace period failed: %v", err)
+	}
+}
+
+// _actualClose performs the actual close operations on the item.
+//
+// Call with item.mu held. May temporarily unlock item.mu.
+func (item *Item) _actualClose(storeFn StoreFn, syncWriteBack bool) (err error) {
+	var dls *downloaders.Downloaders
+
 	// Update the size on close
 	_, _ = item._getSize()
 
@@ -690,7 +743,7 @@ func (item *Item) Close(storeFn StoreFn) (err error) {
 	}
 
 	// Close the downloaders
-	if downloaders = item.downloaders; downloaders != nil {
+	if dls = item.downloaders; dls != nil {
 		item.downloaders = nil
 		// FIXME need to unlock to kill downloader - should we
 		// re-arrange locking so this isn't necessary?  maybe
@@ -700,7 +753,7 @@ func (item *Item) Close(storeFn StoreFn) (err error) {
 		// downloader.Write calls ensure which needs the lock
 		// close downloader with mutex unlocked
 		item.mu.Unlock()
-		checkErr(downloaders.Close(nil))
+		checkErr(dls.Close(nil))
 		item.mu.Lock()
 	}
 
@@ -918,6 +971,23 @@ func (item *Item) RemoveNotInUse(maxAge time.Duration, emptyOnly bool) (removed
 		return
 	}
 
+	// Cancel any grace period timer and close the resources it was keeping alive
+	if item.graceTimer != nil {
+		item.graceTimer.Stop()
+		item.graceTimer = nil
+		item.graceStoreFn = nil
+		if dls := item.downloaders; dls != nil {
+			item.downloaders = nil
+			item.mu.Unlock()
+			_ = dls.Close(nil)
+			item.mu.Lock()
+		}
+		if item.fd != nil {
+			_ = item.fd.Close()
+			item.fd = nil
+		}
+	}
+
 	removeIt := false
 	if maxAge == 0 {
 		removeIt = true // quota-driven removal
@@ -949,6 +1019,25 @@ func (item *Item) Reset() (rr ResetResult, spaceFreed int64, err error) {
 	item.mu.Lock()
 	defer item.mu.Unlock()
 
+	// Cancel any grace period timer and close the resources it was keeping alive
+	if item.graceTimer != nil {
+		item.graceTimer.Stop()
+		item.graceTimer = nil
+		item.graceStoreFn = nil
+		// Close the downloaders that the grace period was keeping alive
+		if dls := item.downloaders; dls != nil {
+			item.downloaders = nil
+			item.mu.Unlock()
+			_ = dls.Close(nil)
+			item.mu.Lock()
+		}
+		// Close the file handle that the grace period was keeping alive
+		if item.fd != nil {
+			_ = item.fd.Close()
+			item.fd = nil
+		}
+	}
+
 	// The item is not being used now.  Just remove it instead of resetting it.
 	if item.opens == 0 && !item.info.Dirty {
 		spaceFreed = item.info.Rs.Size()
diff --git a/vfs/vfscache/item_test.go b/vfs/vfscache/item_test.go
index 5efe0d036..c070d59da 100644
--- a/vfs/vfscache/item_test.go
+++ b/vfs/vfscache/item_test.go
@@ -32,6 +32,9 @@ func newItemTestCache(t *testing.T) (r *fstest.Run, c *Cache) {
 	// Disable synchronous write
 	opt.WriteBack = 0
 
+	// Disable handle caching so existing tests get immediate close behavior
+	opt.HandleCaching = 0
+
 	return newTestCacheOpt(t, opt)
 }
 
@@ -580,3 +583,113 @@ func TestItemReadWrite(t *testing.T) {
 		assert.False(t, item.remove(fileName))
 	})
 }
+
+func newItemTestCacheHandleCaching(t *testing.T, handleCaching time.Duration) (r *fstest.Run, c *Cache) {
+	opt := vfscommon.Opt
+
+	// Disable the cache cleaner as it interferes with these tests
+	opt.CachePollInterval = 0
+
+	// Disable synchronous write
+	opt.WriteBack = 0
+
+	// Set handle caching grace period
+	opt.HandleCaching = fs.Duration(handleCaching)
+
+	return newTestCacheOpt(t, opt)
+}
+
+func TestItemHandleCaching(t *testing.T) {
+	r, c := newItemTestCacheHandleCaching(t, 1*time.Second)
+
+	contents, obj, item := newFile(t, r, c, "existing")
+
+	// Open, read, and close the item
+	require.NoError(t, item.Open(obj))
+
+	buf := make([]byte, 10)
+	n, err := item.ReadAt(buf, 0)
+	assert.Equal(t, 10, n)
+	require.NoError(t, err)
+	assert.Equal(t, contents[:10], string(buf[:n]))
+
+	require.NoError(t, item.Close(nil))
+
+	// After close, grace period should keep fd and downloaders alive
+	item.mu.Lock()
+	assert.NotNil(t, item.fd, "fd should still be open during grace period")
+	assert.NotNil(t, item.downloaders, "downloaders should still be alive during grace period")
+	assert.NotNil(t, item.graceTimer, "grace timer should be set")
+	item.mu.Unlock()
+
+	// Re-open the item - should reuse existing fd and downloaders
+	require.NoError(t, item.Open(obj))
+
+	// Read data to verify it works
+	n, err = item.ReadAt(buf, 10)
+	assert.Equal(t, 10, n)
+	require.NoError(t, err)
+	assert.Equal(t, contents[10:20], string(buf[:n]))
+
+	// Close again
+	require.NoError(t, item.Close(nil))
+
+	// Wait for grace period to expire
+	time.Sleep(1500 * time.Millisecond)
+
+	// After grace period, fd and downloaders should be cleaned up
+	item.mu.Lock()
+	assert.Nil(t, item.fd, "fd should be closed after grace period")
+	assert.Nil(t, item.downloaders, "downloaders should be closed after grace period")
+	assert.Nil(t, item.graceTimer, "grace timer should be nil after expiry")
+	item.mu.Unlock()
+}
+
+func TestItemHandleCachingDisabled(t *testing.T) {
+	r, c := newItemTestCacheHandleCaching(t, 0)
+
+	contents, obj, item := newFile(t, r, c, "existing")
+	_ = contents
+
+	// Open and close the item
+	require.NoError(t, item.Open(obj))
+	require.NoError(t, item.Close(nil))
+
+	// With handle caching disabled, fd and downloaders should be immediately closed
+	item.mu.Lock()
+	assert.Nil(t, item.fd, "fd should be closed immediately when handle caching disabled")
+	assert.Nil(t, item.downloaders, "downloaders should be closed immediately when handle caching disabled")
+	assert.Nil(t, item.graceTimer, "grace timer should not be set when handle caching disabled")
+	item.mu.Unlock()
+}
+
+func TestItemHandleCachingReset(t *testing.T) {
+	r, c := newItemTestCacheHandleCaching(t, 1*time.Second)
+
+	_, obj, item := newFile(t, r, c, "existing")
+
+	// Open, read (to instantiate cache), and close the item
+	require.NoError(t, item.Open(obj))
+
+	buf := make([]byte, 10)
+	_, err := item.ReadAt(buf, 0)
+	require.NoError(t, err)
+
+	require.NoError(t, item.Close(nil))
+
+	// Grace timer should be active
+	item.mu.Lock()
+	assert.NotNil(t, item.graceTimer, "grace timer should be set")
+	item.mu.Unlock()
+
+	// Reset should cancel the grace timer and clean up
+	rr, _, err := item.Reset()
+	require.NoError(t, err)
+	assert.Equal(t, RemovedNotInUse, rr)
+
+	// After reset, grace timer should be cancelled
+	item.mu.Lock()
+	assert.Nil(t, item.graceTimer, "grace timer should be cancelled after reset")
+	assert.Nil(t, item.fd, "fd should be closed after reset")
+	item.mu.Unlock()
+}
diff --git a/vfs/vfscommon/options.go b/vfs/vfscommon/options.go
index 7f222edac..247b52e3b 100644
--- a/vfs/vfscommon/options.go
+++ b/vfs/vfscommon/options.go
@@ -165,6 +165,11 @@ var OptionsInfo = fs.Options{{
 	Default: getGID(),
 	Help:    "Override the gid field set by the filesystem (not supported on Windows)",
 	Groups:  "VFS",
+}, {
+	Name:    "vfs_handle_caching",
+	Default: fs.Duration(5 * time.Second),
+	Help:    "Time to keep file handle and downloaders alive after last close",
+	Groups:  "VFS",
 }, {
 	Name:    "vfs_metadata_extension",
 	Default: "",
@@ -209,6 +214,7 @@ type Options struct {
 	UsedIsSize         bool          `config:"vfs_used_is_size"`     // if true, use the `rclone size` algorithm for Used size
 	FastFingerprint    bool          `config:"vfs_fast_fingerprint"` // if set use fast fingerprints
 	DiskSpaceTotalSize fs.SizeSuffix `config:"vfs_disk_space_total_size"`
+	HandleCaching      fs.Duration   `config:"vfs_handle_caching"`     // time to keep handle alive after last close
 	MetadataExtension  string        `config:"vfs_metadata_extension"` // if set respond to files with this extension with metadata
 }