Systems, apparatuses, and methods for implementing flexible dictionary sharing techniques for caches are disclosed. A set-associative cache includes a dictionary for each data array set. When a cache line is to be allocated in the cache, a cache controller determines to which set a base index of the cache line address maps. Then, a selector unit determines which dictionary of a group of dictionaries stored by those sets neighboring this set would achieve the most compression for the cache line. This dictionary is then selected to compress the cache line. An offset is added to the base index of the cache line to generate a full index in order to map the cache line to the set corresponding to this chosen dictionary. The compressed cache line is stored in this set with the chosen dictionary, and the offset is stored in the corresponding tag array entry.