A method and system for allocating lower level cache entries for data castout from an upper level cache provides improved computer system performance by adjusting the ordering of least-recently-used (LRU) information within a cache. Data that is castout from a higher level cache can be written after a read is satisfied and the castout entry will not be labeled as most-recently-used. This improves performance under certain operating conditions of a computing system, as castout data is often less important to keep in lower level cache than data that is also present in the higher level cache.