diff --git a/README.md b/README.md
index 5d4a756a..f63ea7e0 100644
--- a/README.md
+++ b/README.md
@@ -90,8 +90,6 @@ This loader also supports the following loader-specific option:
 
 * `metadataSubscribers`: Default `[]`. Takes an array of context function names. E.g. if you passed ['myMetadataPlugin'], you'd assign a subscriber function to `context.myMetadataPlugin` within your webpack plugin's hooks & that function will be called with `metadata`.
 
-* `hashType`: Default `md4`. The hash digest function to use. If you hit an `ERR_OSSL_EVP_UNSUPPORTED` error in your application with Node.js 17, it’s likely that your attempting to use an algorithm which is no longer allowed by default with OpenSSL 3.0. You can specify `md5` here to fix the issue.
-
 ## Troubleshooting
 
 ### babel-loader is slow!
diff --git a/src/cache.js b/src/cache.js
index c1db2164..35e78819 100644
--- a/src/cache.js
+++ b/src/cache.js
@@ -62,8 +62,15 @@ const write = async function (filename, compress, result) {
  *
  * @return {String}
  */
-const filename = function (source, identifier, options, hashType) {
-  const hash = crypto.createHash(hashType || "md4");
+const filename = function (source, identifier, options) {
+  // md4 hashing is not supported starting with node v17.0.0
+  const majorNodeVersion = parseInt(process.versions.node.split(".")[0], 10);
+  let hashType = "md4";
+  if (majorNodeVersion >= 17) {
+    hashType = "md5";
+  }
+
+  const hash = crypto.createHash(hashType);
 
   const contents = JSON.stringify({ source, options, identifier });
 
@@ -85,11 +92,9 @@ const handleCache = async function (directory, params) {
     cacheIdentifier,
     cacheDirectory,
     cacheCompression,
-    hashType,
   } = params;
 
-  const name = filename(source, cacheIdentifier, options, hashType);
-  const file = path.join(directory, name);
+  const file = path.join(directory, filename(source, cacheIdentifier, options));
 
   try {
     // No errors mean that the file was previously cached
@@ -137,7 +142,6 @@ const handleCache = async function (directory, params) {
  * @param  {String}   params.cacheDirectory   Directory to store cached files
  * @param  {String}   params.cacheIdentifier  Unique identifier to bust cache
  * @param  {Boolean}  params.cacheCompression Whether compressing cached files
- * @param  {Boolean}  params.hashType Hash digest to use for file names
  * @param  {String}   params.source   Original contents of the file to be cached
  * @param  {Object}   params.options  Options to be given to the transform fn
  *
@@ -147,7 +151,6 @@ const handleCache = async function (directory, params) {
  *     cacheDirectory: '.tmp/cache',
  *     cacheIdentifier: 'babel-loader-cachefile',
  *     cacheCompression: false,
- *     hashType: 'md4',
  *     source: *source code from file*,
  *     options: {
  *       experimental: true,
diff --git a/src/index.js b/src/index.js
index c5894a56..07eec2a1 100644
--- a/src/index.js
+++ b/src/index.js
@@ -150,7 +150,6 @@ async function loader(source, inputSourceMap, overrides) {
   delete programmaticOptions.cacheIdentifier;
   delete programmaticOptions.cacheCompression;
   delete programmaticOptions.metadataSubscribers;
-  delete programmaticOptions.hashType;
 
   if (!babel.loadPartialConfig) {
     throw new Error(
@@ -194,7 +193,6 @@ async function loader(source, inputSourceMap, overrides) {
       }),
       cacheCompression = true,
       metadataSubscribers = [],
-      hashType = null,
     } = loaderOptions;
 
     let result;
@@ -206,7 +204,6 @@ async function loader(source, inputSourceMap, overrides) {
         cacheDirectory,
         cacheIdentifier,
         cacheCompression,
-        hashType,
       });
     } else {
       result = await transform(source, options);
diff --git a/src/schema.json b/src/schema.json
index f845d367..7f933f7c 100644
--- a/src/schema.json
+++ b/src/schema.json
@@ -23,10 +23,6 @@
       "type": "string",
       "default": null
     },
-    "hashType": {
-      "type": "string",
-      "default": null
-    }
   },
   "additionalProperties": true
 }