Method and apparatus for facilitating in-cache reference counting

One embodiment of the present invention provides a system that facilitates in-cache reference counting in a cache memory. During operation, the system receives a command to update an old cache line with a new cache line. The system then determines if the new cache line is different than the old cache line. If so, the system determines if the old cache line contains any in-cache references. If so, for each such in-cache reference, the system decrements a reference counter in a cache line containing an object which is referenced by the in-cache reference. The system also determines if the new cache line contains any in-cache references. If so, for each such in-cache reference, the system increments a reference counter in a cache line containing an object which is referenced by the in-cache reference. Note that the reference counter in a cache line indicates a count of references in the cache that refer to an object contained in the cache line.