A system and method for controlling the scheduling of threads in a multi-thread processor system. The multi-thread processor system has a multi-thread processor, a main memory, a cache memory, and a thread scheduler. Information is sent from the cache memory to the thread scheduler for determining which thread the processor is going to execute. The thread scheduler calculates or maintains a figure of merit for each thread executing on the processor. The figure of merit determines which thread to switch to when the current or previous thread has a long latency. The figure of merit define the execution environment as measured by the performance of the cache memory. The figure of merit can be the owner of a particular thread, the number of data lines accessed by a particular thread which resides in the cache, the number of times a particular thread has hit in the cache over a specified time interval, the thread that installed the data or the thread that was used most recently.