Cache Memory is a small, high-speed storage area located inside or close to the CPU (Central Processing Unit). It temporarily holds frequently accessed data and instructions, allowing the CPU to retrieve them quickly without needing to access the slower main memory, or RAM (Random Access Memory). This speeds up processing and improves overall system performance. There are typically multiple levels of cache memory, labeled as L1, L2, and sometimes L3. L1 is the fastest and smallest, while L2 and L3 are larger but slightly slower. By storing copies of data that the CPU uses often, cache memory reduces latency and enhances efficiency in computing tasks.