Cache memory is a small, high-speed storage area located inside or very close to the CPU (Central Processing Unit) of a computer. It temporarily holds frequently accessed data and instructions, allowing the CPU to retrieve them quickly without having to access the slower main memory, or RAM (Random Access Memory). This speeds up processing times and improves overall system performance. There are typically multiple levels of cache memory, labeled as L1, L2, and sometimes L3. L1 cache is the fastest and smallest, while L2 and L3 caches are larger but slightly slower. By using cache memory, computers can operate more efficiently, enhancing user experience during tasks.