Application caching is a technique used to store frequently accessed data or resources closer to the user, significantly reducing latency and improving application performance. By storing copies of data in a temporary storage location, such as memory or disk, applications can bypass slower data retrieval processes like database queries or network requests.

This results in faster load times, reduced server load, and a more responsive user experience. Caching can be implemented at various levels, including client-side (browser caching), server-side (object caching, query caching), and content delivery networks (CDNs), each serving to optimize data delivery based on specific application needs.