Caching is a technique used in computing to store frequently accessed data in a readily available location for quick retrieval. It's like having a small, fast memory space for storing the most commonly used information, reducing the need to repeatedly access slower storage areas. In problem-solving, caching is crucial for enhancing performance and efficiency. By remembering previously computed results, systems can avoid redoing complex calculations, significantly speeding up the process of solving repetitive or similar problems. This approach is widely used in software development, web browsing, and data processing.