Prefix caching is a mechanism that exploits the deterministic nature of Transformer attention computation by persisting the KV-Cache generated from a shared prompt prefix. When multiple inference requests begin with an identical sequence—such as a lengthy system prompt, few-shot examples, or a document preamble—the model computes the key and value tensors for that prefix only once. Subsequent requests reuse the cached tensors, eliminating the computationally expensive prefill phase for the shared portion and dramatically reducing time-to-first-token (TTFT).
Glossary
Prefix Caching

What is Prefix Caching?
Prefix caching is an inference optimization technique that stores the computed key-value cache of a frequently reused, static prompt prefix, allowing subsequent requests sharing that prefix to bypass redundant prefill computation.
This technique is critical for production LLM serving infrastructure where a single system prompt may be reused across millions of queries. By storing the prefix's KV-Cache in GPU memory or a shared object store, inference engines like vLLM and SGLang achieve significant throughput gains. Prefix caching is distinct from standard KV-Cache management during decoding; it specifically targets the reuse of precomputed state across independent requests, making it a cornerstone of cost-efficient, low-latency LLM inference optimization.
Key Characteristics of Prefix Caching
Prefix caching is a critical inference optimization that eliminates redundant computation by storing the KV-Cache of a shared, static prompt prefix. This allows subsequent requests to bypass the expensive prefill phase entirely.
KV-Cache Reuse Mechanism
Prefix caching works by materializing and storing the key-value (KV) tensors computed during the prefill phase of a static prefix. When a new request shares this prefix, the system loads the cached KV-Cache directly into GPU memory, skipping the quadratic-complexity attention computation for those tokens. This transforms the prefill phase from an O(n²) operation to a near-instant memory load, followed by autoregressive decoding only for the new, unique suffix tokens.
System Prompt Optimization
The most common production use case is caching long, static system prompts that define an agent's persona, tool-use instructions, or safety guidelines. Without caching, a 10,000-token system prompt must be re-processed on every single request. With prefix caching, the system prompt's KV-Cache is computed once and reused across millions of user interactions, reducing time-to-first-token (TTFT) by up to 90% for chat applications with heavy instruction overhead.
RadixAttention Tree Structure
Modern inference engines like SGLang implement prefix caching using a radix tree (compact prefix tree) data structure in GPU memory. Each node in the tree represents a token sequence, and the KV-Cache is stored at the corresponding node. When a new request arrives, the scheduler traverses the tree to find the longest matching prefix, reuses that cached KV data, and only computes new branches for divergent suffixes. This enables efficient sharing across requests with partially overlapping prefixes.
Few-Shot Example Caching
Prefix caching is highly effective for few-shot in-context learning where a large set of static demonstration examples is prepended to every query. The examples—which can span thousands of tokens—are computed once and cached. Only the novel user query at the end requires fresh computation. This enables cost-effective deployment of few-shot prompts that would otherwise be prohibitively expensive due to repeated prefill costs on every inference call.
Multi-Turn Conversation Efficiency
In conversational AI, each new user message in a session shares the entire prior dialogue history as a common prefix. Prefix caching stores the KV-Cache for the conversation history, so each subsequent turn only computes attention for the new message. This reduces the computational cost of long, multi-turn interactions from quadratic to linear relative to the new tokens, dramatically improving throughput for chatbot deployments with extended session lengths.
Automatic Cache Eviction Policies
GPU HBM capacity is finite, so prefix caching systems implement eviction policies to manage memory pressure. Common strategies include LRU (Least Recently Used) eviction, where the least-accessed cached prefixes are discarded, and TTL (Time-To-Live) expiration, where caches are invalidated after a configurable duration. Advanced implementations use prefix-aware memory allocation that prioritizes retaining high-reuse prefixes like system prompts over transient conversation prefixes.
Frequently Asked Questions
Clear, technically precise answers to the most common questions about prefix caching, KV-cache reuse, and how this optimization technique reduces latency and compute cost in LLM inference.
Prefix caching is an inference optimization technique that stores the KV-Cache of a frequently reused, static prompt prefix—such as a system prompt or few-shot examples—so that subsequent requests sharing that prefix can bypass redundant prefill computation. When an LLM processes a prompt, the prefill phase computes key and value tensors for every input token. If multiple requests share an identical prefix, recomputing those tensors is wasteful. Prefix caching stores the computed KV-Cache for the shared prefix in GPU memory or a shared cache store. On a cache hit, the prefill phase only processes the unique suffix tokens, and the model immediately begins decoding using the concatenated cached and newly computed KV-Cache. This reduces Time to First Token (TTFT) and total compute cost, especially in applications with long, static system prompts or conversation templates.
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Related Terms
Prefix caching is a critical inference optimization that eliminates redundant computation. These related concepts form the technical foundation for understanding how KV-Cache reuse accelerates large language model serving.

About the author
Prasad Kumkar
CEO & MD, Inference Systems
Prasad Kumkar is the CEO & MD of Inference Systems and writes about AI systems architecture, LLM infrastructure, model serving, evaluation, and production deployment. Over 5+ years, he has worked across computer vision models, L5 autonomous vehicle systems, and LLM research, with a focus on taking complex AI ideas into real-world engineering systems.
His work and writing cover AI systems, large language models, AI agents, multimodal systems, autonomous systems, inference optimization, RAG, evaluation, and production AI engineering.
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