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How does prefix caching work internally in an LLM server, and when does it actually help?

A shared system prompt gets re-prefilled on every request unless the server remembers it. Prefix caching skips that work, but only when the blocks line up exactly. Here is the hashing and eviction machinery underneath.

Updated Aug 2026 · Grounded in real Applied AI Engineer interview loops and written to a senior-engineer editorial bar.

A shared system prompt gets re-prefilled on every request unless the server remembers it. Prefix caching skips that work, but only when the blocks line up exactly. Here is the hashing and eviction machinery underneath.

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