The cache-loader is a Webpack loader that significantly speeds up builds by caching the results of expensive transformations. It saves processed modules to disk, allowing subsequent builds to reuse these cached outputs instead of re-running loaders. Configuring cache-loader is straightforward, simply add it to your Webpack configuration before the loaders you want to cache. This is especially helpful when using loaders like babel-loader or ts-loader, resulting in substantial performance improvements for large projects. It intelligently invalidates the cache when dependencies change.