diff --git a/.tool-versions b/.tool-versions
index 6e03b218f..0f80fd9a0 100644
--- a/.tool-versions
+++ b/.tool-versions
@@ -1 +1,2 @@
 ruby 4.0.1
+
diff --git a/Gemfile.lock b/Gemfile.lock
index 18cf88dec..98a9b8499 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -3,6 +3,7 @@ PATH
   specs:
     view_component (4.4.0)
       actionview (>= 7.1.0)
+      actionview_precompiler (>= 0.4)
       activesupport (>= 7.1.0)
       concurrent-ruby (~> 1)
 
@@ -55,6 +56,8 @@ GEM
       erubi (~> 1.11)
       rails-dom-testing (~> 2.2)
       rails-html-sanitizer (~> 1.6)
+    actionview_precompiler (0.4.0)
+      actionview (>= 6.0.a)
     activejob (8.1.2)
       activesupport (= 8.1.2)
       globalid (>= 0.3.6)
@@ -145,6 +148,7 @@ GEM
       temple (>= 0.8.2)
       thor
       tilt
+    herb (0.8.9)
     herb (0.8.9-aarch64-linux-gnu)
     herb (0.8.9-aarch64-linux-musl)
     herb (0.8.9-arm-linux-gnu)
@@ -182,6 +186,7 @@ GEM
     matrix (0.4.3)
     method_source (1.1.0)
     mini_mime (1.1.5)
+    mini_portile2 (2.8.9)
     minitest (6.0.1)
       prism (~> 1.5)
     minitest-mock (5.27.0)
@@ -195,6 +200,9 @@ GEM
     net-smtp (0.5.1)
       net-protocol
     nio4r (2.7.5)
+    nokogiri (1.19.0)
+      mini_portile2 (~> 2.8.2)
+      racc (~> 1.4)
     nokogiri (1.19.0-aarch64-linux-gnu)
       racc (~> 1.4)
     nokogiri (1.19.0-aarch64-linux-musl)
@@ -466,6 +474,7 @@ CHECKSUMS
   actionpack (8.1.2) sha256=ced74147a1f0daafaa4bab7f677513fd4d3add574c7839958f7b4f1de44f8423
   actiontext (8.1.2) sha256=0bf57da22a9c19d970779c3ce24a56be31b51c7640f2763ec64aa72e358d2d2d
   actionview (8.1.2) sha256=80455b2588911c9b72cec22d240edacb7c150e800ef2234821269b2b2c3e2e5b
+  actionview_precompiler (0.4.0) sha256=33b6bd6ec4c1b856e02fdf5f6512c9eb4a92ac1c0545e941b3e354b7d540ed1c
   activejob (8.1.2) sha256=908dab3713b101859536375819f4156b07bdf4c232cc645e7538adb9e302f825
   activemodel (8.1.2) sha256=e21358c11ce68aed3f9838b7e464977bc007b4446c6e4059781e1d5c03bcf33e
   activerecord (8.1.2) sha256=acfbe0cadfcc50fa208011fe6f4eb01cae682ebae0ef57145ba45380c74bcc44
@@ -498,6 +507,7 @@ CHECKSUMS
   ferrum (0.17.1) sha256=51d591120fc593e5a13b5d9d6474389f5145bb92a91e36eab147b5d096c8cbe7
   globalid (1.3.0) sha256=05c639ad6eb4594522a0b07983022f04aa7254626ab69445a0e493aa3786ff11
   haml (7.2.0) sha256=87fd2b71f7feab1724337b090a7d767f5ab2d42f08c974f3ead673f18cfcd55a
+  herb (0.8.9) sha256=8617e7eba753877cef231e3269a7e00788a9b67a91c3b79d1210ae20321b60f7
   herb (0.8.9-aarch64-linux-gnu) sha256=9214cc24953c355f9ae785a95bb9362cdfc9fcd2ae4db2a32bc26c0b88f98c7f
   herb (0.8.9-aarch64-linux-musl) sha256=4ee883eed0935cfe2e508d0843b015d689ef9d13f00e9ec4a81a35acd061dc13
   herb (0.8.9-arm-linux-gnu) sha256=9f83c76899fecd5e3429bbd66728226e7b75539cc59283829041479381a6ceea
@@ -521,6 +531,7 @@ CHECKSUMS
   matrix (0.4.3) sha256=a0d5ab7ddcc1973ff690ab361b67f359acbb16958d1dc072b8b956a286564c5b
   method_source (1.1.0) sha256=181301c9c45b731b4769bc81e8860e72f9161ad7d66dd99103c9ab84f560f5c5
   mini_mime (1.1.5) sha256=8681b7e2e4215f2a159f9400b5816d85e9d8c6c6b491e96a12797e798f8bccef
+  mini_portile2 (2.8.9) sha256=0cd7c7f824e010c072e33f68bc02d85a00aeb6fce05bb4819c03dfd3c140c289
   minitest (6.0.1) sha256=7854c74f48e2e975969062833adc4013f249a4b212f5e7b9d5c040bf838d54bb
   minitest-mock (5.27.0) sha256=7040ed7185417a966920987eaa6eaf1be4ea1fc5b25bb03ff4703f98564a55b0
   net-imap (0.6.2) sha256=08caacad486853c61676cca0c0c47df93db02abc4a8239a8b67eb0981428acc6
@@ -528,6 +539,7 @@ CHECKSUMS
   net-protocol (0.2.2) sha256=aa73e0cba6a125369de9837b8d8ef82a61849360eba0521900e2c3713aa162a8
   net-smtp (0.5.1) sha256=ed96a0af63c524fceb4b29b0d352195c30d82dd916a42f03c62a3a70e5b70736
   nio4r (2.7.5) sha256=6c90168e48fb5f8e768419c93abb94ba2b892a1d0602cb06eef16d8b7df1dca1
+  nokogiri (1.19.0) sha256=e304d21865f62518e04f2bf59f93bd3a97ca7b07e7f03952946d8e1c05f45695
   nokogiri (1.19.0-aarch64-linux-gnu) sha256=11a97ecc3c0e7e5edcf395720b10860ef493b768f6aa80c539573530bc933767
   nokogiri (1.19.0-aarch64-linux-musl) sha256=eb70507f5e01bc23dad9b8dbec2b36ad0e61d227b42d292835020ff754fb7ba9
   nokogiri (1.19.0-arm-linux-gnu) sha256=572a259026b2c8b7c161fdb6469fa2d0edd2b61cd599db4bbda93289abefbfe5
diff --git a/docs/CHANGELOG.md b/docs/CHANGELOG.md
index 29565c5c5..5663d6ee4 100644
--- a/docs/CHANGELOG.md
+++ b/docs/CHANGELOG.md
@@ -10,6 +10,10 @@ nav_order: 6
 
 ## main
 
+* Add experimental support for caching by including `ViewComponent::ExperimentallyCacheable`.
+
+    *Reegan Viljoen*
+
 ## 4.4.0
 
 * Fix segfaults when Ruby coverage is enabled.
@@ -552,7 +556,7 @@ This release makes the following breaking changes:
 
 ## 3.23.0
 
-* Add docs about Slack channel in Ruby Central workspace. (Join us! #oss-view-component). Email joelhawksley@github.com for an invite.
+* Add docs about Slack channel in Ruby Central workspace. (Join us! #oss-view-component). Email <joelhawksley@github.com> for an invite.
 
     *Joel Hawksley
 
@@ -1912,7 +1916,7 @@ Run into an issue with this release? [Let us know](https://github.com/ViewCompon
 
     *Joel Hawksley*
 
-* The ViewComponent team at GitHub is hiring! We're looking for a Rails engineer with accessibility experience: [https://boards.greenhouse.io/github/jobs/4020166](https://boards.greenhouse.io/github/jobs/4020166). Reach out to joelhawksley@github.com with any questions!
+* The ViewComponent team at GitHub is hiring! We're looking for a Rails engineer with accessibility experience: [https://boards.greenhouse.io/github/jobs/4020166](https://boards.greenhouse.io/github/jobs/4020166). Reach out to <joelhawksley@github.com> with any questions!
 
 * The ViewComponent team is hosting a happy hour at RailsConf. Join us for snacks, drinks, and stickers: [https://www.eventbrite.com/e/viewcomponent-happy-hour-tickets-304168585427](https://www.eventbrite.com/e/viewcomponent-happy-hour-tickets-304168585427)
 
@@ -2664,7 +2668,7 @@ Run into an issue with this release? [Let us know](https://github.com/ViewCompon
 
     *Matheus Richard*
 
-* Are you interested in building the future of ViewComponent? GitHub is looking to hire a Senior Engineer to work on Primer ViewComponents and ViewComponent. Apply here: [US/Canada](https://github.com/careers) / [Europe](https://boards.greenhouse.io/github/jobs/3132294). Feel free to reach out to joelhawksley@github.com with any questions.
+* Are you interested in building the future of ViewComponent? GitHub is looking to hire a Senior Engineer to work on Primer ViewComponents and ViewComponent. Apply here: [US/Canada](https://github.com/careers) / [Europe](https://boards.greenhouse.io/github/jobs/3132294). Feel free to reach out to <joelhawksley@github.com> with any questions.
 
     *Joel Hawksley*
 
@@ -2682,7 +2686,7 @@ Run into an issue with this release? [Let us know](https://github.com/ViewCompon
 
 ## 2.31.0
 
-_Note: This release includes an underlying change to Slots that may affect incorrect usage of the API, where Slots were set on a line prefixed by `<%=`. The result of setting a Slot shouldn't be returned. (`<%`)_
+*Note: This release includes an underlying change to Slots that may affect incorrect usage of the API, where Slots were set on a line prefixed by `<%=`. The result of setting a Slot shouldn't be returned. (`<%`)*
 
 * Add `#with_content` to allow setting content without a block.
 
@@ -3130,7 +3134,7 @@ _Note: This release includes an underlying change to Slots that may affect incor
 
   * The gem name is now `view_component`.
   * ViewComponent previews are now accessed at `/rails/view_components`.
-  * ViewComponents can _only_ be rendered with the instance syntax: `render(MyComponent.new)`. Support for all other syntaxes has been removed.
+  * ViewComponents can *only* be rendered with the instance syntax: `render(MyComponent.new)`. Support for all other syntaxes has been removed.
   * ActiveModel::Validations have been removed. ViewComponent generators no longer include validations.
   * In Rails 6.1, no monkey patching is used.
   * `to_component_class` has been removed.
diff --git a/docs/guide/caching.md b/docs/guide/caching.md
new file mode 100644
index 000000000..469900c5f
--- /dev/null
+++ b/docs/guide/caching.md
@@ -0,0 +1,45 @@
+---
+layout: default
+title: Caching
+parent: How-to guide
+---
+
+# Caching
+
+Experimental
+{: .label }
+
+Caching is experimental.
+
+To enable caching, include `ViewComponent::ExperimentallyCacheable`.
+
+Components implement caching by marking dependencies using `cache_on`:
+
+```ruby
+class CacheComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_on :foo, :bar
+  attr_reader :foo, :bar
+
+  def initialize(foo:, bar:)
+    @foo = foo
+    @bar = bar
+  end
+end
+```
+
+```erb
+<p><%= view_cache_dependencies.inspect %></p>
+
+<p><%= Time.zone.now %></p>
+<p><%= "#{foo} #{bar}" %></p>
+```
+
+`cache_on` accepts method names. Returned values are expanded via `ActiveSupport::Cache.expand_cache_key`, so Active Record models, `GlobalID`, arrays, and plain strings work as expected.
+
+Methods listed in `cache_on` may be private.
+
+The cache key includes a digest of component source (Ruby + templates + i18n sidecars) and rendered child ViewComponents.
+
+Partial/layout string dependencies aren't currently included in the digest, to invalidate the cache on deploy modify `RAILS_CACHE_ID`/`RAILS_APP_VERSION`.
diff --git a/gemfiles/rails_7.1.gemfile.lock b/gemfiles/rails_7.1.gemfile.lock
index 61e55b34e..8a3f5f02b 100644
--- a/gemfiles/rails_7.1.gemfile.lock
+++ b/gemfiles/rails_7.1.gemfile.lock
@@ -3,6 +3,7 @@ PATH
   specs:
     view_component (4.4.0)
       actionview (>= 7.1.0)
+      actionview_precompiler (>= 0.4)
       activesupport (>= 7.1.0)
       concurrent-ruby (~> 1)
 
@@ -60,6 +61,8 @@ GEM
       erubi (~> 1.11)
       rails-dom-testing (~> 2.2)
       rails-html-sanitizer (~> 1.6)
+    actionview_precompiler (0.4.0)
+      actionview (>= 6.0.a)
     activejob (7.1.6)
       activesupport (= 7.1.6)
       globalid (>= 0.3.6)
diff --git a/gemfiles/rails_7.2.gemfile.lock b/gemfiles/rails_7.2.gemfile.lock
index 0212c0f67..948139abd 100644
--- a/gemfiles/rails_7.2.gemfile.lock
+++ b/gemfiles/rails_7.2.gemfile.lock
@@ -3,6 +3,7 @@ PATH
   specs:
     view_component (4.4.0)
       actionview (>= 7.1.0)
+      actionview_precompiler (>= 0.4)
       activesupport (>= 7.1.0)
       concurrent-ruby (~> 1)
 
@@ -55,6 +56,8 @@ GEM
       erubi (~> 1.11)
       rails-dom-testing (~> 2.2)
       rails-html-sanitizer (~> 1.6)
+    actionview_precompiler (0.4.0)
+      actionview (>= 6.0.a)
     activejob (7.2.3)
       activesupport (= 7.2.3)
       globalid (>= 0.3.6)
diff --git a/gemfiles/rails_8.0.gemfile.lock b/gemfiles/rails_8.0.gemfile.lock
index 2b2a50352..539c7c5d8 100644
--- a/gemfiles/rails_8.0.gemfile.lock
+++ b/gemfiles/rails_8.0.gemfile.lock
@@ -3,6 +3,7 @@ PATH
   specs:
     view_component (4.4.0)
       actionview (>= 7.1.0)
+      actionview_precompiler (>= 0.4)
       activesupport (>= 7.1.0)
       concurrent-ruby (~> 1)
 
@@ -52,6 +53,8 @@ GEM
       erubi (~> 1.11)
       rails-dom-testing (~> 2.2)
       rails-html-sanitizer (~> 1.6)
+    actionview_precompiler (0.4.0)
+      actionview (>= 6.0.a)
     activejob (8.0.4)
       activesupport (= 8.0.4)
       globalid (>= 0.3.6)
diff --git a/gemfiles/rails_8.1.gemfile.lock b/gemfiles/rails_8.1.gemfile.lock
index 57e4a80dd..0a89f618c 100644
--- a/gemfiles/rails_8.1.gemfile.lock
+++ b/gemfiles/rails_8.1.gemfile.lock
@@ -3,6 +3,7 @@ PATH
   specs:
     view_component (4.4.0)
       actionview (>= 7.1.0)
+      actionview_precompiler (>= 0.4)
       activesupport (>= 7.1.0)
       concurrent-ruby (~> 1)
 
@@ -55,6 +56,8 @@ GEM
       erubi (~> 1.11)
       rails-dom-testing (~> 2.2)
       rails-html-sanitizer (~> 1.6)
+    actionview_precompiler (0.4.0)
+      actionview (>= 6.0.a)
     activejob (8.1.2)
       activesupport (= 8.1.2)
       globalid (>= 0.3.6)
diff --git a/gemfiles/rails_main.gemfile.lock b/gemfiles/rails_main.gemfile.lock
index 33cadee59..f532e6a6d 100644
--- a/gemfiles/rails_main.gemfile.lock
+++ b/gemfiles/rails_main.gemfile.lock
@@ -7,7 +7,7 @@ GIT
 
 GIT
   remote: https://github.com/rails/rails.git
-  revision: 990198b7b5f4a3a3d0d59bc1bcac58efa405f527
+  revision: 58c94cbd8081ddefadf8e1824685051f52234791
   branch: main
   specs:
     actioncable (8.2.0.alpha)
@@ -41,7 +41,7 @@ GIT
       rails-html-sanitizer (~> 1.6)
       useragent (~> 0.16)
     actiontext (8.2.0.alpha)
-      action_text-trix (~> 2.1.15)
+      action_text-trix (~> 2.1.16)
       actionpack (= 8.2.0.alpha)
       activerecord (= 8.2.0.alpha)
       activestorage (= 8.2.0.alpha)
@@ -79,6 +79,7 @@ GIT
       json
       logger (>= 1.4.2)
       minitest (>= 5.1)
+      psych (>= 4)
       securerandom (>= 0.3)
       tzinfo (~> 2.0, >= 2.0.5)
       uri (>= 0.13.1)
@@ -111,14 +112,17 @@ PATH
   specs:
     view_component (4.4.0)
       actionview (>= 7.1.0)
+      actionview_precompiler (>= 0.4)
       activesupport (>= 7.1.0)
       concurrent-ruby (~> 1)
 
 GEM
   remote: https://rubygems.org/
   specs:
-    action_text-trix (2.1.15)
+    action_text-trix (2.1.16)
       railties
+    actionview_precompiler (0.4.0)
+      actionview (>= 6.0.a)
     addressable (2.8.7)
       public_suffix (>= 2.0.2, < 7.0)
     allocation_stats (0.1.5)
@@ -138,7 +142,7 @@ GEM
       erubi (~> 1.4)
       parser (>= 2.4)
       smart_properties
-    bigdecimal (3.3.1)
+    bigdecimal (4.0.1)
     builder (3.3.0)
     capybara (3.40.0)
       addressable
@@ -149,18 +153,18 @@ GEM
       rack-test (>= 0.6.3)
       regexp_parser (>= 1.5, < 3.0)
       xpath (~> 3.2)
-    concurrent-ruby (1.3.5)
-    connection_pool (2.5.4)
+    concurrent-ruby (1.3.6)
+    connection_pool (3.0.2)
     crass (1.0.6)
     cuprite (0.17)
       capybara (~> 3.0)
       ferrum (~> 0.17.0)
-    date (3.5.0)
+    date (3.5.1)
     diff-lcs (1.6.2)
     docile (1.4.1)
     drb (2.2.3)
     dry-initializer (3.2.0)
-    erb (6.0.0)
+    erb (6.0.1)
     erb_lint (0.9.0)
       activesupport
       better_html (>= 2.0.1)
@@ -182,21 +186,22 @@ GEM
       thor
       tilt
     herb (0.8.2)
-    i18n (1.14.7)
+    i18n (1.14.8)
       concurrent-ruby (~> 1.0)
-    io-console (0.8.1)
-    irb (1.15.3)
+    io-console (0.8.2)
+    irb (1.17.0)
       pp (>= 0.6.0)
+      prism (>= 1.3.0)
       rdoc (>= 4.0.0)
       reline (>= 0.4.2)
     jbuilder (2.14.1)
       actionview (>= 7.0.0)
       activesupport (>= 7.0.0)
-    json (2.16.0)
+    json (2.18.1)
     language_server-protocol (3.17.0.5)
     lint_roller (1.1.0)
     logger (1.7.0)
-    loofah (2.24.1)
+    loofah (2.25.0)
       crass (~> 1.0.2)
       nokogiri (>= 1.12.0)
     m (1.6.2)
@@ -213,8 +218,8 @@ GEM
     method_source (1.1.0)
     mini_mime (1.1.5)
     mini_portile2 (2.8.9)
-    minitest (5.26.2)
-    net-imap (0.5.12)
+    minitest (5.27.0)
+    net-imap (0.6.2)
       date
       net-protocol
     net-pop (0.1.2)
@@ -224,25 +229,9 @@ GEM
     net-smtp (0.5.1)
       net-protocol
     nio4r (2.7.5)
-    nokogiri (1.18.10)
+    nokogiri (1.19.0)
       mini_portile2 (~> 2.8.2)
       racc (~> 1.4)
-    nokogiri (1.18.10-aarch64-linux-gnu)
-      racc (~> 1.4)
-    nokogiri (1.18.10-aarch64-linux-musl)
-      racc (~> 1.4)
-    nokogiri (1.18.10-arm-linux-gnu)
-      racc (~> 1.4)
-    nokogiri (1.18.10-arm-linux-musl)
-      racc (~> 1.4)
-    nokogiri (1.18.10-arm64-darwin)
-      racc (~> 1.4)
-    nokogiri (1.18.10-x86_64-darwin)
-      racc (~> 1.4)
-    nokogiri (1.18.10-x86_64-linux-gnu)
-      racc (~> 1.4)
-    nokogiri (1.18.10-x86_64-linux-musl)
-      racc (~> 1.4)
     parallel (1.27.0)
     parser (3.3.10.0)
       ast (~> 2.4.1)
@@ -255,7 +244,7 @@ GEM
       actionpack (>= 7.0.0)
       activesupport (>= 7.0.0)
       rack
-    psych (5.2.6)
+    psych (5.3.1)
       date
       stringio
     public_suffix (6.0.2)
@@ -267,7 +256,7 @@ GEM
       rack (>= 3.0.0)
     rack-test (2.2.0)
       rack (>= 1.3)
-    rackup (2.2.1)
+    rackup (2.3.1)
       rack (>= 3)
     rails-dom-testing (2.3.0)
       activesupport (>= 5.0.0)
@@ -278,7 +267,7 @@ GEM
       nokogiri (>= 1.15.7, != 1.16.7, != 1.16.6, != 1.16.5, != 1.16.4, != 1.16.3, != 1.16.2, != 1.16.1, != 1.16.0.rc1, != 1.16.0)
     rainbow (3.1.1)
     rake (13.3.1)
-    rdoc (6.15.1)
+    rdoc (7.2.0)
       erb
       psych (>= 4.0.0)
       tsort
@@ -374,7 +363,7 @@ GEM
     standard-performance (1.8.0)
       lint_roller (~> 1.1)
       rubocop-performance (~> 1.25.0)
-    stringio (3.1.8)
+    stringio (3.2.0)
     tailwindcss-rails (4.4.0)
       railties (>= 7.0.0)
       tailwindcss-ruby (~> 4.0)
@@ -388,9 +377,9 @@ GEM
     temple (0.10.4)
     terminal-table (4.0.0)
       unicode-display_width (>= 1.1.1, < 4)
-    thor (1.4.0)
+    thor (1.5.0)
     tilt (2.6.1)
-    timeout (0.4.4)
+    timeout (0.6.0)
     tsort (0.2.0)
     turbo-rails (2.0.20)
       actionpack (>= 7.1.0)
@@ -414,7 +403,7 @@ GEM
     yard (0.9.37)
     yard-activesupport-concern (0.0.1)
       yard (>= 0.8)
-    zeitwerk (2.7.3)
+    zeitwerk (2.7.4)
 
 PLATFORMS
   aarch64-linux-gnu
diff --git a/lib/view_component.rb b/lib/view_component.rb
index ac1102ed9..0a54a9859 100644
--- a/lib/view_component.rb
+++ b/lib/view_component.rb
@@ -12,6 +12,7 @@ module ViewComponent
   autoload :CompileCache
   autoload :Config
   autoload :Deprecation
+  autoload :ExperimentallyCacheable
   autoload :InlineTemplate
   autoload :Instrumentation
   autoload :Preview
diff --git a/lib/view_component/base.rb b/lib/view_component/base.rb
index 5fee45ea1..bd50641d3 100644
--- a/lib/view_component/base.rb
+++ b/lib/view_component/base.rb
@@ -50,7 +50,6 @@ def config
     include Rails.application.routes.url_helpers if defined?(Rails.application.routes)
     include ERB::Escape
     include ActiveSupport::CoreExt::ERBUtil
-
     include ViewComponent::InlineTemplate
     include ViewComponent::Slotable
     include ViewComponent::Translatable
diff --git a/lib/view_component/cache_digestor.rb b/lib/view_component/cache_digestor.rb
new file mode 100644
index 000000000..bded33a17
--- /dev/null
+++ b/lib/view_component/cache_digestor.rb
@@ -0,0 +1,107 @@
+# frozen_string_literal: true
+
+require "digest"
+require "view_component/template_dependency_extractor"
+
+module ViewComponent
+  class CacheDigestor
+    def initialize(component:)
+      @component = component
+      @digests = {}
+      @file_cache = {}
+      @constant_cache = {}
+    end
+
+    def digest
+      digest_for_component(@component.class)
+    end
+
+    private
+
+    IN_PROGRESS = :__vc_in_progress
+    private_constant :IN_PROGRESS
+
+    def digest_for_component(component_class)
+      return "" unless component_class <= ViewComponent::Base
+      name = component_class.name
+      return "" unless name
+
+      cached_digest = @digests[name]
+      return "" if cached_digest == IN_PROGRESS
+      return cached_digest if cached_digest
+
+      @digests[name] = IN_PROGRESS
+
+      digest = Digest::SHA1.new
+
+      update_digest(digest, file_contents(component_class.identifier))
+
+      inline_template = component_class.__vc_inline_template
+      if inline_template
+        inline_source = inline_template.source
+        update_digest(digest, inline_source)
+        update_template_dependency_digests(digest, inline_source, inline_template.language)
+      end
+
+      template_paths = component_class.sidecar_files(ActionView::Template.template_handler_extensions).sort
+      template_paths.each do |path|
+        template_source = file_contents(path)
+        update_digest(digest, template_source)
+        update_template_dependency_digests(digest, template_source, File.extname(path).delete_prefix("."))
+      end
+
+      i18n_paths = component_class.sidecar_files(%w[yml yaml]).sort
+      i18n_paths.each do |path|
+        update_digest(digest, file_contents(path))
+      end
+
+      @digests[name] = digest.hexdigest
+    end
+
+    def update_template_dependency_digests(digest, template_source, handler)
+      return unless template_source&.include?("render")
+
+      dependencies = ViewComponent::TemplateDependencyExtractor.new(template_source, handler).extract
+      update_dependency_digests(digest, dependencies)
+    end
+
+    def update_dependency_digests(digest, dependencies)
+      dependencies.each do |dep|
+        next unless uppercase_constant?(dep)
+
+        klass = constantize(dep)
+        next unless klass
+
+        update_digest(digest, digest_for_component(klass))
+      end
+    end
+
+    def update_digest(digest, value)
+      return unless value
+
+      digest.update(value)
+      digest.update("\n")
+    end
+
+    def uppercase_constant?(dep)
+      return false unless dep
+
+      first = dep.getbyte(0)
+      first && first >= 65 && first <= 90
+    end
+
+    def constantize(constant_name)
+      @constant_cache.fetch(constant_name) do
+        @constant_cache[constant_name] = constant_name.safe_constantize
+      end
+    end
+
+    def file_contents(path)
+      return nil if path.nil?
+
+      @file_cache.fetch(path) do
+        @file_cache[path] = File.file?(path) ? File.read(path) : nil
+      end
+    end
+  end
+end
diff --git a/lib/view_component/cache_registry.rb b/lib/view_component/cache_registry.rb
new file mode 100644
index 000000000..8a7f74b53
--- /dev/null
+++ b/lib/view_component/cache_registry.rb
@@ -0,0 +1,20 @@
+# frozen_string_literal: true
+
+module ViewComponent
+  module CachingRegistry
+    extend self
+
+    def caching?
+      ActiveSupport::IsolatedExecutionState[:view_component_caching] ||= false
+    end
+
+    def track_caching
+      caching_was = ActiveSupport::IsolatedExecutionState[:view_component_caching]
+      ActiveSupport::IsolatedExecutionState[:view_component_caching] = true
+
+      yield
+    ensure
+      ActiveSupport::IsolatedExecutionState[:view_component_caching] = caching_was
+    end
+  end
+end
diff --git a/lib/view_component/compiler.rb b/lib/view_component/compiler.rb
index 69b555046..4cff288b3 100644
--- a/lib/view_component/compiler.rb
+++ b/lib/view_component/compiler.rb
@@ -90,13 +90,21 @@ def define_render_template_for
         safe_call = template.safe_method_name_call
         @component.define_method(:render_template_for) do |_|
           @current_template = template
-          instance_exec(&safe_call)
+          if is_a?(ViewComponent::ExperimentallyCacheable)
+            __vc_render_cacheable(safe_call)
+          else
+            instance_exec(&safe_call)
+          end
         end
       else
         compiler = self
         @component.define_method(:render_template_for) do |details|
           if (@current_template = compiler.find_templates_for(details).first)
-            instance_exec(&@current_template.safe_method_name_call)
+            if is_a?(ViewComponent::ExperimentallyCacheable)
+              __vc_render_cacheable(@current_template.safe_method_name_call)
+            else
+              instance_exec(&@current_template.safe_method_name_call)
+            end
           else
             raise MissingTemplateError.new(self.class.name, details)
           end
diff --git a/lib/view_component/experimentally_cacheable.rb b/lib/view_component/experimentally_cacheable.rb
new file mode 100644
index 000000000..4d67f3871
--- /dev/null
+++ b/lib/view_component/experimentally_cacheable.rb
@@ -0,0 +1,138 @@
+# frozen_string_literal: true
+
+require "view_component/cache_registry"
+require "view_component/cache_digestor"
+
+module ViewComponent::ExperimentallyCacheable
+  extend ActiveSupport::Concern
+
+  included do
+    class_attribute :__vc_cache_dependencies, default: Set.new
+    class_attribute :__vc_cache_if, default: nil
+
+    # For caching, such as #cache_if
+    #
+    # @private
+    def view_cache_dependencies
+      @__vc_cache_dependencies ||= self.class.__vc_cache_dependencies.map { |dep| send(dep) }
+    end
+
+    def view_cache_options
+      return @__vc_cache_options if instance_variable_defined?(:@__vc_cache_options)
+
+      dependencies = self.class.__vc_cache_dependencies
+      return @__vc_cache_options = nil if dependencies.empty?
+
+      template_key = __vc_cache_template_key
+      return @__vc_cache_options = nil unless template_key
+
+      expanded_key = ActiveSupport::Cache.expand_cache_key([__vc_static_cache_key_parts(template_key), view_cache_dependencies])
+      @__vc_cache_options = combined_fragment_cache_key(expanded_key)
+    end
+
+    # Render component from cache if possible
+    #
+    # @private
+    def __vc_render_cacheable(safe_call)
+      if __vc_cache_enabled? && (cache_key = view_cache_options)
+        ViewComponent::CachingRegistry.track_caching do
+          template_fragment(cache_key, safe_call)
+        end
+      else
+        instance_exec(&safe_call)
+      end
+    end
+
+    # @private
+    def __vc_cache_template_key
+      return unless defined?(@current_template) && @current_template
+
+      [@current_template.call_method_name, @current_template.virtual_path]
+    end
+
+    def template_fragment(cache_key, safe_call)
+      if (content = read_fragment(cache_key))
+        @view_renderer.cache_hits[@current_template&.virtual_path] = :hit if defined?(@view_renderer)
+        content
+      else
+        @view_renderer.cache_hits[@current_template&.virtual_path] = :miss if defined?(@view_renderer)
+        write_fragment(cache_key, safe_call)
+      end
+    end
+
+    def read_fragment(cache_key)
+      Rails.cache.read(cache_key)
+    end
+
+    def write_fragment(cache_key, safe_call)
+      content = instance_exec(&safe_call)
+      Rails.cache.write(cache_key, content)
+      content
+    end
+
+    def combined_fragment_cache_key(key)
+      cache_key = [:view_component, ENV["RAILS_CACHE_ID"] || ENV["RAILS_APP_VERSION"], key]
+      cache_key.flatten!(1)
+      cache_key.compact!
+      cache_key
+    end
+
+    def component_digest
+      return @__vc_component_digest ||= __vc_compute_component_digest unless ActionView::Base.cache_template_loading
+
+      klass = self.class
+      digest = klass.instance_variable_get(:@__vc_component_digest)
+      return digest if digest
+
+      klass.instance_variable_set(:@__vc_component_digest, __vc_compute_component_digest)
+    end
+
+    def __vc_compute_component_digest
+      ViewComponent::CacheDigestor.new(component: self).digest
+    end
+
+    def __vc_static_cache_key_parts(template_key)
+      klass = self.class
+      digest = component_digest
+      call_method_name, template_virtual_path = template_key
+      cache_key = [call_method_name, template_virtual_path, digest]
+
+      static_key_cache = klass.instance_variable_get(:@__vc_static_cache_key_parts) ||
+        klass.instance_variable_set(:@__vc_static_cache_key_parts, {})
+
+      static_key_cache[cache_key] ||= [klass.name, klass.virtual_path, [call_method_name, template_virtual_path].freeze, digest].freeze
+    end
+
+    def __vc_cache_enabled?
+      cache_if = self.class.__vc_cache_if
+      return true if cache_if.nil?
+
+      case cache_if
+      when Symbol, String
+        public_send(cache_if)
+      when Proc
+        instance_exec(&cache_if)
+      else
+        !!cache_if
+      end
+    end
+  end
+
+  class_methods do
+    def cache_if(value = nil, &block)
+      self.__vc_cache_if = block || value
+    end
+
+    # For caching the component
+    def cache_on(*args)
+      __vc_cache_dependencies.merge(args)
+    end
+
+    def inherited(child)
+      child.__vc_cache_dependencies = __vc_cache_dependencies.dup
+      child.__vc_cache_if = __vc_cache_if
+
+      super
+    end
+  end
+end
diff --git a/lib/view_component/system_test_helpers.rb b/lib/view_component/system_test_helpers.rb
index c5677e63b..070d0612c 100644
--- a/lib/view_component/system_test_helpers.rb
+++ b/lib/view_component/system_test_helpers.rb
@@ -1,5 +1,8 @@
 # frozen_string_literal: true
 
+require "base64"
+require "securerandom"
+
 module ViewComponent
   module SystemTestHelpers
     include TestHelpers
@@ -9,18 +12,29 @@ module SystemTestHelpers
     # @param layout [String] The (optional) layout to use.
     # @return [Proc] A block that can be used to visit the path of the inline rendered component.
     def with_rendered_component_path(fragment, layout: false, &block)
-      file = Tempfile.new(
-        ["rendered_#{fragment.class.name}", ".html"],
-        ViewComponentsSystemTestController.temp_dir
-      )
-      begin
-        file.write(vc_test_controller.render_to_string(html: fragment.to_html.html_safe, layout: layout))
-        file.rewind
-
-        yield("/_system_test_entrypoint?file=#{file.path.split("/").last}")
-      ensure
-        file.unlink
+      rendered_html = vc_test_controller.render_to_string(html: fragment.to_html.html_safe, layout: layout)
+
+      if use_inline_data_url?(layout)
+        yield("data:text/html;base64,#{Base64.strict_encode64(rendered_html)}")
+        return
       end
+
+      filename = "rendered_#{fragment.class.name.gsub("::", "")}_#{SecureRandom.hex(8)}.html"
+      path = File.join(ViewComponentsSystemTestController.temp_dir, filename)
+
+      File.write(path, rendered_html)
+
+      yield("/_system_test_entrypoint?file=#{filename}")
+    end
+
+    private
+
+    def use_inline_data_url?(layout)
+      return false if layout
+      return true if defined?(ActionDispatch::SystemTestCase) && is_a?(ActionDispatch::SystemTestCase)
+      return false unless defined?(Capybara) && Capybara.respond_to?(:current_driver)
+
+      Capybara.current_driver != :rack_test
     end
   end
 end
diff --git a/lib/view_component/template_ast_builder.rb b/lib/view_component/template_ast_builder.rb
new file mode 100644
index 000000000..d04d567c6
--- /dev/null
+++ b/lib/view_component/template_ast_builder.rb
@@ -0,0 +1,52 @@
+# frozen_string_literal: true
+
+module ViewComponent
+  class TemplateAstBuilder
+    def self.build(template_string, engine_name)
+      case engine_name.to_sym
+      when :erb
+        compile_erb(template_string)
+      else
+        compile_template_with_engine(template_string, engine_name)
+      end
+    end
+
+    def self.compile_erb(template)
+      require "erb"
+
+      ERB::Compiler.new("-").compile(template).first
+    rescue
+      nil
+    end
+    private_class_method :compile_erb
+
+    def self.compile_template_with_engine(template_string, engine_name)
+      engine_class = load_template_engine(engine_name)
+      return nil unless engine_class
+
+      engine_class.new.call(template_string)
+    rescue
+      nil
+    end
+    private_class_method :compile_template_with_engine
+
+    def self.load_template_engine(engine_name)
+      engine_class = template_engine_class(engine_name)
+      return engine_class if engine_class
+
+      require engine_name.to_s
+      template_engine_class(engine_name)
+    rescue LoadError
+      nil
+    end
+    private_class_method :load_template_engine
+
+    def self.template_engine_class(engine_name)
+      engine_module_name = engine_name.to_s.tr("-", "_").split("_").map!(&:capitalize).join
+      Object.const_get("#{engine_module_name}::Engine")
+    rescue NameError
+      nil
+    end
+    private_class_method :template_engine_class
+  end
+end
diff --git a/lib/view_component/template_dependency_extractor.rb b/lib/view_component/template_dependency_extractor.rb
new file mode 100644
index 000000000..42eb7078b
--- /dev/null
+++ b/lib/view_component/template_dependency_extractor.rb
@@ -0,0 +1,72 @@
+# frozen_string_literal: true
+
+require "actionview_precompiler"
+
+require_relative "template_ast_builder"
+
+module ViewComponent
+  class TemplateDependencyExtractor
+    def initialize(template_string, engine)
+      @template_string = template_string
+      @engine = engine
+      @dependencies = Set.new
+    end
+
+    def extract
+      engine = @engine.to_sym
+      ruby_source = TemplateAstBuilder.build(@template_string, engine)
+
+      if ruby_source.nil?
+        return extract_erb_fallback if engine == :erb
+
+        return []
+      end
+
+      extract_from_ruby(ruby_source)
+      @dependencies.to_a
+    end
+
+    private
+
+    def extract_from_ruby(ruby_code)
+      return unless ruby_code.include?("render")
+
+      extract_component_class_renders(ruby_code).each { @dependencies << _1 }
+
+      extract_render_paths(ruby_code).each do |render_path|
+        @dependencies << render_path.gsub(%r{/_}, "/")
+      end
+    end
+
+    COMPONENT_RENDER = /(?:render|render_to_string)\s*\(?\s*([A-Z]\w*(?:::[A-Z]\w*)*)\.new\b/
+    private_constant :COMPONENT_RENDER
+
+    def extract_component_class_renders(ruby_code)
+      ruby_code.scan(COMPONENT_RENDER).flatten
+    end
+
+    def extract_render_paths(ruby_code)
+      render_calls = ActionviewPrecompiler::RenderParser.new(ruby_code).render_calls
+      render_calls.map do |call|
+        call.respond_to?(:virtual_path) ? call.virtual_path : call
+      end
+    rescue ActionviewPrecompiler::PrismASTParser::CompilationError
+      require "actionview_precompiler/ast_parser/ripper"
+
+      ActionviewPrecompiler::RenderParser.new(ruby_code, parser: ActionviewPrecompiler::RipperASTParser).render_calls.map do |call|
+        call.respond_to?(:virtual_path) ? call.virtual_path : call
+      end
+    end
+
+    ERB_RUBY_TAG = /<%(=|-|#)?(.*?)%>/m
+    private_constant :ERB_RUBY_TAG
+
+    def extract_erb_fallback
+      @template_string.scan(ERB_RUBY_TAG) do |(_, tag_ruby)|
+        extract_from_ruby(tag_ruby)
+      end
+
+      @dependencies.to_a
+    end
+  end
+end
diff --git a/performance/cache_benchmark.rb b/performance/cache_benchmark.rb
new file mode 100644
index 000000000..d392260bb
--- /dev/null
+++ b/performance/cache_benchmark.rb
@@ -0,0 +1,57 @@
+# frozen_string_literal: true
+
+require "benchmark/ips"
+
+# Configure Rails Environment
+ENV["RAILS_ENV"] = "production"
+require File.expand_path("../test/sandbox/config/environment.rb", __dir__)
+
+Rails.logger.level = 1
+
+module Performance
+  require_relative "components/cacheable_benchmark_component"
+  require_relative "components/non_cacheable_benchmark_component"
+end
+
+class BenchmarksController < ActionController::Base
+end
+
+ActionController::Base.perform_caching = true
+original_cache = Rails.cache
+Rails.cache = ActiveSupport::Cache::MemoryStore.new(size: 64.megabytes)
+Rails.cache.clear
+
+BenchmarksController.view_paths = [File.expand_path("./views", __dir__)]
+controller_view = BenchmarksController.new.view_context
+
+cacheable_warm_component = Performance::CacheableBenchmarkComponent.new(name: "Fox Mulder")
+non_cacheable_component = Performance::NonCacheableBenchmarkComponent.new(name: "Fox Mulder")
+cache_miss_counter = 0
+
+# Prime compile + cache so we benchmark steady-state behavior.
+controller_view.render(cacheable_warm_component)
+controller_view.render(non_cacheable_component)
+
+begin
+  Benchmark.ips do |x|
+    x.time = ENV.fetch("BENCHMARK_TIME", "20").to_i
+    x.warmup = ENV.fetch("BENCHMARK_WARMUP", "5").to_i
+
+    x.report("non_cacheable") do
+      controller_view.render(non_cacheable_component)
+    end
+
+    x.report("cacheable_miss") do
+      cache_miss_counter += 1
+      controller_view.render(Performance::CacheableBenchmarkComponent.new(name: "Fox Mulder #{cache_miss_counter}"))
+    end
+
+    x.report("cacheable_hit") do
+      controller_view.render(cacheable_warm_component)
+    end
+
+    x.compare!
+  end
+ensure
+  Rails.cache = original_cache
+end
diff --git a/performance/components/cacheable_benchmark_component.html.erb b/performance/components/cacheable_benchmark_component.html.erb
new file mode 100644
index 000000000..0351f7a61
--- /dev/null
+++ b/performance/components/cacheable_benchmark_component.html.erb
@@ -0,0 +1,18 @@
+<section class="cacheable-benchmark" data-time="<%= Time.zone.now.to_f %>">
+  <header class="benchmark-header">
+    <h3><%= name %> dashboard</h3>
+    <p>Total score: <%= number_with_delimiter(total_score) %></p>
+  </header>
+  <ul class="benchmark-list">
+    <% report_rows.each_with_index do |row, index| %>
+      <li class="benchmark-row <%= index.even? ? "even" : "odd" %>">
+        <span class="label"><%= row[:label] %></span>
+        <span class="amount"><%= number_to_currency(row[:amount]) %></span>
+        <span class="events"><%= pluralize(row[:events], "event") %></span>
+      </li>
+    <% end %>
+  </ul>
+  <footer class="benchmark-footer">
+    <%= safe_join(report_rows.first(6).map { |row| content_tag(:code, row[:slug]) }, " ") %>
+  </footer>
+</section>
diff --git a/performance/components/cacheable_benchmark_component.rb b/performance/components/cacheable_benchmark_component.rb
new file mode 100644
index 000000000..eef1dcc90
--- /dev/null
+++ b/performance/components/cacheable_benchmark_component.rb
@@ -0,0 +1,39 @@
+# frozen_string_literal: true
+
+module Performance
+  class CacheableBenchmarkComponent < ViewComponent::Base
+    include ViewComponent::ExperimentallyCacheable
+
+    cache_if :cache_worthy?
+    cache_on :name
+
+    attr_reader :name
+
+    def initialize(name:)
+      @name = name
+    end
+
+    def cache_worthy?
+      !name.match?(/\d+\z/)
+    end
+
+    def report_rows
+      @report_rows ||= Array.new(36) do |index|
+        sequence = index + 1
+        amount = ((sequence * 13.75) + (sequence % 4) * 2.125)
+
+        {
+          label: "#{name} item #{sequence}",
+          amount: amount,
+          events: (sequence * 7) % 11 + 1,
+          score: ((sequence * 41) % 100) + 1,
+          slug: "#{name.downcase.tr(" ", "-")}-#{sequence}"
+        }
+      end
+    end
+
+    def total_score
+      report_rows.sum { _1[:score] }
+    end
+  end
+end
diff --git a/performance/components/non_cacheable_benchmark_component.html.erb b/performance/components/non_cacheable_benchmark_component.html.erb
new file mode 100644
index 000000000..d1340b9c2
--- /dev/null
+++ b/performance/components/non_cacheable_benchmark_component.html.erb
@@ -0,0 +1,18 @@
+<section class="non-cacheable-benchmark" data-time="<%= Time.zone.now.to_f %>">
+  <header class="benchmark-header">
+    <h3><%= name %> dashboard</h3>
+    <p>Total score: <%= number_with_delimiter(total_score) %></p>
+  </header>
+  <ul class="benchmark-list">
+    <% report_rows.each_with_index do |row, index| %>
+      <li class="benchmark-row <%= index.even? ? "even" : "odd" %>">
+        <span class="label"><%= row[:label] %></span>
+        <span class="amount"><%= number_to_currency(row[:amount]) %></span>
+        <span class="events"><%= pluralize(row[:events], "event") %></span>
+      </li>
+    <% end %>
+  </ul>
+  <footer class="benchmark-footer">
+    <%= safe_join(report_rows.first(6).map { |row| content_tag(:code, row[:slug]) }, " ") %>
+  </footer>
+</section>
diff --git a/performance/components/non_cacheable_benchmark_component.rb b/performance/components/non_cacheable_benchmark_component.rb
new file mode 100644
index 000000000..0d139ff7d
--- /dev/null
+++ b/performance/components/non_cacheable_benchmark_component.rb
@@ -0,0 +1,30 @@
+# frozen_string_literal: true
+
+module Performance
+  class NonCacheableBenchmarkComponent < ViewComponent::Base
+    attr_reader :name
+
+    def initialize(name:)
+      @name = name
+    end
+
+    def report_rows
+      @report_rows ||= Array.new(36) do |index|
+        sequence = index + 1
+        amount = ((sequence * 13.75) + (sequence % 4) * 2.125)
+
+        {
+          label: "#{name} item #{sequence}",
+          amount: amount,
+          events: (sequence * 7) % 11 + 1,
+          score: ((sequence * 41) % 100) + 1,
+          slug: "#{name.downcase.tr(" ", "-")}-#{sequence}"
+        }
+      end
+    end
+
+    def total_score
+      report_rows.sum { _1[:score] }
+    end
+  end
+end
diff --git a/test/sandbox/app/components/cache_component.html.erb b/test/sandbox/app/components/cache_component.html.erb
new file mode 100644
index 000000000..4b968b659
--- /dev/null
+++ b/test/sandbox/app/components/cache_component.html.erb
@@ -0,0 +1,3 @@
+<p class='cache-component__cache-key'><%= view_cache_dependencies %></p>
+<p class='cache-component__cache-message' data-time="<%= Time.zone.now.to_f %>"><%= "#{foo} #{bar}" %></p>
+<%= render(ButtonToComponent.new) %>
diff --git a/test/sandbox/app/components/cache_component.rb b/test/sandbox/app/components/cache_component.rb
new file mode 100644
index 000000000..9633eb35d
--- /dev/null
+++ b/test/sandbox/app/components/cache_component.rb
@@ -0,0 +1,14 @@
+# frozen_string_literal: true
+
+class CacheComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_on :foo, :bar
+
+  attr_reader :foo, :bar
+
+  def initialize(foo:, bar:)
+    @foo = foo
+    @bar = bar
+  end
+end
diff --git a/test/sandbox/app/components/cache_condition_component.html.erb b/test/sandbox/app/components/cache_condition_component.html.erb
new file mode 100644
index 000000000..61035c27e
--- /dev/null
+++ b/test/sandbox/app/components/cache_condition_component.html.erb
@@ -0,0 +1 @@
+<p class="cache-condition-component__message" data-time="<%= Time.zone.now.to_f %>"><%= foo %></p>
diff --git a/test/sandbox/app/components/cache_condition_component.rb b/test/sandbox/app/components/cache_condition_component.rb
new file mode 100644
index 000000000..5c229927e
--- /dev/null
+++ b/test/sandbox/app/components/cache_condition_component.rb
@@ -0,0 +1,18 @@
+# frozen_string_literal: true
+
+class CacheConditionComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_if :cache_enabled?
+  cache_on :foo
+
+  attr_reader :foo
+
+  def initialize(foo:)
+    @foo = foo
+  end
+
+  def cache_enabled?
+    false
+  end
+end
diff --git a/test/sandbox/app/components/cache_dependency_types_component.html.erb b/test/sandbox/app/components/cache_dependency_types_component.html.erb
new file mode 100644
index 000000000..1f3237fab
--- /dev/null
+++ b/test/sandbox/app/components/cache_dependency_types_component.html.erb
@@ -0,0 +1,2 @@
+<p class="cache-dependency-types__deps"><%= view_cache_dependencies.inspect %></p>
+<p class="cache-dependency-types__key"><%= view_cache_options.inspect %></p>
diff --git a/test/sandbox/app/components/cache_dependency_types_component.rb b/test/sandbox/app/components/cache_dependency_types_component.rb
new file mode 100644
index 000000000..76f2ad1a1
--- /dev/null
+++ b/test/sandbox/app/components/cache_dependency_types_component.rb
@@ -0,0 +1,21 @@
+# frozen_string_literal: true
+
+class CacheDependencyTypesComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_on :record, :tags, :label, :private_token
+
+  attr_reader :record, :tags, :label
+
+  def initialize(record:, tags:, label:)
+    @record = record
+    @tags = tags
+    @label = label
+  end
+
+  private
+
+  def private_token
+    "private-token"
+  end
+end
diff --git a/test/sandbox/app/components/cache_digestor_child_component.html.erb b/test/sandbox/app/components/cache_digestor_child_component.html.erb
new file mode 100644
index 000000000..fa7904e28
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_child_component.html.erb
@@ -0,0 +1 @@
+<span class="child">v1</span>
diff --git a/test/sandbox/app/components/cache_digestor_child_component.rb b/test/sandbox/app/components/cache_digestor_child_component.rb
new file mode 100644
index 000000000..cb0c2af27
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_child_component.rb
@@ -0,0 +1,4 @@
+# frozen_string_literal: true
+
+class CacheDigestorChildComponent < ViewComponent::Base
+end
diff --git a/test/sandbox/app/components/cache_digestor_child_partial_component.html.erb b/test/sandbox/app/components/cache_digestor_child_partial_component.html.erb
new file mode 100644
index 000000000..3afc7a63a
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_child_partial_component.html.erb
@@ -0,0 +1 @@
+<%= render "shared/cache_digestor_nested_partial" %>
diff --git a/test/sandbox/app/components/cache_digestor_child_partial_component.rb b/test/sandbox/app/components/cache_digestor_child_partial_component.rb
new file mode 100644
index 000000000..54eb4ef90
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_child_partial_component.rb
@@ -0,0 +1,4 @@
+# frozen_string_literal: true
+
+class CacheDigestorChildPartialComponent < ViewComponent::Base
+end
diff --git a/test/sandbox/app/components/cache_digestor_layout_parent_component.html.erb b/test/sandbox/app/components/cache_digestor_layout_parent_component.html.erb
new file mode 100644
index 000000000..ff7f52a4d
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_layout_parent_component.html.erb
@@ -0,0 +1,5 @@
+<div class="layout-parent" data-time="<%= Time.zone.now.to_f %>">
+  <%= render layout: "shared/cache_digestor_layout" do %>
+    <span class="layout-body">layout-body</span>
+  <% end %>
+</div>
diff --git a/test/sandbox/app/components/cache_digestor_layout_parent_component.rb b/test/sandbox/app/components/cache_digestor_layout_parent_component.rb
new file mode 100644
index 000000000..ef11450a7
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_layout_parent_component.rb
@@ -0,0 +1,13 @@
+# frozen_string_literal: true
+
+class CacheDigestorLayoutParentComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_on :foo
+
+  attr_reader :foo
+
+  def initialize(foo:)
+    @foo = foo
+  end
+end
diff --git a/test/sandbox/app/components/cache_digestor_nested_partial_parent_component.html.erb b/test/sandbox/app/components/cache_digestor_nested_partial_parent_component.html.erb
new file mode 100644
index 000000000..cce2a9786
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_nested_partial_parent_component.html.erb
@@ -0,0 +1,3 @@
+<div class="nested-partial-parent" data-time="<%= Time.zone.now.to_f %>">
+  <%= render CacheDigestorChildPartialComponent.new %>
+</div>
diff --git a/test/sandbox/app/components/cache_digestor_nested_partial_parent_component.rb b/test/sandbox/app/components/cache_digestor_nested_partial_parent_component.rb
new file mode 100644
index 000000000..2776c3462
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_nested_partial_parent_component.rb
@@ -0,0 +1,13 @@
+# frozen_string_literal: true
+
+class CacheDigestorNestedPartialParentComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_on :foo
+
+  attr_reader :foo
+
+  def initialize(foo:)
+    @foo = foo
+  end
+end
diff --git a/test/sandbox/app/components/cache_digestor_parent_component.html.erb b/test/sandbox/app/components/cache_digestor_parent_component.html.erb
new file mode 100644
index 000000000..f0145826b
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_parent_component.html.erb
@@ -0,0 +1,3 @@
+<div class="parent" data-time="<%= Time.zone.now.to_f %>">
+  <%= render CacheDigestorChildComponent.new %>
+</div>
diff --git a/test/sandbox/app/components/cache_digestor_parent_component.rb b/test/sandbox/app/components/cache_digestor_parent_component.rb
new file mode 100644
index 000000000..cbab5752f
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_parent_component.rb
@@ -0,0 +1,13 @@
+# frozen_string_literal: true
+
+class CacheDigestorParentComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_on :foo
+
+  attr_reader :foo
+
+  def initialize(foo:)
+    @foo = foo
+  end
+end
diff --git a/test/sandbox/app/components/cache_digestor_partial_parent_component.html.erb b/test/sandbox/app/components/cache_digestor_partial_parent_component.html.erb
new file mode 100644
index 000000000..f034bf35d
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_partial_parent_component.html.erb
@@ -0,0 +1,3 @@
+<div class="partial-parent" data-time="<%= Time.zone.now.to_f %>">
+  <%= render "shared/cache_digestor_partial" %>
+</div>
diff --git a/test/sandbox/app/components/cache_digestor_partial_parent_component.rb b/test/sandbox/app/components/cache_digestor_partial_parent_component.rb
new file mode 100644
index 000000000..ce49c318c
--- /dev/null
+++ b/test/sandbox/app/components/cache_digestor_partial_parent_component.rb
@@ -0,0 +1,13 @@
+# frozen_string_literal: true
+
+class CacheDigestorPartialParentComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_on :foo
+
+  attr_reader :foo
+
+  def initialize(foo:)
+    @foo = foo
+  end
+end
diff --git a/test/sandbox/app/components/inherited_cache_component.html.erb b/test/sandbox/app/components/inherited_cache_component.html.erb
new file mode 100644
index 000000000..fccbe87a4
--- /dev/null
+++ b/test/sandbox/app/components/inherited_cache_component.html.erb
@@ -0,0 +1,3 @@
+<p class='cache-component__cache-key'><%= view_cache_dependencies %></p>
+
+<p class='cache-component__cache-message' data-time=data-time="<%= Time.zone.now %>"><%= "#{foo} #{bar}" %></p>
diff --git a/test/sandbox/app/components/inherited_cache_component.rb b/test/sandbox/app/components/inherited_cache_component.rb
new file mode 100644
index 000000000..c1de347a1
--- /dev/null
+++ b/test/sandbox/app/components/inherited_cache_component.rb
@@ -0,0 +1,7 @@
+# frozen_string_literal: true
+
+class InheritedCacheComponent < CacheComponent
+  def initialize(foo:, bar:)
+    super
+  end
+end
diff --git a/test/sandbox/app/components/inline_cache_component.rb b/test/sandbox/app/components/inline_cache_component.rb
new file mode 100644
index 000000000..dd6a84d66
--- /dev/null
+++ b/test/sandbox/app/components/inline_cache_component.rb
@@ -0,0 +1,21 @@
+# frozen_string_literal: true
+
+class InlineCacheComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  cache_on :foo, :bar
+
+  attr_reader :foo, :bar
+
+  def initialize(foo:, bar:)
+    @foo = foo
+    @bar = bar
+  end
+
+  erb_template <<~ERB
+    <p class='cache-component__cache-key'><%= view_cache_dependencies %></p>
+    <p class='cache-component__cache-message' data-time=data-time="<%= Time.zone.now %>"><%= "\#{foo} \#{bar}" %></p>
+
+    <%= render(ButtonToComponent.new) %>
+  ERB
+end
diff --git a/test/sandbox/app/components/no_cache_component.html.erb b/test/sandbox/app/components/no_cache_component.html.erb
new file mode 100644
index 000000000..fccbe87a4
--- /dev/null
+++ b/test/sandbox/app/components/no_cache_component.html.erb
@@ -0,0 +1,3 @@
+<p class='cache-component__cache-key'><%= view_cache_dependencies %></p>
+
+<p class='cache-component__cache-message' data-time=data-time="<%= Time.zone.now %>"><%= "#{foo} #{bar}" %></p>
diff --git a/test/sandbox/app/components/no_cache_component.rb b/test/sandbox/app/components/no_cache_component.rb
new file mode 100644
index 000000000..2635739cc
--- /dev/null
+++ b/test/sandbox/app/components/no_cache_component.rb
@@ -0,0 +1,12 @@
+# frozen_string_literal: true
+
+class NoCacheComponent < ViewComponent::Base
+  include ViewComponent::ExperimentallyCacheable
+
+  attr_reader :foo, :bar
+
+  def initialize(foo:, bar:)
+    @foo = foo
+    @bar = bar
+  end
+end
diff --git a/test/sandbox/app/controllers/integration_examples_controller.rb b/test/sandbox/app/controllers/integration_examples_controller.rb
index 125fa43ed..5dcba6cca 100644
--- a/test/sandbox/app/controllers/integration_examples_controller.rb
+++ b/test/sandbox/app/controllers/integration_examples_controller.rb
@@ -11,6 +11,12 @@ def controller_inline
     render(ControllerInlineComponent.new(message: "bar"))
   end
 
+  def controller_inline_cached
+    foo = params[:foo] || "foo"
+    bar = params[:bar] || "bar"
+    render(CacheComponent.new(foo: foo, bar: bar))
+  end
+
   def controller_inline_with_block
     render(ControllerInlineWithBlockComponent.new(message: "bar").tap do |c|
       c.with_slot(name: "baz")
diff --git a/test/sandbox/app/views/shared/_cache_digestor_layout.html.erb b/test/sandbox/app/views/shared/_cache_digestor_layout.html.erb
new file mode 100644
index 000000000..ffdc53d01
--- /dev/null
+++ b/test/sandbox/app/views/shared/_cache_digestor_layout.html.erb
@@ -0,0 +1 @@
+<div class="layout-shell">layout-v1 <%= yield %></div>
diff --git a/test/sandbox/app/views/shared/_cache_digestor_nested_partial.html.erb b/test/sandbox/app/views/shared/_cache_digestor_nested_partial.html.erb
new file mode 100644
index 000000000..adc577b1c
--- /dev/null
+++ b/test/sandbox/app/views/shared/_cache_digestor_nested_partial.html.erb
@@ -0,0 +1 @@
+<span class="nested-partial-child">nested-v1</span>
diff --git a/test/sandbox/app/views/shared/_cache_digestor_partial.html.erb b/test/sandbox/app/views/shared/_cache_digestor_partial.html.erb
new file mode 100644
index 000000000..8fca5d1fc
--- /dev/null
+++ b/test/sandbox/app/views/shared/_cache_digestor_partial.html.erb
@@ -0,0 +1 @@
+<span class="partial-child">partial-v1</span>
diff --git a/test/sandbox/config/routes.rb b/test/sandbox/config/routes.rb
index 2d8fa470b..b98e881e7 100644
--- a/test/sandbox/config/routes.rb
+++ b/test/sandbox/config/routes.rb
@@ -11,6 +11,7 @@
   get :inline_products, to: "integration_examples#inline_products"
   get :cached, to: "integration_examples#cached"
   get :render_check, to: "integration_examples#render_check"
+  get :controller_inline_cached, to: "integration_examples#controller_inline_cached"
   get :controller_inline, to: "integration_examples#controller_inline"
   get :controller_inline_with_block, to: "integration_examples#controller_inline_with_block"
   get :controller_inline_baseline, to: "integration_examples#controller_inline_baseline"
diff --git a/test/sandbox/test/integration_test.rb b/test/sandbox/test/integration_test.rb
index 0de660347..69093540f 100644
--- a/test/sandbox/test/integration_test.rb
+++ b/test/sandbox/test/integration_test.rb
@@ -273,6 +273,33 @@ def test_rendering_component_with_caching
     Rails.cache.clear
   end
 
+  def test_rendering_cacheable_component_in_controller
+    Rails.cache.clear
+    ActionController::Base.perform_caching = true
+
+    get "/controller_inline_cached?foo=foo&bar=bar"
+    assert_response :success
+    assert_select ".cache-component__cache-message", text: "foo bar"
+    first_time = css_select(".cache-component__cache-message").first["data-time"]
+    refute_nil first_time
+
+    get "/controller_inline_cached?foo=foo&bar=bar"
+    assert_response :success
+    assert_select ".cache-component__cache-message", text: "foo bar"
+    second_time = css_select(".cache-component__cache-message").first["data-time"]
+    assert_equal first_time, second_time
+
+    get "/controller_inline_cached?foo=foo&bar=baz"
+    assert_response :success
+    assert_select ".cache-component__cache-message", text: "foo baz"
+    third_time = css_select(".cache-component__cache-message").first["data-time"]
+    refute_nil third_time
+    refute_equal first_time, third_time
+  ensure
+    ActionController::Base.perform_caching = false
+    Rails.cache.clear
+  end
+
   def test_optional_rendering_component_depending_on_request_context
     get "/render_check"
     assert_response :success
diff --git a/test/sandbox/test/rendering_test.rb b/test/sandbox/test/rendering_test.rb
index c57bf6ee7..32508800d 100644
--- a/test/sandbox/test/rendering_test.rb
+++ b/test/sandbox/test/rendering_test.rb
@@ -20,7 +20,7 @@ def test_render_inline_allocations
     MyComponent.__vc_ensure_compiled
 
     with_instrumentation_enabled_option(false) do
-      assert_allocations({"4.1" => 67..68, "4.0" => 67, "3.4" => 72..74, "3.3" => 75, "3.2" => 78..79}) do
+      assert_allocations({"4.1" => 67..68, "4.0" => 67, "3.4" => 72..76, "3.3" => 75, "3.2" => 78..79}) do
         render_inline(MyComponent.new)
       end
     end
@@ -1356,6 +1356,187 @@ def test_around_render
     assert_text("Hi!")
   end
 
+  def test_inline_cache_component
+    component = InlineCacheComponent.new(foo: "foo", bar: "bar")
+    render_inline(component)
+
+    assert_selector(".cache-component__cache-key", text: component.view_cache_dependencies)
+    assert_selector(".cache-component__cache-message", text: "foo bar")
+
+    render_inline(InlineCacheComponent.new(foo: "foo", bar: "bar"))
+
+    assert_selector(".cache-component__cache-key", text: component.view_cache_dependencies)
+
+    new_component = InlineCacheComponent.new(foo: "foo", bar: "baz")
+    render_inline(new_component)
+
+    assert_selector(".cache-component__cache-key", text: new_component.view_cache_dependencies)
+    assert_selector(".cache-component__cache-message", text: "foo baz")
+  end
+
+  def test_cache_component
+    component = CacheComponent.new(foo: "foo", bar: "bar")
+    render_inline(component)
+
+    assert_selector(".cache-component__cache-key", text: component.view_cache_dependencies)
+    assert_selector(".cache-component__cache-message", text: "foo bar")
+
+    render_inline(CacheComponent.new(foo: "foo", bar: "bar"))
+
+    assert_selector(".cache-component__cache-key", text: component.view_cache_dependencies)
+
+    new_component = CacheComponent.new(foo: "foo", bar: "baz")
+    render_inline(new_component)
+
+    assert_selector(".cache-component__cache-key", text: new_component.view_cache_dependencies)
+    assert_selector(".cache-component__cache-message", text: "foo baz")
+  end
+
+  def test_no_cache_compoennt
+    component = NoCacheComponent.new(foo: "foo", bar: "bar")
+    render_inline(component)
+
+    assert_selector(".cache-component__cache-key", text: component.view_cache_dependencies)
+    assert_selector(".cache-component__cache-message", text: "foo bar")
+  end
+
+  def test_cache_if_false_skips_caching
+    component = CacheConditionComponent.new(foo: "foo")
+
+    render_inline(component)
+    first_time = page.find(".cache-condition-component__message")["data-time"]
+
+    render_inline(component)
+    second_time = page.find(".cache-condition-component__message")["data-time"]
+
+    refute_equal(first_time, second_time)
+  end
+
+  def test_cache_on_expands_dependency_values_and_allows_private_methods
+    record = GlobalID.parse("gid://sandbox/CacheDependencyTypesRecord/42")
+    component = CacheDependencyTypesComponent.new(record: record, tags: ["alpha", "beta"], label: "plain-string")
+
+    render_inline(component)
+
+    expected_dependencies = [record, ["alpha", "beta"], "plain-string", "private-token"]
+    assert_equal(expected_dependencies, component.view_cache_dependencies)
+
+    expanded_dependencies = ActiveSupport::Cache.expand_cache_key(expected_dependencies)
+    cache_key = component.view_cache_options.last
+    assert_includes(cache_key, expanded_dependencies)
+    assert_includes(expanded_dependencies, record.to_param)
+  end
+
+  def test_cache_key_changes_when_child_component_template_changes
+    child_template_path = CacheDigestorChildComponent.sidecar_files(["erb"]).first
+    original_template = File.read(child_template_path)
+
+    Rails.cache.clear
+    ViewComponent::CompileCache.invalidate!
+
+    component_v1 = CacheDigestorParentComponent.new(foo: "x")
+    render_inline(component_v1)
+    assert_selector(".child", text: "v1")
+    time_v1 = page.find(".parent")["data-time"]
+
+    render_inline(CacheDigestorParentComponent.new(foo: "x"))
+    assert_selector(".child", text: "v1")
+    assert_equal(time_v1, page.find(".parent")["data-time"])
+
+    File.write(child_template_path, original_template.sub("v1", "v2"))
+    ViewComponent::CompileCache.invalidate!
+
+    component_v2 = CacheDigestorParentComponent.new(foo: "x")
+    render_inline(component_v2)
+    assert_selector(".child", text: "v2")
+    refute_equal(time_v1, page.find(".parent")["data-time"])
+  ensure
+    Rails.cache.clear
+    ViewComponent::CompileCache.invalidate!
+
+    if child_template_path && original_template
+      File.write(child_template_path, original_template)
+    end
+  end
+
+  def test_cache_key_does_not_change_when_partial_string_dependency_changes
+    partial_path = Rails.root.join("app/views/shared/_cache_digestor_partial.html.erb")
+    original_partial = File.read(partial_path)
+
+    Rails.cache.clear
+    ViewComponent::CompileCache.invalidate!
+
+    component_v1 = CacheDigestorPartialParentComponent.new(foo: "x")
+    render_inline(component_v1)
+    assert_selector(".partial-child", text: "partial-v1")
+    time_v1 = page.find(".partial-parent")["data-time"]
+
+    File.write(partial_path, original_partial.sub("partial-v1", "partial-v2"))
+    ViewComponent::CompileCache.invalidate!
+
+    render_inline(CacheDigestorPartialParentComponent.new(foo: "x"))
+
+    assert_selector(".partial-child", text: "partial-v1")
+    assert_equal(time_v1, page.find(".partial-parent")["data-time"])
+  ensure
+    Rails.cache.clear
+    ViewComponent::CompileCache.invalidate!
+
+    File.write(partial_path, original_partial) if partial_path && original_partial
+  end
+
+  def test_cache_key_does_not_change_when_child_component_partial_dependency_changes
+    partial_path = Rails.root.join("app/views/shared/_cache_digestor_nested_partial.html.erb")
+    original_partial = File.read(partial_path)
+
+    Rails.cache.clear
+    ViewComponent::CompileCache.invalidate!
+
+    component_v1 = CacheDigestorNestedPartialParentComponent.new(foo: "x")
+    render_inline(component_v1)
+    assert_selector(".nested-partial-child", text: "nested-v1")
+    time_v1 = page.find(".nested-partial-parent")["data-time"]
+
+    File.write(partial_path, original_partial.sub("nested-v1", "nested-v2"))
+    ViewComponent::CompileCache.invalidate!
+
+    render_inline(CacheDigestorNestedPartialParentComponent.new(foo: "x"))
+
+    assert_selector(".nested-partial-child", text: "nested-v1")
+    assert_equal(time_v1, page.find(".nested-partial-parent")["data-time"])
+  ensure
+    Rails.cache.clear
+    ViewComponent::CompileCache.invalidate!
+
+    File.write(partial_path, original_partial) if partial_path && original_partial
+  end
+
+  def test_cache_key_does_not_change_when_layout_string_dependency_changes
+    layout_path = Rails.root.join("app/views/shared/_cache_digestor_layout.html.erb")
+    original_layout = File.read(layout_path)
+
+    Rails.cache.clear
+    ViewComponent::CompileCache.invalidate!
+
+    component_v1 = CacheDigestorLayoutParentComponent.new(foo: "x")
+    render_inline(component_v1)
+    assert_selector(".layout-shell", text: "layout-v1")
+    time_v1 = page.find(".layout-parent")["data-time"]
+
+    File.write(layout_path, original_layout.sub("layout-v1", "layout-v2"))
+    ViewComponent::CompileCache.invalidate!
+
+    render_inline(CacheDigestorLayoutParentComponent.new(foo: "x"))
+
+    assert_selector(".layout-shell", text: "layout-v1")
+    assert_equal(time_v1, page.find(".layout-parent")["data-time"])
+  ensure
+    Rails.cache.clear
+    ViewComponent::CompileCache.invalidate!
+
+    File.write(layout_path, original_layout) if layout_path && original_layout
+  end
+
   def test_render_partial_with_yield
     render_inline(PartialWithYieldComponent.new)
     assert_text "hello world", exact: true, normalize_ws: true
diff --git a/view_component.gemspec b/view_component.gemspec
index 6b8d75f0f..233d6c022 100644
--- a/view_component.gemspec
+++ b/view_component.gemspec
@@ -35,5 +35,6 @@ Gem::Specification.new do |spec|
   supported_rails_version = [">= 7.1.0"]
   spec.add_runtime_dependency "activesupport", supported_rails_version
   spec.add_runtime_dependency "actionview", supported_rails_version
+  spec.add_runtime_dependency "actionview_precompiler", ">= 0.4"
   spec.add_runtime_dependency "concurrent-ruby", "~> 1"
 end