diff --git a/.github/tests/lm_tests.py b/.github/tests/lm_tests.py
index ae68c109..e8e46f47 100644
--- a/.github/tests/lm_tests.py
+++ b/.github/tests/lm_tests.py
@@ -47,6 +47,7 @@ def print_usage_after_each_test(setup_models):
         print(f"\nUsage stats for {model_name} after test:")
         model.print_total_usage()
         model.reset_stats()
+        model.reset_cache()
 
 
 ################################################################################
@@ -276,3 +277,85 @@ def test_custom_tokenizer():
     tokens = custom_lm.count_tokens("Hello, world!")
     assert custom_lm.count_tokens([{"role": "user", "content": "Hello, world!"}]) == tokens
     assert tokens < 100
+
+
+################################################################################
+# Cache tests
+################################################################################
+@pytest.mark.parametrize("model", get_enabled("gpt-4o-mini"))
+def test_cache(setup_models, model):
+    lm = setup_models[model]
+    lotus.settings.configure(lm=lm, enable_cache=True)
+
+    # Check that "What is the capital of France?" becomes cached
+    first_batch = [
+        [{"role": "user", "content": "Hello, world!"}],
+        [{"role": "user", "content": "What is the capital of France?"}],
+    ]
+
+    first_responses = lm(first_batch).outputs
+    assert lm.stats.total_usage.cache_hits == 0
+
+    second_batch = [
+        [{"role": "user", "content": "What is the capital of France?"}],
+        [{"role": "user", "content": "What is the capital of Germany?"}],
+    ]
+    second_responses = lm(second_batch).outputs
+    assert second_responses[0] == first_responses[1]
+    assert lm.stats.total_usage.cache_hits == 1
+
+    # Test clearing cache
+    lm.reset_cache()
+    lm.reset_stats()
+    lm(second_batch)
+    assert lm.stats.total_usage.cache_hits == 0
+
+
+@pytest.mark.parametrize("model", get_enabled("gpt-4o-mini"))
+def test_disable_cache(setup_models, model):
+    lm = setup_models[model]
+    lotus.settings.configure(lm=lm, enable_cache=False)
+
+    batch = [
+        [{"role": "user", "content": "Hello, world!"}],
+        [{"role": "user", "content": "What is the capital of France?"}],
+    ]
+    lm(batch)
+    assert lm.stats.total_usage.cache_hits == 0
+    lm(batch)
+    assert lm.stats.total_usage.cache_hits == 0
+
+    # Now enable cache. Note that the first batch is not cached.
+    lotus.settings.configure(enable_cache=True)
+    first_responses = lm(batch).outputs
+    assert lm.stats.total_usage.cache_hits == 0
+    second_responses = lm(batch).outputs
+    assert lm.stats.total_usage.cache_hits == 2
+    assert first_responses == second_responses
+
+
+@pytest.mark.parametrize("model", get_enabled("gpt-4o-mini"))
+def test_reset_cache(setup_models, model):
+    lm = setup_models[model]
+    lotus.settings.configure(lm=lm, enable_cache=True)
+
+    batch = [
+        [{"role": "user", "content": "Hello, world!"}],
+        [{"role": "user", "content": "What is the capital of France?"}],
+    ]
+    lm(batch)
+    assert lm.stats.total_usage.cache_hits == 0
+    lm(batch)
+    assert lm.stats.total_usage.cache_hits == 2
+
+    lm.reset_cache(max_size=1)
+    lm(batch)
+    assert lm.stats.total_usage.cache_hits == 2
+    lm(batch)
+    assert lm.stats.total_usage.cache_hits == 3
+
+    lm.reset_cache(max_size=0)
+    lm(batch)
+    assert lm.stats.total_usage.cache_hits == 3
+    lm(batch)
+    assert lm.stats.total_usage.cache_hits == 3
diff --git a/examples/model_examples/cache.py b/examples/model_examples/cache.py
new file mode 100644
index 00000000..556ed84d
--- /dev/null
+++ b/examples/model_examples/cache.py
@@ -0,0 +1,27 @@
+import pandas as pd
+
+import lotus
+from lotus.models import LM
+
+lm = LM(model="gpt-4o-mini") 
+
+lotus.settings.configure(lm=lm, enable_cache=True) # default caching is False
+data = {
+    "Course Name": [
+        "Probability and Random Processes",
+        "Optimization Methods in Engineering",
+        "Digital Design and Integrated Circuits",
+        "Computer Security",
+    ]
+}
+df = pd.DataFrame(data)
+user_instruction = "{Course Name} requires a lot of math"
+df = df.sem_filter(user_instruction)
+print("====== intial run ======")
+print(df)
+
+# run a second time
+df = df.sem_filter(user_instruction)
+print("====== second run ======")
+print(df)
+
diff --git a/lotus/cache.py b/lotus/cache.py
new file mode 100644
index 00000000..33004013
--- /dev/null
+++ b/lotus/cache.py
@@ -0,0 +1,43 @@
+from collections import OrderedDict
+from functools import wraps
+from typing import Any, Callable
+
+import lotus
+
+
+def require_cache_enabled(func: Callable) -> Callable:
+    """Decorator to check if caching is enabled before calling the function."""
+
+    @wraps(func)
+    def wrapper(self, *args, **kwargs):
+        if not lotus.settings.enable_cache:
+            return None
+        return func(self, *args, **kwargs)
+
+    return wrapper
+
+
+class Cache:
+    def __init__(self, max_size: int):
+        self.max_size = max_size
+        self.cache: OrderedDict[str, Any] = OrderedDict()
+
+    @require_cache_enabled
+    def get(self, key: str) -> Any | None:
+        if key in self.cache:
+            lotus.logger.debug(f"Cache hit for {key}")
+
+        return self.cache.get(key)
+
+    @require_cache_enabled
+    def insert(self, key: str, value: Any):
+        self.cache[key] = value
+
+        # LRU eviction
+        if len(self.cache) > self.max_size:
+            self.cache.popitem(last=False)
+
+    def reset(self, max_size: int | None = None):
+        self.cache.clear()
+        if max_size is not None:
+            self.max_size = max_size
diff --git a/lotus/models/lm.py b/lotus/models/lm.py
index ee03a444..30852ebb 100644
--- a/lotus/models/lm.py
+++ b/lotus/models/lm.py
@@ -1,3 +1,4 @@
+import hashlib
 from typing import Any
 
 import litellm
@@ -9,6 +10,7 @@
 from tokenizers import Tokenizer
 
 import lotus
+from lotus.cache import Cache
 from lotus.types import LMOutput, LMStats, LogprobsForCascade, LogprobsForFilterCascade
 
 
@@ -21,6 +23,7 @@ def __init__(
         max_tokens: int = 512,
         max_batch_size: int = 64,
         tokenizer: Tokenizer | None = None,
+        max_cache_size: int = 1024,
         **kwargs: dict[str, Any],
     ):
         self.model = model
@@ -31,40 +34,66 @@ def __init__(
         self.kwargs = dict(temperature=temperature, max_tokens=max_tokens, **kwargs)
 
         self.stats: LMStats = LMStats()
+        self.cache = Cache(max_cache_size)
 
     def __call__(self, messages: list[list[dict[str, str]]], **kwargs: dict[str, Any]) -> LMOutput:
         all_kwargs = {**self.kwargs, **kwargs}
 
         # Set top_logprobs if logprobs requested
         if all_kwargs.get("logprobs", False):
-            all_kwargs["top_logprobs"] = all_kwargs.get("top_logprobs", 10)
-
-        all_responses: list[ModelResponse] = []
-        for i in range(0, len(messages), self.max_batch_size):
-            batch = messages[i : i + self.max_batch_size]
-            responses: list[ModelResponse] = batch_completion(
-                self.model,
-                batch,
-                drop_params=True,
-                **all_kwargs,  # type: ignore
-            )
-            all_responses.extend(responses)
-
-        # throw errors, if any
-        for resp in all_responses:
-            if isinstance(resp, OpenAIError):
-                raise resp
+            all_kwargs.setdefault("top_logprobs", 10)
 
+        # Check cache and separate cached and uncached messages
+        hashed_messages = [self._hash_messages(msg, all_kwargs) for msg in messages]
+        cached_responses = [self.cache.get(hash) for hash in hashed_messages]
+        uncached_data = [
+            (msg, hash) for msg, hash, resp in zip(messages, hashed_messages, cached_responses) if resp is None
+        ]
+        self.stats.total_usage.cache_hits += len(messages) - len(uncached_data)
+
+        # Process uncached messages in batches
+        uncached_responses = self._process_uncached_messages(uncached_data, all_kwargs)
+
+        # Add new responses to cache
+        for resp, (_, hash) in zip(uncached_responses, uncached_data):
+            self._cache_response(resp, hash)
+
+        # Merge all responses in original order and extract outputs
+        all_responses = self._merge_responses(cached_responses, uncached_responses)
         outputs = [self._get_top_choice(resp) for resp in all_responses]
         logprobs = (
             [self._get_top_choice_logprobs(resp) for resp in all_responses] if all_kwargs.get("logprobs") else None
         )
 
-        for resp in all_responses:
-            self._update_stats(resp)
-
         return LMOutput(outputs=outputs, logprobs=logprobs)
 
+    def _process_uncached_messages(self, uncached_data, all_kwargs):
+        """Processes uncached messages in batches and returns responses."""
+        uncached_responses = []
+        for i in range(0, len(uncached_data), self.max_batch_size):
+            batch = [msg for msg, _ in uncached_data[i : i + self.max_batch_size]]
+            uncached_responses.extend(batch_completion(self.model, batch, drop_params=True, **all_kwargs))
+        return uncached_responses
+
+    def _cache_response(self, response, hash):
+        """Caches a response and updates stats if successful."""
+        if isinstance(response, OpenAIError):
+            raise response
+        self._update_stats(response)
+        self.cache.insert(hash, response)
+
+    def _hash_messages(self, messages: list[dict[str, str]], kwargs: dict[str, Any]) -> str:
+        """Hash messages and kwargs to create a unique key for the cache"""
+        to_hash = str(self.model) + str(messages) + str(kwargs)
+        return hashlib.sha256(to_hash.encode()).hexdigest()
+
+    def _merge_responses(
+        self, cached_responses: list[ModelResponse | None], uncached_responses: list[ModelResponse]
+    ) -> list[ModelResponse]:
+        """Merge cached and uncached responses, maintaining order"""
+        uncached_iter = iter(uncached_responses)
+        return [resp if resp is not None else next(uncached_iter) for resp in cached_responses]
+
     def _update_stats(self, response: ModelResponse):
         if not hasattr(response, "usage"):
             return
@@ -155,8 +184,12 @@ def print_total_usage(self):
         print(f"Total prompt tokens: {self.stats.total_usage.prompt_tokens}")
         print(f"Total completion tokens: {self.stats.total_usage.completion_tokens}")
         print(f"Total tokens: {self.stats.total_usage.total_tokens}")
+        print(f"Total cache hits: {self.stats.total_usage.cache_hits}")
 
     def reset_stats(self):
         self.stats = LMStats(
             total_usage=LMStats.TotalUsage(prompt_tokens=0, completion_tokens=0, total_tokens=0, total_cost=0.0)
         )
+
+    def reset_cache(self, max_size: int | None = None):
+        self.cache.reset(max_size)
diff --git a/lotus/settings.py b/lotus/settings.py
index a928880c..27aefdac 100644
--- a/lotus/settings.py
+++ b/lotus/settings.py
@@ -115,4 +115,4 @@ def __repr__(self) -> str:
 
 # set defaults
 settings = Settings()
-settings.configure(cascade_is_weight=0.5, cascade_num_calibration_quantiles=50)
+settings.configure(cascade_is_weight=0.5, cascade_num_calibration_quantiles=50, enable_cache=False)
diff --git a/lotus/types.py b/lotus/types.py
index 28cbcfe9..1d7a3bcc 100644
--- a/lotus/types.py
+++ b/lotus/types.py
@@ -29,6 +29,7 @@ class TotalUsage(BaseModel):
         completion_tokens: int = 0
         total_tokens: int = 0
         total_cost: float = 0.0
+        cache_hits: int = 0
 
     total_usage: TotalUsage = TotalUsage()