diff --git a/README.rst b/README.rst
index d00044a20836e0b6ed317581d16d70958dddef75..d8e742ef168a7f28487631200c9a000fce2a49e5 100644
--- a/README.rst
+++ b/README.rst
@@ -23,9 +23,10 @@ Features
 - Flask-WTForms with login and registration forms
 - Flask-Login for authentication
 - Procfile for deploying to a PaaS (e.g. Heroku)
-- Flask-Testing, Flask-Webtest, nose, and Factory-Boy for testing
+- Flask-Testing, Flask-Webtest, nose, and Factory-Boy for testing (example tests included)
 - A simple ``manage.py`` script.
 - CSS and JS minification using Flask-Assets
+- Caching using Flask-Cache
 - Useful debug toolbar
 - Utilizes best practices: `Blueprints <http://flask.pocoo.org/docs/blueprints/>`_ and `Application Factory <http://flask.pocoo.org/docs/patterns/appfactories/>`_ patterns
 
@@ -73,6 +74,7 @@ Changelog
 - Use WebTest for functional testing.
 - Add Flask-Debugtoolbar.
 - Migrations using Flask-Migrate.
+- Caching using Flask-Cache.
 
 0.2.0 (09/21/2013)
 ******************
diff --git a/{{cookiecutter.repo_name}}/requirements/prod.txt b/{{cookiecutter.repo_name}}/requirements/prod.txt
index 999121be7214018bf20e4fc2ac8150c37c4f4b5f..c42b7ac274ee34a91ebcfa26a639206a5d972750 100644
--- a/{{cookiecutter.repo_name}}/requirements/prod.txt
+++ b/{{cookiecutter.repo_name}}/requirements/prod.txt
@@ -30,3 +30,6 @@ jsmin>=2.0.4
 # Auth
 Flask-Login>=0.2.7
 Flask-Bcrypt>=0.5.2
+
+# Caching
+Flask-Cache>=0.12
diff --git a/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/app.py b/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/app.py
index 5a70211bc9b7305f557d9e518268c50410fec791..d45a183334a1d570f8b33d08187d323fcfd0fc02 100644
--- a/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/app.py
+++ b/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/app.py
@@ -4,7 +4,8 @@ from flask_debugtoolbar import DebugToolbarExtension
 
 from {{cookiecutter.repo_name}}.settings import ProdConfig
 from {{cookiecutter.repo_name}}.assets import assets
-from {{cookiecutter.repo_name}}.extensions import db, login_manager, migrate
+from {{cookiecutter.repo_name}}.extensions import (db, login_manager, migrate,
+                                                    cache)
 from {{cookiecutter.repo_name}} import public, user
 
 
@@ -26,6 +27,7 @@ def register_extensions(app):
     login_manager.init_app(app)
     assets.init_app(app)
     toolbar = DebugToolbarExtension(app)
+    cache.init_app(app)
     migrate.init_app(app, db)
     return None
 
diff --git a/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/extensions.py b/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/extensions.py
index 23324532f05437b168e4e06ea3d2d4fa27362a14..a9dc6b74d1ce7920f2a70b17a6cdb55548b3cd6a 100644
--- a/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/extensions.py
+++ b/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/extensions.py
@@ -1,5 +1,7 @@
 # -*- coding: utf-8 -*-
-"""Extensions module."""
+"""Extensions module. Each extension is initialized in the app factory located
+in app.py
+"""
 
 from flask.ext.bcrypt import Bcrypt
 bcrypt = Bcrypt()
@@ -12,3 +14,6 @@ db = SQLAlchemy()
 
 from flask.ext.migrate import Migrate
 migrate = Migrate()
+
+from flask.ext.cache import Cache
+cache = Cache()
diff --git a/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/settings.py b/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/settings.py
index c656130caeb1e16f5798e3110ff11a40927819c2..3e007b6ede5fe4b9687eaab3207da76ddae41eb5 100644
--- a/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/settings.py
+++ b/{{cookiecutter.repo_name}}/{{cookiecutter.repo_name}}/settings.py
@@ -9,6 +9,7 @@ class Config(object):
     BCRYPT_LEVEL = 13
     DEBUG_TB_ENABLED = False  # Disable Debug toolbar
     DEBUG_TB_INTERCEPT_REDIRECTS = False
+    CACHE_TYPE = "simple"  # Can be "memcached", "redis", etc.
 
 
 class ProdConfig(Config):
@@ -31,3 +32,4 @@ class DevConfig(Config):
     SQLALCHEMY_ECHO = True
     DEBUG_TB_ENABLED = True
     ASSETS_DEBUG = True  # Don't bundle/minify static assets
+    CACHE_TYPE = "simple"  # Can be "memcached", "redis", etc.