The query plan cache (also called the plan cache or procedure cache) is an area of SQL Server’s memory that stores compiled execution plans for queries and stored procedures. When you execute a query, SQL Server compiles it into an execution plan (basically, a set of instructions for retrieving and processing data). Now, instead of recompiling that plan every time the same query runs, SQL Server stores it in the plan cache for reuse.
This caching mechanism significantly improves performance. Compiling a query plan requires CPU time and resources. The optimizer must analyze statistics, evaluate indexes, consider join orders, and make numerous decisions about the most efficient execution strategy. By caching plans, SQL Server avoids repeating this work for queries that execute repeatedly.