Cache memory is a small, high-speed buffer located between the CPU and main memory that holds copies of frequently used instructions and data. It accelerates access to these items by keeping them closer to the CPU than main memory. There are separate caches for instructions and data, as well as a TLB cache that stores translated virtual addresses. Cache memory uses mapping techniques like direct mapping, set associative mapping, and fully associative mapping to determine where to store and retrieve items. Common replacement algorithms used when the cache is full are LRU, FIFO, LFU, and random selection.