DAX (DynamoDB Accelerator) caching works by intercepting client requests to DynamoDB. When a client asks for data, DAX first checks its in-memory cache. If the data is found (cache hit), it returns the data immediately without querying DynamoDB, speeding up the response. If the data is not in cache (cache miss), DAX queries DynamoDB, returns the data to the client, and updates its cache with this fresh data. This process reduces latency and the number of direct reads to DynamoDB. The cache state changes from empty to containing the requested item after the first fetch. On subsequent requests for the same item, DAX returns the cached data directly. It is important to keep the cache updated to avoid returning stale data. The execution table shows each step from client request to cache check, DynamoDB query if needed, cache update, and returning data to the client.