Proxy cache basics in Nginx means saving responses from backend servers so future requests can be served quickly from cache. When a client sends a request, Nginx first looks in its cache. If the response is there (cache hit), it sends it immediately. If not (cache miss), Nginx fetches the response from the backend, stores it in cache, then returns it to the client. This process speeds up responses and reduces backend work. The example config shows how to set up a cache zone and enable proxy caching. The execution table traces two requests: the first misses cache and stores response; the second hits cache and serves cached content. Variables track cache state changes. Key moments clarify why cache miss happens first and how cache hit works later. The quiz tests understanding of cache status and steps. The snapshot summarizes the main points for quick recall.