diff --git a/website/docs/externaldata.md b/website/docs/externaldata.md
index 84e6e2aef0a..36aff47211f 100644
--- a/website/docs/externaldata.md
+++ b/website/docs/externaldata.md
@@ -146,6 +146,9 @@ If there is a system error, the provider should return the system error message
 
 Example provider implementation: https://github.com/open-policy-agent/gatekeeper/blob/master/test/externaldata/dummy-provider/provider.go
 
+#### Caching
+Gatekeeper now supports caching of responses from external data providers. It caches the response based on the `Key` and `Value` received as part of the [`ProviderResponse`](#providerresponse). By default, the cache is invalidated after 3 minutes, which is the default Time-to-Live (TTL). You can configure the TTL using the --external-data-provider-response-cache-ttl flag.
+
 ## External data for Gatekeeper validating webhook
 
 External data adds a [custom OPA built-in function](https://www.openpolicyagent.org/docs/latest/extensions/#custom-built-in-functions-in-go) called `external_data` to Rego. This function is used to query external data providers.