Varnish is an HTTP accelerator that acts as a caching reverse proxy, load balancer, and failover system. It sits in front of web servers to cache content and improve page load speeds by up to 1000x. Varnish uses Varnish Configuration Language (VCL) scripts to control caching, load balancing, and other behaviors. It supports Edge Side Includes (ESI) to cache page fragments with different expiration times. Popular sites using Varnish include Facebook, Twitter, and BBC.