Varnish is a reverse proxy that can cache pages to improve Drupal performance. It works with Edge Side Includes (ESI) to cache parts of personalized pages. With ESI, the first page requires two requests but subsequent pages only need one request each. Benchmarking tools can measure performance. Configuring Varnish and ESI requires modifying Drupal, installing modules, and editing Varnish configuration files. Speed gains depend on caching strategy and workload.