diff --git a/acl/cache.go b/acl/cache.go
new file mode 100644
index 0000000000..ad744fb8f0
--- /dev/null
+++ b/acl/cache.go
@@ -0,0 +1,89 @@
+package acl
+
+import (
+	"crypto/md5"
+	"fmt"
+
+	"github.com/hashicorp/golang-lru"
+)
+
+// FaultFunc is a function used to fault in the rules for an
+// ACL given it's ID
+type FaultFunc func(id string) (string, error)
+
+// Cache is used to implement policy and ACL caching
+type Cache struct {
+	aclCache    *lru.Cache
+	faultfn     FaultFunc
+	parent      ACL
+	policyCache *lru.Cache
+}
+
+// NewCache contructs a new policy and ACL cache of a given size
+func NewCache(size int, parent ACL, faultfn FaultFunc) (*Cache, error) {
+	if size <= 0 {
+		return nil, fmt.Errorf("Must provide positive cache size")
+	}
+	pc, _ := lru.New(size)
+	ac, _ := lru.New(size)
+	c := &Cache{
+		aclCache:    ac,
+		faultfn:     faultfn,
+		parent:      parent,
+		policyCache: pc,
+	}
+	return c, nil
+}
+
+// GetPolicy is used to get a potentially cached policy set.
+// If not cached, it will be parsed, and then cached.
+func (c *Cache) GetPolicy(rules string) (*Policy, error) {
+	hash := fmt.Sprintf("%x", md5.Sum([]byte(rules)))
+	raw, ok := c.policyCache.Get(hash)
+	if ok {
+		return raw.(*Policy), nil
+	}
+	policy, err := Parse(rules)
+	if err != nil {
+		return nil, err
+	}
+	c.policyCache.Add(hash, policy)
+	return policy, nil
+}
+
+// GetACL is used to get a potentially cached ACL policy.
+// If not cached, it will be generated and then cached.
+func (c *Cache) GetACL(id string) (ACL, error) {
+	// Look for the ACL directly
+	raw, ok := c.aclCache.Get(id)
+	if ok {
+		return raw.(ACL), nil
+	}
+
+	// Get the rules
+	rules, err := c.faultfn(id)
+	if err != nil {
+		return nil, err
+	}
+
+	// Get the policy
+	policy, err := c.GetPolicy(rules)
+	if err != nil {
+		return nil, err
+	}
+
+	// Get the ACL
+	acl, err := New(c.parent, policy)
+	if err != nil {
+		return nil, err
+	}
+
+	// Cache and return the ACL
+	c.aclCache.Add(id, acl)
+	return acl, nil
+}
+
+// ClearACL is used to clear the ACL cache if any
+func (c *Cache) ClearACL(id string) {
+	c.aclCache.Remove(id)
+}
diff --git a/acl/cache_test.go b/acl/cache_test.go
new file mode 100644
index 0000000000..47602d6399
--- /dev/null
+++ b/acl/cache_test.go
@@ -0,0 +1,130 @@
+package acl
+
+import (
+	"testing"
+)
+
+func TestCache_GetPolicy(t *testing.T) {
+	c, err := NewCache(1, AllowAll(), nil)
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	p, err := c.GetPolicy("")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	// Should get the same policy
+	p1, err := c.GetPolicy("")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+	if p != p1 {
+		t.Fatalf("should be cached")
+	}
+
+	// Cache a new policy
+	_, err = c.GetPolicy(testSimplePolicy)
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	// Test invalidation of p
+	p3, err := c.GetPolicy("")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+	if p == p3 {
+		t.Fatalf("should be not cached")
+	}
+}
+
+func TestCache_GetACL(t *testing.T) {
+	policies := map[string]string{
+		"foo": testSimplePolicy,
+		"bar": testSimplePolicy,
+	}
+	faultfn := func(id string) (string, error) {
+		return policies[id], nil
+	}
+
+	c, err := NewCache(1, DenyAll(), faultfn)
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	acl, err := c.GetACL("foo")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	if acl.KeyRead("bar/test") {
+		t.Fatalf("should deny")
+	}
+	if !acl.KeyRead("foo/test") {
+		t.Fatalf("should allow")
+	}
+
+	acl2, err := c.GetACL("foo")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	if acl != acl2 {
+		t.Fatalf("should be cached")
+	}
+
+	// Invalidate cache
+	_, err = c.GetACL("bar")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	acl3, err := c.GetACL("foo")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	if acl == acl3 {
+		t.Fatalf("should not be cached")
+	}
+}
+
+func TestCache_ClearACL(t *testing.T) {
+	policies := map[string]string{
+		"foo": testSimplePolicy,
+		"bar": testSimplePolicy,
+	}
+	faultfn := func(id string) (string, error) {
+		return policies[id], nil
+	}
+
+	c, err := NewCache(1, DenyAll(), faultfn)
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	acl, err := c.GetACL("foo")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	// Nuke the cache
+	c.ClearACL("foo")
+
+	acl2, err := c.GetACL("foo")
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+
+	if acl == acl2 {
+		t.Fatalf("should not be cached")
+	}
+}
+
+var testSimplePolicy = `
+key "foo/" {
+	policy = "read"
+}
+`
diff --git a/acl/policy.go b/acl/policy.go
index 2abdc9812e..df4af9c065 100644
--- a/acl/policy.go
+++ b/acl/policy.go
@@ -32,6 +32,11 @@ type KeyPolicy struct {
 func Parse(rules string) (*Policy, error) {
 	// Decode the rules
 	p := &Policy{}
+	if rules == "" {
+		// Hot path for empty rules
+		return p, nil
+	}
+
 	if err := hcl.Decode(p, rules); err != nil {
 		return nil, fmt.Errorf("Failed to parse ACL rules: %v", err)
 	}