Caffeine can significantly enhance physical performance by increasing alertness, decreasing perceived effort, and improving endurance. It stimulates the central nervous system, which can enhance focus and drive during workouts. Research indicates that caffeine can delay fatigue, potentially allowing athletes to perform at higher intensities for longer durations. However, individual responses may vary, making it crucial to consider tolerance levels. Additionally, excessive consumption may lead to dehydration or other adverse effects, so moderation is key for optimal benefits.