Caffeine positively impacts exercise performance by enhancing stamina and reducing perceived effort. It stimulates the central nervous system, which can increase focus and alertness during workouts. Caffeine may also improve endurance performance, allowing athletes to sustain higher intensity levels for longer. Additionally, it can aid in fat oxidation, contributing to weight management and overall fitness goals. However, individual tolerance varies, so it is essential to use caffeine strategically and in moderation to avoid potential side effects like jitteriness or insomnia.