diff --git a/src/index.ts b/src/index.ts
index c769e99..dedf1e0 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -249,6 +249,7 @@ export type {
   FailureContext,
   RoutingDecision,
   RouterEvent,
+  RouterCacheStats,
   ApiKeyConfig
 } from "./router/types";
 
diff --git a/src/router/modelRouter.ts b/src/router/modelRouter.ts
index 4b6f8ea..3cb6d45 100644
--- a/src/router/modelRouter.ts
+++ b/src/router/modelRouter.ts
@@ -2,7 +2,8 @@ import {
   ModelRouterOptions,
   FailureContext,
   RoutingDecision,
-  RoutingStrategy
+  RoutingStrategy,
+  RouterCacheStats
 } from "./types";
 import { errorDetector } from "./errorDetector";
 import { fallbackStrategy, contextStrategy, costStrategy } from "./routingStrategies";
@@ -17,12 +18,17 @@ export class ModelRouter {
   private fallbackMap: Record<string, string[]>;
   private maxRetries: number;
   private crossProviderEnabled: boolean;
+  private maxDecisionCacheSize: number;
+  private decisionCache: Map<string, RoutingDecision> = new Map();
+  private cacheHits = 0;
+  private cacheMisses = 0;
 
   constructor(options: ModelRouterOptions) {
     this.strategy = options.strategy;
     this.fallbackMap = options.fallbackMap || {};
     this.maxRetries = options.maxRetries ?? 1;
     this.crossProviderEnabled = options.enableCrossProvider ?? false;
+    this.maxDecisionCacheSize = options.decisionCacheSize ?? 128;
 
     // Register API keys if provided
     if (options.apiKeys) {
@@ -46,6 +52,15 @@ export class ModelRouter {
       );
     }
 
+    if (
+      !Number.isInteger(this.maxDecisionCacheSize) ||
+      this.maxDecisionCacheSize < 0
+    ) {
+      throw new Error(
+        "TokenFirewall Router: decisionCacheSize must be a non-negative integer"
+      );
+    }
+
     if (this.strategy === "fallback") {
       if (Object.keys(this.fallbackMap).length === 0) {
         throw new Error(
@@ -90,6 +105,12 @@ export class ModelRouter {
 
     // Detect failure type
     const failureType = errorDetector.detectFailureType(context.error);
+    const cacheKey = this.createDecisionCacheKey(context, failureType);
+    const cachedDecision = this.getCachedDecision(cacheKey);
+
+    if (cachedDecision) {
+      return cachedDecision;
+    }
 
     // Select routing strategy
     const decision = this.selectStrategy(context, failureType);
@@ -117,6 +138,8 @@ export class ModelRouter {
       };
     }
 
+    this.setCachedDecision(cacheKey, decision);
+
     return decision;
   }
 
@@ -164,4 +187,78 @@ export class ModelRouter {
   public isCrossProviderEnabled(): boolean {
     return this.crossProviderEnabled;
   }
+
+  /**
+   * Clear cached routing decisions and reset cache counters
+   */
+  public clearRoutingDecisionCache(): void {
+    this.decisionCache.clear();
+    this.cacheHits = 0;
+    this.cacheMisses = 0;
+  }
+
+  /**
+   * Inspect current routing decision cache usage
+   * @returns cache size, configured bound, and hit/miss counters
+   */
+  public getRoutingCacheStats(): RouterCacheStats {
+    return {
+      size: this.decisionCache.size,
+      maxSize: this.maxDecisionCacheSize,
+      hits: this.cacheHits,
+      misses: this.cacheMisses
+    };
+  }
+
+  /**
+   * Build a stable, non-sensitive cache key from routing inputs.
+   * requestBody is intentionally excluded because prompts may contain secrets.
+   */
+  private createDecisionCacheKey(
+    context: FailureContext,
+    failureType: string
+  ): string {
+    return JSON.stringify({
+      strategy: this.strategy,
+      failureType,
+      originalModel: context.originalModel,
+      provider: context.provider,
+      retryCount: context.retryCount,
+      attemptedModels: [...context.attemptedModels].sort()
+    });
+  }
+
+  private getCachedDecision(cacheKey: string): RoutingDecision | null {
+    if (this.maxDecisionCacheSize === 0) {
+      return null;
+    }
+
+    const cached = this.decisionCache.get(cacheKey);
+    if (!cached) {
+      this.cacheMisses++;
+      return null;
+    }
+
+    this.decisionCache.delete(cacheKey);
+    this.decisionCache.set(cacheKey, cached);
+    this.cacheHits++;
+    return { ...cached };
+  }
+
+  private setCachedDecision(cacheKey: string, decision: RoutingDecision): void {
+    if (this.maxDecisionCacheSize === 0) {
+      return;
+    }
+
+    if (this.decisionCache.has(cacheKey)) {
+      this.decisionCache.delete(cacheKey);
+    } else if (this.decisionCache.size >= this.maxDecisionCacheSize) {
+      const oldestKey = this.decisionCache.keys().next().value;
+      if (oldestKey) {
+        this.decisionCache.delete(oldestKey);
+      }
+    }
+
+    this.decisionCache.set(cacheKey, { ...decision });
+  }
 }
diff --git a/src/router/types.ts b/src/router/types.ts
index 8e333f4..074be2c 100644
--- a/src/router/types.ts
+++ b/src/router/types.ts
@@ -39,6 +39,8 @@ export interface ModelRouterOptions {
   fallbackMap?: Record<string, string[]>;
   /** Maximum number of retry attempts (default: 1) */
   maxRetries?: number;
+  /** Maximum cached routing decisions per router instance (default: 128, 0 disables cache) */
+  decisionCacheSize?: number;
   /** API keys for cross-provider fallback */
   apiKeys?: ApiKeyConfig;
   /** Enable cross-provider fallback (default: false) */
@@ -75,6 +77,20 @@ export interface RoutingDecision {
   reason: string;
 }
 
+/**
+ * Runtime stats for the router decision cache
+ */
+export interface RouterCacheStats {
+  /** Number of currently cached routing decisions */
+  size: number;
+  /** Maximum decisions retained by this router */
+  maxSize: number;
+  /** Cache hits since router creation or last clear */
+  hits: number;
+  /** Cache misses since router creation or last clear */
+  misses: number;
+}
+
 /**
  * Router event for logging
  */
diff --git a/tests/routing-performance.test.js b/tests/routing-performance.test.js
new file mode 100644
index 0000000..1ae448d
--- /dev/null
+++ b/tests/routing-performance.test.js
@@ -0,0 +1,98 @@
+/**
+ * Routing performance regression tests.
+ *
+ * Run: node tests/routing-performance.test.js
+ */
+
+const { createModelRouter } = require("../dist/index.js");
+
+function assert(condition, message) {
+  if (!condition) {
+    throw new Error(message);
+  }
+}
+
+function createFailureContext(originalModel) {
+  return {
+    error: { status: 429 },
+    originalModel,
+    requestBody: {
+      messages: [{ role: "user", content: "Summarize this document" }]
+    },
+    provider: "openai",
+    retryCount: 0,
+    attemptedModels: [originalModel]
+  };
+}
+
+function measureAverageMs(callback, iterations) {
+  const start = process.hrtime.bigint();
+  for (let index = 0; index < iterations; index++) {
+    callback();
+  }
+  const elapsedMs = Number(process.hrtime.bigint() - start) / 1_000_000;
+  return elapsedMs / iterations;
+}
+
+function testRepeatedFallbackDecisionsUseCache() {
+  const router = createModelRouter({
+    strategy: "fallback",
+    fallbackMap: {
+      "gpt-4o": ["gpt-4o-mini", "gpt-4.1-mini"]
+    },
+    maxRetries: 2
+  });
+  const context = createFailureContext("gpt-4o");
+
+  const firstDecision = router.handleFailure(context);
+  assert(firstDecision.retry === true, "first decision should retry");
+  assert(firstDecision.nextModel === "gpt-4o-mini", "first fallback should be selected");
+
+  const averageMs = measureAverageMs(() => {
+    const decision = router.handleFailure(context);
+    assert(decision.nextModel === "gpt-4o-mini", "cached decision should remain stable");
+  }, 5000);
+
+  const stats = router.getRoutingCacheStats();
+  assert(stats.size === 1, "router should cache one repeated decision");
+  assert(stats.hits >= 5000, "repeated decisions should hit the cache");
+  assert(stats.misses === 1, "only the initial decision should miss");
+  assert(averageMs < 10, `average routing overhead should stay below 10ms, got ${averageMs}ms`);
+
+  console.log(`Repeated fallback routing average: ${averageMs.toFixed(4)}ms`);
+}
+
+function testDecisionCacheSizeIsBounded() {
+  const router = createModelRouter({
+    strategy: "fallback",
+    fallbackMap: {
+      "gpt-a": ["gpt-a-mini"],
+      "gpt-b": ["gpt-b-mini"],
+      "gpt-c": ["gpt-c-mini"]
+    },
+    maxRetries: 2,
+    decisionCacheSize: 2
+  });
+
+  router.handleFailure(createFailureContext("gpt-a"));
+  router.handleFailure(createFailureContext("gpt-b"));
+  router.handleFailure(createFailureContext("gpt-c"));
+
+  const stats = router.getRoutingCacheStats();
+  assert(stats.size === 2, "cache should evict the oldest decision when full");
+  assert(stats.maxSize === 2, "cache stats should expose the configured bound");
+
+  router.clearRoutingDecisionCache();
+  const clearedStats = router.getRoutingCacheStats();
+  assert(clearedStats.size === 0, "clear should remove cached decisions");
+  assert(clearedStats.hits === 0, "clear should reset hit counter");
+  assert(clearedStats.misses === 0, "clear should reset miss counter");
+}
+
+function run() {
+  testRepeatedFallbackDecisionsUseCache();
+  testDecisionCacheSizeIsBounded();
+  console.log("Routing performance tests passed");
+}
+
+run();