Caffeine can enhance athletic performance by increasing endurance, reducing perceived exertion, and improving focus. It stimulates the central nervous system, which may lead to improved reaction times and increased alertness during exercise. Additionally, caffeine has been shown to enhance fat oxidation, allowing athletes to use fat as an energy source more efficiently during prolonged activities. However, individual responses to caffeine vary, and excessive intake can lead to negative side effects such as jitteriness, insomnia, and increased heart rate. Moderation is key for maximizing its benefits while minimizing potential drawbacks.