diff --git a/Gemfile_test b/Gemfile_test
index 5b8fdac8..495d3130 100644
--- a/Gemfile_test
+++ b/Gemfile_test
@@ -32,6 +32,11 @@ gem 'httpx'
 gem 'typhoeus'
 gem 'async-http'
 gem 'ethon'
+if RUBY_VERSION < '2.5'
+  gem 'dalli', '=2.7.11'
+else
+  gem 'dalli'
+end
 if RUBY_ENGINE == 'jruby'
   gem 'activerecord-jdbc-adapter'
   gem 'jdbc-sqlite3'
diff --git a/lib/newrelic_security/constants.rb b/lib/newrelic_security/constants.rb
index 30c778cd..85d34574 100644
--- a/lib/newrelic_security/constants.rb
+++ b/lib/newrelic_security/constants.rb
@@ -26,6 +26,8 @@ module NewRelic::Security
   HTTP_REQUEST = 'HTTP_REQUEST'
   XPATH = 'XPATH'
   LDAP = 'LDAP'
+  CACHING_DATA_STORE = 'CACHING_DATA_STORE'
+  MEMCACHED = 'MEMCACHED'
   MONGO = 'MONGO'
   SQLITE = 'SQLITE'
   MYSQL = 'MYSQL'
diff --git a/lib/newrelic_security/instrumentation-security/memcached/chain.rb b/lib/newrelic_security/instrumentation-security/memcached/chain.rb
new file mode 100644
index 00000000..f1c1aeb0
--- /dev/null
+++ b/lib/newrelic_security/instrumentation-security/memcached/chain.rb
@@ -0,0 +1,25 @@
+module NewRelic::Security
+  module Instrumentation
+    module Dalli
+      module Client
+        module Chain
+
+          def self.instrument!
+            ::Dalli::Client.class_eval do
+              include NewRelic::Security::Instrumentation::Dalli::Client
+
+              alias_method :perform_without_security, :perform
+
+              def perform(*all_args)
+                retval = nil
+                event = perform_on_enter(*all_args) { retval = perform_without_security(*all_args) }
+                perform_on_exit(event) { return retval }
+              end
+              
+            end
+          end
+        end
+      end
+    end
+  end
+end
\ No newline at end of file
diff --git a/lib/newrelic_security/instrumentation-security/memcached/instrumentation.rb b/lib/newrelic_security/instrumentation-security/memcached/instrumentation.rb
new file mode 100644
index 00000000..92c6b41d
--- /dev/null
+++ b/lib/newrelic_security/instrumentation-security/memcached/instrumentation.rb
@@ -0,0 +1,49 @@
+require_relative 'prepend'
+require_relative 'chain'
+
+module NewRelic::Security
+  module Instrumentation
+    module Dalli::Client
+
+      READ_MODES = %i[get fetch].freeze
+      WRITE_MODES = %i[set].freeze
+      DELETE_MODES = %i[delete flush].freeze
+      UPDATE_MODES = %i[get append prepend incr decr touch replace].freeze
+
+      def perform_on_enter(*all_args)
+        event = nil
+        NewRelic::Security::Agent.logger.debug "OnEnter : #{self.class}.#{__method__}"
+        hash = {}
+        hash[:type] = all_args[0]
+        hash[:arguments] = all_args[1..-1]
+        if READ_MODES.include?(all_args[0])
+          hash[:mode] = :read
+        elsif WRITE_MODES.include?(all_args[0])
+          hash[:mode] = :write
+        elsif DELETE_MODES.include?(all_args[0])
+          hash[:mode] = :delete
+        elsif UPDATE_MODES.include?(all_args[0])
+          hash[:mode] = :update
+        end
+        event = NewRelic::Security::Agent::Control::Collector.collect(CACHING_DATA_STORE, [hash], MEMCACHED)
+      rescue => exception
+        NewRelic::Security::Agent.logger.error "Exception in hook in #{self.class}.#{__method__}, #{exception.inspect}, #{exception.backtrace}"
+      ensure
+        yield
+        return event
+      end
+
+      def perform_on_exit(event)
+        NewRelic::Security::Agent.logger.debug "OnExit :  #{self.class}.#{__method__}"
+        NewRelic::Security::Agent::Utils.create_exit_event(event)
+      rescue => exception
+        NewRelic::Security::Agent.logger.error "Exception in hook in #{self.class}.#{__method__}, #{exception.inspect}, #{exception.backtrace}"
+      ensure
+        yield
+      end
+
+    end
+  end
+end
+
+NewRelic::Security::Instrumentation::InstrumentationLoader.install_instrumentation(:memcached, ::Dalli::Client, ::NewRelic::Security::Instrumentation::Dalli::Client)
diff --git a/lib/newrelic_security/instrumentation-security/memcached/prepend.rb b/lib/newrelic_security/instrumentation-security/memcached/prepend.rb
new file mode 100644
index 00000000..f7209b1a
--- /dev/null
+++ b/lib/newrelic_security/instrumentation-security/memcached/prepend.rb
@@ -0,0 +1,18 @@
+module NewRelic::Security
+  module Instrumentation
+    module Dalli
+      module Client
+        module Prepend
+          include NewRelic::Security::Instrumentation::Dalli::Client
+  
+          def perform(*all_args)
+            retval = nil
+            event = perform_on_enter(*all_args) { retval = super }
+            perform_on_exit(event) { return retval }
+          end
+
+        end
+      end
+    end
+  end
+end
\ No newline at end of file
diff --git a/test/helpers/database_helper.rb b/test/helpers/database_helper.rb
index 01702ed7..45b3311a 100644
--- a/test/helpers/database_helper.rb
+++ b/test/helpers/database_helper.rb
@@ -18,6 +18,9 @@ module Test
     POSTGRESQL_USER = 'postgres'
     POSTGRESQL_DATABASE = 'postgres'
 
+    MEMCACHED_HOST = 'localhost'
+    MEMCACHED_PORT = '11212'
+
     module DatabaseHelper
       extend self
 
@@ -110,6 +113,35 @@ def remove_postgresql_container
         end
       end
 
+      MEMCACHED_CONFIG = {
+        'Image' => 'memcached:latest',
+        'name' => 'memcached_test',
+        'HostConfig' => {
+            'PortBindings' => {
+            '11211/tcp' => [{ 'HostPort' => MEMCACHED_PORT }]
+            }
+        }
+      }
+
+      def create_memcached_container
+        image = Docker::Image.create('fromImage' => 'memcached:latest')
+        image.refresh!
+        begin
+            Docker::Container.get('memcached_test').remove(force: true)
+        rescue
+        end
+        container = Docker::Container.create(MEMCACHED_CONFIG)
+        container.start
+        sleep 10
+      end
+
+      def remove_memcached_container
+        begin
+          Docker::Container.get('memcached_test').remove(force: true)
+        rescue
+        end
+      end
+
     end
   end
-end
\ No newline at end of file
+end
diff --git a/test/newrelic_security/instrumentation-security/memcached/memcached_test.rb b/test/newrelic_security/instrumentation-security/memcached/memcached_test.rb
new file mode 100644
index 00000000..317433e7
--- /dev/null
+++ b/test/newrelic_security/instrumentation-security/memcached/memcached_test.rb
@@ -0,0 +1,119 @@
+require 'dalli'
+require_relative '../../../test_helper'
+require 'newrelic_security/instrumentation-security/memcached/instrumentation'
+
+module NewRelic::Security
+    module Test
+        module Instrumentation
+            class TestMemcached < Minitest::Test
+                @@before_all_flag = false
+    
+                def setup
+                  $event_list.clear()
+                  NewRelic::Security::Agent::Control::HTTPContext.set_context({})
+                  unless @@before_all_flag
+                      NewRelic::Security::Test::DatabaseHelper.create_memcached_container
+                      @@before_all_flag = true
+                  end
+                end
+
+                def test_set_get_fetch_delete
+                  cache = Dalli::Client.new("#{MEMCACHED_HOST}:#{MEMCACHED_PORT}")
+                  $event_list.clear()
+                  res = cache.set 'greet', 'hello', nil, :raw => true
+                  args = [{:type=>:set, :arguments=>["greet", "hello", 0, 0, { :raw=>true }], :mode=>:write}]
+                  expected_event = NewRelic::Security::Agent::Control::Event.new(CACHING_DATA_STORE, args, MEMCACHED)
+                  assert_equal 1, NewRelic::Security::Agent::Control::Collector.get_event_count(CACHING_DATA_STORE)
+                  assert_equal expected_event.caseType, $event_list[0].caseType
+                  assert_equal expected_event.parameters, $event_list[0].parameters
+                  assert_equal expected_event.eventCategory, $event_list[0].eventCategory
+                  $event_list.clear()
+
+                  res = cache.get 'greet'
+                  args = [{:type=>:get, :arguments=>["greet", nil], :mode=>:read}]
+                  expected_event = NewRelic::Security::Agent::Control::Event.new(CACHING_DATA_STORE, args, MEMCACHED)
+                  assert_equal 'hello', res
+                  assert_equal 1, NewRelic::Security::Agent::Control::Collector.get_event_count(CACHING_DATA_STORE)
+                  assert_equal expected_event.caseType, $event_list[0].caseType
+                  assert_equal expected_event.parameters, $event_list[0].parameters
+                  assert_equal expected_event.eventCategory, $event_list[0].eventCategory
+                  $event_list.clear()
+
+                  res = cache.fetch 'greet'
+                  args = [{:type=>:get, :arguments=>["greet", nil], :mode=>:read}]
+                  expected_event = NewRelic::Security::Agent::Control::Event.new(CACHING_DATA_STORE, args, MEMCACHED)
+                  assert_equal 'hello', res
+                  assert_equal 1, NewRelic::Security::Agent::Control::Collector.get_event_count(CACHING_DATA_STORE)
+                  assert_equal expected_event.caseType, $event_list[0].caseType
+                  assert_equal expected_event.parameters, $event_list[0].parameters
+                  assert_equal expected_event.eventCategory, $event_list[0].eventCategory
+                  $event_list.clear()
+
+                  res = cache.delete 'greet'
+                  args = [{:type=>:delete, :arguments=>["greet", 0], :mode=>:delete}]
+                  expected_event = NewRelic::Security::Agent::Control::Event.new(CACHING_DATA_STORE, args, MEMCACHED)
+                  assert_equal 1, NewRelic::Security::Agent::Control::Collector.get_event_count(CACHING_DATA_STORE)
+                  assert_equal true, res
+                  assert_equal expected_event.caseType, $event_list[0].caseType
+                  assert_equal expected_event.parameters, $event_list[0].parameters
+                  assert_equal expected_event.eventCategory, $event_list[0].eventCategory
+                  $event_list.clear()
+                end
+
+                def test_set_incr_get_flush
+                  cache = Dalli::Client.new("#{MEMCACHED_HOST}:#{MEMCACHED_PORT}")
+                  $event_list.clear()
+                  res = cache.set 'counter', 0, nil, :raw => true
+                  args = [{:type=>:set, :arguments=>["counter", 0, 0, 0, {:raw=>true}], :mode=>:write}]
+                  expected_event = NewRelic::Security::Agent::Control::Event.new(CACHING_DATA_STORE, args, MEMCACHED)
+                  assert_equal 1, NewRelic::Security::Agent::Control::Collector.get_event_count(CACHING_DATA_STORE)
+                  assert_equal expected_event.caseType, $event_list[0].caseType
+                  assert_equal expected_event.parameters, $event_list[0].parameters
+                  assert_equal expected_event.eventCategory, $event_list[0].eventCategory
+                  $event_list.clear()
+
+                  res = cache.incr 'counter', 1
+                  args = [{:type=>:incr, :arguments=>["counter", 1, 0, nil], :mode=>:update}]
+                  expected_event = NewRelic::Security::Agent::Control::Event.new(CACHING_DATA_STORE, args, MEMCACHED)
+                  assert_equal 1, res
+                  assert_equal 1, NewRelic::Security::Agent::Control::Collector.get_event_count(CACHING_DATA_STORE)
+                  assert_equal expected_event.caseType, $event_list[0].caseType
+                  assert_equal expected_event.parameters, $event_list[0].parameters
+                  assert_equal expected_event.eventCategory, $event_list[0].eventCategory
+                  $event_list.clear()
+
+                  res = cache.get 'counter'
+                  args = [{:type=>:get, :arguments=>["counter", nil], :mode=>:read}]
+                  expected_event = NewRelic::Security::Agent::Control::Event.new(CACHING_DATA_STORE, args, MEMCACHED)
+                  assert_equal "1", res
+                  assert_equal 1, NewRelic::Security::Agent::Control::Collector.get_event_count(CACHING_DATA_STORE)
+                  assert_equal expected_event.caseType, $event_list[0].caseType
+                  assert_equal expected_event.parameters, $event_list[0].parameters
+                  assert_equal expected_event.eventCategory, $event_list[0].eventCategory
+                  $event_list.clear()
+
+                  res = cache.decr 'counter', 1
+                  args = [{:type=>:decr, :arguments=>["counter", 1, 0, nil], :mode=>:update}]
+                  expected_event = NewRelic::Security::Agent::Control::Event.new(CACHING_DATA_STORE, args, MEMCACHED)
+                  assert_equal 0, res
+                  assert_equal 1, NewRelic::Security::Agent::Control::Collector.get_event_count(CACHING_DATA_STORE)
+                  assert_equal expected_event.caseType, $event_list[0].caseType
+                  assert_equal expected_event.parameters, $event_list[0].parameters
+                  assert_equal expected_event.eventCategory, $event_list[0].eventCategory
+                  $event_list.clear()
+                end
+
+                def teardown
+                  $event_list.clear()
+                  NewRelic::Security::Agent::Control::HTTPContext.reset_context
+                end
+
+                Minitest.after_run do
+                    NewRelic::Security::Test::DatabaseHelper.remove_memcached_container
+                end
+
+            end
+        end
+    end
+end
+  
\ No newline at end of file