diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index e622973..992b7a6 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -13,6 +13,10 @@ Change Log
 
 Unreleased
 
+[1.54.0] - 2024-10-02
+---------------------
+* perf: Added caching to `XBlockSkillsViewSet` list endpoint to improve performance and reduce redundant database queries
+
 [1.53.0] - 2024-08-22
 ---------------------
 * perf: Introduced db_index on the `created` and `is_blacklisted` fields in `XBlockSkillData` model 
diff --git a/taxonomy/__init__.py b/taxonomy/__init__.py
index d450b26..738ee11 100644
--- a/taxonomy/__init__.py
+++ b/taxonomy/__init__.py
@@ -15,6 +15,6 @@
 # 2. MINOR version when you add functionality in a backwards compatible manner, and
 # 3. PATCH version when you make backwards compatible bug fixes.
 # More details can be found at https://semver.org/
-__version__ = '1.53.0'
+__version__ = '1.54.0'
 
 default_app_config = 'taxonomy.apps.TaxonomyConfig'  # pylint: disable=invalid-name
diff --git a/taxonomy/api/v1/views.py b/taxonomy/api/v1/views.py
index fd1db4c..8d31fbf 100644
--- a/taxonomy/api/v1/views.py
+++ b/taxonomy/api/v1/views.py
@@ -15,6 +15,8 @@
 from django.db.models import Count, Prefetch, Sum
 from django.shortcuts import get_object_or_404
 
+from edx_django_utils.cache import TieredCache, get_cache_key
+
 from taxonomy.api.filters import SkillNameFilter, XBlocksFilter
 from taxonomy.api.permissions import IsOwner
 from taxonomy.api.v1.serializers import (
@@ -40,6 +42,8 @@
     XBlockSkills,
 )
 
+CACHE_TIMEOUT_XBLOCK_SKILLS_SECONDS = 60 * 60
+
 
 class TaxonomyAPIViewSetMixin:
     """
@@ -320,6 +324,18 @@ def get_queryset(self):
             ),
         ).only('id', 'skills', 'usage_key', 'requires_verification', 'auto_processed', 'hash_content')
 
+    def list(self, request, *args, **kwargs):
+        cache_key = get_cache_key(domain='taxonomy', subdomain='xblock_skills', params=request.query_params)
+
+        cached_response = TieredCache.get_cached_response(cache_key)
+        if cached_response.is_found:
+            return Response(cached_response.value)
+
+        response = super().list(request, *args, **kwargs)
+
+        TieredCache.set_all_tiers(cache_key, response.data, CACHE_TIMEOUT_XBLOCK_SKILLS_SECONDS)
+
+        return response
 
 class JobPathAPIView(TaxonomyAPIViewSetMixin, RetrieveAPIView):
     """