Caffeine is one of the world's most consumed drugs. According to the Washington Post (2015), two billion cups of coffee are consumed per day worldwide. Caffeine is classified as a central nervous system (CNS) stimulant and an organic molecule called methylxanthine. Caffeine has three notable mechanisms of action on the CNS that produce a psychostimulant effect. These effects are responsible for the effect that caffeine has on cognitive function. The effects of caffeine consumption on cognitive function have been demonstrated across several studies involving humans and animals. With the immense number of people consuming caffeine around the world, it is of vital importance to study the effects that this drug has on people's cognitive function. This literature review provides useful insights on this question through the analysis of caffeine's effects on cognitive function, along with information on caffeine's three modes of action. The findings of recent studies show mixed results regarding the effects of caffeine on mood, attention, processing speed, and memory. Current research suggests that if caffeine does have an effect on mood, the most significant changes may be anxiety. Studies did not support caffeine as having any significant effect on attention, but that it did play a role in enhancing processing speed. The majority of the studies reviewed suggest caffeine as having a significant positive effect on both short and long-term memory in adults and the elderly. Current findings warrant continued research on the association of caffeine and the resultant effects on cognitive function.