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Caching dynamic content is an important issue due to the growing number of noncacheable dynamic Web documents. Previous research has focused on server-side dynamic caching techniques, which are beneficial in reducing server resource demands. Proxy-side caching of dynamic content, on the other hand, reduces bandwidth consumption and download latency by increasing the hit ratio. This paper proposes a scheme to efficiently cache dynamic content at the proxy side. The scheme identifies two kinds of dynamic pages, called eager-update pages and lazy-update pages, and uses different strategies to deal with each type. A simulation model to study the performance of our proposed scheme is outlined. We compare our scheme with the delta-encoding technique, which is popularly used to cache dynamic content on the Web. Our results show that our scheme can achieve a higher hit ratio and improve the network latency.