Grid computing organizes geographically distributed resources under a single platform and let the users access this combined power. In this paper we have discussed the application of distributed memory caching system in the Grid computing environment to improve its computational environment. For our experiment, we used Alchemi, a .net based Grid computing framework and Memcached, a distributed memory caching technique. We completed couple of experiments in this environment and they demonstrated two very important outcomes. One of the outcomes outlined that distributed memory caching technique can provide fail safe computation for the Grid environment. The second result represented the reduction of the total computational time of the Grid applications. Based on the results of these current experiments and also previous experiments completed in our distributed computing laboratory we have proposed a new technique for the Grid computing environment that can provide performance improvement as well as the fail safe Grid computing environment.