Although both input and output capacitor are not required for stability, good analog design practice is to connect a capacitor from IN to COMMON and from OUT to COMMON. The input capacitor counteracts reactive input sources and improves transient response, input ripple, and PSRR. Use an input capacitor if the source impedance is more than 0.5 Ω. A higher value capacitor can be necessary if large, fast rise-time load or line transients are anticipated or if the device is located several inches from the input power source.

Dynamic performance of the device is improved with the use of a large output capacitor. Use an output capacitor within the range specified in the Recommended Operating Conditions table for stability.