The TPS7B4255 requires an output capacitor of at least 1 µF (500 nF or larger capacitance) for stability and an equivalent series resistance (ESR) between 0.001 Ω and 3 Ω. Without the output capacitor, the regulator oscillates. For best transient performance, use X5R- and X7R-type ceramic capacitors because these capacitors have minimal variation in value and ESR over temperature. When choosing a capacitor for a specific application, be mindful of the DC bias characteristics for the capacitor. Higher output voltages cause a significant derating of the capacitor. For best performance, the maximum recommended output capacitor is 200 µF.

Although an input capacitor is not required for stability, good analog design practice is to connect a capacitor from IN to GND, connected close to the device pins. Some input supplies have a high impedance; thus, placing the input capacitor on the input supply helps reduce the input impedance. This capacitor counteracts reactive input sources and improves transient response, input ripple, and PSRR. If the input supply has a high impedance over a large range of frequencies, several input capacitors can be used in parallel to lower the impedance over frequency. Use a higher-value capacitor if large, fast rise-time load transients are anticipated, or if the device is located several inches from the input power source.