Node.js is widely adopted for developing web applications due to its versatility, extensive ecosystem, and developer-friendly features. However, performance challenges such as memory exhaustion can impact Node.js applications like any other. To maintain a scalable and reliable application, prioritizing memory performance becomes critical. Memory management involves regulating how software interacts with computer memory, including allocating and releasing memory. Node.js allocates memory using the V8 JavaScript engine, which handles memory allocation, utilizing a Resident Set of memory allocated to the program, consisting of code, static data, stack, and heap memory. Garbage Collection (GC) periodically purges unused memory by removing objects that are no longer required from the heap. The GC process in Node.js is a combination of two algorithms: Scavenger (Minor GC) and Mark-Sweep & Mark-Compact (Major GC). Common memory issues in Node.js include Memory Leaks, where continuous allocation but failure to release memory can lead to running out of memory and crashing. Global variables also pose a risk as they won't be garbage collected, leading to memory exhaustion. Storing large objects in memory or using excessive global variables can cause performance issues and lead to memory crashes. To mitigate these issues, it's essential to identify and address potential memory leaks, optimize storage of large objects, and use the correct data structures and storage mechanisms, such as streaming files instead of loading large chunks into memory.