A circuit arrangement and method utilize thread pair context caching, where a pair of hardware threads in a multithreaded processor, which are each capable of executing a process, are effectively paired together, at least temporarily, to perform context switching operations such as context save and/or load operations in advance of context switches performed in one or more of such paired hardware threads. By doing so, the overall latency of a context switch, where both the context for a process being switched from must be saved, and the context for the process being switched to must be loaded, may be reduced.