1. Install `@tanstack/react-query` and `@tanstack/react-query-devtools`.
2. Create a `QueryClient` instance and configure default options (e.g., `staleTime`, `gcTime`).
3. Wrap the application with `QueryClientProvider` and include `ReactQueryDevtools`.
4. Use `useQuery` for data fetching, providing `queryKey` and `queryFn`.
5. Use `useMutation` for data updates, providing `mutationFn` and `onSuccess` to invalidate queries.
6. Implement optimistic updates using `useMutationState`.
7. Handle errors using `QueryErrorResetBoundary` and `throwOnError`.