Watch the Soloing in CAGED online guitar lesson by Jeff Scheetz from Street Theory for Guitarists
Once you know both the chords and the corresponding major pentatonic scales you can create some cool musical parts. For starters, you can really nail the "Hendrix" kind of feel of going back and forth between a chord and then a little lick. Soloing within the CAGED system is another good way to stay melodic. Of course, you should take the CAGED system to the next level by learning all the other scales and chord options that will go with it, but this should get you started down the path!