diff --git a/DIRECTORY.md b/DIRECTORY.md
index f0a34a553..1ac264e14 100644
--- a/DIRECTORY.md
+++ b/DIRECTORY.md
@@ -1280,6 +1280,7 @@
   * [Barcode Validator](strings/barcode_validator.py)
   * [Bitap String Match](strings/bitap_string_match.py)
   * [Boyer Moore Search](strings/boyer_moore_search.py)
+  * [Bpe Tokenizer](strings/bpe_tokenizer.py)
   * [Camel Case To Snake Case](strings/camel_case_to_snake_case.py)
   * [Can String Be Rearranged As Palindrome](strings/can_string_be_rearranged_as_palindrome.py)
   * [Capitalize](strings/capitalize.py)
diff --git a/strings/bpe_tokenizer.py b/strings/bpe_tokenizer.py
new file mode 100644
index 000000000..d32bda79a
--- /dev/null
+++ b/strings/bpe_tokenizer.py
@@ -0,0 +1,129 @@
+"""Byte-Pair Encoding: Subword-based tokenization algorithm used
+by state-of-the-art language models.
+
+Wikipedia: https://en.wikipedia.org/wiki/Byte_pair_encoding"""
+
+import itertools
+from collections import OrderedDict
+
+
+def get_byte_pair_counts(ids: list[int]) -> dict:
+    """Count consecutive byte-pairs of an encoded string.
+
+    >>> ids = [73, 32, 97, 109, 32, 74, 111, 110, 83, 110, 111, 119, 46]
+    >>> get_byte_pair_counts(ids)
+    {(73, 32): 1, (32, 97): 1, (97, 109): 1, (109, 32): 1, (32, 74): 1, (74, 111): 1, (111, 110): 1, (110, 83): 1, (83, 110): 1, (110, 111): 1, (111, 119): 1, (119, 46): 1}
+    >>> ids = [2, 3, 6, 2, 3, 6, 2, 5]
+    >>> get_byte_pair_counts(ids)
+    {(2, 3): 2, (3, 6): 2, (6, 2): 2, (2, 5): 1}
+    """  # noqa: E501
+    counts: dict = {}
+    for pair in itertools.pairwise(ids):
+        counts[pair] = counts.get(pair, 0) + 1
+    return counts
+
+
+def merge(ids: list[int], pair: tuple, idx: int) -> list[int]:
+    """Replace most occurring byte pair with new byte that is not used
+    in the data. For utf-8 encoding, we start with 256 as the new byte
+
+    >>> ids = [2, 3, 6, 2, 3, 6, 2, 5]
+    >>> pair = (2, 3)
+    >>> idx = 256
+    >>> merge(ids, pair, idx)
+    [256, 6, 256, 6, 2, 5]
+    """
+    new_ids = []
+    i = 0
+    while i < len(ids):
+        if i < len(ids) - 1 and (ids[i] == pair[0] and ids[i + 1] == pair[1]):
+            new_ids.append(idx)
+            i += 2
+        else:
+            new_ids.append(ids[i])
+            i += 1
+    return new_ids
+
+
+class Tokenizer:
+    """Tokenize a string using the byte-pair encoding algorithm"""
+
+    def __init__(self, num_merges: int = 20, verbose: bool = False) -> None:
+        self.num_merges = num_merges
+        self.merges: dict = {}
+        self.verbose = verbose
+
+    def encode(self, text: str) -> list[int]:
+        """Convert a string to tokens (bytes)
+
+        >>> t = Tokenizer()
+        >>> text = "I am JonSnow."
+        >>> t.encode(text)
+        [73, 32, 97, 109, 32, 74, 111, 110, 83, 110, 111, 119, 46]
+
+        >>> t = Tokenizer()
+        >>> text = ""
+        >>> t.encode(text)
+        []
+        """
+        text_b = text.encode("utf-8")  # raw bytes
+        tokens = list(map(int, text_b))  # convert to list of integers
+
+        if self.verbose:
+            print(f"Input text: {text}")
+            print(f"Tokens: {tokens}")
+
+        ids = list(tokens)  # create a copy of tokens
+        self.merges = OrderedDict()  # store a mapping of merges (int, int) -> int
+        max_merges = len(tokens) - 1
+        num_merges = min(self.num_merges, max_merges)
+        # start merging most frequently occurring byte pairs
+        for i in range(num_merges):
+            counts = get_byte_pair_counts(ids)
+            pair = max(counts, key=counts.__getitem__)
+
+            if counts[pair] == 1:
+                continue
+
+            idx = 256 + i  # create new token for every merge step
+            if self.verbose:
+                print(f"Merging {pair} into a new token {idx}")
+            ids = merge(ids, pair, idx)
+            self.merges[pair] = idx
+
+        return ids
+
+    def decode(self, ids: list[int]) -> str:
+        """Convert a list of tokens to the original string
+
+        >>> t = Tokenizer()
+        >>> ids = [73, 32, 97, 109, 32, 74, 111, 110, 83, 110, 111, 119, 46]
+        >>> t.decode(ids)
+        'I am JonSnow.'
+
+        >>> t = Tokenizer()
+        >>> ids = []
+        >>> t.decode(ids)
+        ''
+        """
+        vocab = {idx: bytes([idx]) for idx in range(256)}  # original vocabulary
+        # The iteration of items should be in the order of
+        # their insertion. This is the default behavior in Python 3
+        # but we use an OrderedDict explicitly here
+        for (p0, p1), idx in self.merges.items():
+            vocab[idx] = vocab[p0] + vocab[p1]
+
+        if self.verbose:
+            print("Vocabulary (after merging): {vocab}")
+
+        tokens = b"".join(vocab[idx] for idx in ids)
+        # handle UnicodeDecodeError by replacing the invalid
+        # start byte to conform to utf-8 format
+        text = tokens.decode("utf-8", errors="replace")
+        return text
+
+
+if __name__ == "__main__":
+    import doctest
+
+    doctest.testmod()