diff --git a/topics/terraform/README.md b/topics/terraform/README.md
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 |--------|--------|------|----|----|
 | Launch EC2 instance | EC2 | [Exercise](exercises/launch_ec2_instance/exercise.md) | [Solution](exercises/launch_ec2_instance/solution.md) | |
 | Rename S3 bucket | S3 | [Exercise](exercises/s3_bucket_rename/exercise.md) | [Solution](exercises/s3_bucket_rename/solution.md) | |
+| Create Custom VPC and Subnets | VPC | [Exercise](exercises/vpc_subnet_creation/exercise.md) | [Solution](exercises/vpc_subnet_creation/solution.md) | |
 
 ## Questions
 
diff --git a/topics/terraform/exercises/vpc_subnet_creation/exercise.md b/topics/terraform/exercises/vpc_subnet_creation/exercise.md
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+# Creating Custom VPC and Subnets with Terraform
+
+## Requirements
+* An existing AWS account with permissions to create VPCs and subnets.
+* Terraform installed on your local machine.
+* AWS CLI configured with your credentials.
+
+
+## Objectives
+1. Create a custom VPC with a specified CIDR block.
+    For example, you can use `10.0.0.0/16`.
+2. Create two subnets within the VPC, each with a different CIDR block.
+    For example, you can use `10.0.0.0/20` for the first subnet and `10.0.16.0/20` for the second subnet.
+
+    Both subnets should be in different availability zones to ensure high availability.
+3. Ensure that the VPC and subnets are tracked by Terraform.
+
+## Solution
+Click [here to view the solution](solution.md)
diff --git a/topics/terraform/exercises/vpc_subnet_creation/solution.md b/topics/terraform/exercises/vpc_subnet_creation/solution.md
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+# Creating Custom VPC and Subnets with Terraform
+
+
+## Objectives
+1. Create a custom VPC with a specified CIDR block.
+    For example, you can use `10.0.0.0/16`.
+2. Create two subnets within the VPC, each with a different CIDR block.
+    For example, you can use `10.0.0.0/20` for the first subnet and `10.0.16.0/20` for the second subnet.
+
+    Both subnets should be in different availability zones to ensure high availability.
+3. Ensure that the VPC and subnets are tracked by Terraform.
+
+
+## Solution
+
+
+
+```sh
+# Create a directory for the Terraform configuration
+mkdir vpc_subnet_creation && cd vpc_subnet_creation 
+```
+
+```sh
+# Create the main.tf file with the VPC and subnets configuration
+touch main.tf
+```
+
+```terraform
+terraform {
+  required_providers {
+    aws = {
+      source  = "hashicorp/aws"
+      version = "~> 5.0"
+    }
+  }
+}
+
+provider "aws" {
+  region = "your-region" # e.g., ap-south-1
+}
+
+resource "aws_vpc" "my_custom_vpc" {
+  cidr_block = "10.0.0.0/16"
+  tags = {
+    Name = "my_custom_vpc_made_with_terraform"
+  }
+}
+
+resource "aws_subnet" "Subnet_A" {
+  cidr_block       = "10.0.0.0/20"
+  vpc_id            = aws_vpc.my_custom_vpc.id
+  availability_zone = "your-availability-zone-a" # e.g., ap-south-1a
+  tags = {
+    "Name" = "Subnet A"
+  }
+}
+resource "aws_subnet" "Subnet_B" {
+  cidr_block       = "10.0.16.0/20"
+  vpc_id            = aws_vpc.my_custom_vpc.id
+  availability_zone = "your-availability-zone-b" # e.g., ap-south-1b
+  tags = {
+    "Name" = "Subnet B"
+  }
+}
+```
+
+```sh
+# Initialize Terraform to download the AWS provider
+terraform init
+```
+
+```sh
+# Apply the Terraform configuration to create the VPC and subnets
+terraform apply -auto-approve
+```
+
+
+