diff --git a/DIRECTORY.md b/DIRECTORY.md
index 0b9180d3..6c1dcd4e 100644
--- a/DIRECTORY.md
+++ b/DIRECTORY.md
@@ -302,6 +302,8 @@
       * [Test Max Sum Sub Array](https://github.com/BrianLusina/PythonSnips/blob/master/algorithms/sliding_window/max_sum_of_subarray/test_max_sum_sub_array.py)
     * Minimum Window Substring
       * [Test Min Window Substring](https://github.com/BrianLusina/PythonSnips/blob/master/algorithms/sliding_window/minimum_window_substring/test_min_window_substring.py)
+    * Permutation In String
+      * [Test Permutation In String](https://github.com/BrianLusina/PythonSnips/blob/master/algorithms/sliding_window/permutation_in_string/test_permutation_in_string.py)
     * Repeated Dna Sequences
       * [Test Repeated Dna Sequences](https://github.com/BrianLusina/PythonSnips/blob/master/algorithms/sliding_window/repeated_dna_sequences/test_repeated_dna_sequences.py)
     * Substring Concatenation
diff --git a/algorithms/graphs/min_cost_valid_path/test_min_cost_to_make_valid_path.py b/algorithms/graphs/min_cost_valid_path/test_min_cost_to_make_valid_path.py
index 8357597f..ceb1a978 100644
--- a/algorithms/graphs/min_cost_valid_path/test_min_cost_to_make_valid_path.py
+++ b/algorithms/graphs/min_cost_valid_path/test_min_cost_to_make_valid_path.py
@@ -6,7 +6,7 @@
     min_cost_dijkstra,
     min_cost_0_1_bfs,
     min_cost_0_1_bfs_2,
-    min_cost_dfs_and_bfs
+    min_cost_dfs_and_bfs,
 )
 
 MIN_COST_TO_MAKE_VALID_PATH_IN_GRID_TEST_CASES = [
diff --git a/algorithms/sliding_window/permutation_in_string/README.md b/algorithms/sliding_window/permutation_in_string/README.md
new file mode 100644
index 00000000..c4aa9a44
--- /dev/null
+++ b/algorithms/sliding_window/permutation_in_string/README.md
@@ -0,0 +1,159 @@
+# Permutation in String
+
+Given two strings s1 and s2, return true if s2 contains a permutation of s1, or false otherwise.
+
+In other words, return true if one of s1's permutations is the substring of s2.
+ 
+## Examples
+
+Example 1:
+
+```text
+Input: s1 = "ab", s2 = "eidbaooo"
+Output: true
+Explanation: s2 contains one permutation of s1 ("ba").
+```
+
+Example 2:
+```text
+Input: s1 = "ab", s2 = "eidboaoo"
+Output: false
+```
+
+## Constraints
+
+- 1 <= s1.length, s2.length <= 10^4
+- s1 and s2 consist of lowercase English letters.
+
+## Topics
+
+- Hash Table
+- Two Pointers
+- String
+- Sliding Window
+
+## Hints
+
+- Obviously, brute force will result in TLE. Think of something else.
+- How will you check whether one string is a permutation of another string?
+- One way is to sort the string and then compare. But, Is there a better way?
+- If one string is a permutation of another string then they must have one common metric. What is that?
+- Both strings must have same character frequencies, if one is permutation of another. Which data structure should be
+  used to store frequencies?
+- What about hash table? An array of size 26?
+
+## Solution(s)
+
+1. [Sliding Window](#sliding-window)
+2. [Optimized Sliding Window](#optimized-sliding-window)
+
+### Sliding Window
+
+A naive approach would be to generate all possible rearrangements of s1 and check whether any appear in s2. But that 
+would quickly become inefficient for longer strings, because the number of permutations grows extremely fast. For a
+three-letter string like "abc", there are already six permutations; for "abcdef", there are hundreds. So, instead of
+trying to rearrange s1, we look for an efficient alternative.
+
+Two strings are permutations of each other if and only if they contain the same characters the same number of times. For
+example, "abc" and "bca" are permutations because both have one a, one b, and one c. This means that if we find any
+substring of s2 that is the same length as s1 and has the same character counts, then that substring must be a
+permutation of s1.
+
+> Quick recall 
+> A substring is a contiguous sequence of characters within a larger string. So, if s1 = "ab" and s2 = "acb", even
+> though both strings contain the same counts of letters a and b, there’s no two-letter block in s2 that contains both
+> together so that the result would be FALSE.
+
+The same idea is used in this solution, keeping track of the character counts of s1 inside s2. To do this efficiently,
+the algorithm uses a sliding window over s2. At any given moment, this window represents a substring of s2 that’s the
+same length as s1 and could potentially be one of its permutations. To check that, compare the frequency of each
+character in s1 with the frequency of the characters inside this window.
+
+If the counts match, it means the current window contains the same letters as s1, just possibly in a different order,
+so a valid permutation is found. In that case, return TRUE. If the counts don’t match, and there are still characters
+left to examine in s2, slide the window forward by one character. That means one new character from the right side of
+s2 is added to the window, and one old character from the left side is removed. This is important because the window
+must always stay the same length as s1. Keep doing this until either a match is found or the end of s2 is reached. If
+all possible windows have been checked and none match the character frequencies of s1, then return FALSE.
+
+Let's look at the algorithm steps:
+
+1. Store the lengths of s1 and s2 in n1 and n2.
+2. If n1 > n2, return FALSE, as a longer string can’t fit as a substring in some other string. 
+3. Create two arrays, s1Counts and windowCounts, of length 26. The former stores the frequencies of characters in s1,
+   and the latter stores the frequencies in the current window of s2. 
+4. If the two frequency arrays are identical at this point, s1Counts == windowCounts, the function returns TRUE because
+   the first window is already a permutation of s1. 
+5. If they do not match, the window begins sliding across s2 one character at a time. For each position i from n1 to
+   n2-1 in s2:
+   - Add the count of characters at the right end of s2 (s2[i]) in the current window. 
+   - Remove the count of characters at the right end of s2 (s2[i - n1]) from the current window. 
+   - If s1Counts == windowCounts, return TRUE.
+6. Once the window has moved across the entire s2, and no match is found, return FALSE.
+
+![Example 1](./images/solutions/permutation_in_string_solution_1.png)
+![Example 2](./images/solutions/permutation_in_string_solution_2.png)
+![Example 3](./images/solutions/permutation_in_string_solution_3.png)
+![Example 4](./images/solutions/permutation_in_string_solution_4.png)
+![Example 5](./images/solutions/permutation_in_string_solution_5.png)
+![Example 6](./images/solutions/permutation_in_string_solution_6.png)
+![Example 7](./images/solutions/permutation_in_string_solution_7.png)
+![Example 8](./images/solutions/permutation_in_string_solution_8.png)
+![Example 9](./images/solutions/permutation_in_string_solution_9.png)
+![Example 10](./images/solutions/permutation_in_string_solution_10.png)
+
+#### Complexity Analysis
+
+##### Time Complexity
+
+The function runs in linear time because it builds character-frequency counts once, then slides a fixed-size window
+across s2 while doing only constant work per step. Each step contributes to the time complexity as follows:
+
+- Counting frequencies in s1 takes O(n1) time (one pass over s1). 
+- Building the first window in s2 (size of s1.length) takes O(n1) time.
+- Sliding the window across s2 takes O(n2). This is because each slide:
+  - Adds one character and removes one character (O(1) updates). 
+  - Compares two frequency arrays of size 26 (O(1), as 26 is constant).
+
+This makes the total time complexity O(n1 + n2). As the length of s2 is greater than or equal to that of s1 in all valid
+cases, the overall time complexity is dominated by the length of s2, with a special O(1) case when s1 is longer than s2.
+Therefore, the final time complexity is O(n2).
+
+##### Space Complexity
+
+The space complexity of this solution is O(1), meaning it uses constant extra memory. This is because it only maintains
+two fixed-size arrays (of size 26) to store letter frequencies and a few simple integer variables.
+
+### Optimized Sliding Window
+
+The last approach can be optimized, if instead of comparing all the elements of the s1arr for every updated s2arr
+corresponding to every window of s2 considered, we keep a track of the number of elements which were already matching
+in the s1arr and update just the count of matching elements when we shift the window towards the right.
+
+To do so, we maintain a count variable, which stores the number of characters(out of the 26 alphabets), which have the
+same frequency of occurence in s1 and the current window in s2. When we slide the window, if the deduction of the last
+element and the addition of the new element leads to a new frequency match of any of the characters, we increment the
+count by 1. If not, we keep the count intact. But, if a character whose frequency was the same earlier(prior to addition
+and removal) is added, it now leads to a frequency mismatch which is taken into account by decrementing the same count
+variable. If, after the shifting of the window, the count evaluates to 26, it means all the characters match in frequency
+totally. So, we return a True in that case immediately.
+
+#### Complexity Analysis
+
+Let l1 be the length of string s1 and l2 be the length of string s2.
+
+##### Time complexity: O(l1 + (l2 −l1))≈O(l2)
+
+Populating s1arr and s2arr takes O(l1) time since we iterate over the first l1 characters of both strings.
+
+The outer loop runs l2 −l1 times. In each iteration, we update two characters (one entering and one leaving the window)
+in constant time O(1), and we maintain a count of matches. This step takes O(l2 −l1).
+
+Checking if count == 26 also happens in O(1), since it's a constant comparison.
+
+Thus, the total time complexity is: O(l1 +(l2 −l1))≈O(l2)
+
+##### Space complexity: O(1)
+
+Two fixed-size arrays (s1arr and s2arr) of size 26 are used for counting character frequencies. No additional space that
+grows with the input size is used.
diff --git a/algorithms/sliding_window/permutation_in_string/__init__.py b/algorithms/sliding_window/permutation_in_string/__init__.py
new file mode 100644
index 00000000..4641f05b
--- /dev/null
+++ b/algorithms/sliding_window/permutation_in_string/__init__.py
@@ -0,0 +1,81 @@
+def check_inclusion_optimized_sliding_window(s1: str, s2: str) -> bool:
+    s1_len, s2_len = len(s1), len(s2)
+    if s1_len > s2_len:
+        return False
+
+    s1_arr = [0] * 26
+    s2_arr = [0] * 26
+
+    for i in range(s1_len):
+        x = ord(s1[i]) - ord("a")
+        y = ord(s2[i]) - ord("a")
+        s1_arr[x] += 1
+        s2_arr[y] += 1
+
+    count = 0
+    for i in range(26):
+        if s1_arr[i] == s2_arr[i]:
+            count += 1
+
+    for i in range(s2_len - s1_len):
+        r = ord(s2[i + s1_len]) - ord("a")
+        l = ord(s2[i]) - ord("a")
+
+        if count == 26:
+            return True
+        s2_arr[r] += 1
+        if s2_arr[r] == s1_arr[r]:
+            count += 1
+        elif s2_arr[r] == s1_arr[r] + 1:
+            count -= 1
+
+        s2_arr[l] -= 1
+        if s2_arr[l] == s1_arr[l]:
+            count += 1
+        elif s2_arr[l] == s1_arr[l] - 1:
+            count -= 1
+    return count == 26
+
+
+def check_inclusion_sliding_window(s1: str, s2: str) -> bool:
+    n1 = len(s1)
+    n2 = len(s2)
+
+    # If s1 is longer than s2, a permutation of s1 cannot be a substring of s2
+    if n1 > n2:
+        return False
+
+    # Initialize frequency arrays for s1 and the current sliding window in s2
+    # Use 26-element arrays for lowercase English letters 'a' through 'z'
+    s1_counts = [0] * 26
+    window_counts = [0] * 26
+
+    # Populate s1_counts with character frequencies from s1
+    for c in s1:
+        s1_counts[ord(c) - ord("a")] += 1
+
+    # Populate window_counts for the initial sliding window (first n1 characters of s2)
+    for i in range(n1):
+        window_counts[ord(s2[i]) - ord("a")] += 1
+
+    # Check if the initial window is a permutation
+    # This can be done by comparing the two frequency arrays
+    if s1_counts == window_counts:
+        return True
+
+    # Slide the window across the rest of s2
+    for i in range(n1, n2):
+        # Character entering the window (at index i)
+        char_added = ord(s2[i]) - ord("a")
+        window_counts[char_added] += 1
+
+        # Character leaving the window (at index i - n1)
+        char_removed = ord(s2[i - n1]) - ord("a")
+        window_counts[char_removed] -= 1
+
+        # After updating the window, check if the frequencies match
+        if s1_counts == window_counts:
+            return True
+
+    # If no permutation is found after checking all windows
+    return False
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diff --git a/algorithms/sliding_window/permutation_in_string/test_permutation_in_string.py b/algorithms/sliding_window/permutation_in_string/test_permutation_in_string.py
new file mode 100644
index 00000000..b874d9e5
--- /dev/null
+++ b/algorithms/sliding_window/permutation_in_string/test_permutation_in_string.py
@@ -0,0 +1,29 @@
+import unittest
+from parameterized import parameterized
+from algorithms.sliding_window.permutation_in_string import (
+    check_inclusion_optimized_sliding_window,
+    check_inclusion_sliding_window,
+)
+
+PERMUTATION_IN_STRING_TEST_CASES = [
+    ("ab", "eidbaooo", True),
+    ("ab", "eidboaoo", False),
+]
+
+
+class PermutationInStringTestCase(unittest.TestCase):
+    @parameterized.expand(PERMUTATION_IN_STRING_TEST_CASES)
+    def test_check_inclusion_optimized_sliding_window(
+        self, s1: str, s2: str, expected: bool
+    ):
+        actual = check_inclusion_optimized_sliding_window(s1, s2)
+        self.assertEqual(expected, actual)
+
+    @parameterized.expand(PERMUTATION_IN_STRING_TEST_CASES)
+    def test_check_inclusion_sliding_window(self, s1: str, s2: str, expected: bool):
+        actual = check_inclusion_sliding_window(s1, s2)
+        self.assertEqual(expected, actual)
+
+
+if __name__ == "__main__":
+    unittest.main()