diff --git a/examples/file-share/README.md b/examples/file-share/README.md
new file mode 100644
index 000000000..c0132ca3c
--- /dev/null
+++ b/examples/file-share/README.md
@@ -0,0 +1,30 @@
+# P2P File Sharing Across NATs
+
+A lightweight, persistent file-sharing proof-of-concept built on `py-libp2p`. It allows two peers behind different NATs/routers to connect and exchange files using UPnP and a custom binary stream protocol.
+
+## Hack Value Features
+
+- **NAT Traversal:** Auto-configures UPnP port mapping (`enable_upnp=True`). The UI visually distinguishes between Local and Public IPs to confirm traversal success.
+- **Persistence:** Resolves the "reconnecting to peers" requirement by saving known peer Multiaddrs to a local `friends.json` file.
+- **Serverless File Exchange:** Uses a custom header-based protocol (`/file-share/1.0.0`) to transfer filenames and exact file sizes reliably without loading the entire file into RAM.
+
+## Usage
+
+### 1. Start the Receiver
+
+```bash
+python share.py -p 8001
+```
+
+Wait a moment for the node to detect its Public IP. Copy the Public Multiaddr.
+
+### 2. Start the Sender
+
+```bash
+python share.py -p 8002
+```
+
+- **Step A:** Select Option 2 (Add Friend). Name them "Receiver" and paste the Multiaddr.
+- **Step B:** Select Option 1 (Send File). Type "Receiver" and provide the path to a local file.
+
+The file will stream directly to the receiver's disk with a progress indicator.
diff --git a/examples/file-share/share.py b/examples/file-share/share.py
new file mode 100644
index 000000000..b3d598026
--- /dev/null
+++ b/examples/file-share/share.py
@@ -0,0 +1,246 @@
+import argparse
+import json
+import logging
+import os
+import sys
+
+from multiaddr import Multiaddr
+import trio
+
+from libp2p import new_host
+from libp2p.custom_types import TProtocol
+from libp2p.network.stream.net_stream import INetStream
+from libp2p.peer.peerinfo import info_from_p2p_addr
+
+PROTOCOL_ID = TProtocol("/file-share/1.0.0")
+FRIENDS_FILE = "friends.json"
+CHUNK_SIZE = 4096
+
+logging.basicConfig(level=logging.INFO, format="%(asctime)s %(levelname)s: %(message)s")
+logger = logging.getLogger("FileShare")
+
+
+# Persistence Layer
+def load_friends() -> dict[str, str]:
+    """Loads saved peer Multiaddrs from disk."""
+    if not os.path.exists(FRIENDS_FILE):
+        return {}
+    try:
+        with open(FRIENDS_FILE) as f:
+            # Explicitly cast to dict to satisfy strict type checkers
+            return dict(json.load(f))
+    except Exception:
+        return {}
+
+
+def save_friend(name: str, multiaddr_str: str) -> None:
+    """Saves a new peer to disk."""
+    friends: dict[str, str] = load_friends()
+    friends[name] = multiaddr_str
+    with open(FRIENDS_FILE, "w") as f:
+        json.dump(friends, f, indent=2)
+    print(f"✅ Saved friend '{name}' to {FRIENDS_FILE}")
+
+
+async def handle_incoming_file(stream: INetStream):
+    """
+    Receives a file over the stream and saves it to disk.
+    """
+    peer_id = stream.muxed_conn.peer_id
+    print(f"\n📥 Incoming connection from {peer_id}...")
+
+    try:
+        # Step A: Read Filename Length & Filename
+        len_bytes = await stream.read(4)
+        if not len_bytes:
+            return
+        fname_len = int.from_bytes(len_bytes, "big")
+
+        fname_bytes = await stream.read(fname_len)
+        filename = fname_bytes.decode()
+
+        # Step B: Read File Size
+        size_bytes = await stream.read(8)
+        file_size = int.from_bytes(size_bytes, "big")
+
+        print(f"📄 Receiving '{filename}' ({file_size} bytes)")
+
+        # Step C: Write to Disk (Prevent overwriting)
+        save_name = f"received_{filename}"
+        received_bytes = 0
+
+        with open(save_name, "wb") as f:
+            while received_bytes < file_size:
+                remaining = file_size - received_bytes
+                to_read = min(CHUNK_SIZE, remaining)
+
+                chunk = await stream.read(to_read)
+                if not chunk:
+                    break
+
+                f.write(chunk)
+                received_bytes += len(chunk)
+
+                percent = int((received_bytes / file_size) * 100)
+                sys.stdout.write(f"\r⏳ Downloading: {percent}%")
+                sys.stdout.flush()
+
+        print(f"\n✅ File saved as '{save_name}'")
+        await stream.close()
+
+    except Exception as e:
+        print(f"\n❌ Error receiving file: {e}")
+        await stream.reset()
+
+
+async def send_file(host, target_maddr_str, filepath):
+    """
+    Connects to a peer and streams a file.
+    """
+    if not os.path.exists(filepath):
+        print("❌ File not found.")
+        return
+
+    filename = os.path.basename(filepath)
+    filesize = os.path.getsize(filepath)
+
+    try:
+        # 1. Parse Address & Connect
+        maddr = Multiaddr(target_maddr_str)
+        info = info_from_p2p_addr(maddr)
+
+        print(f"🔄 Connecting to {info.peer_id}...")
+        await host.connect(info)
+
+        # 2. Open Stream
+        stream = await host.new_stream(info.peer_id, [PROTOCOL_ID])
+        print("🌊 Stream opened. Sending header...")
+
+        # 3. Send Header
+        fname_bytes = filename.encode()
+        await stream.write(len(fname_bytes).to_bytes(4, "big"))
+        await stream.write(fname_bytes)
+        await stream.write(filesize.to_bytes(8, "big"))
+
+        # 4. Send Body
+        sent_bytes = 0
+        with open(filepath, "rb") as f:
+            while True:
+                chunk = f.read(CHUNK_SIZE)
+                if not chunk:
+                    break
+
+                await stream.write(chunk)
+                sent_bytes += len(chunk)
+
+                percent = int((sent_bytes / filesize) * 100)
+                sys.stdout.write(f"\r🚀 Sending: {percent}%")
+                sys.stdout.flush()
+
+        print("\n✅ Transfer complete.")
+        await stream.close()
+
+    except Exception as e:
+        print(f"\n❌ Connection failed: {e}")
+
+
+async def user_interface_loop(host):
+    """Handles user input in a non-blocking Trio-safe way."""
+    while True:
+        print("\n" + "=" * 40)
+        print("     📂 P2P NAT FILE SHARING")
+        print("=" * 40)
+
+        print("📡 MY ADDRESSES:")
+        public_found = False
+        for addr in host.get_addrs():
+            addr_str = str(addr)
+            if (
+                "/127.0.0.1/" in addr_str
+                or "/192.168." in addr_str
+                or "/10." in addr_str
+            ):
+                print(f"  🏠 Local:  {addr_str}")
+            else:
+                print(f"  🌍 Public: {addr_str} (NAT Traversal Success!)")
+                public_found = True
+
+        if not public_found:
+            print("  ⚠️  No Public IP detected yet. (Wait for AutoNAT or use Relay)")
+
+        print("\nOPTIONS:")
+        print("1. 📤 Send File")
+        print("2. 💾 Add Friend (Save Peer)")
+        print("3. 📋 List Friends")
+        print("4. 🔄 Refresh Info")
+        print("Press Ctrl+C to exit")
+
+        choice = await trio.to_thread.run_sync(input, "\n👉 Choose option: ")
+
+        if choice == "1":
+            friends = load_friends()
+            if not friends:
+                print("⚠️ No friends saved. Add one first or enter raw Multiaddr.")
+                continue
+
+            print("\n--- Friends ---")
+            for name in friends:
+                print(f"- {name}")
+            print("---------------")
+
+            target = await trio.to_thread.run_sync(
+                input, "Enter Friend Name OR Multiaddr: "
+            )
+
+            # Resolve Friend Name to Address
+            if target in friends:
+                target = friends[target]
+
+            fpath = await trio.to_thread.run_sync(input, "Enter file path to send: ")
+            await send_file(host, target, fpath)
+
+        elif choice == "2":
+            name = await trio.to_thread.run_sync(input, "Enter a Name for this peer: ")
+            addr = await trio.to_thread.run_sync(input, "Paste their Multiaddr: ")
+            save_friend(name, addr.strip())
+
+        elif choice == "3":
+            friends = load_friends()
+            print("\n🤝 Saved Friends (Persistent Peerstore):")
+            for name, addr in friends.items():
+                print(f" - {name}")
+
+        elif choice == "4":
+            continue
+
+
+async def run(port):
+    # Enable NAT Port Mapping (UPnP)
+    host = new_host(enable_upnp=True)
+
+    # Register the protocol handler
+    host.set_stream_handler(PROTOCOL_ID, handle_incoming_file)
+
+    async with host.run(listen_addrs=[Multiaddr(f"/ip4/0.0.0.0/tcp/{port}")]):
+        print(f"\n🚀 Node Started on port {port}")
+        print(f"🆔 Peer ID: {host.get_id()}")
+
+        async with trio.open_nursery() as nursery:
+            nursery.start_soon(user_interface_loop, host)
+
+
+def main():
+    parser = argparse.ArgumentParser(description="P2P File Transfer Across NATs")
+    parser.add_argument(
+        "-p", "--port", type=int, default=8000, help="Port to listen on"
+    )
+    args = parser.parse_args()
+
+    try:
+        trio.run(run, args.port)
+    except KeyboardInterrupt:
+        print("\n👋 Shutting down...")
+
+
+if __name__ == "__main__":
+    main()
diff --git a/newsfragments/877.feature.rst b/newsfragments/877.feature.rst
new file mode 100644
index 000000000..87ce4cee8
--- /dev/null
+++ b/newsfragments/877.feature.rst
@@ -0,0 +1 @@
+Added a P2P file sharing example demonstrating NAT traversal and local peer persistence.