diff --git a/finite-state-machine/etc/finite-state-machine.png b/finite-state-machine/etc/finite-state-machine.png
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index 000000000000..59b3e3035e86
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diff --git a/finite-state-machine/pom.xml b/finite-state-machine/pom.xml
new file mode 100644
index 000000000000..ada7c8c4007b
--- /dev/null
+++ b/finite-state-machine/pom.xml
@@ -0,0 +1,15 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<project xmlns="http://maven.apache.org/POM/4.0.0"
+         xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+         xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
+    <parent>
+        <artifactId>java-design-patterns</artifactId>
+        <groupId>com.iluwatar</groupId>
+        <version>1.5.0</version>
+    </parent>
+    <modelVersion>4.0.0</modelVersion>
+
+    <artifactId>finite-state-machine</artifactId>
+
+
+</project>
\ No newline at end of file
diff --git a/finite-state-machine/src/main/java/com/iluwatar/fsm/FiniteStateMachine.java b/finite-state-machine/src/main/java/com/iluwatar/fsm/FiniteStateMachine.java
new file mode 100644
index 000000000000..aa6bd4be0660
--- /dev/null
+++ b/finite-state-machine/src/main/java/com/iluwatar/fsm/FiniteStateMachine.java
@@ -0,0 +1,181 @@
+package com.iluwatar.fsm;
+
+import java.util.HashMap;
+import java.util.Map;
+
+/**
+ * Represents a simple finite state machine implementation with a custom context and where events and states are defined as enumerations.
+ *
+ * Created by Stephen Lazarionok.
+ */
+public final class FiniteStateMachine<C> {
+
+    private Enum<?> state;
+
+    private C context;
+
+    private Map<TransitionMappingKey, TransitionMappingValue> transitions;
+
+    public Enum<?> getState() {
+        return state;
+    }
+
+    public void raiseEvent(Enum<?> event) {
+
+        System.out.println("Event '" + event + "' has been raised...");
+
+        // Tries to find the transition mapping by the start state and the event raised.
+        final TransitionMappingValue transitionMappingValue = transitions.get(new TransitionMappingKey(event, state));
+        if (transitionMappingValue != null) {
+
+            // Gets the target state
+            final Enum<?> targetState = transitionMappingValue.getState();
+
+            // Invokes the transition handler if exists
+            if (transitionMappingValue.getTransitionHandler() != null) {
+                transitionMappingValue.getTransitionHandler().handle(state, targetState, context);
+            }
+
+            final Enum<?> oldState = this.state;
+            this.state = targetState;
+            System.out.println("Transition from '" + oldState + "' to '" + state + "' triggered by '"+ event + "' event has been completed.");
+        }
+        else {
+            System.out.println("No available transitions found by event '" + event + "' from state '" + state + "'.");
+        }
+    }
+
+    private static final class TransitionMappingKey {
+
+        private Enum<?> event;
+
+        private Enum<?> state;
+
+        private TransitionMappingKey(Enum<?> event, Enum<?> state) {
+            this.event = event;
+            this.state = state;
+        }
+
+        public Enum<?> getEvent() {
+            return event;
+        }
+
+        public Enum<?> getState() {
+            return state;
+        }
+
+        @Override
+        public boolean equals(Object o) {
+            if (this == o) return true;
+            if (o == null || getClass() != o.getClass()) return false;
+
+            TransitionMappingKey that = (TransitionMappingKey) o;
+
+            if (event != null ? !event.equals(that.event) : that.event != null) return false;
+            if (state != null ? !state.equals(that.state) : that.state != null) return false;
+
+            return true;
+        }
+
+        @Override
+        public int hashCode() {
+            int result = event != null ? event.hashCode() : 0;
+            result = 31 * result + (state != null ? state.hashCode() : 0);
+            return result;
+        }
+    }
+
+    private static final class TransitionMappingValue<C> {
+
+        private TransitionHandler<C> transitionHandler;
+
+        private Enum<?> state;
+
+        public TransitionMappingValue(TransitionHandler<C> transitionHandler, Enum<?> state) {
+            this.transitionHandler = transitionHandler;
+            this.state = state;
+        }
+
+        public TransitionHandler<C> getTransitionHandler() {
+            return transitionHandler;
+        }
+
+        public Enum<?> getState() {
+            return state;
+        }
+    }
+
+    private FiniteStateMachine() {
+    }
+
+    /**
+     * A builder for custom finite state machines.
+     *
+     */
+    public static final class Builder<C> {
+
+
+        private Enum<?> state;
+
+        private C context;
+
+        private Map<TransitionMappingKey, TransitionMappingValue> transitions = new HashMap<TransitionMappingKey, TransitionMappingValue>();
+
+        private Builder() {
+        }
+
+        /**
+         * Creates a new builder.
+         * @return a new builder instance.
+         */
+        public static Builder create() {
+            return new Builder();
+        }
+
+        /**
+         * Defines an initial state.
+         * @param state
+         * @return
+         */
+        public Builder withDefaultState(final Enum<?> state) {
+            this.state = state;
+            return this;
+        }
+
+        /**
+         * Add a transition.
+         * @param from - 'from' state
+         * @param event - an event that triggers the transition
+         * @param to - 'to' state
+         * @param transitionHandler - a transition handler.
+         * @return
+         */
+        public Builder addTransition(final Enum<?> from, final Enum<?> event, final Enum<?> to, final TransitionHandler<C> transitionHandler) {
+            transitions.put(new TransitionMappingKey(event, from), new TransitionMappingValue(transitionHandler, to));
+            return this;
+        }
+
+        /**
+         * Defines the context of the FSM. Might be used to pass external services to handle transitions within the FSM.
+         * @param context
+         * @return
+         */
+        public Builder withContext(final C context) {
+            this.context = context;
+            return this;
+        }
+
+        /**
+         * Builds a FSM based on the rules defined.
+         * @return
+         */
+        public FiniteStateMachine<C> build() {
+            final FiniteStateMachine<C> result = new FiniteStateMachine<C>();
+            result.context = context;
+            result.transitions = transitions;
+            result.state = state;
+            return result;
+        }
+    }
+
+}
diff --git a/finite-state-machine/src/main/java/com/iluwatar/fsm/TransitionHandler.java b/finite-state-machine/src/main/java/com/iluwatar/fsm/TransitionHandler.java
new file mode 100644
index 000000000000..9689d3168aaf
--- /dev/null
+++ b/finite-state-machine/src/main/java/com/iluwatar/fsm/TransitionHandler.java
@@ -0,0 +1,18 @@
+package com.iluwatar.fsm;
+
+/**
+ * Represents a hook that handles transitions from one to another state.
+ *
+ * Created by Stephen Lazarionok.
+ */
+public interface TransitionHandler<C> {
+
+    /**
+     * Handles a transition from one to another state.
+     *
+     * @param from - an initial state
+     * @param to - a target state
+     * @param context - a custom context passed.
+     */
+    void handle(Enum<?> from, Enum<?> to, C context);
+}
diff --git a/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/Car.java b/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/Car.java
new file mode 100644
index 000000000000..3effd6911a1c
--- /dev/null
+++ b/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/Car.java
@@ -0,0 +1,15 @@
+package com.iluwatar.fsm.sample;
+
+/**
+ * Created by Stephen Lazarionok.
+ */
+public class Car {
+
+    public void drive() {
+        System.out.println("***************************");
+        System.out.println("***************************");
+        System.out.println("Driving...");
+        System.out.println("***************************");
+        System.out.println("***************************");
+    }
+}
diff --git a/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/Sample.java b/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/Sample.java
new file mode 100644
index 000000000000..0a1b6bc2abc4
--- /dev/null
+++ b/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/Sample.java
@@ -0,0 +1,56 @@
+package com.iluwatar.fsm.sample;
+
+import com.iluwatar.fsm.FiniteStateMachine;
+import com.iluwatar.fsm.TransitionHandler;
+
+import java.util.HashMap;
+import java.util.Map;
+
+
+/**
+ * A demo application that shows how to work with traffic lights.
+ * <p/>
+ * Created by Stephen Lazarionok.
+ */
+public class Sample {
+
+    public static void main(final String[] args) {
+
+        // Build a simple context based on map
+        final Map<String, Object> context = new HashMap<String, Object>();
+        context.put("mycar", new Car());
+
+        // A handler that just logs a transition
+        final TransitionHandler<Map<String, Object>> logTransitionHandler = new TransitionHandler<Map<String, Object>>() {
+
+            @Override
+            public void handle(Enum<?> from, Enum<?> to, Map<String, Object> context) {
+                System.out.println("Performing transition from '" + from + "' to '" + to + "'...");
+            }
+        };
+
+        // A handler that starts driving my car
+        final TransitionHandler<Map<String, Object>> startDrivingHandler = new TransitionHandler<Map<String, Object>>() {
+
+            @Override
+            public void handle(Enum<?> from, Enum<?> to, Map<String, Object> context) {
+
+                Car.class.cast(context.get("mycar")).drive();
+            }
+        };
+
+        final FiniteStateMachine<Map<String, ?>> trafficLightFsm = FiniteStateMachine.Builder.create()
+                .withDefaultState(TrafficLightState.RED)
+                .addTransition(TrafficLightState.GREEN, TrafficLightEvent.SWITCH, TrafficLightState.YELLOW, logTransitionHandler)
+                .addTransition(TrafficLightState.YELLOW, TrafficLightEvent.SWITCH, TrafficLightState.RED, logTransitionHandler)
+                .addTransition(TrafficLightState.RED, TrafficLightEvent.SWITCH, TrafficLightState.YELLOW, logTransitionHandler)
+                .addTransition(TrafficLightState.YELLOW, TrafficLightEvent.SWITCH, TrafficLightState.GREEN, startDrivingHandler)
+                .withContext(context)
+                .build();
+
+        trafficLightFsm.raiseEvent(TrafficLightEvent.SWITCH);
+        trafficLightFsm.raiseEvent(TrafficLightEvent.SWITCH);
+
+    }
+
+}
diff --git a/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/TrafficLightEvent.java b/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/TrafficLightEvent.java
new file mode 100644
index 000000000000..e8ca2ea93bf9
--- /dev/null
+++ b/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/TrafficLightEvent.java
@@ -0,0 +1,10 @@
+package com.iluwatar.fsm.sample;
+
+/**
+ * Contains all the events that may happen with traffic light.
+ *
+ * Created by Stephen Lazarionok.
+ */
+public enum TrafficLightEvent {
+    SWITCH
+}
diff --git a/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/TrafficLightState.java b/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/TrafficLightState.java
new file mode 100644
index 000000000000..f7c03ac34854
--- /dev/null
+++ b/finite-state-machine/src/main/java/com/iluwatar/fsm/sample/TrafficLightState.java
@@ -0,0 +1,10 @@
+package com.iluwatar.fsm.sample;
+
+/**
+ * Contains all the states of traffic light.
+ *
+ * Created by Stephen Lazarionok.
+ */
+public enum TrafficLightState {
+    RED, YELLOW, GREEN
+}