diff --git a/Algorithms/Algorithms.Tests/HuffmanCodingTests/HuffmanCodingTests.cs b/Algorithms/Algorithms.Tests/HuffmanCodingTests/HuffmanCodingTests.cs
new file mode 100644
index 0000000..888476c
--- /dev/null
+++ b/Algorithms/Algorithms.Tests/HuffmanCodingTests/HuffmanCodingTests.cs
@@ -0,0 +1,33 @@
+using Algorithms.HuffmanCoding;
+using System;
+using System.Collections.Generic;
+using System.Text;
+using Xunit;
+
+namespace Algorithms.Tests.HuffmanCodingTests
+{
+    public class HuffmanCodingTests
+    {
+        [Fact]
+        public void TestPriorityQueue()
+        {
+            PriorityQueue<int> priorityQueue = new PriorityQueue<int>();
+            priorityQueue.Enqueue(10);
+            priorityQueue.Enqueue(20);
+            priorityQueue.Enqueue(5);
+            priorityQueue.Enqueue(100);
+
+            Assert.Equal(5, priorityQueue.Dequeue());
+        }
+
+        [Theory]
+        [InlineData("abaacaabd", "d", "011")]
+        [InlineData("aaaaaaaaaaaaaaaaaaaaaaaaaaac", "a", "1")]
+        [InlineData("cad", "acd", "11100")]
+        public void TestHuffmanCode(string data, string input, string expectedCode)
+        {
+            HuffmanCoding.HuffmanCoding huffmanCoding = new HuffmanCoding.HuffmanCoding();
+            Assert.Equal(expectedCode, huffmanCoding.GetHuffmanCode(data, input));
+        }
+    }
+}
diff --git a/Algorithms/Algorithms/HuffmanCoding/HuffmanCoding.cs b/Algorithms/Algorithms/HuffmanCoding/HuffmanCoding.cs
new file mode 100644
index 0000000..d284d63
--- /dev/null
+++ b/Algorithms/Algorithms/HuffmanCoding/HuffmanCoding.cs
@@ -0,0 +1,109 @@
+using System;
+using System.Collections.Generic;
+using System.Text;
+
+namespace Algorithms.HuffmanCoding
+{
+
+    public class HuffmanNode : IComparable<HuffmanNode>
+    {
+        public long frequency;
+        public char ch;
+
+        public HuffmanNode left;
+        public HuffmanNode right;
+
+        public HuffmanNode(char ch, long frequency)
+        {
+            this.ch = ch;
+            this.frequency = frequency;
+        }
+
+        public int CompareTo(HuffmanNode node)
+        {
+            return frequency.CompareTo(node.frequency);
+        }
+    }
+
+    public class HuffmanCoding
+    {
+        PriorityQueue<HuffmanNode> priorityQueue;
+        HuffmanNode root = null;
+        Dictionary<char, string> prefixCode = new Dictionary<char, string>();
+
+        internal void BuildHuffmanTree(Dictionary<char, long> charFrequency)
+        {
+            // Create a priority queue with capacity as dictionary size (no of unique chars)
+            priorityQueue = new PriorityQueue<HuffmanNode>(charFrequency.Count);
+
+            foreach (var item in charFrequency)
+            {
+                var node = new HuffmanNode(item.Key, item.Value);
+                priorityQueue.Enqueue(node);
+            }
+
+            while (priorityQueue.Count > 1)
+            {
+                var first = priorityQueue.Dequeue();
+                var second = priorityQueue.Dequeue();
+
+                var parent = new HuffmanNode('$', first.frequency + second.frequency);
+                parent.left = first;
+                parent.right = second;
+
+                root = parent;
+
+                priorityQueue.Enqueue(parent);
+            }
+        }
+
+        internal void GeneratePrefixCode(HuffmanNode node, string input)
+        {
+            if (node.left == null && node.right == null && Char.IsLetter(node.ch))
+            {
+                prefixCode.Add(node.ch, input);
+                return;
+            }
+
+            GeneratePrefixCode(node.left, input + "0");
+            GeneratePrefixCode(node.right, input + "1");
+        }
+
+        internal Dictionary<char, long> GetCharacterFrequency(string inputStr)
+        {
+            var charFrequency = new Dictionary<char, long>();
+
+            foreach (var ch in inputStr)
+            {
+                if (charFrequency.ContainsKey(ch))
+                    charFrequency[ch]++;
+                else
+                    charFrequency[ch] = 1;
+            }
+            return charFrequency;
+        }
+
+        public string GetHuffmanCode(string data, string input)
+        {
+            if (string.IsNullOrWhiteSpace(data))
+                throw new ArgumentNullException("Invalid data");
+            if (string.IsNullOrWhiteSpace(input))
+                throw new ArgumentNullException("Invalid input string");
+
+            string huffmanCode = string.Empty;
+
+            var charFrequency = GetCharacterFrequency(data);
+            BuildHuffmanTree(charFrequency);
+            GeneratePrefixCode(root, string.Empty);
+
+            if(prefixCode?.Count > 0)
+            {
+                foreach(var ch in input)
+                {
+                    huffmanCode += prefixCode[ch];
+                }
+            }
+            return huffmanCode;
+        }
+    }
+}
diff --git a/Algorithms/Algorithms/HuffmanCoding/PriorityQueue.cs b/Algorithms/Algorithms/HuffmanCoding/PriorityQueue.cs
new file mode 100644
index 0000000..59ead12
--- /dev/null
+++ b/Algorithms/Algorithms/HuffmanCoding/PriorityQueue.cs
@@ -0,0 +1,170 @@
+using System;
+using System.Collections.Generic;
+using System.Text;
+
+namespace Algorithms.HuffmanCoding
+{
+    public sealed class PriorityQueue<T> where T : IComparable<T>
+    {
+        private long _count = long.MinValue;
+        private IndexedItem[] _items;
+        private int _size;
+
+        public PriorityQueue()
+            : this(16)
+        {
+        }
+
+        public PriorityQueue(int capacity)
+        {
+            _items = new IndexedItem[capacity];
+            _size = 0;
+        }
+
+        private bool IsHigherPriority(int left, int right)
+        {
+            return _items[left].CompareTo(_items[right]) < 0;
+        }
+
+        private int Percolate(int index)
+        {
+            if (index >= _size || index < 0)
+            {
+                return index;
+            }
+
+            var parent = (index - 1) / 2;
+            while (parent >= 0 && parent != index && IsHigherPriority(index, parent))
+            {
+                // swap index and parent
+                var temp = _items[index];
+                _items[index] = _items[parent];
+                _items[parent] = temp;
+
+                index = parent;
+                parent = (index - 1) / 2;
+            }
+
+            return index;
+        }
+
+        private void Heapify(int index)
+        {
+            if (index >= _size || index < 0)
+            {
+                return;
+            }
+
+            while (true)
+            {
+                var left = 2 * index + 1;
+                var right = 2 * index + 2;
+                var first = index;
+
+                if (left < _size && IsHigherPriority(left, first))
+                {
+                    first = left;
+                }
+
+                if (right < _size && IsHigherPriority(right, first))
+                {
+                    first = right;
+                }
+
+                if (first == index)
+                {
+                    break;
+                }
+
+                // swap index and first
+                var temp = _items[index];
+                _items[index] = _items[first];
+                _items[first] = temp;
+
+                index = first;
+            }
+        }
+
+        public int Count => _size;
+
+        public T Peek()
+        {
+            if (_size == 0)
+            {
+                throw new InvalidOperationException("Empty Heap");
+            }
+
+            return _items[0].Value;
+        }
+
+        private void RemoveAt(int index)
+        {
+            _items[index] = _items[--_size];
+            _items[_size] = default;
+
+            if (Percolate(index) == index)
+            {
+                Heapify(index);
+            }
+
+            if (_size < _items.Length / 4)
+            {
+                var temp = _items;
+                _items = new IndexedItem[_items.Length / 2];
+                Array.Copy(temp, 0, _items, 0, _size);
+            }
+        }
+
+        public T Dequeue()
+        {
+            var result = Peek();
+            RemoveAt(0);
+            return result;
+        }
+
+        public void Enqueue(T item)
+        {
+            if (_size >= _items.Length)
+            {
+                var temp = _items;
+                _items = new IndexedItem[_items.Length * 2];
+                Array.Copy(temp, _items, temp.Length);
+            }
+
+            var index = _size++;
+            _items[index] = new IndexedItem { Value = item, Id = ++_count };
+            Percolate(index);
+        }
+
+        public bool Remove(T item)
+        {
+            for (var i = 0; i < _size; ++i)
+            {
+                if (EqualityComparer<T>.Default.Equals(_items[i].Value, item))
+                {
+                    RemoveAt(i);
+                    return true;
+                }
+            }
+
+            return false;
+        }
+
+        private struct IndexedItem : IComparable<IndexedItem>
+        {
+            public T Value;
+            public long Id;
+
+            public int CompareTo(IndexedItem other)
+            {
+                var c = Value.CompareTo(other.Value);
+                if (c == 0)
+                {
+                    c = Id.CompareTo(other.Id);
+                }
+
+                return c;
+            }
+        }
+    }
+}