diff --git a/inventory/__init__.py b/inventory/__init__.py
new file mode 100644
index 0000000..9f952c6
--- /dev/null
+++ b/inventory/__init__.py
@@ -0,0 +1,8 @@
+from .inventory import Inventory
+
+__red_end_user_data_statement__ = "This cog stores user inventory data and trading history. Users can delete their data using the built-in data deletion commands."
+
+async def setup(bot):
+    cog = Inventory(bot)
+    await cog.initialize()
+    await bot.add_cog(cog) 
\ No newline at end of file
diff --git a/inventory/info.json b/inventory/info.json
new file mode 100644
index 0000000..0d041e2
--- /dev/null
+++ b/inventory/info.json
@@ -0,0 +1,17 @@
+{
+    "author": [
+        "Valerie"
+    ],
+    "install_msg": "Thanks for installing the Inventory cog! Use `[p]help Inventory` to see all commands.",
+    "name": "Inventory",
+    "short": "Manage inventories and trade items between users",
+    "description": "A cog that allows users to manage inventories and trade items with other users. Features include viewing inventories, trading items, and checking item information.",
+    "tags": [
+        "inventory",
+        "trading",
+        "items",
+        "economy"
+    ],
+    "min_bot_version": "3.5.0",
+    "end_user_data_statement": "This cog stores user inventory data and trading history. Users can delete their data using the built-in data deletion commands."
+}
\ No newline at end of file
diff --git a/inventory/inventory.py b/inventory/inventory.py
new file mode 100644
index 0000000..c17fd3f
--- /dev/null
+++ b/inventory/inventory.py
@@ -0,0 +1,245 @@
+import asyncio
+import discord
+from redbot.core import commands, Config  # type: ignore
+from redbot.core.bot import Red  # type: ignore
+from redbot.core.utils.chat_formatting import box, humanize_list  # type: ignore
+from typing import Dict, List, Optional
+
+class Inventory(commands.Cog):
+    """A cog for managing user inventories and trading items between users."""
+    
+    def __init__(self, bot: Red):
+        self.bot = bot
+        self.config = Config.get_conf(
+            self,
+            identifier=582650110,  # Unique identifier for this cog
+            force_registration=True
+        )
+        
+        # Default user settings
+        default_user = {
+            "inventory": {},  # {item_name: quantity}
+            "trade_history": [],  # List of recent trades
+            "trading_with": None,  # User currently trading with
+            "trade_offer": {},  # Current trade offer
+            "trade_accepted": False  # Whether user has accepted current trade
+        }
+        
+        # Default guild settings
+        default_guild = {
+            "items": {
+                "common_sword": {"name": "Common Sword", "value": 100, "description": "A basic sword"},
+                "health_potion": {"name": "Health Potion", "value": 50, "description": "Restores health"},
+                "magic_scroll": {"name": "Magic Scroll", "value": 200, "description": "Contains magical spells"}
+            }
+        }
+        
+        self.config.register_user(**default_user)
+        self.config.register_guild(**default_guild)
+        
+    async def initialize(self):
+        """Initialize the cog."""
+        pass
+        
+    @commands.group()
+    async def inventory(self, ctx: commands.Context):
+        """Inventory management commands"""
+        if ctx.invoked_subcommand is None:
+            await self.show_inventory(ctx)
+            
+    async def show_inventory(self, ctx: commands.Context):
+        """Show a user's inventory"""
+        inventory = await self.config.user(ctx.author).inventory()
+        if not inventory:
+            await ctx.send("Your inventory is empty!")
+            return
+            
+        guild_items = await self.config.guild(ctx.guild).items()
+        
+        # Format inventory display
+        output = ["Your Inventory:"]
+        for item_id, quantity in inventory.items():
+            if item_id in guild_items:
+                item = guild_items[item_id]
+                output.append(f"{item['name']} (x{quantity}) - Worth: {item['value']} coins")
+                
+        await ctx.send(box("\n".join(output)))
+        
+    @commands.command()
+    async def additem(self, ctx: commands.Context, item_id: str, quantity: int = 1):
+        """Add an item to your inventory (Admin only)"""
+        if not await self.bot.is_owner(ctx.author):
+            await ctx.send("Only the bot owner can add items!")
+            return
+            
+        guild_items = await self.config.guild(ctx.guild).items()
+        if item_id not in guild_items:
+            await ctx.send(f"Invalid item ID! Available items: {', '.join(guild_items.keys())}")
+            return
+            
+        async with self.config.user(ctx.author).inventory() as inventory:
+            if item_id in inventory:
+                inventory[item_id] += quantity
+            else:
+                inventory[item_id] = quantity
+                
+        await ctx.send(f"Added {quantity}x {guild_items[item_id]['name']} to your inventory!")
+        
+    @commands.group()
+    async def trade(self, ctx: commands.Context):
+        """Trading commands"""
+        pass
+        
+    @trade.command(name="offer")
+    async def trade_offer(self, ctx: commands.Context, user: discord.Member, item_id: str, quantity: int = 1):
+        """Offer to trade an item to another user"""
+        if user.bot:
+            await ctx.send("You can't trade with bots!")
+            return
+            
+        if user == ctx.author:
+            await ctx.send("You can't trade with yourself!")
+            return
+            
+        # Check if user has the item
+        inventory = await self.config.user(ctx.author).inventory()
+        if item_id not in inventory or inventory[item_id] < quantity:
+            await ctx.send("You don't have enough of that item!")
+            return
+            
+        # Check if either user is already trading
+        author_trading = await self.config.user(ctx.author).trading_with()
+        target_trading = await self.config.user(user).trading_with()
+        
+        if author_trading or target_trading:
+            await ctx.send("One of the users is already in a trade!")
+            return
+            
+        # Set up the trade
+        await self.config.user(ctx.author).trading_with.set(user.id)
+        await self.config.user(user).trading_with.set(ctx.author.id)
+        
+        await self.config.user(ctx.author).trade_offer.set({item_id: quantity})
+        await self.config.user(ctx.author).trade_accepted.set(False)
+        await self.config.user(user).trade_accepted.set(False)
+        
+        guild_items = await self.config.guild(ctx.guild).items()
+        item_name = guild_items[item_id]["name"]
+        
+        await ctx.send(f"{user.mention}, {ctx.author.name} wants to trade {quantity}x {item_name} with you!\n"
+                      f"Use `{ctx.prefix}trade accept` to accept or `{ctx.prefix}trade cancel` to decline.")
+        
+    @trade.command(name="accept")
+    async def trade_accept(self, ctx: commands.Context):
+        """Accept a trade offer"""
+        trading_with = await self.config.user(ctx.author).trading_with()
+        if not trading_with:
+            await ctx.send("You don't have any pending trades!")
+            return
+            
+        trader = ctx.guild.get_member(trading_with)
+        if not trader:
+            await ctx.send("Could not find the user you're trading with!")
+            await self.cancel_trade(ctx.author)
+            return
+            
+        # Get the trade details
+        trade_offer = await self.config.user(trader).trade_offer()
+        if not trade_offer:
+            await ctx.send("No items were offered for trade!")
+            await self.cancel_trade(ctx.author)
+            return
+            
+        # Process the trade
+        trader_inventory = await self.config.user(trader).inventory()
+        receiver_inventory = await self.config.user(ctx.author).inventory()
+        
+        for item_id, quantity in trade_offer.items():
+            # Remove from trader
+            if trader_inventory[item_id] < quantity:
+                await ctx.send("The trader no longer has enough items!")
+                await self.cancel_trade(ctx.author)
+                return
+                
+            trader_inventory[item_id] -= quantity
+            if trader_inventory[item_id] <= 0:
+                del trader_inventory[item_id]
+                
+            # Add to receiver
+            if item_id in receiver_inventory:
+                receiver_inventory[item_id] += quantity
+            else:
+                receiver_inventory[item_id] = quantity
+                
+        # Save the new inventories
+        await self.config.user(trader).inventory.set(trader_inventory)
+        await self.config.user(ctx.author).inventory.set(receiver_inventory)
+        
+        # Record the trade in history
+        guild_items = await self.config.guild(ctx.guild).items()
+        trade_record = {
+            "from": trader.id,
+            "to": ctx.author.id,
+            "items": {item_id: {"name": guild_items[item_id]["name"], "quantity": qty} 
+                     for item_id, qty in trade_offer.items()}
+        }
+        
+        async with self.config.user(trader).trade_history() as history:
+            history.append(trade_record)
+        async with self.config.user(ctx.author).trade_history() as history:
+            history.append(trade_record)
+            
+        # Clear the trade
+        await self.cancel_trade(ctx.author)
+        await self.cancel_trade(trader)
+        
+        # Notify users
+        items_traded = [f"{qty}x {guild_items[item_id]['name']}" for item_id, qty in trade_offer.items()]
+        await ctx.send(f"Trade completed! {trader.name} traded {humanize_list(items_traded)} to {ctx.author.name}")
+        
+    @trade.command(name="cancel")
+    async def trade_cancel(self, ctx: commands.Context):
+        """Cancel a pending trade"""
+        trading_with = await self.config.user(ctx.author).trading_with()
+        if not trading_with:
+            await ctx.send("You don't have any pending trades!")
+            return
+            
+        other_user = ctx.guild.get_member(trading_with)
+        await self.cancel_trade(ctx.author)
+        if other_user:
+            await self.cancel_trade(other_user)
+            
+        await ctx.send("Trade cancelled!")
+        
+    async def cancel_trade(self, user):
+        """Helper function to cancel a trade for a user"""
+        await self.config.user(user).trading_with.set(None)
+        await self.config.user(user).trade_offer.set({})
+        await self.config.user(user).trade_accepted.set(False)
+        
+    @commands.command()
+    async def iteminfo(self, ctx: commands.Context, item_id: str):
+        """Get information about an item"""
+        guild_items = await self.config.guild(ctx.guild).items()
+        if item_id not in guild_items:
+            await ctx.send(f"Invalid item ID! Available items: {', '.join(guild_items.keys())}")
+            return
+            
+        item = guild_items[item_id]
+        await ctx.send(box(
+            f"Item: {item['name']}\n"
+            f"Value: {item['value']} coins\n"
+            f"Description: {item['description']}"
+        ))
+        
+    @commands.command()
+    async def listitems(self, ctx: commands.Context):
+        """List all available items"""
+        guild_items = await self.config.guild(ctx.guild).items()
+        
+        output = ["Available Items:"]
+        for item_id, item in guild_items.items():
+            output.append(f"{item_id}: {item['name']} - {item['value']} coins")
+            
+        await ctx.send(box("\n".join(output))) 
\ No newline at end of file
diff --git a/inventory/requirements.txt b/inventory/requirements.txt
new file mode 100644
index 0000000..2839fb9
--- /dev/null
+++ b/inventory/requirements.txt
@@ -0,0 +1,2 @@
+Red-DiscordBot>=3.5.0
+discord.py>=2.0.0 
\ No newline at end of file