diff --git a/examples/python-image-overlay/.gitignore b/examples/python-image-overlay/.gitignore
new file mode 100644
index 00000000..90f8fbb3
--- /dev/null
+++ b/examples/python-image-overlay/.gitignore
@@ -0,0 +1,176 @@
+# Created by https://www.toptal.com/developers/gitignore/api/python
+# Edit at https://www.toptal.com/developers/gitignore?templates=python
+
+### Python ###
+# Byte-compiled / optimized / DLL files
+__pycache__/
+*.py[cod]
+*$py.class
+
+# C extensions
+*.so
+
+# Distribution / packaging
+.Python
+build/
+develop-eggs/
+dist/
+downloads/
+eggs/
+.eggs/
+lib/
+lib64/
+parts/
+sdist/
+var/
+wheels/
+share/python-wheels/
+*.egg-info/
+.installed.cfg
+*.egg
+MANIFEST
+
+# PyInstaller
+#  Usually these files are written by a python script from a template
+#  before PyInstaller builds the exe, so as to inject date/other infos into it.
+*.manifest
+*.spec
+
+# Installer logs
+pip-log.txt
+pip-delete-this-directory.txt
+
+# Unit test / coverage reports
+htmlcov/
+.tox/
+.nox/
+.coverage
+.coverage.*
+.cache
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+coverage.xml
+*.cover
+*.py,cover
+.hypothesis/
+.pytest_cache/
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+
+# Translations
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+
+# Django stuff:
+*.log
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+db.sqlite3
+db.sqlite3-journal
+
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+instance/
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+
+# Scrapy stuff:
+.scrapy
+
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+
+# PyBuilder
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+target/
+
+# Jupyter Notebook
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+
+# IPython
+profile_default/
+ipython_config.py
+
+# pyenv
+#   For a library or package, you might want to ignore these files since the code is
+#   intended to run in multiple environments; otherwise, check them in:
+# .python-version
+
+# pipenv
+#   According to pypa/pipenv#598, it is recommended to include Pipfile.lock in version control.
+#   However, in case of collaboration, if having platform-specific dependencies or dependencies
+#   having no cross-platform support, pipenv may install dependencies that don't work, or not
+#   install all needed dependencies.
+#Pipfile.lock
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+# poetry
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+#   This is especially recommended for binary packages to ensure reproducibility, and is more
+#   commonly ignored for libraries.
+#   https://python-poetry.org/docs/basic-usage/#commit-your-poetrylock-file-to-version-control
+#poetry.lock
+
+# pdm
+#   Similar to Pipfile.lock, it is generally recommended to include pdm.lock in version control.
+#pdm.lock
+#   pdm stores project-wide configurations in .pdm.toml, but it is recommended to not include it
+#   in version control.
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+.pdm.toml
+
+# PEP 582; used by e.g. github.com/David-OConnor/pyflow and github.com/pdm-project/pdm
+__pypackages__/
+
+# Celery stuff
+celerybeat-schedule
+celerybeat.pid
+
+# SageMath parsed files
+*.sage.py
+
+# Environments
+.env
+.venv
+env/
+venv/
+ENV/
+env.bak/
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+# Spyder project settings
+.spyderproject
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+
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+
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+.dmypy.json
+dmypy.json
+
+# Pyre type checker
+.pyre/
+
+# pytype static type analyzer
+.pytype/
+
+# Cython debug symbols
+cython_debug/
+
+# PyCharm
+#  JetBrains specific template is maintained in a separate JetBrains.gitignore that can
+#  be found at https://github.com/github/gitignore/blob/main/Global/JetBrains.gitignore
+#  and can be added to the global gitignore or merged into this file.  For a more nuclear
+#  option (not recommended) you can uncomment the following to ignore the entire idea folder.
+#.idea/
+
+### Python Patch ###
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+
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+.ruff_cache/
+
+# LSP config files
+pyrightconfig.json
+
+# End of https://www.toptal.com/developers/gitignore/api/python
\ No newline at end of file
diff --git a/examples/python-image-overlay/README.md b/examples/python-image-overlay/README.md
new file mode 100644
index 00000000..cfd5e8c9
--- /dev/null
+++ b/examples/python-image-overlay/README.md
@@ -0,0 +1,56 @@
+# Transformations & Effects in Python with Cloudinary Python SDK
+
+## 🧰 Using the SDK in a Python project
+
+To use the SDK in a Python project, first import library:
+
+```
+import cloudinary
+from cloudinary import CloudinaryImage
+```
+
+Then configure a new instance of Cloudinary:
+
+```
+cloudinary.config( 
+  cloud_name = "YOUR_CLOUD_NAME", 
+  api_key = "YOUR_API_KEY", 
+  api_secret = "YOUR_API_SECRET",
+  secure = True
+)
+# or
+config = cloudinary.config(secure=True) # when using env variables
+```
+
+Finally, run the imageOverlay method, passing in your image name(the image first should be uploaded in cloudinary and here image name is nothing but Public ID ):
+
+```
+image = CloudinaryImage("(public_id_of_image).jpg").build_url(secure=True,transformation=[transformation_config])
+```
+
+## 🚀 Get Started with This Example
+
+* Create an environment variable file `.env` and inside add:
+```
+CLOUDINARY_URL=cloudinary://<api_key>:<api_secret>@<cloud_name>
+```
+
+* Install all project dependencies:
+
+```
+pip install -r requirements.txt
+```
+
+* Run the python script with:
+
+```
+python3 <filename>
+```
+
+For example, inside the `examples/python-image-overlay` directory:
+
+```
+python3 imageOverlay.py
+```
+
+The script will run in your terminal and you'll see the results logged.
diff --git a/examples/python-image-overlay/imageOverlay.py b/examples/python-image-overlay/imageOverlay.py
new file mode 100644
index 00000000..a21a68c2
--- /dev/null
+++ b/examples/python-image-overlay/imageOverlay.py
@@ -0,0 +1,31 @@
+from dotenv import load_dotenv
+load_dotenv()
+
+import cloudinary
+from cloudinary import CloudinaryImage
+
+config = cloudinary.config(secure=True)
+
+def imageOverlay():
+
+  image = CloudinaryImage("samples/smile.jpg").build_url(secure=True,transformation=[
+  {
+    'width': 700, 
+    'height': 850, 
+    'crop': 'fill',
+  },
+  {
+    'overlay': "samples:breakfast",
+    'width': 200,
+    'height': 200,
+  },
+  {
+      'flags': 'layer_apply',
+      'gravity': 'north_east',
+      'x': 400,
+      'y': 400
+  }
+  ])
+  print(image)
+
+imageOverlay()
\ No newline at end of file
diff --git a/examples/python-image-overlay/requirements.txt b/examples/python-image-overlay/requirements.txt
new file mode 100644
index 00000000..12f3ccf8
--- /dev/null
+++ b/examples/python-image-overlay/requirements.txt
@@ -0,0 +1,2 @@
+cloudinary==1.36.0
+python-dotenv==1.0.0