diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..7a3e2fd
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,29 @@
+# Local .terraform directories
+**/.terraform/*
+
+# .tfstate files
+*.tfstate
+*.tfstate.*
+
+# Crash log files
+crash.log
+
+# Ignore any .tfvars files that are generated automatically for each Terraform run. Most
+# .tfvars files are managed as part of configuration and so should be included in
+# version control.
+#
+# example.tfvars
+
+# Ignore override files as they are usually used to override resources locally and so
+# are not checked in
+override.tf
+override.tf.json
+*_override.tf
+*_override.tf.json
+
+# Include override files you do wish to add to version control using negated pattern
+#
+# !example_override.tf
+
+# Include tfplan files to ignore the plan output of command: terraform plan -out=tfplan
+# example: *tfplan*
diff --git a/.terraform.lock.hcl b/.terraform.lock.hcl
new file mode 100644
index 0000000..7864285
--- /dev/null
+++ b/.terraform.lock.hcl
@@ -0,0 +1,25 @@
+# This file is maintained automatically by "terraform init".
+# Manual edits may be lost in future updates.
+
+provider "registry.terraform.io/hashicorp/aws" {
+  version     = "3.76.1"
+  constraints = "~> 3.27"
+  hashes = [
+    "h1:5WSHHV9CgBvZ0rDDDxLnNHsjDfm4knb7ihJ2AIGB58A=",
+    "zh:1cf933104a641ffdb64d71a76806f4df35d19101b47e0eb02c9c36bd64bfdd2d",
+    "zh:273afaf908775ade6c9d32462938e7739ee8b00a0de2ef3cdddc5bc115bb1d4f",
+    "zh:2bc24ae989e38f575de034083082c69b41c54b8df69d35728853257c400ce0f4",
+    "zh:53ba88dbdaf9f818d35001c3d519a787f457283d9341f562dc3d0af51fd9606e",
+    "zh:5cdac7afea68bbd89d3bdb345d99470226482eff41f375f220fe338d2e5808da",
+    "zh:63127808890ac4be6cff6554985510b15ac715df698d550a3e722722dc56523c",
+    "zh:97a1237791f15373743189b078a0e0f2fa4dd7d7474077423376cd186312dc55",
+    "zh:9b12af85486a96aedd8d7984b0ff811a4b42e3d88dad1a3fb4c0b580d04fa425",
+    "zh:a4f625e97e5f25073c08080e4a619f959bc0149fc853a6b1b49ab41d58b59665",
+    "zh:b56cca54019237941f7614e8d2712586a6ab3092e8e9492c70f06563259171e9",
+    "zh:d4bc33bfd6ac78fb61e6d48a61c179907dfdbdf149b89fb97272c663989a7fcd",
+    "zh:e0089d73fa56d128c574601305634a774eebacf4a84babba71da10040cecf99a",
+    "zh:e957531f1d92a6474c9b02bd9200da91b99ba07a0ab761c8e3176400dd41721c",
+    "zh:eceb85818d57d8270db4df7564cf4ed51b5c650a361aaa017c42227158e1946b",
+    "zh:f565e5caa1b349ec404c6d03d01c68b02233f5485ed038d0aab810dd4023a880",
+  ]
+}
diff --git a/README.md b/README.md
new file mode 100644
index 0000000..e27f058
--- /dev/null
+++ b/README.md
@@ -0,0 +1,2 @@
+# terraformec2
+LUIT project - for Terraform 
diff --git a/ec2.tf b/ec2.tf
index f55bdd8..a506a25 100644
--- a/ec2.tf
+++ b/ec2.tf
@@ -5,7 +5,6 @@ terraform {
       version = "~> 3.27"
     }
   }
-
   required_version = ">= 0.14.9"
 }
 
@@ -14,11 +13,6 @@ provider "aws" {
   region  = "us-west-2"
 }
 
-resource "aws_instance" "app_server" {
-  ami           = "ami-830c94e3"
-  instance_type = "t2.micro"
-
-  tags = {
-    Name = "ExampleAppServerInstance"
-  }
+module "module-ec2" {
+  source = "./module-ec2" #--- module path
 }
diff --git a/module-ec2/.terraform.lock.hcl b/module-ec2/.terraform.lock.hcl
new file mode 100644
index 0000000..7864285
--- /dev/null
+++ b/module-ec2/.terraform.lock.hcl
@@ -0,0 +1,25 @@
+# This file is maintained automatically by "terraform init".
+# Manual edits may be lost in future updates.
+
+provider "registry.terraform.io/hashicorp/aws" {
+  version     = "3.76.1"
+  constraints = "~> 3.27"
+  hashes = [
+    "h1:5WSHHV9CgBvZ0rDDDxLnNHsjDfm4knb7ihJ2AIGB58A=",
+    "zh:1cf933104a641ffdb64d71a76806f4df35d19101b47e0eb02c9c36bd64bfdd2d",
+    "zh:273afaf908775ade6c9d32462938e7739ee8b00a0de2ef3cdddc5bc115bb1d4f",
+    "zh:2bc24ae989e38f575de034083082c69b41c54b8df69d35728853257c400ce0f4",
+    "zh:53ba88dbdaf9f818d35001c3d519a787f457283d9341f562dc3d0af51fd9606e",
+    "zh:5cdac7afea68bbd89d3bdb345d99470226482eff41f375f220fe338d2e5808da",
+    "zh:63127808890ac4be6cff6554985510b15ac715df698d550a3e722722dc56523c",
+    "zh:97a1237791f15373743189b078a0e0f2fa4dd7d7474077423376cd186312dc55",
+    "zh:9b12af85486a96aedd8d7984b0ff811a4b42e3d88dad1a3fb4c0b580d04fa425",
+    "zh:a4f625e97e5f25073c08080e4a619f959bc0149fc853a6b1b49ab41d58b59665",
+    "zh:b56cca54019237941f7614e8d2712586a6ab3092e8e9492c70f06563259171e9",
+    "zh:d4bc33bfd6ac78fb61e6d48a61c179907dfdbdf149b89fb97272c663989a7fcd",
+    "zh:e0089d73fa56d128c574601305634a774eebacf4a84babba71da10040cecf99a",
+    "zh:e957531f1d92a6474c9b02bd9200da91b99ba07a0ab761c8e3176400dd41721c",
+    "zh:eceb85818d57d8270db4df7564cf4ed51b5c650a361aaa017c42227158e1946b",
+    "zh:f565e5caa1b349ec404c6d03d01c68b02233f5485ed038d0aab810dd4023a880",
+  ]
+}
diff --git a/module-ec2/main.tf b/module-ec2/main.tf
new file mode 100644
index 0000000..744ab4a
--- /dev/null
+++ b/module-ec2/main.tf
@@ -0,0 +1,55 @@
+#--- module-ec2/main.tf 
+
+# Create aws ec2 instance for the app server
+resource "aws_instance" "my_app_server" {
+  ami                    = var.ami_id
+  instance_type          = var.instance
+  vpc_security_group_ids = [aws_security_group.allow_http.id]
+  subnet_id              = aws_subnet.public_subnet.id
+  user_data              = file("user-install.sh")
+  tags = {
+    Name = "EC2-App-Server"
+  }
+}
+
+resource "aws_vpc" "myvpc_main" {
+  cidr_block       = "10.0.0.0/16"
+  instance_tenancy = "default"
+  tags = {
+    Name = "myvpc-main"
+  }
+}
+
+resource "aws_subnet" "public_subnet" {
+  vpc_id                  = aws_vpc.myvpc_main.id
+  cidr_block              = var.cidr
+  availability_zone       = var.az
+  map_public_ip_on_launch = true
+  tags = {
+    Name = "public-subnet"
+  }
+}
+resource "aws_security_group" "allow_http" {
+  name        = "allow-http"
+  description = "Allow http inbound traffic"
+  vpc_id      = aws_vpc.myvpc_main.id
+
+  ingress {
+    description = "http allowed"
+    from_port   = 80
+    to_port     = 80
+    protocol    = "tcp"
+    cidr_blocks = ["0.0.0.0/0"]
+  }
+
+  egress {
+    from_port   = 0
+    to_port     = 0
+    protocol    = "-1"
+    cidr_blocks = ["0.0.0.0/0"]
+  }
+
+  tags = {
+    Name = "allow-http"
+  }
+}
diff --git a/module-ec2/outputs.tf b/module-ec2/outputs.tf
new file mode 100644
index 0000000..1163396
--- /dev/null
+++ b/module-ec2/outputs.tf
@@ -0,0 +1,6 @@
+#--- module-ec2/outputs.tf
+
+output "public_ip" {
+  value       = aws_instance.my_app_server.public_ip
+  description = "Gives the public ip address of the created ec2 instance"
+}
\ No newline at end of file
diff --git a/module-ec2/providers.tf b/module-ec2/providers.tf
new file mode 100644
index 0000000..9cc16d8
--- /dev/null
+++ b/module-ec2/providers.tf
@@ -0,0 +1,15 @@
+#--- module-ec2/providers.tf
+# provider is not needed if you already declared it in root
+terraform {
+  required_providers {
+    aws = {
+      source  = "hashicorp/aws"
+      version = "~> 3.27"
+    }
+  }
+}
+
+# Configure the AWS Provider
+provider "aws" {
+  region = var.aws_region
+}
\ No newline at end of file
diff --git a/module-ec2/user-install.sh b/module-ec2/user-install.sh
new file mode 100644
index 0000000..31677a0
--- /dev/null
+++ b/module-ec2/user-install.sh
@@ -0,0 +1,7 @@
+#--- module-ec2/user-install.sh
+
+#!/bin/bash
+apt update -y &&
+apt install -y nginx
+echo "This is nginx server here" > /var/www/html/index.html
+systemctl reload nginx
\ No newline at end of file
diff --git a/module-ec2/variables.tf b/module-ec2/variables.tf
new file mode 100644
index 0000000..134a18d
--- /dev/null
+++ b/module-ec2/variables.tf
@@ -0,0 +1,27 @@
+#--- module-ec2/variables.tf
+# Create variable for aws_region
+variable "aws_region" {
+  description = "AWS region"
+  type        = string
+  default     = "us-west-2"
+}
+# Create variable for ami-id
+variable "ami_id" {
+  type    = string
+  default = "ami-0ceecbb0f30a902a6" #-- us-west-2 ami id
+}
+# Create variable for instance type
+variable "instance" {
+  type    = string
+  default = "t2.micro"
+}
+# Create variable for cidr block
+variable "cidr" {
+  type    = string
+  default = "10.0.1.0/24"
+}
+# Create variable for availability zone
+variable "az" {
+  type    = string
+  default = "us-west-2a"
+}
\ No newline at end of file
diff --git a/variables.tf b/variables.tf
new file mode 100644
index 0000000..e69de29