diff --git a/src/cloudai/__init__.py b/src/cloudai/__init__.py
index a82083f8..9d3dba60 100644
--- a/src/cloudai/__init__.py
+++ b/src/cloudai/__init__.py
@@ -18,6 +18,7 @@
 from ._core.base_job import BaseJob
 from ._core.base_runner import BaseRunner
 from ._core.base_system_parser import BaseSystemParser
+from ._core.cloudai_gym import CloudAIGym
 from ._core.command_gen_strategy import CommandGenStrategy
 from ._core.exceptions import (
     JobIdRetrievalError,
@@ -42,6 +43,7 @@
 from ._core.test_scenario_parser import TestScenarioParser
 from ._core.test_template import TestTemplate
 from ._core.test_template_strategy import TestTemplateStrategy
+from .environment.example_environment import ExampleEnv
 from .installer.kubernetes_installer import KubernetesInstaller
 from .installer.slurm_installer import SlurmInstaller
 from .installer.standalone_installer import StandaloneInstaller
@@ -239,6 +241,7 @@
 Registry().add_test_definition("JaxToolboxNemotron", NemotronTestDefinition)
 Registry().add_test_definition("SlurmContainer", SlurmContainerTestDefinition)
 
+Registry().add_gym("example_gym", CloudAIGym)
 
 __all__ = [
     "BaseInstaller",
@@ -272,4 +275,6 @@
     "TestScenarioParsingError",
     "TestTemplate",
     "TestTemplateStrategy",
+    "ExampleEnv",
+    "CloudAIGym",
 ]
diff --git a/src/cloudai/_core/cloudai_gym.py b/src/cloudai/_core/cloudai_gym.py
new file mode 100644
index 00000000..c0de9cba
--- /dev/null
+++ b/src/cloudai/_core/cloudai_gym.py
@@ -0,0 +1,57 @@
+# SPDX-FileCopyrightText: NVIDIA CORPORATION & AFFILIATES
+# Copyright (c) 2024 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+# SPDX-License-Identifier: Apache-2.0
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+from abc import ABC, abstractmethod
+from typing import Any, Dict, Tuple
+
+
+class CloudAIGym(ABC):
+    """A generic custom Gym environment for CloudAI."""
+
+    def __init__(self, action_space: Any, observation_space: Any, max_steps: int = 100):
+        """
+        Initialize the environment.
+
+        Args:
+            action_space: Defines the set of valid actions for the environment.
+            observation_space: Describes the space of possible observations (states).
+            max_steps: Maximum number of steps in an episode.
+        """
+        self.action_space: Any = action_space
+        self.observation_space: Any = observation_space
+        self.max_steps: int = max_steps
+        self.state: Any = None
+        self.current_step: int = 0
+
+    @abstractmethod
+    def step(self, action: Any) -> Tuple[Any, float, bool, Dict[str, Any]]:
+        """Perform one step in the environment."""
+        pass
+
+    @abstractmethod
+    def reset(self) -> Any:
+        """Reset the environment to its initial state."""
+        pass
+
+    @abstractmethod
+    def render(self) -> None:
+        """Render the environment."""
+        pass
+
+    @abstractmethod
+    def is_valid_action(self, action: Any) -> bool:
+        """Contraint checks for the action."""
+        pass
diff --git a/src/cloudai/_core/registry.py b/src/cloudai/_core/registry.py
index 548d8653..05de49d2 100644
--- a/src/cloudai/_core/registry.py
+++ b/src/cloudai/_core/registry.py
@@ -18,6 +18,7 @@
 
 from .base_installer import BaseInstaller
 from .base_runner import BaseRunner
+from .cloudai_gym import CloudAIGym
 from .grading_strategy import GradingStrategy
 from .job_id_retrieval_strategy import JobIdRetrievalStrategy
 from .job_status_retrieval_strategy import JobStatusRetrievalStrategy
@@ -69,6 +70,7 @@ class Registry(metaclass=Singleton):
     installers_map: Dict[str, Type[BaseInstaller]] = {}
     systems_map: Dict[str, Type[System]] = {}
     test_definitions_map: Dict[str, Type[TestDefinition]] = {}
+    gyms_map: Dict[str, Type[CloudAIGym]] = {}  # Add this line
 
     def add_runner(self, name: str, value: Type[BaseRunner]) -> None:
         """
@@ -100,6 +102,36 @@ def update_runner(self, name: str, value: Type[BaseRunner]) -> None:
             raise ValueError(f"Invalid runner implementation for '{name}', should be subclass of 'BaseRunner'.")
         self.runners_map[name] = value
 
+    def add_gym(self, name: str, value: Type[CloudAIGym]) -> None:  # Add this method
+        """
+        Add a new gym implementation mapping.
+
+        Args:
+            name (str): The name of the gym.
+            value (Type[CloudAIGym]): The gym implementation.
+
+        Raises:
+            ValueError: If the gym implementation already exists.
+        """
+        if name in self.gyms_map:
+            raise ValueError(f"Duplicating implementation for '{name}', use 'update()' for replacement.")
+        self.update_gym(name, value)
+
+    def update_gym(self, name: str, value: Type[CloudAIGym]) -> None:  # Add this method
+        """
+        Create or replace gym implementation mapping.
+
+        Args:
+            name (str): The name of the gym.
+            value (Type[CloudAIGym]): The gym implementation.
+
+        Raises:
+            ValueError: If value is not a subclass of CloudAIGym.
+        """
+        if not issubclass(value, CloudAIGym):
+            raise ValueError(f"Invalid gym implementation for '{name}', should be subclass of 'CloudAIGym'.")
+        self.gyms_map[name] = value
+
     def add_strategy(
         self,
         strategy_interface: Type[
diff --git a/src/cloudai/environment/__init__.py b/src/cloudai/environment/__init__.py
new file mode 100644
index 00000000..23bfc249
--- /dev/null
+++ b/src/cloudai/environment/__init__.py
@@ -0,0 +1,15 @@
+# SPDX-FileCopyrightText: NVIDIA CORPORATION & AFFILIATES
+# Copyright (c) 2024 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+# SPDX-License-Identifier: Apache-2.0
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
diff --git a/src/cloudai/environment/example_environment.py b/src/cloudai/environment/example_environment.py
new file mode 100644
index 00000000..286ca6d8
--- /dev/null
+++ b/src/cloudai/environment/example_environment.py
@@ -0,0 +1,112 @@
+# SPDX-FileCopyrightText: NVIDIA CORPORATION & AFFILIATES
+# Copyright (c) 2024 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+# SPDX-License-Identifier: Apache-2.0
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+from typing import Dict, Tuple
+
+import numpy as np
+
+from src.cloudai._core.cloudai_gym import CloudAIGym
+
+
+class ExampleEnv(CloudAIGym):
+    """A sample environment that extends CloudAIGym."""
+
+    def __init__(self, max_steps: int = 10):
+        """
+        Initialize the environment.
+
+        Args:
+            max_steps (int): Maximum number of steps allowed in the environment.
+        """
+        # Define the action and observation structures
+        action_space = {
+            "num_cores": (0, 15),  # Integer range: [0, 14]
+            "freq": (0.5, 3.0),  # Float range: [0.5, 3.0]
+            "mem_type": (0, 2),  # Integer range: [0, 2]
+            "mem_size": (0, 64),  # Integer range: [0, 64]
+        }
+        observation_space = {
+            "energy": (0.0, 1.0),
+            "area": (0.0, 1.0),
+            "latency": (0.0, 1.0),
+        }
+
+        super().__init__(action_space, observation_space, max_steps)
+
+        # Additional environment attributes
+        self.ideal = np.array([4, 2.0, 1, 32])  # Ideal values
+        self.reset()
+
+    def is_valid_action(self, action: dict) -> bool:
+        """
+        Validate whether the action falls within the defined bounds.
+
+        Args:
+            action (dict): A dictionary representing the action.
+
+        Returns:
+            bool: True if valid, False otherwise.
+
+        """
+        for key, value in action.items():
+            if key not in self.action_space:
+                return False
+            lower, upper = self.action_space[key]
+            if not (lower <= value <= upper):
+                return False
+        return True
+
+    def step(self, action: dict) -> Tuple[np.ndarray, float, bool, Dict]:
+        """Execute a step in the environment."""
+        if not self.is_valid_action(action):
+            raise ValueError(f"Invalid action: {action}")
+
+        # Unpack action components
+        num_cores = action["num_cores"]
+        freq = action["freq"]
+        mem_type = action["mem_type"]
+        mem_size = action["mem_size"]
+
+        # Update state
+        self.energy += num_cores * 1 + freq * 2 + mem_size * 3
+        self.area += num_cores * 2 + freq * 3 + mem_size * 1
+        self.latency += num_cores * 3 + freq * 3 + mem_size * 1
+
+        # Update observation
+        self.observation = np.array([self.energy, self.area, self.latency])
+
+        # Calculate reward as negative L2-norm to the ideal values
+        action_array = np.array([num_cores, freq, mem_type, mem_size])
+        reward: float = -float(np.linalg.norm(action_array - self.ideal))
+
+        # Check if the episode is done
+        self.current_step += 1
+        done = self.current_step >= self.max_steps
+
+        return self.observation, reward, done, {}
+
+    def reset(self) -> Tuple[np.ndarray, Dict]:
+        """Reset the environment to its initial state."""
+        self.energy = 0
+        self.area = 0
+        self.latency = 0
+        self.current_step = 0
+        self.observation = np.array([self.energy, self.area, self.latency])
+        return self.observation, {}
+
+    def render(self) -> None:
+        """Render the current state of the environment."""
+        print(f"Energy: {self.energy}, Area: {self.area}, Latency: {self.latency}")
diff --git a/tests/test_example_env.py b/tests/test_example_env.py
new file mode 100644
index 00000000..2f5af02e
--- /dev/null
+++ b/tests/test_example_env.py
@@ -0,0 +1,84 @@
+import numpy as np
+import pytest
+
+from src.cloudai.environment.example_environment import ExampleEnv
+
+
+# Fixture to initialize the environment
+@pytest.fixture
+def env():
+    """
+    Fixture to provide a fresh instance of ParameterConvergeEnv.
+    Automatically resets the environment before each test.
+    """
+    environment = ExampleEnv(max_steps=10)
+    environment.reset()
+    return environment
+
+
+def test_environment_initialization(env):
+    """
+    Test that the environment initializes correctly.
+    """
+    observation, info = env.reset()
+    assert isinstance(observation, np.ndarray), "Observation should be a numpy array."
+    assert observation.shape == (3,), "Observation should have three elements."
+    assert env.current_step == 0, "Step count should initialize to 0."
+    assert not env.done, "Environment should not be done immediately after reset."
+
+
+@pytest.mark.parametrize(
+    "action, expected_done",
+    [
+        ({"num_cores": 4, "freq": 2.0, "mem_type": 1, "mem_size": 32}, False),
+        ({"num_cores": 10, "freq": 1.5, "mem_type": 0, "mem_size": 16}, False),
+    ],
+)
+def test_step_execution(env, action, expected_done):
+    """
+    Test that a valid action updates the environment correctly.
+    """
+    observation, reward, done, truncated, info = env.step(action)
+    assert isinstance(observation, np.ndarray), "Observation should be a numpy array."
+    assert isinstance(reward, float), "Reward should be a float."
+    assert reward < 0, "Reward should be negative for L2-norm distance."
+    assert done == expected_done, "Done flag should match expected behavior."
+    assert not truncated, "Truncated should always be False."
+
+
+@pytest.mark.parametrize(
+    "action",
+    [
+        {"num_cores": 20, "freq": 5.0, "mem_type": 5, "mem_size": 100},  # All invalid
+        {"num_cores": 15, "freq": 0.0, "mem_type": -1, "mem_size": 65},  # Boundary invalid
+    ],
+)
+def test_invalid_action(env, action):
+    """
+    Test that invalid actions raise a ValueError.
+    """
+    with pytest.raises(ValueError):
+        env.step(action)
+
+
+def test_episode_completion(env):
+    """
+    Test that the environment ends the episode after max_steps.
+    """
+    action = {"num_cores": 4, "freq": 2.0, "mem_type": 1, "mem_size": 32}
+    done = False
+    for _ in range(10):  # Perform max_steps
+        observation, reward, done, truncated, info = env.step(action)
+    assert done, "Environment should be done after reaching max_steps."
+    observation, info = env.reset()
+    assert env.current_step == 0, "Step count should reset to 0 after reset."
+    assert not env.done, "Environment should not be done after reset."
+
+
+def test_reset_behavior(env):
+    """
+    Test that resetting the environment restores it to the initial state.
+    """
+    observation, info = env.reset()
+    assert np.allclose(observation, [0, 0, 0]), "Initial observation should be zeros."
+    assert env.current_step == 0, "Step count should be reset to 0."