diff --git a/examples/BytePairEncoder.hs b/examples/BytePairEncoder.hs
new file mode 100644
index 0000000..170786a
--- /dev/null
+++ b/examples/BytePairEncoder.hs
@@ -0,0 +1,219 @@
+-- To run this program:
+--
+-- cabal run --flag fusion-plugin BytePairEncoder test-data.txt
+--
+module BytePairEncoder (main) where
+
+import Control.Monad.IO.Class (MonadIO)
+import Data.Function ((&))
+import Data.List (maximumBy)
+import qualified Data.Map as M
+import Data.Maybe (fromJust, fromMaybe)
+import Data.Ord (comparing)
+import qualified Data.Vector as V
+import GHC.Word (Word8)
+import qualified Streamly.Data.Array as Array
+import qualified Streamly.Data.Fold as Fold
+import Streamly.Data.Stream (Stream)
+import qualified Streamly.Data.Stream as Stream
+import qualified Streamly.FileSystem.File as File
+import Streamly.Internal.Data.Pipe (Pipe (..), Step (..))
+import Streamly.Internal.Data.Stream (pipe)
+import System.Environment (getArgs)
+
+-------------------------------------------------------------------------------
+-- Byte indexing and text representation
+-------------------------------------------------------------------------------
+
+-- Stores byte-sequence-to-index mapping and index-to-text mapping
+data ByteMappings = ByteMappings
+  { byteToIndex :: !(M.Map Word8 Int), -- Maps bytes to unique indices
+    seqToIndex :: !(M.Map (V.Vector Word8) Int), -- Maps sequences of bytes to unique indices
+    indexToText :: !(M.Map Int String), -- Maps indices to text representation
+    nextIndex :: !Int -- Next available index
+  }
+
+instance Show ByteMappings where
+  show (ByteMappings b2i _ i2t nidx) =
+    "ByteMappings:\n"
+      ++ "byteToIndex = "
+      ++ show b2i
+      ++ "\n"
+      ++ "indexToText = "
+      ++ show i2t
+      ++ "\n"
+      ++ "nextIndex = "
+      ++ show nidx
+
+{-# INLINE initializeSingleBytes #-}
+initializeSingleBytes :: (Monad m) => Stream m Word8 -> m ByteMappings
+initializeSingleBytes stream = do
+  -- Collect unique bytes and create initial mappings
+  uniqueBytes <-
+    stream
+      & Stream.fold (Fold.foldl' (\m b -> M.insert b () m) M.empty)
+
+  let bytes = V.fromList $ M.keys uniqueBytes
+      indices = [0 .. (V.length bytes - 1)]
+      b2i = M.fromList $ zip (V.toList bytes) indices
+      s2i = M.fromList $ zip (map V.singleton (V.toList bytes)) indices
+      i2t = M.fromList $ zip indices (map ((: []) . toEnum . fromIntegral) (V.toList bytes))
+
+  return $ ByteMappings b2i s2i i2t (length indices)
+
+{-# INLINE mapToIndexStream #-}
+mapToIndexStream :: (Monad m) => ByteMappings -> Stream m Word8 -> Stream m Int
+mapToIndexStream mapping = fmap (\k -> M.findWithDefault (-1) k (byteToIndex mapping))
+
+-------------------------------------------------------------------------------
+-- Count and merge most frequent pairs
+-------------------------------------------------------------------------------
+
+charToWord8 :: Char -> Word8
+charToWord8 = toEnum . fromEnum
+
+-- Stores pair frequencies for merging
+type PairFrequencies = M.Map (Int, Int) Int
+
+{-# INLINE countPairs #-}
+countPairs :: (MonadIO m) => Stream m Int -> m PairFrequencies
+countPairs stream =
+  stream
+    & Stream.chunksOf 2
+    & Stream.fold (Fold.foldl' addPair M.empty)
+  where
+    addPair acc chunk =
+      case Array.toList chunk of
+        [b1, b2] -> M.insertWith (+) (b1, b2) 1 acc
+        _ -> acc
+
+mostFrequentPair :: PairFrequencies -> ((Int, Int), Int)
+mostFrequentPair = maximumBy (comparing snd) . M.toList
+
+updateMappings :: ByteMappings -> (Int, Int) -> ByteMappings
+updateMappings (ByteMappings b2i s2i i2t nidx) (i1, i2) =
+  let text1 = M.findWithDefault "?" i1 i2t
+      text2 = M.findWithDefault "?" i2 i2t
+      newToken = text1 ++ text2
+      bytes = V.fromList $ map charToWord8 newToken
+   in ByteMappings
+        b2i
+        (M.insert bytes nidx s2i)
+        (M.insert nidx newToken i2t)
+        (nidx + 1)
+
+{-# INLINE replaceMostFrequentPair #-}
+replaceMostFrequentPair :: (Monad m) => (Int, Int) -> Int -> Pipe m Int Int
+replaceMostFrequentPair (i1, i2) nidx = Pipe consume produce False
+  where
+    consume False i | i == i1 = return $ SkipC True -- found first index
+    consume False i = return $ YieldP Nothing i -- first index not found
+    consume True i | i == i2 = return $ YieldP Nothing nidx -- found second index
+    consume True i | i == i1 = return $ YieldC True i1 -- encountered first index again
+    consume True i = return $ YieldP (Just i) i1 -- fallback
+    produce Nothing = return $ SkipC False
+    produce (Just i) = return $ YieldC False i
+
+-------------------------------------------------------------------------------
+-- Build BPE mapping
+-------------------------------------------------------------------------------
+
+-- | Produce an (infinite) stream of updated ByteMappings.
+mergedMappingsStream :: (MonadIO m) => ByteMappings -> Stream.Stream m Int -> Stream.Stream m ByteMappings
+mergedMappingsStream initMapping initStream =
+  Stream.unfoldrM step (initMapping, initStream)
+  where
+    step (mapping, stream) = do
+      freqs <- countPairs stream
+      let (i1, i2) = fst $ mostFrequentPair freqs
+          updatedMapping = updateMappings mapping (i1, i2)
+          newIdx = nextIndex updatedMapping - 1
+          replacePipe = replaceMostFrequentPair (i1, i2) newIdx
+          newStream = pipe replacePipe stream
+      return $ Just (updatedMapping, (updatedMapping, newStream))
+
+-------------------------------------------------------------------------------
+-- Tokenize text
+-------------------------------------------------------------------------------
+
+-- | Find token from looking up bytes from mapping
+findTokenFromBytes :: V.Vector Word8 -> ByteMappings -> Maybe String
+findTokenFromBytes bytes mapping = do
+  idx <- M.lookup bytes (seqToIndex mapping)
+  return $ M.findWithDefault (error "Missing token text") idx (indexToText mapping)
+
+-- | Find longest token from looking up bytes from mapping
+findLongestTokenFromBytes :: (Monad m) => V.Vector Word8 -> ByteMappings -> m (Maybe String)
+findLongestTokenFromBytes bytes mapping =
+  let candidates = Stream.takeWhile (not . V.null) $ Stream.iterate V.init bytes
+      tokens = Stream.mapMaybe (`findTokenFromBytes` mapping) candidates
+  in Stream.fold Fold.one tokens
+
+-- | 'greedyTokenizer' consumes a stream of bytes and produces tokens.
+--
+-- The tokens are determined by the ByteMappings. The pipe's state is a tuple
+-- consisting of the current byte buffer, the last valid candidate token, and its byte count.
+--
+-- On each new byte:
+--   * Extend the buffer.
+--   * If the extended buffer is in the mapping (i.e. is a valid token) update the candidate
+--   * Otherwise, emit the candidate token (the longest match so far),
+--     reset the state (starting with the current byte), and continue.
+{-# INLINE greedyTokenizer #-}
+greedyTokenizer :: (Monad m) => ByteMappings -> Pipe m Word8 String
+greedyTokenizer mapping = Pipe consume produce (V.empty, "", 0)
+  where
+    -- State: (current buffer, candidate token, candidate byte count)
+    consume ::
+      (Monad m) =>
+      (V.Vector Word8, String, Int) -> -- current state
+      Word8 -> -- new byte
+      m (Step (V.Vector Word8, String, Int) () String)
+    consume (buf, cand, candCount) byte =
+      let newBuf = V.snoc buf byte
+       in case findTokenFromBytes newBuf mapping of
+            -- Update with new candidate token and continue consuming
+            Just newCand -> return $ SkipC (newBuf, newCand, length newCand)
+            -- Extended buffer not valid is not a valid key
+            -- Continue with existing candidate
+            -- if the buffer length has exceeded the threshold
+            -- Yield the candidate and reset state
+            Nothing ->
+              if V.length newBuf <= 20
+                then return $ SkipC (newBuf, cand, candCount)
+                else do
+                  let rest = V.drop candCount newBuf
+                  longestToken <- findLongestTokenFromBytes rest mapping
+                  let nextCand = fromMaybe "" longestToken
+                  let nextCandCount = length nextCand
+                  return $ YieldC (rest, nextCand, nextCandCount) cand
+
+    -- When input is exhausted, if the buffer is non-empty emit the candidate.
+    produce = undefined
+
+-------------------------------------------------------------------------------
+-- Main
+-------------------------------------------------------------------------------
+
+-- | Main entry point
+--
+-- Usage:
+--
+-- cabal run --flag fusion-plugin BytePairEncoder <input-file-path>
+--
+-- This will read the test data from test-data.txt, build the ByteMappings,
+-- from frequent byte pairs in the file, and then tokenize the data to stdout.
+main :: IO ()
+main = do
+  name <- fmap head getArgs
+  let stream = File.read name
+  mapping <- initializeSingleBytes stream
+  print mapping
+  let indexStream = mapToIndexStream mapping stream
+      mappingStream = mergedMappingsStream mapping indexStream
+      printMappingStream = Stream.trace print mappingStream
+  maybeMapping <- Stream.fold (Fold.index 100) printMappingStream
+  let m2 = fromJust maybeMapping
+  print m2
+  let tokenStream = pipe (greedyTokenizer m2) stream
+  Stream.fold (Fold.drainMapM (\s -> putStr (s ++ ","))) tokenStream
diff --git a/hie.yaml b/hie.yaml
index a26dfd8..bbee2ff 100644
--- a/hie.yaml
+++ b/hie.yaml
@@ -62,6 +62,8 @@ cradle:
               component: "exe:WordServer"
             - path: "./examples/WordFrequency.hs"
               component: "exe:WordFrequency"
+            - path: "./examples/BytePairEncoder.hs"
+              component: "exe:BytePairEncoder"
 
 dependencies:
   - streamly-examples.cabal
diff --git a/streamly-examples.cabal b/streamly-examples.cabal
index 9cd0f3b..1791115 100644
--- a/streamly-examples.cabal
+++ b/streamly-examples.cabal
@@ -354,3 +354,12 @@ executable LogParser
     build-depends: tasty-bench >= 0.3 && < 0.4
   else
     buildable: False
+
+executable BytePairEncoder
+  import: exe-options
+  main-is: BytePairEncoder.hs
+  ghc-options: -main-is BytePairEncoder
+  if !impl(ghcjs)
+    buildable: True
+  else
+    buildable: False