diff --git a/src/main/java/com/williamfiset/algorithms/dp/DagDynamicProgramming.java b/src/main/java/com/williamfiset/algorithms/dp/DagDynamicProgramming.java
new file mode 100644
index 000000000..025fe7808
--- /dev/null
+++ b/src/main/java/com/williamfiset/algorithms/dp/DagDynamicProgramming.java
@@ -0,0 +1,125 @@
+package com.williamfiset.algorithms.dp;
+
+import java.util.*;
+
+/**
+ * Dynamic Programming on Directed Acyclic Graphs (DAG).
+ *
+ * <p>
+ * This implementation demonstrates how to apply dynamic programming on a DAG
+ * using a topological ordering (Kahn's algorithm).
+ *
+ * <p>
+ * Example use-case: counting the number of ways to reach each node from a
+ * source.
+ *
+ * <p>
+ * Time Complexity: O(V + E)
+ * Space Complexity: O(V + E)
+ */
+public class DagDynamicProgramming {
+
+  // Minimal edge representation (only what is needed)
+  public static class Edge {
+    int to;
+
+    public Edge(int to) {
+      this.to = to;
+    }
+  }
+
+  /**
+   * Performs topological sorting using Kahn's algorithm.
+   */
+  public static int[] kahnTopoSort(Map<Integer, List<Edge>> graph, int numNodes) {
+
+    int[] indegree = new int[numNodes];
+
+    // Compute indegree
+    for (int u = 0; u < numNodes; u++) {
+      for (Edge edge : graph.getOrDefault(u, Collections.emptyList())) {
+        indegree[edge.to]++;
+      }
+    }
+
+    Queue<Integer> q = new ArrayDeque<>();
+    for (int i = 0; i < numNodes; i++) {
+      if (indegree[i] == 0)
+        q.add(i);
+    }
+
+    int[] topo = new int[numNodes];
+    int index = 0;
+
+    while (!q.isEmpty()) {
+      int u = q.poll();
+      topo[index++] = u;
+
+      for (Edge edge : graph.getOrDefault(u, Collections.emptyList())) {
+        if (--indegree[edge.to] == 0) {
+          q.add(edge.to);
+        }
+      }
+    }
+
+    // Cycle detection
+    if (index != numNodes)
+      return new int[0];
+
+    return topo;
+  }
+
+  /**
+   * Counts number of ways to reach each node from a source in a DAG.
+   */
+  public static long[] countWaysDAG(
+      Map<Integer, List<Edge>> graph, int source, int numNodes) {
+
+    int[] topo = kahnTopoSort(graph, numNodes);
+    if (topo.length == 0)
+      return null;
+
+    long[] dp = new long[numNodes];
+    dp[source] = 1;
+
+    for (int u : topo) {
+      if (dp[u] == 0L)
+        continue;
+
+      for (Edge edge : graph.getOrDefault(u, Collections.emptyList())) {
+        dp[edge.to] += dp[u];
+      }
+    }
+
+    return dp;
+  }
+
+  public static void main(String[] args) {
+
+    final int N = 6;
+    Map<Integer, List<Edge>> graph = new HashMap<>();
+
+    for (int i = 0; i < N; i++) {
+      graph.put(i, new ArrayList<>());
+    }
+
+    // Example DAG
+    graph.get(0).add(new Edge(1));
+    graph.get(0).add(new Edge(2));
+    graph.get(1).add(new Edge(3));
+    graph.get(2).add(new Edge(3));
+    graph.get(3).add(new Edge(4));
+
+    int source = 0;
+
+    long[] dp = countWaysDAG(graph, source, N);
+
+    if (dp == null) {
+      System.out.println("Graph contains a cycle!");
+      return;
+    }
+
+    System.out.println("Ways from source:");
+    System.out.println(Arrays.toString(dp));
+  }
+}
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diff --git a/src/test/java/com/williamfiset/algorithms/dp/DagDynamicProgrammingTest.java b/src/test/java/com/williamfiset/algorithms/dp/DagDynamicProgrammingTest.java
new file mode 100644
index 000000000..9fdb47326
--- /dev/null
+++ b/src/test/java/com/williamfiset/algorithms/dp/DagDynamicProgrammingTest.java
@@ -0,0 +1,72 @@
+package com.williamfiset.algorithms.dp;
+
+import static org.junit.jupiter.api.Assertions.*;
+
+import java.util.*;
+
+import org.junit.jupiter.api.Test;
+
+public class DagDynamicProgrammingTest {
+
+  private Map<Integer, List<DagDynamicProgramming.Edge>> createGraph(int n) {
+    Map<Integer, List<DagDynamicProgramming.Edge>> graph = new HashMap<>();
+    for (int i = 0; i < n; i++) {
+      graph.put(i, new ArrayList<>());
+    }
+    return graph;
+  }
+
+  @Test
+  public void testSimpleDAGWays() {
+
+    int n = 5;
+    Map<Integer, List<DagDynamicProgramming.Edge>> graph = createGraph(n);
+
+    graph.get(0).add(new DagDynamicProgramming.Edge(1));
+    graph.get(0).add(new DagDynamicProgramming.Edge(2));
+    graph.get(1).add(new DagDynamicProgramming.Edge(3));
+    graph.get(2).add(new DagDynamicProgramming.Edge(3));
+    graph.get(3).add(new DagDynamicProgramming.Edge(4));
+
+    long[] dp = DagDynamicProgramming.countWaysDAG(graph, 0, n);
+
+    assertNotNull(dp);
+    assertEquals(1, dp[0]);
+    assertEquals(1, dp[1]);
+    assertEquals(1, dp[2]);
+    assertEquals(2, dp[3]); // 0->1->3 and 0->2->3
+    assertEquals(2, dp[4]);
+  }
+
+  @Test
+  public void testDisconnectedGraph() {
+
+    int n = 4;
+    Map<Integer, List<DagDynamicProgramming.Edge>> graph = createGraph(n);
+
+    graph.get(0).add(new DagDynamicProgramming.Edge(1));
+
+    long[] dp = DagDynamicProgramming.countWaysDAG(graph, 0, n);
+
+    assertNotNull(dp);
+    assertEquals(1, dp[0]);
+    assertEquals(1, dp[1]);
+    assertEquals(0, dp[2]); // unreachable
+    assertEquals(0, dp[3]); // unreachable
+  }
+
+  @Test
+  public void testCycleDetection() {
+
+    int n = 3;
+    Map<Integer, List<DagDynamicProgramming.Edge>> graph = createGraph(n);
+
+    graph.get(0).add(new DagDynamicProgramming.Edge(1));
+    graph.get(1).add(new DagDynamicProgramming.Edge(2));
+    graph.get(2).add(new DagDynamicProgramming.Edge(0)); // cycle
+
+    long[] dp = DagDynamicProgramming.countWaysDAG(graph, 0, n);
+
+    assertNull(dp); // cycle detected
+  }
+}
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