diff --git a/README.rst b/README.rst
index 58a69dda..c22a4732 100644
--- a/README.rst
+++ b/README.rst
@@ -129,6 +129,15 @@ https://github.com/karask/python-bitcoin-utils/blob/master/examples/send_to_p2tr
 Spend taproot from script path (has three alternative script path spends - A, B and C)
 https://github.com/karask/python-bitcoin-utils/blob/master/examples/spend_p2tr_three_scripts_by_script_path.py - single input, single output, spend script path B.
 
+Partially Signed Bitcoin Transactions (PSBT)
+--------------------------------------------
+
+**Note: PSBT support is currently in early development stages.**
+
+This library is adding support for BIP-174 Partially Signed Bitcoin Transactions (PSBT).
+Current implementation includes basic data structures, with serialization and full functionality
+to be added in future releases.
+
 Other
 -----
 
diff --git a/bitcoinutils/psbt.py b/bitcoinutils/psbt.py
new file mode 100644
index 00000000..eed8b993
--- /dev/null
+++ b/bitcoinutils/psbt.py
@@ -0,0 +1,114 @@
+"""
+Partially Signed Bitcoin Transaction (PSBT) - BIP-174 Implementation
+
+This module provides classes and methods to create, parse, and manipulate
+Partially Signed Bitcoin Transactions as defined in BIP-174.
+
+References:
+    - BIP-174: https://github.com/bitcoin/bips/blob/master/bip-0174.mediawiki
+"""
+
+from enum import Enum
+from typing import Dict, List, Optional, Union, Any
+
+# Magic bytes for PSBT format (hex representation)
+PSBT_MAGIC_BYTES = b'\x70\x73\x62\x74'  # "psbt" in ASCII
+PSBT_SEPARATOR = b'\xff'  # Separator between maps
+PSBT_DEFAULT_VERSION = 0  # Current PSBT version is 0
+
+class PSBTTypeField(Enum):
+    """PSBT field types as defined in BIP-174."""
+    # Global Types
+    UNSIGNED_TX = 0x00
+    XPUB = 0x01
+    VERSION = 0xfb
+    PROPRIETARY = 0xfc
+    
+    # Input Types
+    NON_WITNESS_UTXO = 0x00
+    WITNESS_UTXO = 0x01
+    PARTIAL_SIG = 0x02
+    SIGHASH_TYPE = 0x03
+    REDEEM_SCRIPT = 0x04
+    WITNESS_SCRIPT = 0x05
+    BIP32_DERIVATION = 0x06
+    FINAL_SCRIPTSIG = 0x07
+    FINAL_SCRIPTWITNESS = 0x08
+    POR_COMMITMENT = 0x09
+    
+    # Output Types
+    REDEEM_SCRIPT_OUTPUT = 0x00
+    WITNESS_SCRIPT_OUTPUT = 0x01
+    BIP32_DERIVATION_OUTPUT = 0x02
+
+
+class PSBTInput:
+    """Class representing a PSBT input with associated data."""
+
+    def __init__(self, tx_input=None):
+        """Initialize a PSBT input.
+        
+        Args:
+            tx_input: Related transaction input (optional)
+        """
+        self.utxo = None  # Non-witness UTXO (complete transaction)
+        self.witness_utxo = None  # Witness UTXO (just the output)
+        self.partial_sigs = {}  # {pubkey: signature}
+        self.sighash_type = None  # Signature hash type if specified
+        self.redeem_script = None  # Redeem script for P2SH
+        self.witness_script = None  # Witness script for P2WSH
+        self.bip32_derivations = {}  # {pubkey: (fingerprint, path)}
+        self.final_script_sig = None  # Final scriptSig
+        self.final_script_witness = None  # Final scriptWitness
+        self.proprietary = {}  # Proprietary fields
+        self.unknown = {}  # Unknown fields
+        
+        # Link to transaction input if provided
+        self.tx_input = tx_input
+
+
+class PSBTOutput:
+    """Class representing a PSBT output with associated data."""
+
+    def __init__(self, tx_output=None):
+        """Initialize a PSBT output.
+        
+        Args:
+            tx_output: Related transaction output (optional)
+        """
+        self.redeem_script = None  # Redeem script
+        self.witness_script = None  # Witness script
+        self.bip32_derivations = {}  # {pubkey: (fingerprint, path)}
+        self.proprietary = {}  # Proprietary fields
+        self.unknown = {}  # Unknown fields
+        
+        # Link to transaction output if provided
+        self.tx_output = tx_output
+
+
+class PSBT:
+    """Class representing a Partially Signed Bitcoin Transaction."""
+
+    def __init__(self, tx=None):
+        """Initialize a new PSBT object.
+        
+        Args:
+            tx: The unsigned transaction this PSBT is based on (optional)
+        """
+        self.version = PSBT_DEFAULT_VERSION
+        self.tx = tx  # Unsigned transaction
+        self.inputs = []  # List of PSBTInput objects
+        self.outputs = []  # List of PSBTOutput objects
+        self.xpubs = {}  # Extended public keys: {xpub: (master_fingerprint, derivation_path)}
+        self.proprietary = {}  # Proprietary fields
+        self.unknown = {}  # Unknown fields
+
+        # Initialize inputs and outputs based on transaction if provided
+        if tx:
+            for tx_in in tx.inputs:
+                self.inputs.append(PSBTInput(tx_in))
+            
+            for tx_out in tx.outputs:
+                self.outputs.append(PSBTOutput(tx_out))
+
+    # Serialization methods will be implemented in future PRs
\ No newline at end of file
diff --git a/examples/psbt_create_basic.py b/examples/psbt_create_basic.py
new file mode 100644
index 00000000..3ead1e45
--- /dev/null
+++ b/examples/psbt_create_basic.py
@@ -0,0 +1,58 @@
+#!/usr/bin/env python3
+"""
+Example creating a basic PSBT (initial implementation)
+"""
+# Add parent directory to import path for running directly
+import sys
+import os
+sys.path.insert(0, os.path.abspath(os.path.dirname(os.path.dirname(__file__))))
+from bitcoinutils.setup import setup
+from bitcoinutils.transactions import Transaction, TxInput, TxOutput
+from bitcoinutils.keys import P2pkhAddress
+from bitcoinutils.script import Script
+from bitcoinutils.psbt import PSBT
+
+def main():
+    # Setup the network
+    setup('testnet')
+
+    # Create a transaction input
+    prev_tx_id = "6ecd66d88b1a976cde70ebbef1909edec5db80cdd7bc3d6b6d451b91715bb919"
+    prev_output_index = 0
+    tx_in = TxInput(prev_tx_id, prev_output_index)
+
+    # Create a transaction output (20000 satoshis to a dummy address)
+    dummy_addr = P2pkhAddress('n4bkvTyU1dVdzsrhWBqBw8fEMbHjJvtmJR')
+    tx_out = TxOutput(20000, dummy_addr.to_script_pub_key())
+
+    # Create an unsigned transaction
+    tx = Transaction([tx_in], [tx_out])
+
+    # Create a PSBT from the unsigned transaction
+    psbt = PSBT(tx)
+
+    # Print information about the PSBT
+    print("\nPSBT Information:")
+    print(f"Number of inputs: {len(psbt.inputs)}")
+    print(f"Number of outputs: {len(psbt.outputs)}")
+    print(f"PSBT version: {psbt.version}")
+
+    print("\nPSBT Input Information:")
+    for i, psbt_in in enumerate(psbt.inputs):
+        print(f"Input #{i}:")
+        print(f"  Transaction ID: {psbt_in.tx_input.txid}")
+        # Use the stored previous output index from when we created the input
+        print(f"  Output Index: {prev_output_index}")
+        print(f"  Has UTXO data: {psbt_in.utxo is not None}")
+        print(f"  Has partial signatures: {len(psbt_in.partial_sigs) > 0}")
+
+    print("\nPSBT Output Information:")
+    for i, psbt_out in enumerate(psbt.outputs):
+        print(f"Output #{i}:")
+        print(f"  Amount: {psbt_out.tx_output.amount}")
+        print(f"  Script type: {psbt_out.tx_output.script_pubkey}")
+
+    print("\nNote: Serialization and additional functionality coming in future updates")
+
+if __name__ == "__main__":
+    main()
\ No newline at end of file
diff --git a/tests/test_psbt.py b/tests/test_psbt.py
new file mode 100644
index 00000000..bb266e5c
--- /dev/null
+++ b/tests/test_psbt.py
@@ -0,0 +1,57 @@
+#!/usr/bin/env python3
+"""
+Simple test for PSBT implementation - can be run directly without unittest
+"""
+
+import sys
+import os
+# Add the parent directory to the path so we can import our module
+sys.path.insert(0, os.path.abspath(os.path.dirname(os.path.dirname(__file__))))
+
+from bitcoinutils.setup import setup
+from bitcoinutils.transactions import Transaction, TxInput, TxOutput
+from bitcoinutils.keys import P2pkhAddress
+from bitcoinutils.script import Script
+from bitcoinutils.psbt import PSBT, PSBTInput, PSBTOutput
+
+def run_tests():
+    """Run simple tests for PSBT implementation."""
+    print("Testing PSBT implementation")
+    
+    # Setup
+    setup('testnet')
+    
+    # Test 1: Basic PSBT creation
+    print("\nTest 1: Basic PSBT creation")
+    tx_in = TxInput("6ecd66d88b1a976cde70ebbef1909edec5db80cdd7bc3d6b6d451b91715bb919", 0)
+    addr = P2pkhAddress('n4bkvTyU1dVdzsrhWBqBw8fEMbHjJvtmJR')
+    tx_out = TxOutput(20000, addr.to_script_pub_key())
+    tx = Transaction([tx_in], [tx_out])
+    
+    psbt = PSBT(tx)
+    
+    assert len(psbt.inputs) == 1, f"Expected 1 input, got {len(psbt.inputs)}"
+    assert len(psbt.outputs) == 1, f"Expected 1 output, got {len(psbt.outputs)}"
+    assert psbt.version == 0, f"Expected version 0, got {psbt.version}"
+    print("✓ Basic PSBT creation test passed")
+    
+    # Test 2: PSBTInput properties
+    print("\nTest 2: PSBTInput properties")
+    psbt_in = PSBTInput(tx_in)
+    assert psbt_in.tx_input == tx_in, "PSBTInput should reference the original TxInput"
+    assert psbt_in.utxo is None, "Initial utxo should be None"
+    assert psbt_in.partial_sigs == {}, "partial_sigs should be an empty dict"
+    print("✓ PSBTInput properties test passed")
+    
+    # Test 3: PSBTOutput properties
+    print("\nTest 3: PSBTOutput properties")
+    psbt_out = PSBTOutput(tx_out)
+    assert psbt_out.tx_output == tx_out, "PSBTOutput should reference the original TxOutput"
+    assert psbt_out.redeem_script is None, "Initial redeem_script should be None"
+    assert psbt_out.bip32_derivations == {}, "bip32_derivations should be an empty dict"
+    print("✓ PSBTOutput properties test passed")
+    
+    print("\nAll tests passed!")
+
+if __name__ == "__main__":
+    run_tests()
\ No newline at end of file