diff --git a/README.md b/README.md
index 0ec23733f..434fe3a1f 100644
--- a/README.md
+++ b/README.md
@@ -356,6 +356,7 @@ If you want to uninstall algorithms, it is as simple as:
     - [longest_palindromic_substring](algorithms/strings/longest_palindromic_substring.py)
   	- [knuth_morris_pratt](algorithms/strings/knuth_morris_pratt.py)
     - [panagram](algorithms/strings/panagram.py)
+    - [swapcharacters](algorithms/strings/swap_str.py)
 - [tree](algorithms/tree)
     - [bst](algorithms/tree/bst)
         - [array_to_bst](algorithms/tree/bst/array_to_bst.py)
diff --git a/algorithms/strings/swap_str.py b/algorithms/strings/swap_str.py
new file mode 100644
index 000000000..39e959d6e
--- /dev/null
+++ b/algorithms/strings/swap_str.py
@@ -0,0 +1,71 @@
+"""
+Given two strings s1 and s2, we are allowed to swap only one character from s1 with that of s2
+such that after the swap, the total number of distinct characters in both s1 and s2 are the same.
+If it is possible to perform such a swap, we should return True, else return False.
+
+Example 1:
+String 1: "cd", String 2: "e"
+Expected Output: False
+Explanation: On swapping the character c with e, we will end up with 2 distinct characters in string 1
+and 1 character in string 2. Same goes with swapping character d with e.
+
+Example 2:
+String 1: "deff", String 2: "dde"
+Expected Output: True
+Explanation: We can swap character f in string 1 with character d in string 2. Hence, the new strings
+will be dedf and fde. Both the string will contain three distinct characters, i.e. f, d and e.
+
+Approach:
+Create distinct prefix arrays for both string 1 and string 2. Then apply brute force to swap each of the
+characters of string 1 with that of string 2 and notice if the number of distinct characters are the same.
+If yes, then return True. Else, return False after all the swaps are complete.
+
+If N is the size of string 1 and M is the size of string 2, then:
+
+Time Complexity: O(N+M+26*26), where a complexity of N+M is required to create the prefix arrays. Also,
+26*26 different swaps are required in the worst case scenario.
+
+Space Complexity: O(26+26)=O(52) for creating the prefix arrays.
+"""
+
+# Function to create the Prefix Array.
+def createPrefixArray(string):
+    array,count=[0]*26,0
+    for w in string:
+        array[ord(w)-ord('a')]+=1
+        if array[ord(w)-ord('a')]==1:
+            count+=1
+    return array,count
+
+def checkSwapEquality(string1,string2):
+    prefixArray1,leftCount=createPrefixArray(string1) # Time Complexity of O(N)
+    prefixArray2,rightCount=createPrefixArray(string2) # Time Complexity of O(M)
+    for i in range(26): # Time Complexity of O(26*26)
+        if prefixArray1[i]: # Enter only if the character count is greater than 0
+            prefixArray1[i]-=1
+            if prefixArray1[i]==0:
+                leftCount-=1
+            prefixArray2[i]+=1
+            if prefixArray2[i]==1:
+                rightCount+=1
+            for j in range(26):
+                l,r=leftCount,rightCount
+                if prefixArray2[j]:
+                    flag=True
+                    if i==j and prefixArray2[j]==1:
+                        flag=False
+                    if flag:
+                        if prefixArray1[j]==0:
+                            l+=1
+                        if prefixArray2[j]==1:
+                            r-=1
+                        if l==r:
+                            return True
+            prefixArray1[i]+=1
+            prefixArray2[i]-=1
+            if prefixArray1[i]==1:
+                leftCount+=1
+            if prefixArray2[i]==0:
+                rightCount-=1
+    return False
+
diff --git a/tests/test_swap_str.py b/tests/test_swap_str.py
new file mode 100644
index 000000000..374b34f35
--- /dev/null
+++ b/tests/test_swap_str.py
@@ -0,0 +1,21 @@
+from algorithms.strings import (
+    swap_str,
+)
+
+import unittest
+
+class Testswap_str(unittest.TestCase):
+    def test_swap_str1(self):
+        self.assertEqual(swap_str.checkSwapEquality('aabc','abcd'),True)
+
+    def test_swap_str2(self):
+        self.assertEqual(swap_str.checkSwapEquality('abcdef', 'fghijk'), True)
+
+    def test_swap_str3(self):
+        self.assertEqual(swap_str.checkSwapEquality('aab', 'c'), False)
+
+    def test_swap_str4(self):
+        self.assertEqual(swap_str.checkSwapEquality('mnopppq', 'xyzaa'), True)
+
+if __name__ == '__main__':
+    unittest.main()
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