diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -1 +1,50 @@
-My collection of bash scripts.
\ No newline at end of file
+My collection of bash scripts.
+
+## Tools
+
+### create-package
+
+A tool to create new package directories with bash script templates.
+
+**Usage:**
+
+```bash
+# Using command-line arguments
+./create-package "My Tool"
+
+# Using stdin (piped input)
+echo "My Tool" | ./create-package
+```
+
+**Behavior:**
+
+- Creates a directory with the sanitized package name
+- Generates an executable bash script inside the directory with the same name
+- The generated script includes a shebang, error handling, and a simple hello message
+
+**Name Sanitization Rules:**
+
+Package names are automatically sanitized:
+- Converted to lowercase
+- Spaces and underscores are replaced with dashes
+- Only `[a-z0-9-]` characters are retained (letters, numbers, dashes)
+- Multiple consecutive dashes are collapsed into one
+- Leading and trailing dashes are removed
+
+**Examples:**
+
+```bash
+# Creates: my-tool/my-tool
+./create-package "My Tool"
+
+# Creates: hello-world/hello-world
+echo "Hello_World" | ./create-package
+
+# Creates: test123/test123
+./create-package "test123"
+```
+
+**Error Handling:**
+
+- If the sanitized name is empty (e.g., only special characters), the script exits with an error
+- If a directory with that name already exists, the script exits with an error message
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diff --git a/create-package b/create-package
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+++ b/create-package
@@ -0,0 +1,87 @@
+#!/usr/bin/env bash
+set -euo pipefail
+
+# create-package: Create a new package directory with a bash script template
+# Usage: ./create-package <package-name>
+#        echo "<package-name>" | ./create-package
+
+# Color helper functions
+red() {
+  if [[ -t 1 ]]; then
+    echo -e "\033[31m$*\033[0m" >&2
+  else
+    echo "$*" >&2
+  fi
+}
+
+green() {
+  if [[ -t 1 ]]; then
+    echo -e "\033[32m$*\033[0m"
+  else
+    echo "$*"
+  fi
+}
+
+# Read package name from stdin or CLI args
+if [[ $# -gt 0 ]]; then
+  package_name="$*"
+elif [[ ! -t 0 ]]; then
+  # Reading from pipe
+  read -r package_name
+else
+  red "Error: Package name required"
+  echo "Usage: ./create-package <package-name>" >&2
+  echo "       echo \"<package-name>\" | ./create-package" >&2
+  exit 1
+fi
+
+# Sanitize the package name:
+# 1. Convert to lowercase
+# 2. Replace spaces and underscores with dashes
+# 3. Remove any characters that are not [a-z0-9-]
+# 4. Collapse multiple consecutive dashes into one
+# 5. Remove leading/trailing dashes
+sanitized=$(echo "$package_name" | \
+  tr '[:upper:]' '[:lower:]' | \
+  tr ' _' '-' | \
+  sed 's/[^a-z0-9-]//g' | \
+  sed 's/-\+/-/g' | \
+  sed 's/^-//;s/-$//')
+
+# Check if sanitized name is empty
+if [[ -z "$sanitized" ]]; then
+  red "Error: Package name '$package_name' results in empty string after sanitization"
+  echo "Package names must contain at least one alphanumeric character" >&2
+  exit 1
+fi
+
+# Check if directory already exists
+if [[ -d "$sanitized" ]]; then
+  red "Error: Directory '$sanitized' already exists"
+  exit 1
+fi
+
+# Create the package directory (using mkdir without -p to avoid race condition)
+if ! mkdir "$sanitized" 2>/dev/null; then
+  red "Error: Failed to create directory '$sanitized' (may have been created concurrently)"
+  exit 1
+fi
+
+# Create the package script
+script_path="$sanitized/$sanitized"
+cat > "$script_path" <<EOF
+#!/usr/bin/env bash
+set -euo pipefail
+
+# $sanitized: Package script
+# Generated by create-package
+
+echo "Hello from $sanitized!"
+EOF
+
+# Make the script executable
+chmod +x "$script_path"
+
+green "✓ Created package '$sanitized'"
+echo "  Script: $script_path"
+