diff --git a/problem_03/.gitignore b/problem_03/.gitignore
new file mode 100644
index 0000000..bef0727
--- /dev/null
+++ b/problem_03/.gitignore
@@ -0,0 +1,2 @@
+/target/
+.idea
diff --git a/problem_03/Cargo.toml b/problem_03/Cargo.toml
new file mode 100644
index 0000000..6a31808
--- /dev/null
+++ b/problem_03/Cargo.toml
@@ -0,0 +1,17 @@
+[package]
+name = "problem_03"
+version = "0.1.0"
+edition = "2021"
+
+[[bin]]
+name = "server"
+path = "src/server.rs"
+
+[[bin]]
+name = "client"
+path = "src/client.rs"
+
+[dependencies]
+tokio = { version = "1.14.0", features = ["full"] }
+tracing = "0.1.38"
+tracing-subscriber = "0.3.17"
diff --git a/problem_03/src/client.rs b/problem_03/src/client.rs
new file mode 100644
index 0000000..d12edbd
--- /dev/null
+++ b/problem_03/src/client.rs
@@ -0,0 +1,62 @@
+use tokio::io::{AsyncBufReadExt, AsyncWriteExt, BufReader};
+use tokio::net::TcpStream;
+use tokio::sync::mpsc::channel;
+use tokio::task;
+use tracing::{debug, info, error};
+
+#[tokio::main]
+async fn main() -> Result<(), Box<dyn std::error::Error>> {
+    tracing_subscriber::fmt::try_init().expect("Tracing was not setup");
+
+    let stream = TcpStream::connect("127.0.0.1:8080").await?;
+
+    let (tx, mut rx) = channel::<String>(10);
+
+    let (mut reader, mut writer) = tokio::io::split(stream);
+
+    let tx_clone = tx.clone();
+
+    task::spawn(async move {
+        let mut reader = BufReader::new(&mut reader);
+
+        loop {
+            info!("Inside reading lines from server loop");
+            let mut buf = String::new();
+            if let Ok(n) = reader.read_line(&mut buf).await {
+                if n > 0 {
+                    println!("{}", buf.trim_end());
+                } else {
+                    break;
+                }
+            } else {
+                break;
+            }
+        }
+        tx_clone.send("exit".to_string()).await.unwrap();
+    });
+
+    loop {
+        info!("Inside read from std::io loop");
+        let mut buf = String::new();
+        std::io::stdin().read_line(&mut buf)?;
+
+        let buf = buf.trim_end().to_string();
+        info!("New line: {}", buf);
+        if buf.to_lowercase() == "exit" {
+            break;
+        }
+        debug!(?buf);
+        if let Err(_) = writer.write_all(buf.as_bytes()).await {
+            error!("Could not sent");
+            break;
+        }
+
+        if let Some(msg) = rx.recv().await {
+            if msg.to_lowercase() == "exit" {
+                break;
+            }
+        }
+    }
+
+    Ok(())
+}
diff --git a/problem_03/src/server.rs b/problem_03/src/server.rs
new file mode 100644
index 0000000..4794008
--- /dev/null
+++ b/problem_03/src/server.rs
@@ -0,0 +1,110 @@
+use std::collections::HashMap;
+use std::sync::{Arc, Mutex};
+use tokio::io::{AsyncBufReadExt, AsyncWriteExt, BufReader};
+use tokio::net::TcpListener;
+use tokio::sync::broadcast::{self, Sender};
+use tracing::{debug, info, error};
+
+#[tokio::main]
+async fn main() -> Result<(), Box<dyn std::error::Error>> {
+    tracing_subscriber::fmt::try_init().expect("Tracing was not setup");
+
+    let listener = TcpListener::bind("0.0.0.0:1222").await?;
+    info!("Start listening on 0.0.0.0:1222");
+
+    let clients = Arc::new(Mutex::new(HashMap::new()));
+    let (tx, _) = broadcast::channel(10);
+
+    loop {
+        let (mut socket, _addr) = listener.accept().await?;
+        let clients = clients.clone();
+        let tx = tx.clone();
+        // let mut stream = stream?;
+
+        tokio::spawn(async move {
+            let (mut reader, mut writer) = socket.split();
+            let mut buf = String::new();
+            let mut reader = BufReader::new(&mut reader);
+
+            // Request the user's name
+            if let Err(e) = writer
+                .write_all(b"Welcome to budgetchat! What shall I call you?\n")
+                .await
+            {
+                println!("Failed to send name request: {}", e);
+                return;
+            }
+
+            // Get the user's name
+            match reader.read_line(&mut buf).await {
+                Ok(_) => {
+                    let name = buf.trim().to_string();
+                    info!("Receiving name: {}", name);
+                    if !is_valid_name(&name) {
+                        if let Err(e) = writer
+                            .write_all(b"Invalid name. Connection closed.\n")
+                            .await
+                        {
+                            println!("Failed to send error message: {}", e);
+                        }
+                        return;
+                    }
+
+                    let (client_tx, _client_rx) = broadcast::channel(10);
+
+                    {
+                        let mut clients = clients.lock().unwrap();
+                        announce_join(&name, &clients, &tx);
+                        clients.insert(name.clone(), client_tx);
+                    }
+
+                    // Relay messages to other clients
+                    while let Ok(_) = reader.read_line(&mut buf).await {
+                        let message = buf.trim().to_string();
+
+                        if message.is_empty() {
+                            break;
+                        }
+
+                        relay_message(&name, &message, &tx);
+                    }
+
+                    // Client disconnected, remove from clients and announce leave
+                    {
+                        let mut clients = clients.lock().unwrap();
+                        clients.remove(&name);
+                        announce_leave(&name, &clients, &tx);
+                    }
+                }
+                Err(e) => println!("Failed to read name: {}", e),
+            }
+        });
+    }
+}
+
+fn is_valid_name(name: &str) -> bool {
+    !name.is_empty() && name.chars().all(|c| c.is_ascii_alphanumeric())
+}
+
+fn announce_join(name: &str, clients: &HashMap<String, Sender<String>>, tx: &Sender<String>) {
+    let message = format!("* {} has entered the room", name);
+    for client_name in clients.keys() {
+        if client_name != name {
+            let _ = tx.send(message.clone());
+        }
+    }
+}
+
+fn announce_leave(name: &str, clients: &HashMap<String, Sender<String>>, tx: &Sender<String>) {
+    let message = format!("* {} has left the room", name);
+    for client_name in clients.keys() {
+        if client_name != name {
+            let _ = tx.send(message.clone());
+        }
+    }
+}
+
+fn relay_message(name: &str, message: &str, tx: &Sender<String>) {
+    let message = format!("[{}] {}", name, message);
+    let _ = tx.send(message);
+}