diff --git a/src/sorting/counting_sort/README.md b/src/sorting/counting_sort/README.md
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+# 🧠 Counting Sort
+
+## 📝 Description
+
+Counting Sort is a non-comparison-based sorting algorithm that operates by counting the occurrences of each distinct element in the input sequence and using this information to place each element directly into its correct position in the output sequence. It is suitable for sorting a collection of elements where the keys are integers within a known, finite, and reasonably small range.
+
+## 💾 Time Complexity
+
+| Case  | Complexity |
+| ----- | ---------- |
+| Best  | $O(n+k)$   |
+| Worst | $O(n+k)$   |
+
+Where:
+
+- $n$ is the number of elements in the input array.
+- $k$ is the range of input values.
+
+## 💾 Space Complexity
+
+The space complexity is $O(n+k)$, as it requires:
+
+- An auxiliary count array of size $k$
+- An output array of size $n$
+
+## 💡 Intuition By Analogy
+
+Imagine you have a bag full of coins. You start by making one stack for each different kind of coin, organized in ascending order. Then, you disassemble the stacks and lay out the coins in order. Now you have a series of sorted coins, without ever comparing one coin directly to another.
+
+## 🧾 Pseudocode
+
+```
+CountingSort(array, max_value)
+    Let count be an array with a length equal to max_value. All elements are in count are equal to -1.
+    Ler output be an array of same length as array
+
+    for i in array:
+        count[i - 1] = count[i - 1] + 1
+
+    for i to length(count) - 1:
+        count[i + 1] = count[i + 1] + count[i]
+
+    for i to length(array):
+        element = array[i] - 1
+        count[element] -= 1
+        output[count[element]] = array[i]
+
+    return output
+```
+
+## 📈 Time Complexity Analysis
+
+### Step-by-step:
+
+1. Initialize count and output arrays → $O(k+n)$
+2. First loop (counting occurrences) → $O(n)$
+3. Second loop (prefix sums) → $O(k)$
+4. Third loop (placing elements in output) → $O(n)$
+
+Therefore the overall complexity is $O(k+n)$.
+This holds for **best**, **worst**, and **average** cases because Counting Sort's steps don't depend on the order of the input, only on the size of nn and range $k$.
diff --git a/src/sorting/counting_sort/__init__.py b/src/sorting/counting_sort/__init__.py
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+"""Counting sort implementation package for sorting algorithms."""
diff --git a/src/sorting/counting_sort/counting_sort.py b/src/sorting/counting_sort/counting_sort.py
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+"""Counting Sort Algorithm."""
+
+
+def counting_sort(array: list[int], max_value: int) -> list[int]:
+    """Sort a list of integers from 1 to max_value using counting sort.
+
+    Parameters
+    ----------
+    array : list[Any]
+        The list of integers from 1 to max_value.
+
+    max_value : int
+        The maximum value inside the array.
+
+    Returns
+    -------
+    list[Any]
+        The same list, sorted in ascending order.
+
+    """
+    count = [0] * max_value
+    output = [-1] * len(array)
+
+    # counting elements in array
+    for i in array:
+        count[i - 1] += 1
+
+    # weighting of counting
+    for i in range(len(count) - 1):
+        count[i + 1] = count[i + 1] + count[i]
+
+    # sorting using count
+    for i in range(len(array)):
+        element = array[i] - 1
+        count[element] -= 1
+        output[count[element]] = array[i]
+
+    return output
diff --git a/tests/sorting/counting_sort/__init__.py b/tests/sorting/counting_sort/__init__.py
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+"""Test package for counting sort implementation."""
diff --git a/tests/sorting/counting_sort/test_cases.yaml b/tests/sorting/counting_sort/test_cases.yaml
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diff --git a/tests/sorting/counting_sort/test_counting.py b/tests/sorting/counting_sort/test_counting.py
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+++ b/tests/sorting/counting_sort/test_counting.py
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+"""Tests for counting sort algorithm implementation."""