diff --git a/README.md b/README.md
index d53fcbb..e5b3fb4 100644
--- a/README.md
+++ b/README.md
@@ -111,6 +111,21 @@ npm start
 npm run build
 ```
 
+### Testing the Environment with Examples
+
+To quickly test if the environment is set up correctly and see how challenges are loaded, you can use the provided example challenge:
+
+```bash
+# Copy the example challenge into the interviews directory
+cp -r examples/prop-drilling src/interviews/
+
+# Ensure your development server is running
+npm start
+```
+
+The **Context API Refactor** challenge should now automatically appear on the main interface at `http://localhost:8080`.
+
+
 ### Creating Interview Patterns
 
 Interview patterns are modular challenges that can be loaded dynamically. See [src/interviews/README.md](./src/interviews/README.md) for detailed pattern creation guidelines.
diff --git a/examples/prop-drilling/PropDrillingChallenge.tsx b/examples/prop-drilling/PropDrillingChallenge.tsx
new file mode 100644
index 0000000..bab5c94
--- /dev/null
+++ b/examples/prop-drilling/PropDrillingChallenge.tsx
@@ -0,0 +1,80 @@
+import React, { useState } from 'react';
+
+// ==========================================
+// Candidate Task: Refactor this using Context
+// ==========================================
+
+const UserInfo = ({ user }: { user: { name: string; email: string } }) => (
+  <div className="flex items-center gap-2">
+    <div className="w-8 h-8 rounded-full bg-blue-500 flex items-center justify-center text-white font-bold">
+      {user.name.charAt(0)}
+    </div>
+    <span className="font-medium">{user.name}</span>
+  </div>
+);
+
+const Header = ({ user }: { user: { name: string; email: string } }) => (
+  <header className="p-4 bg-slate-100 dark:bg-slate-800 border-b flex justify-between items-center">
+    <h1 className="text-xl font-bold">Dashboard</h1>
+    <UserInfo user={user} />
+  </header>
+);
+
+const ThemeToggle = ({ theme, toggleTheme }: { theme: string; toggleTheme: () => void }) => (
+  <button
+    onClick={toggleTheme}
+    className="px-4 py-2 rounded bg-slate-200 dark:bg-slate-700 hover:bg-slate-300 dark:hover:bg-slate-600 transition-colors"
+  >
+    Toggle Theme (Current: {theme})
+  </button>
+);
+
+const Sidebar = ({ theme, toggleTheme }: { theme: string; toggleTheme: () => void }) => (
+  <aside className="w-64 p-4 border-r bg-slate-50 dark:bg-slate-900 h-full flex flex-col gap-4">
+    <h2 className="font-semibold text-lg">Settings</h2>
+    <ThemeToggle theme={theme} toggleTheme={toggleTheme} />
+  </aside>
+);
+
+const Content = ({ user }: { user: { name: string; email: string } }) => (
+  <div className="p-8 flex-1">
+    <h2 className="text-2xl font-bold mb-4">Welcome back, {user.name}!</h2>
+    <p className="text-slate-600 dark:text-slate-400">
+      This is a deeply nested component structure. Currently, the user object and theme state are being passed down multiple levels via props.
+    </p>
+    <p className="text-slate-600 dark:text-slate-400 mt-2">
+      Your task is to refactor this code to use the React Context API and avoid prop drilling!
+    </p>
+  </div>
+);
+
+const MainLayout = ({
+  user,
+  theme,
+  toggleTheme
+}: {
+  user: { name: string; email: string };
+  theme: string;
+  toggleTheme: () => void
+}) => (
+  <div className="flex flex-1 overflow-hidden">
+    <Sidebar theme={theme} toggleTheme={toggleTheme} />
+    <Content user={user} />
+  </div>
+);
+
+export default function PropDrillingChallenge() {
+  const [user] = useState({ name: 'Alex Developer', email: 'alex@example.com' });
+  const [theme, setTheme] = useState('light');
+
+  const toggleTheme = () => {
+    setTheme(prev => prev === 'light' ? 'dark' : 'light');
+  };
+
+  return (
+    <div className={`h-full flex flex-col ${theme === 'dark' ? 'dark bg-slate-950 text-white' : 'bg-white text-slate-900'}`}>
+      <Header user={user} />
+      <MainLayout user={user} theme={theme} toggleTheme={toggleTheme} />
+    </div>
+  );
+}
diff --git a/examples/prop-drilling/index.ts b/examples/prop-drilling/index.ts
new file mode 100644
index 0000000..08341c7
--- /dev/null
+++ b/examples/prop-drilling/index.ts
@@ -0,0 +1,36 @@
+import type { InterviewPattern } from "@/interviews/types";
+import PropDrillingChallenge from "./PropDrillingChallenge";
+
+export const pattern: InterviewPattern = {
+  id: "prop-drilling-refactor",
+  name: "Context API Refactor",
+  description: "Refactor a prop-drilling architecture to use React Context.",
+  version: "1.0.0",
+  author: "Codeflow",
+  estimatedTime: "15-20 minutes",
+  tags: ["react", "context-api", "refactoring"],
+  type: "react",
+  component: PropDrillingChallenge,
+  readmes: [
+    {
+      title: "Instructions",
+      content: `
+# Prop Drilling Refactor
+
+## Objective
+The provided component structure suffers from "prop drilling". State \`user\` and \`theme\` are passed down through multiple intermediate components that don't need them.
+
+Your task is to refactor this code to use the **React Context API** to manage global state.
+
+## Requirements
+1. Create a \`UserContext\` and a \`ThemeContext\` (or a single combined \`AppContext\`).
+2. Provide the state at the top level of the challenge component.
+3. Consume the context in the components that actually need the data (e.g., \`UserInfo\`, \`ThemeToggle\`, \`Content\`).
+4. Remove all unnecessary props from intermediate components like \`Header\`, \`MainLayout\`, and \`Sidebar\`.
+
+## Bonus
+* Implement custom hooks for consuming your contexts (e.g., \`useTheme\` or \`useUser\`).
+      `.trim(),
+    },
+  ],
+};
diff --git a/tsconfig.json b/tsconfig.json
index 1f41c67..35bb989 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -20,5 +20,5 @@
       "@/*": ["./src/*"]
     }
   },
-  "include": ["src"]
+  "include": ["src", "examples"]
 }