diff --git a/projects/pythonSDKs/stateful_sdk.py b/projects/pythonSDKs/stateful_sdk.py
new file mode 100644
index 00000000..30d1cf35
--- /dev/null
+++ b/projects/pythonSDKs/stateful_sdk.py
@@ -0,0 +1,109 @@
+import requests
+import json
+
+class StatefulChatbotSDK:
+    def __init__(self, project_id, project_secret, tools=None):
+        self.base_url = f'http://localhost:3000/api/v1/{project_id}/chat'
+        self.headers = {
+            'Content-Type': 'application/json',
+            'Authorization': f'Bearer {project_secret}'
+        }
+        self.messages = []  # This holds the entire conversation history
+        self.state = None
+        self.tools = tools if tools else {}  # Default to empty if no tools provided
+
+    def send_message(self, user_message):
+        # Add the user's message to the conversation history
+        self.messages.append({
+            'role': 'user',
+            'content': user_message
+        })
+
+        # Prepare the payload for the stateless API, including all past messages
+        payload = json.dumps({
+            'messages': self.messages,
+            'state': self.state if self.state else {}
+        })
+
+        # Send the request to the API
+        response = requests.post(self.base_url, headers=self.headers, data=payload)
+
+        if response.status_code == 200:
+            response_data = response.json()
+            
+            # The response contains only the new messages generated in this turn
+            new_messages = response_data.get('messages', [])
+            if new_messages:
+                # Append new messages to the conversation history
+                for msg in new_messages:
+                    self.messages.append(msg)
+
+            # Extract the new state from the response and store it
+            self.state = response_data.get('state', {})
+
+            # Check for tool calls in the response
+            tool_calls = response_data.get('messages', [{}])[0].get('tool_calls', [])
+            if tool_calls:
+                for tool_call in tool_calls:
+                    tool_name = tool_call.get('function', {}).get('name')
+                    tool_arguments = json.loads(tool_call.get('function', {}).get('arguments', '{}'))
+
+                    # Invoke the tool if it exists, otherwise raise an error
+                    if tool_name in self.tools:
+                        tool_response = self.tools[tool_name](**tool_arguments)
+                        # Add the tool response as a new message in the conversation history
+                        self.messages.append({
+                            'role': 'tool',
+                            'content': tool_response
+                        })
+                    else:
+                        raise ValueError(f"Missing tool: '{tool_name}'")
+
+            # Return the latest message from the assistant or tool
+            return new_messages[-1]['content'] if new_messages else "No response"
+
+        else:
+            return f"Error: {response.status_code} - {response.text}"
+
+    def get_conversation_history(self):
+        return self.messages
+
+    def reset_conversation(self):
+        self.messages = []
+        self.state = None
+
+
+# Example tool functions
+def weather_lookup_tool(location, units):
+    # Simulating a weather lookup tool response
+    return f"The weather in {location} is 22°C with {units} units."
+
+# Interactive conversation loop
+if __name__ == "__main__":
+    # Initialize the SDK with your project ID and secret
+    project_id = "<PROJECT_ID>"
+    project_secret = "<PROJECT_SECRET>"
+    tools = {
+        'weather_lookup_tool': weather_lookup_tool
+    }
+    chatbot = StatefulChatbotSDK(project_id, project_secret, tools)
+
+    print("Welcome to the chatbot! Type 'exit' to end the conversation.")
+    while True:
+        user_message = input("You: ")
+        
+        # Check if the user wants to exit the conversation
+        if user_message.lower() == "exit":
+            print("Ending the conversation.")
+            break
+        
+        # Send the user message to the chatbot and get the response
+        response = chatbot.send_message(user_message)
+        
+        # Print the chatbot's response
+        print(f"Bot: {response}")
+
+    # Optionally, print the conversation history after the chat ends
+    print("\nConversation History:")
+    for msg in chatbot.get_conversation_history():
+        print(f"{msg['role'].capitalize()}: {msg['content']}")