diff --git a/.vscode/launch.json b/.vscode/launch.json
new file mode 100644
index 0000000..91e6bfc
--- /dev/null
+++ b/.vscode/launch.json
@@ -0,0 +1,15 @@
+{
+  "version": "0.2.0",
+  "configurations": [
+    {
+      "type": "node",
+      "request": "launch",
+      "name": "File Graph Yarn Jest",
+      "runtimeExecutable": "yarn",
+      "args": ["test", "--runInBand"],
+      "cwd": "${workspaceFolder}/packages/file-graph",
+      "console": "integratedTerminal",
+      "internalConsoleOptions": "neverOpen"
+    }
+  ]
+}
diff --git a/packages/file-graph/errors.js b/packages/file-graph/errors.js
new file mode 100644
index 0000000..966cd57
--- /dev/null
+++ b/packages/file-graph/errors.js
@@ -0,0 +1,21 @@
+/* eslint-disable max-classes-per-file */
+export class DuplicateItemError extends Error {
+  constructor(message) {
+    super(message)
+    this.name = 'DuplicateItemError'
+  }
+}
+
+export class ParentNotExistsError extends Error {
+  constructor(message) {
+    super(message)
+    this.name = 'ParentNotExistsError'
+  }
+}
+
+export class FileNotExistsError extends Error {
+  constructor(message) {
+    super(message)
+    this.name = 'FileNotExistsError'
+  }
+}
diff --git a/packages/file-graph/file.js b/packages/file-graph/file.js
new file mode 100644
index 0000000..986e280
--- /dev/null
+++ b/packages/file-graph/file.js
@@ -0,0 +1,18 @@
+import { basename } from './utils.js'
+
+export default class File {
+  constructor({ path, type, discovered }) {
+    this.path = path
+    this.name = basename(path)
+    this.type = type
+    this.discovered = discovered
+  }
+
+  isDirectory() {
+    return this.type === 'folder'
+  }
+
+  contains(file) {
+    return this.isDirectory() && file.path.startsWith(this.path)
+  }
+}
diff --git a/packages/file-graph/fileGraph.js b/packages/file-graph/fileGraph.js
new file mode 100644
index 0000000..611fc4c
--- /dev/null
+++ b/packages/file-graph/fileGraph.js
@@ -0,0 +1,57 @@
+import FileNode from './fileNode.js'
+
+export default class FileGraph {
+  constructor(root) {
+    this.root = new FileNode(root)
+  }
+
+  add(files) {
+    // Logic to add the file node to the graph
+    // You can implement the logic to find the appropriate location in the file graph
+    // If the file node already exists, throw an error
+
+    files.forEach((file) => {
+      this.root.addChild(file, { makeParents: true })
+    })
+  }
+
+  remove(files) {
+    // Logic to remove a file node from the graph
+    // If the file node is a folder, also remove all children
+    // If the file node doesn't exist, throw an error
+
+    files.forEach((file) => {
+      this.root.removeChild(file)
+    })
+  }
+
+  discover(eventFiles) {
+    // Logic to handle the discover event
+    // Overwrite the file graph with the provided files
+    // Remove file nodes that don't exist anymore and add new ones
+
+    const newNode = new FileNode(eventFiles[0])
+
+    eventFiles.slice(1).forEach((file) => {
+      newNode.addChild(file, { makeParents: true })
+    })
+
+    this.root.merge(newNode)
+  }
+
+  handleEvent(event) {
+    // eslint-disable-next-line default-case
+    switch (true) {
+      case !!event.add:
+        this.add(event.add)
+        break
+      case !!event.remove:
+        this.remove(event.remove)
+        break
+      case !!event.discover:
+        this.discover(event.discover)
+        break
+      // Implement other cases if needed
+    }
+  }
+}
diff --git a/packages/file-graph/fileGraph.test.js b/packages/file-graph/fileGraph.test.js
new file mode 100644
index 0000000..7f6447a
--- /dev/null
+++ b/packages/file-graph/fileGraph.test.js
@@ -0,0 +1,149 @@
+import FileGraph from './fileGraph.js'
+import FileNode from './fileNode.js'
+
+describe('FileGraph', () => {
+  let root
+
+  beforeEach(() => {
+    root = new FileNode({
+      path: '/',
+      type: 'folder',
+      discovered: true,
+    })
+  })
+
+  test('add files to graph', () => {
+    const fileGraph = new FileGraph(root)
+
+    const filesToAdd = [
+      {
+        path: '/home/user/file1.txt',
+        type: 'file',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder1',
+        type: 'folder',
+        discovered: true,
+      },
+    ]
+
+    fileGraph.add(filesToAdd)
+
+    console.log(fileGraph.root.toString())
+    expect(fileGraph.root.children.length).toBe(1)
+    expect(fileGraph.root.children[0].children[0].children.length).toBe(2)
+  })
+
+  test('remove files from graph', () => {
+    const fileGraph = new FileGraph(root)
+
+    const filesToAdd = [
+      {
+        path: '/home/user/folder1',
+        type: 'folder',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder2',
+        type: 'folder',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder1/file1.txt',
+        type: 'file',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder2/file2.txt',
+        type: 'file',
+        discovered: true,
+      },
+    ]
+
+    fileGraph.add(filesToAdd)
+
+    const filesToRemove = [
+      {
+        path: '/home/user/folder1/file1.txt',
+        type: 'folder',
+      },
+      {
+        path: '/home/user/folder2',
+        type: 'folder',
+      },
+    ]
+
+    fileGraph.remove(filesToRemove)
+
+    console.log(fileGraph.root.toString())
+    expect(fileGraph.root.children[0].children[0].children.length).toBe(1)
+    expect(fileGraph.root.children[0].children[0].children[0].name).toBe(
+      'folder1'
+    )
+    expect(
+      fileGraph.root.children[0].children[0].children[0].children.length
+    ).toBe(0)
+  })
+
+  test('discover new files', () => {
+    const fileGraph = new FileGraph(root)
+
+    const filesToAdd = [
+      {
+        path: '/home/user/folder1',
+        type: 'folder',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder2',
+        type: 'folder',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder1/file1.txt',
+        type: 'file',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder2/file2.txt',
+        type: 'file',
+        discovered: true,
+      },
+    ]
+
+    fileGraph.add(filesToAdd)
+    console.log(fileGraph.root.toString())
+
+    const newFiles = [
+      {
+        path: '/home/user/folder1',
+        type: 'folder',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder1/file1.txt',
+        type: 'file',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder1/file2.txt',
+        type: 'file',
+        discovered: true,
+      },
+      {
+        path: '/home/user/folder1/file3.txt',
+        type: 'file',
+        discovered: true,
+      },
+    ]
+
+    fileGraph.discover(newFiles)
+
+    console.log(fileGraph.root.toString())
+    expect(fileGraph.root.children[0].children[0].children.length).toBe(2)
+    expect(
+      fileGraph.root.children[0].children[0].children[0].children.length
+    ).toBe(3)
+  })
+})
diff --git a/packages/file-graph/fileNode.js b/packages/file-graph/fileNode.js
new file mode 100644
index 0000000..96fc60c
--- /dev/null
+++ b/packages/file-graph/fileNode.js
@@ -0,0 +1,119 @@
+import File from './file.js'
+import {
+  DuplicateItemError,
+  ParentNotExistsError,
+  FileNotExistsError,
+} from './errors.js'
+import { basename, dirname } from './utils.js'
+
+export default class FileNode extends File {
+  constructor(file) {
+    super(file)
+    this.children = file.children || []
+  }
+
+  addChild(fileInput, { makeParents } = {}) {
+    const file = new FileNode(fileInput)
+    if (file.path === this.path) {
+      throw new DuplicateItemError(
+        `File ${file.path} already exists in the tree: ${this.toString()}`
+      )
+    }
+
+    if (this.children.some((child) => child.path === file.path)) {
+      throw new DuplicateItemError(
+        `File ${file.path} already exists in the tree: ${this.toString()}`
+      )
+    }
+
+    const parentPath = dirname(file.path)
+    if (parentPath === this.path) {
+      // Direct child of this node
+      this.children.push(file)
+    } else {
+      // Recursively call addChild on the correct child node
+      const childNode = this.children.find((child) => child.contains(file))
+      if (childNode) {
+        childNode.addChild(file)
+      } else if (makeParents) {
+        const parent = new FileNode({
+          path: parentPath,
+          name: basename(parentPath),
+          type: 'folder',
+          discovered: false,
+          children: [file],
+        })
+        this.addChild(parent, { makeParents })
+      } else {
+        throw new ParentNotExistsError(
+          `Parent path not found in the tree, ${file.path}, ${this.path}`
+        )
+      }
+    }
+  }
+
+  removeChild(fileToRemove) {
+    const file = new FileNode(fileToRemove)
+    const parentPath = dirname(file.path)
+
+    if (parentPath === this.path) {
+      // Direct child of this node
+      this.children = this.children.filter((child) => child.path !== file.path)
+    } else {
+      // Recursively call removeChild on the correct child node
+      const childNode = this.children.find((child) => child.contains(file))
+      if (childNode) {
+        childNode.removeChild(file)
+      } else {
+        throw new FileNotExistsError(
+          `File ${file.path} does not exist in the tree: ${this.toString()}`
+        )
+      }
+    }
+  }
+
+  merge(fileNode) {
+    // Merge the children of the provided file node into this node
+    // If a child already exists, merge the children of that child
+    // If a child does not exist, add it to this node
+    if (fileNode.path === this.path) {
+      fileNode.children.forEach((child) => {
+        const existingChild = this.children.find((c) => c.path === child.path)
+        if (existingChild) {
+          existingChild.merge(child)
+        } else {
+          this.children.push(child)
+        }
+      })
+
+      // If a child exists in this node but not in the provided node, remove it
+      if (fileNode.children.length > 0) {
+        this.children = this.children.filter((child) =>
+          fileNode.children.some((c) => c.path === child.path)
+        )
+      }
+    } else if (this.contains(fileNode)) {
+      const childNode = this.children.find((child) => child.contains(fileNode))
+      if (childNode) {
+        childNode.merge(fileNode)
+      } else {
+        this.addChild(fileNode)
+      }
+    } else {
+      throw new Error(
+        'Cannot merge file nodes with different paths',
+        this.path,
+        fileNode.path
+      )
+    }
+  }
+
+  toString() {
+    const indent = '    '.repeat(this.path.split('/').length - 1)
+    const suffix = this.isDirectory() ? '/' : ''
+    const childrenString = this.children
+      .map((child) => child.toString())
+      .join('')
+    return `${indent}${this.name}${suffix}\n${childrenString}`
+  }
+}
diff --git a/packages/file-graph/fileNode.test.js b/packages/file-graph/fileNode.test.js
new file mode 100644
index 0000000..b58e38f
--- /dev/null
+++ b/packages/file-graph/fileNode.test.js
@@ -0,0 +1,221 @@
+import { DuplicateItemError, ParentNotExistsError } from './errors.js'
+import FileNode from './fileNode.js'
+
+function createNodeFromFiles(files) {
+  const node = new FileNode(files[0])
+  files.slice(1).forEach((file) => node.addChild(file))
+  return node
+}
+
+function mergeTest(files1, files2, expectedFiles) {
+  const node1 = createNodeFromFiles(files1)
+  const node2 = createNodeFromFiles(files2)
+  const expectedNode = createNodeFromFiles(expectedFiles)
+
+  console.log('node1', node1.toString())
+  console.log('node2', node2.toString())
+  console.log('expected', expectedNode.toString())
+
+  node1.merge(node2)
+
+  console.log('after-merged', node1.toString())
+
+  expect(node1.toString()).toBe(expectedNode.toString())
+}
+
+function removeChildTest(files, fileToRemove, expectedFiles) {
+  const node = createNodeFromFiles(files)
+  const expectedNode = createNodeFromFiles(expectedFiles)
+
+  node.removeChild(fileToRemove)
+
+  expect(node.toString()).toBe(expectedNode.toString())
+}
+
+describe('FileNode', () => {
+  let rootNode
+
+  beforeEach(() => {
+    rootNode = new FileNode({
+      path: '/home/rudeus',
+      name: 'rudeus',
+      type: 'folder',
+      discovered: true,
+    })
+  })
+
+  test('should throw error when adding duplicate item', () => {
+    const child = {
+      path: '/home/rudeus/test',
+      name: 'test',
+      type: 'folder',
+    }
+
+    // Adding the child for the first time
+    rootNode.addChild(child)
+
+    expect(rootNode.children.length).toBe(1)
+
+    // Trying to add the same child again should throw an error
+    expect(() => {
+      rootNode.addChild(child)
+    }).toThrow(DuplicateItemError)
+  })
+
+  test('should throw error when parent does not exist', () => {
+    const child = {
+      path: '/home/rudeus/alphabet/test',
+      name: 'test',
+      type: 'folder',
+    }
+
+    // Trying to add to a nonexistent parent should throw an error
+    expect(() => {
+      rootNode.addChild(child)
+    }).toThrow(ParentNotExistsError)
+  })
+
+  test('adds nested children to the tree', () => {
+    const files = [
+      {
+        path: '/home/rudeus/forgotten_scroll.txt',
+        name: 'forgotten_scroll.txt',
+        type: 'file',
+        discovered: 'test',
+      },
+      {
+        path: '/home/rudeus/test',
+        name: 'test',
+        type: 'folder',
+        discovered: 'test',
+      },
+      {
+        path: '/home/rudeus/test/a',
+        name: 'a',
+        type: 'file',
+        discovered: false,
+      },
+    ]
+
+    files.forEach((file) => {
+      rootNode.addChild(file)
+    })
+
+    expect(rootNode.children.length).toBe(2)
+    expect(rootNode.children[1].children.length).toBe(1)
+    console.log(rootNode.toString())
+  })
+
+  test('adds nested children to the tree with makeParents option', () => {
+    const file = {
+      path: '/home/rudeus/test/a/b/c/d/e',
+      name: 'a',
+      type: 'file',
+      discovered: false,
+    }
+
+    rootNode.addChild(file, { makeParents: true })
+
+    console.log(rootNode.toString())
+    let currentNode = rootNode
+    for (let i = 0; i < 5; i += 1) {
+      expect(currentNode.children.length).toBe(1)
+      // eslint-disable-next-line prefer-destructuring
+      currentNode = currentNode.children[0]
+    }
+  })
+
+  test('merge-subtree', () => {
+    const root = {
+      path: '/',
+      type: 'folder',
+    }
+    const files1 = [
+      root,
+      { path: '/a', type: 'file' },
+      { path: '/b', type: 'folder' },
+      { path: '/b/c', type: 'folder' },
+      { path: '/b/d', type: 'file' },
+      { path: '/b/c/f', type: 'file' },
+    ]
+
+    const files2 = [
+      { path: '/b', type: 'folder' },
+      { path: '/b/c', type: 'folder' },
+      { path: '/b/e', type: 'file' },
+      { path: '/b/c/g', type: 'file' },
+    ]
+
+    const expected = [
+      root,
+      { path: '/a', type: 'file' },
+      { path: '/b', type: 'folder' },
+      { path: '/b/c', type: 'folder' },
+      { path: '/b/e', type: 'file' },
+      { path: '/b/c/g', type: 'file' },
+    ]
+
+    mergeTest(files1, files2, expected)
+  })
+
+  test('merge-middle-level', () => {
+    // Test if the node to merge is only the middle part of the tree
+    // (i.e. the node to merge doesn't contains all level of children)
+    // The original tree should keep the children that are not in the node to merge
+    const root = {
+      path: '/',
+      type: 'folder',
+    }
+    const files1 = [
+      root,
+      { path: '/a', type: 'file' },
+      { path: '/b', type: 'folder' },
+      { path: '/b/c', type: 'folder' },
+      { path: '/b/d', type: 'file' },
+      { path: '/b/c/f', type: 'file' },
+    ]
+
+    const files2 = [
+      { path: '/b', type: 'folder' },
+      { path: '/b/c', type: 'folder' },
+      { path: '/b/e', type: 'file' },
+    ]
+
+    const expected = [
+      root,
+      { path: '/a', type: 'file' },
+      { path: '/b', type: 'folder' },
+      { path: '/b/c', type: 'folder' },
+      { path: '/b/e', type: 'file' },
+      { path: '/b/c/f', type: 'file' },
+    ]
+
+    mergeTest(files1, files2, expected)
+  })
+
+  test('remove-child', () => {
+    const root = {
+      path: '/',
+      type: 'folder',
+    }
+    const files = [
+      root,
+      { path: '/a', type: 'file' },
+      { path: '/b', type: 'folder' },
+      { path: '/b/c', type: 'folder' },
+      { path: '/b/d', type: 'file' },
+      { path: '/b/c/f', type: 'file' },
+    ]
+
+    const fileToRemove = { path: '/b/c', type: 'folder' }
+
+    const expected = [
+      root,
+      { path: '/a', type: 'file' },
+      { path: '/b', type: 'folder' },
+      { path: '/b/d', type: 'file' },
+    ]
+
+    removeChildTest(files, fileToRemove, expected)
+  })
+})
diff --git a/packages/file-graph/package.json b/packages/file-graph/package.json
new file mode 100644
index 0000000..69b2535
--- /dev/null
+++ b/packages/file-graph/package.json
@@ -0,0 +1,10 @@
+{
+  "name": "file-graph",
+  "version": "1.0.0",
+  "main": "index.js",
+  "license": "MIT",
+  "type": "module",
+  "scripts": {
+    "test": "yarn node --experimental-vm-modules $(yarn bin jest)"
+  }
+}
diff --git a/packages/file-graph/utils.js b/packages/file-graph/utils.js
new file mode 100644
index 0000000..48fffd9
--- /dev/null
+++ b/packages/file-graph/utils.js
@@ -0,0 +1,13 @@
+export function dirname(path) {
+  const parts = path.split('/')
+  if (parts.length <= 2) {
+    return '/'
+  }
+  parts.pop()
+  return parts.join('/')
+}
+
+export function basename(path) {
+  const parts = path.split('/')
+  return parts.pop()
+}