diff --git a/DIRECTORY.md b/DIRECTORY.md
index d4d9bcb0..020746ad 100644
--- a/DIRECTORY.md
+++ b/DIRECTORY.md
@@ -466,6 +466,8 @@
       * [Test Append Chars To Make Subsequence](https://github.com/BrianLusina/PythonSnips/blob/master/algorithms/two_pointers/append_chars_to_make_subsequence/test_append_chars_to_make_subsequence.py)
     * Array 3 Pointers
       * [Test Array 3 Pointers](https://github.com/BrianLusina/PythonSnips/blob/master/algorithms/two_pointers/array_3_pointers/test_array_3_pointers.py)
+    * Backspace String Compare
+      * [Test Backspace String Compare](https://github.com/BrianLusina/PythonSnips/blob/master/algorithms/two_pointers/backspace_string_compare/test_backspace_string_compare.py)
     * Container With Most Water
       * [Test Container With Most Water](https://github.com/BrianLusina/PythonSnips/blob/master/algorithms/two_pointers/container_with_most_water/test_container_with_most_water.py)
     * Count Pairs
diff --git a/algorithms/two_pointers/backspace_string_compare/README.md b/algorithms/two_pointers/backspace_string_compare/README.md
new file mode 100644
index 00000000..d98b97e2
--- /dev/null
+++ b/algorithms/two_pointers/backspace_string_compare/README.md
@@ -0,0 +1,95 @@
+# Backspace String Compare
+
+Given two strings s and t, return true if they are equal when both are typed into empty text editors. '#' means a
+backspace character.
+
+Note that after backspacing an empty text, the text will continue empty.
+
+## Examples
+
+![Example 1](./images/examples/backspace_string_compare_example_1.png)
+![Example 2](./images/examples/backspace_string_compare_example_2.png)
+![Example 3](./images/examples/backspace_string_compare_example_3.png)
+![Example 4](./images/examples/backspace_string_compare_example_4.png)
+
+Example 5:
+
+```text
+Input: s = "ab#c", t = "ad#c"
+Output: true
+Explanation: Both s and t become "ac".
+```
+
+Example 6:
+
+```text
+Input: s = "ab##", t = "c#d#"
+Output: true
+Explanation: Both s and t become "".
+```
+
+Example 7:
+```text
+Input: s = "a#c", t = "b"
+Output: false
+Explanation: s becomes "c" while t becomes "b".
+```
+
+## Constraints
+
+- 1 <= s.length, t.length <= 200
+- s and t only contain lowercase letters and '#' characters.
+
+> Follow up: Can you solve it in O(n) time and O(1) space?
+
+## Topics
+
+- Two Pointers
+- String
+- Stack
+- Simulation
+
+## Solution(s)
+
+- [Two Pointers](#two-pointers)
+- [Build String](#build-string)
+
+### Two Pointers
+
+When writing a character, it may or may not be part of the final string depending on how many backspace keystrokes occur
+in the future.
+
+If instead we iterate through the string in reverse, then we will know how many backspace characters we have seen, and
+therefore whether the result includes our character.
+
+The key insight is that backspace characters affect only the characters to their left, which means if we traverse both
+strings from right to left, we can determine which characters are truly “visible” (i.e., not cancelled by a '#') and
+compare them on the fly without ever building the final strings. We maintain two pointers, one for each string, and a
+skip counter for each that tracks how many upcoming characters should be skipped due to pending backspaces. Whenever both
+pointers land on a valid character simultaneously, we compare them directly and move on.
+
+#### Algorithm
+
+Iterate through the string in reverse. If we see a backspace character, the next non-backspace character is skipped. If
+a character isn't skipped, it is part of the final answer.
+
+#### Complexity Analysis
+
+- **Time Complexity**: O(m + n), where m, n are the lengths of `s` and `t` respectively. Because each character in `s`
+  (of length `m`) and each character in `t` of length `n` is visited at most once by its respective pointer, making the
+  total work proportional to the combined length of both strings
+- **Space Complexity**: O(1). This is because only a fixed number of variables(the pointers) are used regardless of the
+  input sizes, with no auxiliary data structures or string reconstruction required.
+
+### Build String
+
+Let's individually build the result of each string (build(S) and build(T)), then compare if they are equal.
+
+Algorithm
+
+To build the result of a string build(S), we'll use a stack based approach, simulating the result of each keystroke.
+
+#### Complexity Analysis
+
+- Time Complexity: O(M+N), where M,N are the lengths of S and T respectively.
+- Space Complexity: O(M+N).
diff --git a/algorithms/two_pointers/backspace_string_compare/__init__.py b/algorithms/two_pointers/backspace_string_compare/__init__.py
new file mode 100644
index 00000000..95cb2344
--- /dev/null
+++ b/algorithms/two_pointers/backspace_string_compare/__init__.py
@@ -0,0 +1,82 @@
+from typing import Generator, Any
+from itertools import zip_longest
+
+
+def backspace_compare_two_pointers(s: str, t: str) -> bool:
+    def f(word: str) -> Generator[str, Any, None]:
+        skip = 0
+        for x in reversed(word):
+            if x == "#":
+                skip += 1
+            elif skip:
+                skip -= 1
+            else:
+                yield x
+
+    return all(x == y for x, y in zip_longest(f(s), f(t)))
+
+
+def backspace_compare_two_pointers_2(s: str, t: str) -> bool:
+    # Initialize pointers at the end of each string
+    pointer_s, pointer_t = len(s) - 1, len(t) - 1
+    # Track pending backspaces for each string
+    skip_s, skip_t = 0, 0
+
+    # Continue while there are characters left to process in either string
+    while pointer_s >= 0 or pointer_t >= 0:
+        # Advance pointer in s to find the next valid character
+        while pointer_s >= 0:
+            if s[pointer_s] == "#":
+                # Increment skip count and move pointer left
+                skip_s += 1
+                pointer_s -= 1
+            elif skip_s > 0:
+                # This character is cancelled by a backspace; consume skip and move left
+                skip_s -= 1
+                pointer_s -= 1
+            else:
+                # Found a valid character in s
+                break
+
+        # Advance pointer in t to find the next valid character
+        while pointer_t >= 0:
+            if t[pointer_t] == "#":
+                # Increment skip count and move pointer left
+                skip_t += 1
+                pointer_t -= 1
+            elif skip_t > 0:
+                # This character is cancelled by a backspace; consume skip and move left
+                skip_t -= 1
+                pointer_t -= 1
+            else:
+                # Found a valid character in t
+                break
+
+        # Compare the current valid characters from both strings
+        if pointer_s >= 0 and pointer_t >= 0:
+            # If characters differ, strings are not equal
+            if s[pointer_s] != t[pointer_t]:
+                return False
+        elif pointer_s >= 0 or pointer_t >= 0:
+            # One string has characters remaining while the other is exhausted
+            return False
+
+        # Move both pointers left to continue comparison
+        pointer_s -= 1
+        pointer_t -= 1
+
+    # All characters matched
+    return True
+
+
+def backspace_compare_build_string(s: str, t: str) -> bool:
+    def build(word: str) -> str:
+        ans = []
+        for c in word:
+            if c != "#":
+                ans.append(c)
+            elif ans:
+                ans.pop()
+        return "".join(ans)
+
+    return build(s) == build(t)
diff --git a/algorithms/two_pointers/backspace_string_compare/images/examples/backspace_string_compare_example_1.png b/algorithms/two_pointers/backspace_string_compare/images/examples/backspace_string_compare_example_1.png
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diff --git a/algorithms/two_pointers/backspace_string_compare/images/examples/backspace_string_compare_example_4.png b/algorithms/two_pointers/backspace_string_compare/images/examples/backspace_string_compare_example_4.png
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diff --git a/algorithms/two_pointers/backspace_string_compare/test_backspace_string_compare.py b/algorithms/two_pointers/backspace_string_compare/test_backspace_string_compare.py
new file mode 100644
index 00000000..4fa5db9e
--- /dev/null
+++ b/algorithms/two_pointers/backspace_string_compare/test_backspace_string_compare.py
@@ -0,0 +1,54 @@
+import unittest
+from parameterized import parameterized
+from utils.test_utils import custom_test_name_func
+from algorithms.two_pointers.backspace_string_compare import (
+    backspace_compare_two_pointers,
+    backspace_compare_two_pointers_2,
+    backspace_compare_build_string,
+)
+
+BACKSPACE_STRING_COMPARE_TEST_CASES = [
+    ("x##y", "y", True),
+    ("abc###", "def###", True),
+    ("hello#world", "hellworld", True),
+    ("a##b##c", "c", True),
+    ("coding", "coding", True),
+    ("ab#c", "ac", True),
+    ("ab#c", "bc", False),
+    ("abc###", "xyz###", True),
+    ("#", "#", True),
+    ("ab#c", "ad#c", True),
+    ("ab##", "c#d#", True),
+    ("a#c", "b", False),
+]
+
+
+class BackspaceStringCompareTestCase(unittest.TestCase):
+    @parameterized.expand(
+        BACKSPACE_STRING_COMPARE_TEST_CASES, name_func=custom_test_name_func
+    )
+    def test_backspace_string_compare_two_pointers(
+        self, s: str, t: str, expected: bool
+    ):
+        actual = backspace_compare_two_pointers(s, t)
+        self.assertEqual(expected, actual)
+
+    @parameterized.expand(
+        BACKSPACE_STRING_COMPARE_TEST_CASES, name_func=custom_test_name_func
+    )
+    def test_backspace_string_compare_two_pointers_2(
+        self, s: str, t: str, expected: bool
+    ):
+        actual = backspace_compare_two_pointers_2(s, t)
+        self.assertEqual(expected, actual)
+
+    @parameterized.expand(
+        BACKSPACE_STRING_COMPARE_TEST_CASES, name_func=custom_test_name_func
+    )
+    def test_backspace_compare_build_string(self, s: str, t: str, expected: bool):
+        actual = backspace_compare_build_string(s, t)
+        self.assertEqual(expected, actual)
+
+
+if __name__ == "__main__":
+    unittest.main()