diff --git a/gradle/gradle-source-vs-target-compatibility/build.gradle b/gradle/gradle-source-vs-target-compatibility/build.gradle
new file mode 100644
index 0000000000..8cc50c15c6
--- /dev/null
+++ b/gradle/gradle-source-vs-target-compatibility/build.gradle
@@ -0,0 +1,12 @@
+plugins {
+    id 'java'
+}
+
+description = 'gradle-source-vs-target-compatibility'
+
+group 'com.baeldung'
+
+java {
+    sourceCompatibility = "1.6"
+    targetCompatibility = "1.8"
+}
diff --git a/gradle/gradle-source-vs-target-compatibility/src/main/java/com/baeldung/helloworld/HelloWorldApp.java b/gradle/gradle-source-vs-target-compatibility/src/main/java/com/baeldung/helloworld/HelloWorldApp.java
new file mode 100644
index 0000000000..a951a72dd6
--- /dev/null
+++ b/gradle/gradle-source-vs-target-compatibility/src/main/java/com/baeldung/helloworld/HelloWorldApp.java
@@ -0,0 +1,9 @@
+package com.baeldung.helloworld;
+
+public class HelloWorldApp {
+
+    public static void main(String[] args) {
+        System.out.println("Hello World!");
+    }
+
+}
diff --git a/gradle/settings.gradle b/gradle/settings.gradle
index 59300f9281..d1eb10f4d2 100644
--- a/gradle/settings.gradle
+++ b/gradle/settings.gradle
@@ -6,5 +6,6 @@ include 'greeter'
 include 'gradletaskdemo'
 include 'junit5'
 include 'gradle-employee-app'
+include 'gradle-source-vs-target-compatibility'
 
 println 'This will be executed during the initialization phase.'