diff --git a/algorithms-miscellaneous-5/src/main/java/com/baeldung/algorithms/combinatorics/Combinatorics.java b/algorithms-miscellaneous-5/src/main/java/com/baeldung/algorithms/combinatorics/Combinatorics.java
new file mode 100644
index 0000000000..a5c4b325a4
--- /dev/null
+++ b/algorithms-miscellaneous-5/src/main/java/com/baeldung/algorithms/combinatorics/Combinatorics.java
@@ -0,0 +1,67 @@
+package com.baeldung.algorithms.combinatorics;
+
+import java.util.*;
+
+import static java.util.Collections.swap;
+
+public class Combinatorics {
+
+    public static List<List<Integer>> permutations(List<Integer> sequence) {
+        List<List<Integer>> results = new ArrayList<>();
+        permutationsInternal(sequence, results, 0);
+        return results;
+    }
+
+    private static void permutationsInternal(List<Integer> sequence, List<List<Integer>> results, int index) {
+        if (index == sequence.size() - 1) {
+            results.add(new ArrayList<>(sequence));
+        }
+
+        for (int i = index; i < sequence.size(); i++) {
+            swap(sequence, i, index);
+            permutationsInternal(sequence, results, index + 1);
+            swap(sequence, i, index);
+        }
+    }
+
+    public static List<List<Integer>> combinations(List<Integer> inputSet, int k) {
+        List<List<Integer>> results = new ArrayList<>();
+        combinationsInternal(inputSet, k, results, new ArrayList<>(), 0);
+        return results;
+    }
+
+    private static void combinationsInternal(
+      List<Integer> inputSet, int k, List<List<Integer>> results, ArrayList<Integer> accumulator, int index) {
+        int leftToAccumulate = k - accumulator.size();
+        int possibleToAcculumate = inputSet.size() - index;
+
+        if (accumulator.size() == k) {
+            results.add(new ArrayList<>(accumulator));
+        } else if (leftToAccumulate <= possibleToAcculumate) {
+            combinationsInternal(inputSet, k, results, accumulator, index + 1);
+
+            accumulator.add(inputSet.get(index));
+            combinationsInternal(inputSet, k, results, accumulator, index + 1);
+            accumulator.remove(accumulator.size() - 1);
+        }
+    }
+
+    public static List<List<Character>> powerSet(List<Character> sequence) {
+        List<List<Character>> results = new ArrayList<>();
+        powerSetInternal(sequence, results, new ArrayList<>(), 0);
+        return results;
+    }
+
+    private static void powerSetInternal(
+      List<Character> set, List<List<Character>> powerSet, List<Character> accumulator, int index) {
+        if (index == set.size()) {
+            powerSet.add(new ArrayList<>(accumulator));
+        } else {
+            accumulator.add(set.get(index));
+
+            powerSetInternal(set, powerSet, accumulator, index + 1);
+            accumulator.remove(accumulator.size() - 1);
+            powerSetInternal(set, powerSet, accumulator, index + 1);
+        }
+    }
+}
diff --git a/algorithms-miscellaneous-5/src/test/java/com/baeldung/algorithms/combinatorics/CombinatoricsUnitTest.java b/algorithms-miscellaneous-5/src/test/java/com/baeldung/algorithms/combinatorics/CombinatoricsUnitTest.java
new file mode 100644
index 0000000000..95ffdec239
--- /dev/null
+++ b/algorithms-miscellaneous-5/src/test/java/com/baeldung/algorithms/combinatorics/CombinatoricsUnitTest.java
@@ -0,0 +1,80 @@
+package com.baeldung.algorithms.combinatorics;
+
+import java.util.Arrays;
+import java.util.HashSet;
+import java.util.List;
+
+import org.junit.Test;
+import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.assertSame;
+
+public class CombinatoricsUnitTest {
+
+    @Test
+    public void givenEmptySequence_whenCallingPermutations_ShouldReturnEmptyList() {
+        List<Integer> sequence = Arrays.asList();
+
+        List<List<Integer>> permutations = Combinatorics.permutations(sequence);
+
+        assertEquals(0, permutations.size());
+    }
+
+    @Test
+    public void givenOneElementSequence_whenCallingPermutations_ShouldReturnPermutations() {
+        List<Integer> sequence = Arrays.asList(1);
+
+        List<List<Integer>> permutations = Combinatorics.permutations(sequence);
+
+        assertEquals(1, permutations.size());
+        assertEquals(1, permutations.get(0).size());
+        assertSame(1, permutations.get(0).get(0));
+    }
+
+    @Test
+    public void givenFourElementsSequence_whenCallingPermutations_ShouldReturnPermutations() {
+        List<Integer> sequence = Arrays.asList(1, 2, 3, 4);
+
+        List<List<Integer>> permutations = Combinatorics.permutations(sequence);
+
+        assertEquals(24, permutations.size());
+        assertEquals(24, new HashSet<>(permutations).size());
+    }
+
+    @Test
+    public void givenTwoElements_whenCalling3Combinations_ShouldReturnEmptyList() {
+        List<Integer> set = Arrays.asList(1, 2);
+
+        List<List<Integer>> combinations = Combinatorics.combinations(set, 3);
+
+        assertEquals(0, combinations.size());
+    }
+
+    @Test
+    public void givenThreeElements_whenCalling3Combinations_ShouldReturnOneCombination() {
+        List<Integer> set = Arrays.asList(1, 2, 3);
+
+        List<List<Integer>> combinations = Combinatorics.combinations(set, 3);
+
+        assertEquals(1, combinations.size());
+        assertEquals(combinations.get(0), Arrays.asList(1, 2, 3));
+    }
+
+    @Test
+    public void givenFourElements_whenCalling2Combinations_ShouldReturnCombinations() {
+        List<Integer> set = Arrays.asList(1, 2, 3, 4);
+
+        List<List<Integer>> combinations = Combinatorics.combinations(set, 2);
+
+        assertEquals(6, combinations.size());
+        assertEquals(6, new HashSet<>(combinations).size());
+    }
+
+    @Test
+    public void givenFourElements_whenCallingPowerSet_ShouldReturn15Sets() {
+        List<Character> sequence = Arrays.asList('a', 'b', 'c', 'd');
+
+        List<List<Character>> combinations = Combinatorics.powerSet(sequence);
+
+        assertEquals(16, combinations.size());
+    }
+}