diff --git a/core-java-8/src/test/java/com/baeldung/typeinference/TypeInferenceUnitTest.java b/core-java-8/src/test/java/com/baeldung/typeinference/TypeInferenceUnitTest.java
new file mode 100644
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+++ b/core-java-8/src/test/java/com/baeldung/typeinference/TypeInferenceUnitTest.java
@@ -0,0 +1,87 @@
+package com.baeldung.typeinference;
+
+import static org.junit.Assert.assertFalse;
+import static org.junit.Assert.assertTrue;
+import static org.junit.jupiter.api.Assertions.assertEquals;
+
+import java.util.ArrayList;
+import java.util.Arrays;
+import java.util.Collections;
+import java.util.HashMap;
+import java.util.List;
+import java.util.Map;
+
+import org.junit.Test;
+
+public class TypeInferenceUnitTest {
+
+    @Test
+    public void givenNoTypeInference_whenInvokingGenericMethodsWithTypeParameters_ObjectsAreCreated() {
+        // Without type inference. code is verbose.
+        Map<String, Map<String, String>> mapOfMaps = new HashMap<String, Map<String, String>>();
+        List<String> strList = Collections.<String> emptyList();
+        List<Integer> intList = Collections.<Integer> emptyList();
+
+        assertTrue(mapOfMaps.isEmpty());
+        assertTrue(strList.isEmpty());
+        assertTrue(intList.isEmpty());
+    }
+
+    @Test
+    public void givenTypeInference_whenInvokingGenericMethodsWithoutTypeParameters_ObjectsAreCreated() {
+        // With type inference. code is concise.
+        List<String> strListInferred = Collections.emptyList();
+        List<Integer> intListInferred = Collections.emptyList();
+
+        assertTrue(strListInferred.isEmpty());
+        assertTrue(intListInferred.isEmpty());
+    }
+
+    @Test
+    public void givenJava7_whenInvokingCostructorWithoutTypeParameters_ObjectsAreCreated() {
+        // Type Inference for constructor using diamond operator.
+        Map<String, Map<String, String>> mapOfMapsInferred = new HashMap<>();
+
+        assertTrue(mapOfMapsInferred.isEmpty());
+        assertEquals("public class java.util.HashMap<K,V>", mapOfMapsInferred.getClass()
+            .toGenericString());
+    }
+
+    static <T> List<T> add(List<T> list, T a, T b) {
+        list.add(a);
+        list.add(b);
+        return list;
+    }
+
+    @Test
+    public void givenGenericMethod_WhenInvokedWithoutExplicitTypes_TypesAreInferred() {
+        // Generalized target-type inference
+        List<String> strListGeneralized = add(new ArrayList<>(), "abc", "def");
+        List<Integer> intListGeneralized = add(new ArrayList<>(), 1, 2);
+        List<Number> numListGeneralized = add(new ArrayList<>(), 1, 2.0);
+
+        assertEquals("public class java.util.ArrayList<E>", strListGeneralized.getClass()
+            .toGenericString());
+        assertFalse(intListGeneralized.isEmpty());
+        assertEquals(2, numListGeneralized.size());
+    }
+
+    @Test
+    public void givenLambdaExpressions_whenParameterTypesNotSpecified_ParameterTypesAreInferred() {
+        // Type Inference and Lambda Expressions.
+        List<Integer> intList = Arrays.asList(5, 3, 4, 2, 1);
+        Collections.sort(intList, (a, b) -> {
+            assertEquals("java.lang.Integer", a.getClass().getName());
+            return a.compareTo(b);
+        });
+        assertEquals("[1, 2, 3, 4, 5]", Arrays.toString(intList.toArray()));
+
+        List<String> strList = Arrays.asList("Red", "Blue", "Green");
+        Collections.sort(strList, (a, b) -> {
+            assertEquals("java.lang.String", a.getClass().getName());
+            return a.compareTo(b);
+        });
+        assertEquals("[Blue, Green, Red]", Arrays.toString(strList.toArray()));
+    }
+
+}