diff --git a/module-04-merging/README.md b/module-04-merging/README.md
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+# Module 04: Merging
+
+## Learning Objectives
+
+In this module, you will:
+- Understand what merging means in Git
+- Perform a fast-forward merge
+- Perform a three-way merge
+- Understand when merge commits are created
+- Use `git merge` to combine branches
+
+## Challenge
+
+### Setup
+
+Run the setup script to create your challenge environment:
+
+```powershell
+.\setup.ps1
+```
+
+This will create a `challenge/` directory with a Git repository that has a main branch and a feature branch ready to merge.
+
+### Your Task
+
+This challenge has two parts that teach you about the two types of merges in Git:
+
+**Part 1: Fast-Forward Merge**
+1. Merge the existing `feature-api` branch into main
+2. Observe that this is a "fast-forward" merge (no merge commit created)
+
+**Part 2: Three-Way Merge**
+3. Create a new branch called `feature-ui`
+4. Make commits on the feature-ui branch
+5. Switch back to main and make a commit there too (creates divergence)
+6. Merge feature-ui into main
+7. Observe that this creates a merge commit (three-way merge)
+
+**Suggested Approach:**
+
+1. Navigate to the challenge directory: `cd challenge`
+2. Check current branch: `git branch` (should be on main)
+3. View existing branches: `git branch -a`
+4. Merge feature-api: `git merge feature-api`
+5. View the log: `git log --oneline --graph`
+6. Create feature-ui branch: `git checkout -b feature-ui`
+7. Create a new file `ui.py` and commit it
+8. Make another commit on feature-ui (modify ui.py)
+9. Switch back to main: `git checkout main`
+10. Make a change on main (modify api.py) and commit it
+11. Merge feature-ui: `git merge feature-ui`
+12. View the merge history: `git log --oneline --graph --all`
+
+> **Important Notes:**
+> - A **fast-forward merge** happens when main hasn't changed since the feature branch was created
+> - A **three-way merge** creates a merge commit when both branches have diverged
+> - You can see merge commits with `git log --merges`
+> - The `--graph` option helps visualize the branch history
+> - After merging, the feature branch still exists but you can delete it with `git branch -d`
+
+## Key Concepts
+
+- **Merge**: Combining changes from different branches into one branch.
+- **Fast-Forward Merge**: When the target branch hasn't changed, Git simply moves the branch pointer forward. No merge commit is created.
+- **Three-Way Merge**: When both branches have new commits, Git creates a merge commit that has two parent commits.
+- **Merge Commit**: A special commit with two (or more) parent commits, representing the point where branches were merged.
+- **Divergent Branches**: Branches that have different commits since they split from a common ancestor.
+
+## Useful Commands
+
+```bash
+git merge <branch>           # Merge branch into current branch
+git log --oneline --graph    # View merge history visually
+git log --graph --all        # View all branches and merges
+git log --merges             # Show only merge commits
+git branch -d <branch>       # Delete a merged branch (optional)
+```
+
+## Verification
+
+Once you've completed both merges, verify your solution:
+
+```powershell
+.\verify.ps1
+```
+
+The verification script will check that you've successfully merged both feature branches and understand the different merge types.
+
+## Need to Start Over?
+
+If you want to reset the challenge and start fresh:
+
+```powershell
+.\reset.ps1
+```
+
+This will remove the challenge directory and run the setup script again, giving you a clean slate.
diff --git a/module-04-merging/reset.ps1 b/module-04-merging/reset.ps1
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+#!/usr/bin/env pwsh
+<#
+.SYNOPSIS
+    Resets the Module 04 challenge environment.
+
+.DESCRIPTION
+    This script removes the existing challenge directory and runs
+    the setup script again to create a fresh challenge environment.
+#>
+
+Write-Host "`n=== Resetting Module 04 Challenge ===" -ForegroundColor Cyan
+
+# Remove existing challenge directory if it exists
+if (Test-Path "challenge") {
+    Write-Host "Removing existing challenge directory..." -ForegroundColor Yellow
+    Remove-Item -Recurse -Force "challenge"
+} else {
+    Write-Host "No existing challenge directory found." -ForegroundColor Cyan
+}
+
+Write-Host ""
+Write-Host "----------------------------------------" -ForegroundColor Cyan
+Write-Host ""
+
+# Run setup script
+& "$PSScriptRoot\setup.ps1"
diff --git a/module-04-merging/setup.ps1 b/module-04-merging/setup.ps1
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index 0000000..230fc29
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+++ b/module-04-merging/setup.ps1
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+#!/usr/bin/env pwsh
+<#
+.SYNOPSIS
+    Sets up the Module 04 challenge environment for learning about merging.
+
+.DESCRIPTION
+    This script creates a challenge directory with a Git repository that
+    contains a main branch and a feature branch ready to merge. Students
+    will practice both fast-forward and three-way merges.
+#>
+
+Write-Host "`n=== Setting up Module 04 Challenge ===" -ForegroundColor Cyan
+
+# Remove existing challenge directory if it exists
+if (Test-Path "challenge") {
+    Write-Host "Removing existing challenge directory..." -ForegroundColor Yellow
+    Remove-Item -Recurse -Force "challenge"
+}
+
+# Create fresh challenge directory
+Write-Host "Creating challenge directory..." -ForegroundColor Green
+New-Item -ItemType Directory -Path "challenge" | Out-Null
+Set-Location "challenge"
+
+# Initialize Git repository
+Write-Host "Initializing Git repository..." -ForegroundColor Green
+git init | Out-Null
+
+# Configure git for this repository
+git config user.name "Workshop Student"
+git config user.email "student@example.com"
+
+# Commit 1: Initial API file on main
+Write-Host "Creating initial API structure on main..." -ForegroundColor Green
+$apiContent = @"
+# api.py - API module
+
+def api_handler():
+    print("API Handler initialized")
+    return True
+"@
+Set-Content -Path "api.py" -Value $apiContent
+
+git add .
+git commit -m "Initial API setup" | Out-Null
+
+# Commit 2: Add more API functionality on main
+$apiContent = @"
+# api.py - API module
+
+def api_handler():
+    print("API Handler initialized")
+    return True
+
+def get_data():
+    print("Fetching data from API...")
+    return {"status": "ok"}
+"@
+Set-Content -Path "api.py" -Value $apiContent
+
+git add .
+git commit -m "Add get_data function" | Out-Null
+
+# Create feature-api branch and add commits
+Write-Host "Creating feature-api branch..." -ForegroundColor Green
+git checkout -b feature-api 2>$null | Out-Null
+
+# Commit on feature-api: Add API routes
+$routesContent = @"
+# api-routes.py - API Routes module
+
+def setup_routes():
+    print("Setting up API routes...")
+    routes = {
+        "/api/data": "get_data",
+        "/api/status": "get_status"
+    }
+    return routes
+"@
+Set-Content -Path "api-routes.py" -Value $routesContent
+
+git add .
+git commit -m "Add API routes" | Out-Null
+
+# Second commit on feature-api: Enhance routes
+$routesContent = @"
+# api-routes.py - API Routes module
+
+def setup_routes():
+    print("Setting up API routes...")
+    routes = {
+        "/api/data": "get_data",
+        "/api/status": "get_status",
+        "/api/health": "health_check"
+    }
+    return routes
+
+def health_check():
+    return {"healthy": True}
+"@
+Set-Content -Path "api-routes.py" -Value $routesContent
+
+git add .
+git commit -m "Add health check route" | Out-Null
+
+# Switch back to main branch
+Write-Host "Switching back to main branch..." -ForegroundColor Green
+git checkout main 2>$null | Out-Null
+
+# Return to module directory
+Set-Location ..
+
+Write-Host "`n=== Setup Complete! ===" -ForegroundColor Green
+Write-Host "`nYour challenge environment is ready in the 'challenge/' directory." -ForegroundColor Cyan
+Write-Host "`nYou have:" -ForegroundColor Cyan
+Write-Host "  - A main branch with API code" -ForegroundColor White
+Write-Host "  - A feature-api branch with API routes ready to merge" -ForegroundColor White
+Write-Host "`nNext steps:" -ForegroundColor Cyan
+Write-Host "  1. cd challenge" -ForegroundColor White
+Write-Host "  2. View branches: git branch -a" -ForegroundColor White
+Write-Host "  3. Merge feature-api: git merge feature-api (fast-forward merge)" -ForegroundColor White
+Write-Host "  4. Create feature-ui branch: git checkout -b feature-ui" -ForegroundColor White
+Write-Host "  5. Make commits on feature-ui" -ForegroundColor White
+Write-Host "  6. Switch back to main and make a commit there" -ForegroundColor White
+Write-Host "  7. Merge feature-ui: git merge feature-ui (three-way merge)" -ForegroundColor White
+Write-Host "  8. View merge history: git log --oneline --graph --all" -ForegroundColor White
+Write-Host "  9. Run '..\verify.ps1' to check your solution" -ForegroundColor White
+Write-Host ""
diff --git a/module-04-merging/verify.ps1 b/module-04-merging/verify.ps1
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+#!/usr/bin/env pwsh
+<#
+.SYNOPSIS
+    Verifies the Module 04 challenge solution.
+
+.DESCRIPTION
+    This script checks that:
+    - The challenge directory exists
+    - A Git repository exists
+    - Currently on main branch
+    - feature-api has been merged into main
+    - feature-ui branch exists and has been merged
+    - A merge commit exists (from three-way merge)
+#>
+
+Write-Host "`n=== Verifying Module 04 Solution ===" -ForegroundColor Cyan
+
+$allChecksPassed = $true
+
+# Check if challenge directory exists
+if (-not (Test-Path "challenge")) {
+    Write-Host "[FAIL] Challenge directory not found. Did you run setup.ps1?" -ForegroundColor Red
+    exit 1
+}
+
+Set-Location "challenge"
+
+# Check if git repository exists
+if (-not (Test-Path ".git")) {
+    Write-Host "[FAIL] Not a git repository. Did you run setup.ps1?" -ForegroundColor Red
+    Set-Location ..
+    exit 1
+}
+
+# Check current branch is main
+$currentBranch = git branch --show-current 2>$null
+if ($currentBranch -eq "main") {
+    Write-Host "[PASS] Currently on main branch" -ForegroundColor Green
+} else {
+    Write-Host "[FAIL] Not on main branch (currently on: $currentBranch)" -ForegroundColor Red
+    Write-Host "[HINT] Switch to main with: git checkout main" -ForegroundColor Yellow
+    $allChecksPassed = $false
+}
+
+# Check if feature-api branch exists
+$featureApiBranch = git branch --list "feature-api" 2>$null
+if ($featureApiBranch) {
+    Write-Host "[PASS] Branch 'feature-api' exists" -ForegroundColor Green
+} else {
+    Write-Host "[INFO] Branch 'feature-api' not found (may have been deleted after merge)" -ForegroundColor Cyan
+}
+
+# Check if commits from feature-api are in main
+$apiRoutesCommit = git log --all --grep="Add API routes" --oneline 2>$null
+$healthCheckCommit = git log --all --grep="Add health check route" --oneline 2>$null
+
+if ($apiRoutesCommit -and $healthCheckCommit) {
+    # Check if these commits are in main's history
+    $apiRoutesInMain = git log --grep="Add API routes" --oneline 2>$null
+    $healthCheckInMain = git log --grep="Add health check route" --oneline 2>$null
+
+    if ($apiRoutesInMain -and $healthCheckInMain) {
+        Write-Host "[PASS] Commits from feature-api are merged into main" -ForegroundColor Green
+    } else {
+        Write-Host "[FAIL] Commits from feature-api not found in main" -ForegroundColor Red
+        Write-Host "[HINT] Merge feature-api with: git merge feature-api" -ForegroundColor Yellow
+        $allChecksPassed = $false
+    }
+} else {
+    Write-Host "[FAIL] Expected commits from feature-api not found" -ForegroundColor Red
+    Write-Host "[HINT] Did you run setup.ps1?" -ForegroundColor Yellow
+    $allChecksPassed = $false
+}
+
+# Check if api-routes.py exists (should be on main after merge)
+if (Test-Path "api-routes.py") {
+    Write-Host "[PASS] File 'api-routes.py' exists on main (from feature-api merge)" -ForegroundColor Green
+} else {
+    Write-Host "[FAIL] File 'api-routes.py' not found on main" -ForegroundColor Red
+    Write-Host "[HINT] This file should appear after merging feature-api" -ForegroundColor Yellow
+    $allChecksPassed = $false
+}
+
+# Check if feature-ui branch exists
+$featureUiBranch = git branch --list "feature-ui" 2>$null
+if ($featureUiBranch) {
+    Write-Host "[PASS] Branch 'feature-ui' exists" -ForegroundColor Green
+
+    # Check if feature-ui has commits
+    $uiCommitCount = git rev-list main..feature-ui --count 2>$null
+    if ($uiCommitCount -gt 0) {
+        Write-Host "[INFO] Branch 'feature-ui' has $uiCommitCount commit(s)" -ForegroundColor Cyan
+    }
+} else {
+    Write-Host "[FAIL] Branch 'feature-ui' not found" -ForegroundColor Red
+    Write-Host "[HINT] Create feature-ui with: git checkout -b feature-ui" -ForegroundColor Yellow
+    $allChecksPassed = $false
+}
+
+# Check for merge commits (indicates three-way merge happened)
+$mergeCommits = git log --merges --oneline 2>$null
+if ($mergeCommits) {
+    Write-Host "[PASS] Merge commit(s) found (three-way merge completed)" -ForegroundColor Green
+} else {
+    Write-Host "[FAIL] No merge commits found" -ForegroundColor Red
+    Write-Host "[HINT] Create divergence: make commits on both main and feature-ui, then merge" -ForegroundColor Yellow
+    $allChecksPassed = $false
+}
+
+# Check if ui.py exists (should be on main after merge)
+if (Test-Path "ui.py") {
+    Write-Host "[PASS] File 'ui.py' exists on main (from feature-ui merge)" -ForegroundColor Green
+} else {
+    Write-Host "[FAIL] File 'ui.py' not found on main" -ForegroundColor Red
+    Write-Host "[HINT] Create ui.py on feature-ui branch and merge it into main" -ForegroundColor Yellow
+    $allChecksPassed = $false
+}
+
+Set-Location ..
+
+# Final summary
+if ($allChecksPassed) {
+    Write-Host "`n" -NoNewline
+    Write-Host "=====================================" -ForegroundColor Green
+    Write-Host "   CONGRATULATIONS! CHALLENGE PASSED!" -ForegroundColor Green
+    Write-Host "=====================================" -ForegroundColor Green
+    Write-Host "`nYou've successfully learned about Git merging!" -ForegroundColor Cyan
+    Write-Host "You now understand:" -ForegroundColor Cyan
+    Write-Host "  - Fast-forward merges (when main hasn't changed)" -ForegroundColor White
+    Write-Host "  - Three-way merges (when branches have diverged)" -ForegroundColor White
+    Write-Host "  - How to use git merge to combine branches" -ForegroundColor White
+    Write-Host "  - Merge commits and how to view them" -ForegroundColor White
+    Write-Host "`nReady for the next module!" -ForegroundColor Green
+    Write-Host ""
+} else {
+    Write-Host "`n[SUMMARY] Some checks failed. Review the hints above and try again." -ForegroundColor Red
+    Write-Host "[INFO] You can run this verification script as many times as needed." -ForegroundColor Yellow
+    Write-Host ""
+    exit 1
+}