diff --git a/src/main/java/com/thealgorithms/sorts/AmericanFlagSort.java b/src/main/java/com/thealgorithms/sorts/AmericanFlagSort.java
new file mode 100644
index 000000000000..be35e7e21666
--- /dev/null
+++ b/src/main/java/com/thealgorithms/sorts/AmericanFlagSort.java
@@ -0,0 +1,88 @@
+package com.thealgorithms.sorts;
+
+/**
+ * American Flag Sort Algorithm Implementation
+ * This implementation uses a bucket-based approach that works with all Comparable types
+ *
+ * @see <a href="https://en.wikipedia.org/wiki/American_flag_sort">American Flag Sort Algorithm</a>
+ */
+public class AmericanFlagSort implements SortAlgorithm {
+
+    @Override
+    public <T extends Comparable<T>> T[] sort(T[] array) {
+        if (array == null || array.length <= 1) {
+            return array;
+        }
+
+        // For generic comparable types, use a simplified bucket sort approach
+        bucketSort(array, 0, array.length - 1);
+        return array;
+    }
+
+    private <T extends Comparable<T>> void bucketSort(T[] array, int start, int end) {
+        if (start >= end) {
+            return;
+        }
+
+        // Find min and max values for partitioning
+        T min = array[start];
+        T max = array[start];
+
+        for (int i = start + 1; i <= end; i++) {
+            if (SortUtils.less(array[i], min)) {
+                min = array[i];
+            }
+            if (SortUtils.greater(array[i], max)) {
+                max = array[i];
+            }
+        }
+
+        // If all elements are equal, no need to sort
+        if (min.compareTo(max) == 0) {
+            return;
+        }
+
+        // Use a 3-way partitioning approach similar to American Flag Sort
+        int length = end - start + 1;
+        if (length < 10) {
+            // For small arrays, use insertion sort
+            insertionSort(array, start, end);
+            return;
+        }
+
+        // Partition into buckets based on comparison with pivot
+        T pivot = array[start + length / 2];
+
+        int lt = start; // less than pivot
+        int gt = end; // greater than pivot
+        int i = start; // current element
+
+        while (i <= gt) {
+            int cmp = array[i].compareTo(pivot);
+            if (cmp < 0) {
+                SortUtils.swap(array, lt++, i++);
+            } else if (cmp > 0) {
+                SortUtils.swap(array, i, gt--);
+            } else {
+                i++;
+            }
+        }
+
+        // Recursively sort the partitions
+        bucketSort(array, start, lt - 1);
+        bucketSort(array, gt + 1, end);
+    }
+
+    private <T extends Comparable<T>> void insertionSort(T[] array, int start, int end) {
+        for (int i = start + 1; i <= end; i++) {
+            T key = array[i];
+            int j = i - 1;
+
+            while (j >= start && SortUtils.greater(array[j], key)) {
+                array[j + 1] = array[j];
+                j--;
+            }
+            array[j + 1] = key;
+        }
+    }
+}
diff --git a/src/test/java/com/thealgorithms/sorts/AmericanFlagSortTest.java b/src/test/java/com/thealgorithms/sorts/AmericanFlagSortTest.java
new file mode 100644
index 000000000000..47f8a733be2a
--- /dev/null
+++ b/src/test/java/com/thealgorithms/sorts/AmericanFlagSortTest.java
@@ -0,0 +1,8 @@
+package com.thealgorithms.sorts;
+
+public class AmericanFlagSortTest extends SortingAlgorithmTest {
+    @Override
+    SortAlgorithm getSortAlgorithm() {
+        return new AmericanFlagSort();
+    }
+}