diff --git a/src/bit_manipulation/mod.rs b/src/bit_manipulation/mod.rs
index 1c9fae8d3af..027c4b81817 100644
--- a/src/bit_manipulation/mod.rs
+++ b/src/bit_manipulation/mod.rs
@@ -1,7 +1,9 @@
 mod counting_bits;
 mod highest_set_bit;
+mod n_bits_gray_code;
 mod sum_of_two_integers;
 
 pub use counting_bits::count_set_bits;
 pub use highest_set_bit::find_highest_set_bit;
+pub use n_bits_gray_code::generate_gray_code;
 pub use sum_of_two_integers::add_two_integers;
diff --git a/src/bit_manipulation/n_bits_gray_code.rs b/src/bit_manipulation/n_bits_gray_code.rs
new file mode 100644
index 00000000000..64c717bc761
--- /dev/null
+++ b/src/bit_manipulation/n_bits_gray_code.rs
@@ -0,0 +1,75 @@
+/// Custom error type for Gray code generation.
+#[derive(Debug, PartialEq)]
+pub enum GrayCodeError {
+    ZeroBitCount,
+}
+
+/// Generates an n-bit Gray code sequence using the direct Gray code formula.
+///
+/// # Arguments
+///
+/// * `n` - The number of bits for the Gray code.
+///
+/// # Returns
+///
+/// A vector of Gray code sequences as strings.
+pub fn generate_gray_code(n: usize) -> Result<Vec<String>, GrayCodeError> {
+    if n == 0 {
+        return Err(GrayCodeError::ZeroBitCount);
+    }
+
+    let num_codes = 1 << n;
+    let mut result = Vec::with_capacity(num_codes);
+
+    for i in 0..num_codes {
+        let gray = i ^ (i >> 1);
+        let gray_code = (0..n)
+            .rev()
+            .map(|bit| if gray & (1 << bit) != 0 { '1' } else { '0' })
+            .collect::<String>();
+        result.push(gray_code);
+    }
+
+    Ok(result)
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    macro_rules! gray_code_tests {
+        ($($name:ident: $test_case:expr,)*) => {
+            $(
+                #[test]
+                fn $name() {
+                    let (input, expected) = $test_case;
+                    assert_eq!(generate_gray_code(input), expected);
+                }
+            )*
+        };
+    }
+
+    gray_code_tests! {
+        zero_bit_count: (0, Err(GrayCodeError::ZeroBitCount)),
+        gray_code_1_bit: (1, Ok(vec![
+            "0".to_string(),
+            "1".to_string(),
+        ])),
+        gray_code_2_bit: (2, Ok(vec![
+            "00".to_string(),
+            "01".to_string(),
+            "11".to_string(),
+            "10".to_string(),
+        ])),
+        gray_code_3_bit: (3, Ok(vec![
+            "000".to_string(),
+            "001".to_string(),
+            "011".to_string(),
+            "010".to_string(),
+            "110".to_string(),
+            "111".to_string(),
+            "101".to_string(),
+            "100".to_string(),
+        ])),
+    }
+}