diff --git a/DIRECTORY.md b/DIRECTORY.md
index b7e9e3b87518..b865a9bb0d4d 100644
--- a/DIRECTORY.md
+++ b/DIRECTORY.md
@@ -39,6 +39,7 @@
             * [IsEven](https://github.com/TheAlgorithms/Java/blob/master/src/main/java/com/thealgorithms/bitmanipulation/IsEven.java)
             * [IsPowerTwo](https://github.com/TheAlgorithms/Java/blob/master/src/main/java/com/thealgorithms/bitmanipulation/IsPowerTwo.java)
             * [LowestSetBit](https://github.com/TheAlgorithms/Java/blob/master/src/main/java/com/thealgorithms/bitmanipulation/LowestSetBit.java)
+            * [ModuloPowerOfTwo](https://github.com/TheAlgorithms/Java/blob/master/src/main/java/com/thealgorithms/bitmanipulation/ModuloPowerOfTwo.java)
             * [NonRepeatingNumberFinder](https://github.com/TheAlgorithms/Java/blob/master/src/main/java/com/thealgorithms/bitmanipulation/NonRepeatingNumberFinder.java)
             * [NumberAppearingOddTimes](https://github.com/TheAlgorithms/Java/blob/master/src/main/java/com/thealgorithms/bitmanipulation/NumberAppearingOddTimes.java)
             * [NumbersDifferentSigns](https://github.com/TheAlgorithms/Java/blob/master/src/main/java/com/thealgorithms/bitmanipulation/NumbersDifferentSigns.java)
@@ -731,6 +732,7 @@
             * [IsEvenTest](https://github.com/TheAlgorithms/Java/blob/master/src/test/java/com/thealgorithms/bitmanipulation/IsEvenTest.java)
             * [IsPowerTwoTest](https://github.com/TheAlgorithms/Java/blob/master/src/test/java/com/thealgorithms/bitmanipulation/IsPowerTwoTest.java)
             * [LowestSetBitTest](https://github.com/TheAlgorithms/Java/blob/master/src/test/java/com/thealgorithms/bitmanipulation/LowestSetBitTest.java)
+            * [ModuloPowerOfTwoTest](https://github.com/TheAlgorithms/Java/blob/master/src/test/java/com/thealgorithms/bitmanipulation/ModuloPowerOfTwoTest.java)
             * [NonRepeatingNumberFinderTest](https://github.com/TheAlgorithms/Java/blob/master/src/test/java/com/thealgorithms/bitmanipulation/NonRepeatingNumberFinderTest.java)
             * [NumberAppearingOddTimesTest](https://github.com/TheAlgorithms/Java/blob/master/src/test/java/com/thealgorithms/bitmanipulation/NumberAppearingOddTimesTest.java)
             * [NumbersDifferentSignsTest](https://github.com/TheAlgorithms/Java/blob/master/src/test/java/com/thealgorithms/bitmanipulation/NumbersDifferentSignsTest.java)
diff --git a/src/main/java/com/thealgorithms/bitmanipulation/ModuloPowerOfTwo.java b/src/main/java/com/thealgorithms/bitmanipulation/ModuloPowerOfTwo.java
new file mode 100644
index 000000000000..537a046f77e4
--- /dev/null
+++ b/src/main/java/com/thealgorithms/bitmanipulation/ModuloPowerOfTwo.java
@@ -0,0 +1,28 @@
+package com.thealgorithms.bitmanipulation;
+
+/**
+ * This class provides a method to compute the remainder
+ * of a number when divided by a power of two (2^n)
+ * without using division or modulo operations.
+ *
+ * @author Hardvan
+ */
+public final class ModuloPowerOfTwo {
+    private ModuloPowerOfTwo() {
+    }
+
+    /**
+     * Computes the remainder of a given integer when divided by 2^n.
+     *
+     * @param x the input number
+     * @param n the exponent (power of two)
+     * @return the remainder of x divided by 2^n
+     */
+    public static int moduloPowerOfTwo(int x, int n) {
+        if (n <= 0) {
+            throw new IllegalArgumentException("The exponent must be positive");
+        }
+
+        return x & ((1 << n) - 1);
+    }
+}
diff --git a/src/test/java/com/thealgorithms/bitmanipulation/ModuloPowerOfTwoTest.java b/src/test/java/com/thealgorithms/bitmanipulation/ModuloPowerOfTwoTest.java
new file mode 100644
index 000000000000..ff7f621a64c0
--- /dev/null
+++ b/src/test/java/com/thealgorithms/bitmanipulation/ModuloPowerOfTwoTest.java
@@ -0,0 +1,38 @@
+package com.thealgorithms.bitmanipulation;
+
+import static org.junit.jupiter.api.Assertions.assertEquals;
+import static org.junit.jupiter.api.Assertions.assertThrows;
+
+import org.junit.jupiter.params.ParameterizedTest;
+import org.junit.jupiter.params.provider.CsvSource;
+
+class ModuloPowerOfTwoTest {
+
+    @ParameterizedTest
+    @CsvSource({
+        "10, 3, 2",
+        "15, 2, 3",
+        "20, 4, 4",
+        "7, 1, 1",
+        "5, 1, 1",
+        "36, 5, 4",
+    })
+    void
+    testModuloPowerOfTwo(int x, int n, int expected) {
+        assertEquals(expected, ModuloPowerOfTwo.moduloPowerOfTwo(x, n));
+    }
+
+    @ParameterizedTest
+    @CsvSource({
+        "10, 0",
+        "15, -2",
+        "20, -4",
+        "7, -1",
+        "5, -1",
+    })
+    void
+    testNegativeExponent(int x, int n) {
+        IllegalArgumentException exception = assertThrows(IllegalArgumentException.class, () -> ModuloPowerOfTwo.moduloPowerOfTwo(x, n));
+        assertEquals("The exponent must be positive", exception.getMessage());
+    }
+}