diff --git a/bit_manipulation/largest_power_of_2 b/bit_manipulation/largest_power_of_2
new file mode 100644
index 000000000000..6e1265dc7560
--- /dev/null
+++ b/bit_manipulation/largest_power_of_2
@@ -0,0 +1,18 @@
+def largest_power_of_2(number: int) -> int:
+    """
+    returns the largest power of 2 that is less than or equal to the given number
+    The way this works is that we shift the binary form of the number to the right until we reach the last set bit
+    Using the number of times we had to shift to find the last set bit, we find the 2**(no of times shifted) which will be the ans
+    """
+
+    last_set_bit = 0
+    while number:
+        last_set_bit+=1
+        number>>=1
+    return 2**(last_set_bit-1)
+
+
+if __name__ == "__main__":
+    import doctest
+
+    doctest.testmod()