diff --git a/arrays_strings/better_compress/__init__.py b/arrays_strings/better_compress/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/arrays_strings/better_compress/better_compress_challenge.ipynb b/arrays_strings/better_compress/better_compress_challenge.ipynb
new file mode 100644
index 0000000..b1f3afe
--- /dev/null
+++ b/arrays_strings/better_compress/better_compress_challenge.ipynb
@@ -0,0 +1,165 @@
+{
+ "cells": [
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "<small><i>This notebook was prepared by [Donne Martin](http://donnemartin.com). Source and license info is on [GitHub](https://github.com/donnemartin/interactive-coding-challenges).</i></small>"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "# Challenge Notebook"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Problem: Compress a string such that 'AAABCCDDDD' becomes 'A3BCCD4'.  Only compress the string if it saves space.\n",
+    "\n",
+    "* [Constraints](#Constraints)\n",
+    "* [Test Cases](#Test-Cases)\n",
+    "* [Algorithm](#Algorithm)\n",
+    "* [Code](#Code)\n",
+    "* [Unit Test](#Unit-Test)\n",
+    "* [Solution Notebook](#Solution-Notebook)"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Constraints\n",
+    "\n",
+    "* Can we assume the string is ASCII?\n",
+    "    * Yes\n",
+    "    * Note: Unicode strings could require special handling depending on your language\n",
+    "* Can you use additional data structures?  \n",
+    "    * Yes\n",
+    "* Is this case sensitive?\n",
+    "    * Yes"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Test Cases\n",
+    "\n",
+    "* None -> None\n",
+    "* '' -> ''\n",
+    "* 'AABBCC' -> 'AABBCC'\n",
+    "* 'AAABCCDDDD' -> 'A3BCCD4'"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Algorithm\n",
+    "\n",
+    "Refer to the [Solution Notebook](http://nbviewer.ipython.org/github/donnemartin/interactive-coding-challenges/blob/master/arrays_strings/compress/compress_solution.ipynb).  If you are stuck and need a hint, the solution notebook's algorithm discussion might be a good place to start."
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Code"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {
+    "collapsed": false
+   },
+   "outputs": [],
+   "source": [
+    "def compress_string(string):\n",
+    "    # TODO: Implement me\n",
+    "    pass"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Unit Test"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "\n",
+    "\n",
+    "**The following unit test is expected to fail until you solve the challenge.**"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {
+    "collapsed": false
+   },
+   "outputs": [],
+   "source": [
+    "# %load test_compress.py\n",
+    "from nose.tools import assert_equal\n",
+    "\n",
+    "\n",
+    "class TestCompress(object):\n",
+    "\n",
+    "    def test_compress(self, func):\n",
+    "        assert_equal(func(None), None)\n",
+    "        assert_equal(func(''), '')\n",
+    "        assert_equal(func('AABBCC'), 'AABBCC')\n",
+    "        assert_equal(func('AAABCCDDDD'), 'A3BCCD4')\n",
+    "        print('Success: test_compress')\n",
+    "\n",
+    "\n",
+    "def main():\n",
+    "    test = TestCompress()\n",
+    "    test.test_compress(compress_string)\n",
+    "\n",
+    "\n",
+    "if __name__ == '__main__':\n",
+    "    main()"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Solution Notebook\n",
+    "\n",
+    "Review the [Solution Notebook](http://nbviewer.ipython.org/github/donnemartin/interactive-coding-challenges/blob/master/arrays_strings/compress/compress_solution.ipynb) for a discussion on algorithms and code solutions."
+   ]
+  }
+ ],
+ "metadata": {
+  "kernelspec": {
+   "display_name": "Python 3",
+   "language": "python",
+   "name": "python3"
+  },
+  "language_info": {
+   "codemirror_mode": {
+    "name": "ipython",
+    "version": 3
+   },
+   "file_extension": ".py",
+   "mimetype": "text/x-python",
+   "name": "python",
+   "nbconvert_exporter": "python",
+   "pygments_lexer": "ipython3",
+   "version": "3.4.3"
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 0
+}
diff --git a/arrays_strings/better_compress/better_compress_solution.ipynb b/arrays_strings/better_compress/better_compress_solution.ipynb
new file mode 100644
index 0000000..3770c03
--- /dev/null
+++ b/arrays_strings/better_compress/better_compress_solution.ipynb
@@ -0,0 +1,263 @@
+{
+ "cells": [
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "<small><i>This notebook was prepared by [Donne Martin](http://donnemartin.com). Source and license info is on [GitHub](https://github.com/donnemartin/interactive-coding-challenges).</i></small>"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "# Solution Notebook"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Problem: Compress a string such that 'AAABCCDDDD' becomes 'A3BCCD4'.  Only compress the string if it saves space.\n",
+    "\n",
+    "* [Constraints](#Constraints)\n",
+    "* [Test Cases](#Test-Cases)\n",
+    "* [Algorithm](#Algorithm)\n",
+    "* [Code](#Code)\n",
+    "* [Unit Test](#Unit-Test)"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Constraints\n",
+    "\n",
+    "* Can we assume the string is ASCII?\n",
+    "    * Yes\n",
+    "    * Note: Unicode strings could require special handling depending on your language\n",
+    "* Can you use additional data structures?  \n",
+    "    * Yes\n",
+    "* Is this case sensitive?\n",
+    "    * Yes"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Test Cases\n",
+    "\n",
+    "* None -> None\n",
+    "* '' -> ''\n",
+    "* 'AABBCC' -> 'AABBCC'\n",
+    "* 'AAABCCDDDD' -> 'A3BCCD4'"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Algorithm\n",
+    "\n",
+    "Since Python strings are immutable, we'll use a list of characters to build the compressed string representation.  We'll then convert the list to a string.\n",
+    "\n",
+    "* Calculate the size of the compressed string\n",
+    "    * Note the constraint about compressing only if it saves space\n",
+    "* If the compressed string size is >= string size, return string\n",
+    "* Create compressed_string\n",
+    "    * For each char in string\n",
+    "        * If char is the same as last_char, increment count\n",
+    "        * Else\n",
+    "            * If the count is more than 2\n",
+    "                * Append last_char to compressed_string\n",
+    "                * append count to compressed_string\n",
+    "                * count = 1\n",
+    "                * last_char = char\n",
+    "            * If count is 1\n",
+    "                * Append last_char to compressed_string\n",
+    "                * count = 1\n",
+    "                * last_char = char\n",
+    "            * If count is 2\n",
+    "                * Append last_char to compressed_string\n",
+    "                * Append last_char to compressed_string once more\n",
+    "                * count = 1\n",
+    "                * last_char = char\n",
+    "        * Append last_char to compressed_string\n",
+    "        * Append count to compressed_string\n",
+    "    * Return compressed_string\n",
+    "\n",
+    "Complexity:\n",
+    "* Time: O(n)\n",
+    "* Space: O(n)"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Code"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 4,
+   "metadata": {
+    "collapsed": false
+   },
+   "outputs": [],
+   "source": [
+    "def compress_string(string):\n",
+    "\tif string is None or len(string) == 0:\n",
+    "\t\treturn string\n",
+    "\n",
+    "\t# Calculate the size of the compressed string\n",
+    "\tsize = 0\n",
+    "\tlast_char = string[0]\n",
+    "\tfor char in string:\n",
+    "\t\tif char != last_char:\n",
+    "\t\t\tsize += 2\n",
+    "\t\t\tlast_char = char\n",
+    "\tsize += 2\n",
+    "\n",
+    "\t# If the compressed string size is greater than\n",
+    "\t# or equal to string size, return original string\n",
+    "\tif size >= len(string):\n",
+    "\t\treturn string\n",
+    "\n",
+    "\t# Create compressed_string\n",
+    "\t# New objective:\n",
+    "\t\t# Single characters are to be left as is\n",
+    "\t\t# Double characters are to be left as are\n",
+    "\tcompressed_string = list()\n",
+    "\tcount = 0\n",
+    "\tlast_char = string[0]\n",
+    "\tfor char in string:\n",
+    "\t\tif char == last_char:\n",
+    "\t\t\tcount += 1\n",
+    "\t\telse:\n",
+    "\t\t\t# Do the old compression tricks only if count exceeds two\n",
+    "\t\t\tif count > 2:\n",
+    "\t\t\t\tcompressed_string.append(last_char)\n",
+    "\t\t\t\tcompressed_string.append(str(count))\n",
+    "\t\t\t\tcount = 1\n",
+    "\t\t\t\tlast_char = char\n",
+    "\t\t\t# If count is either 1 or 2 (or 0?)\n",
+    "\t\t\t# FIXME: CAN COUNT BE 0?\n",
+    "\t\t\telse:\n",
+    "\t\t\t\t# If count is 1, leave the char as is\n",
+    "\t\t\t\tif count == 1:\n",
+    "\t\t\t\t\tcompressed_string.append(last_char)\n",
+    "\t\t\t\t\tcount = 1\n",
+    "\t\t\t\t\tlast_char = char\n",
+    "\t\t\t\t# If count is 2, append the character twice\n",
+    "\t\t\t\telse:\n",
+    "\t\t\t\t\tcompressed_string.append(last_char)\n",
+    "\t\t\t\t\tcompressed_string.append(last_char)\n",
+    "\t\t\t\t\tcount = 1\n",
+    "\t\t\t\t\tlast_char = char\n",
+    "\tcompressed_string.append(last_char)\n",
+    "\tcompressed_string.append(str(count))\n",
+    "\n",
+    "\t# Convert the characters in the list to a string\n",
+    "\treturn \"\".join(compressed_string)"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Unit Test"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 5,
+   "metadata": {
+    "collapsed": false
+   },
+   "outputs": [
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "Overwriting test_compress.py\n"
+     ]
+    }
+   ],
+   "source": [
+    "%%writefile test_compress.py\n",
+    "from nose.tools import assert_equal\n",
+    "\n",
+    "\n",
+    "class TestCompress(object):\n",
+    "\n",
+    "    def test_compress(self, func):\n",
+    "        assert_equal(func(None), None)\n",
+    "        assert_equal(func(''), '')\n",
+    "        assert_equal(func('AABBCC'), 'AABBCC')\n",
+    "        assert_equal(func('AAABCCDDDD'), 'A3BCCD4')\n",
+    "        assert_equal(func('aaBCCEFFFFKKMMMMMMP taaammanlaarrrr seeeeeeeeek tooo'), 'aaBCCEF4KKM6P ta3mmanlaar4 se9k to3')\n",
+    "        print('Success: test_compress')\n",
+    "\n",
+    "\n",
+    "def main():\n",
+    "    test = TestCompress()\n",
+    "    test.test_compress(compress_string)\n",
+    "\n",
+    "\n",
+    "if __name__ == '__main__':\n",
+    "    main()"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 7,
+   "metadata": {
+    "collapsed": false
+   },
+   "outputs": [
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "Success: test_compress\n"
+     ]
+    }
+   ],
+   "source": [
+    "%run -i test_compress.py"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {
+    "collapsed": true
+   },
+   "outputs": [],
+   "source": []
+  }
+ ],
+ "metadata": {
+  "kernelspec": {
+   "display_name": "Python 3",
+   "language": "python",
+   "name": "python3"
+  },
+  "language_info": {
+   "codemirror_mode": {
+    "name": "ipython",
+    "version": 3
+   },
+   "file_extension": ".py",
+   "mimetype": "text/x-python",
+   "name": "python",
+   "nbconvert_exporter": "python",
+   "pygments_lexer": "ipython3",
+   "version": "3.4.3"
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 0
+}
diff --git a/arrays_strings/better_compress/test_compress.py b/arrays_strings/better_compress/test_compress.py
new file mode 100644
index 0000000..b15dde4
--- /dev/null
+++ b/arrays_strings/better_compress/test_compress.py
@@ -0,0 +1,21 @@
+from nose.tools import assert_equal
+
+
+class TestCompress(object):
+
+    def test_compress(self, func):
+        assert_equal(func(None), None)
+        assert_equal(func(''), '')
+        assert_equal(func('AABBCC'), 'AABBCC')
+        assert_equal(func('AAABCCDDDD'), 'A3BCCD4')
+        assert_equal(func('aaBCCEFFFFKKMMMMMMP taaammanlaarrrr seeeeeeeeek tooo'), 'aaBCCEF4KKM6P ta3mmanlaar4 se9k to3')
+        print('Success: test_compress')
+
+
+def main():
+    test = TestCompress()
+    test.test_compress(compress_string)
+
+
+if __name__ == '__main__':
+    main()
\ No newline at end of file