diff --git a/app_server/LICENSE b/app_server/LICENSE
new file mode 100644
index 0000000..51fca54
--- /dev/null
+++ b/app_server/LICENSE
@@ -0,0 +1,11 @@
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
diff --git a/app_server/README.md b/app_server/README.md
new file mode 100644
index 0000000..2a8ece5
--- /dev/null
+++ b/app_server/README.md
@@ -0,0 +1,3 @@
+# AWS app server 
+
+This module provisions an AWS instance configured application website hosting.
diff --git a/app_server/main.tf b/app_server/main.tf
new file mode 100644
index 0000000..4f14fe8
--- /dev/null
+++ b/app_server/main.tf
@@ -0,0 +1,38 @@
+provider "aws" {
+  region = var.region
+}
+
+module "ec2" {
+  source = "../.."
+
+}
+
+variable "server_name" {
+  default = ""
+}
+
+variable "region" {
+  default = ""
+}
+resource "aws_instance" "app_server" {
+  ami           = data.aws_ami.amazon_linux.id
+  instance_type = "t2.micro"
+
+  tags = {
+    Name = var.server_name
+  }
+}
+
+data "aws_ami" "amazon_linux" {
+  most_recent = true
+
+  owners = ["amazon"]
+
+  filter {
+    name = "name"
+
+    values = [
+      "amzn-ami-hvm-*-x86_64-gp2",
+    ]
+  }
+}
diff --git a/app_server/outputs.tf b/app_server/outputs.tf
new file mode 100644
index 0000000..4ef8885
--- /dev/null
+++ b/app_server/outputs.tf
@@ -0,0 +1,11 @@
+# Output variable definitions
+
+output "arn" {
+  description = "ARN of the server"
+  value       = aws_instance.app_server.arn
+}
+
+output "server_name" {
+  description = "Name (id) of the sever"
+  value       = aws_instance.app_server.id
+}
diff --git a/app_server/terraform.tfvars b/app_server/terraform.tfvars
new file mode 100644
index 0000000..e7193ae
--- /dev/null
+++ b/app_server/terraform.tfvars
@@ -0,0 +1,6 @@
+region = "us-east-2"
+
+server_name = "example_app_server"
+
+
+