diff --git a/network_analysis/README.md b/network_analysis/README.md
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+++ b/network_analysis/README.md
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+# Network Traffic Analysis Engine
+
+This module provides a starting point for building a network traffic analysis platform with deep packet inspection (DPI) and machine-learning based anomaly detection. Packets are captured using `scapy` and organized into stateful TCP flows. Feature vectors are extracted from each reconstructed flow and sent to an Ollama API endpoint for classification. Basic baseline modelling and threat intelligence correlation hooks are included.
+
+## Features
+
+- Bidirectional packet capture using libpcap via **scapy**.
+- Session state tracking for TCP flow reassembly.
+- Application layer payload inspection with customizable parsers.
+- Integration with Ollama-hosted models for anomaly detection and threat pattern recognition.
+- Baseline communication profiling using simple statistical learning.
+- Threat intelligence lookups through STIX/TAXII feeds (placeholder implementation).
+
+## Usage
+
+Install dependencies and run the engine with root privileges to access network interfaces:
+
+```bash
+cd network_analysis
+python3 -m venv venv
+. venv/bin/activate
+pip install -r requirements.txt
+sudo python traffic_engine.py --iface eth0
+```
+
+The script prints inference results and baseline deviation scores for each completed TCP flow. Modify the code to adapt model endpoints, feature extraction, or threat intelligence sources.
+
+This is a minimal proof of concept and not intended for production without further optimization and security review.
diff --git a/network_analysis/requirements.txt b/network_analysis/requirements.txt
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+scapy
+requests
+numpy
diff --git a/network_analysis/traffic_engine.py b/network_analysis/traffic_engine.py
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+++ b/network_analysis/traffic_engine.py
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+"""Network Traffic Analysis Engine with DPI and Ollama integration."""
+
+from __future__ import annotations
+
+import argparse
+import json
+import time
+from dataclasses import dataclass, field
+from typing import Dict, Iterable, List
+
+import numpy as np
+import requests
+from scapy.all import IP, TCP, Raw, sniff
+
+
+@dataclass(frozen=True)
+class FlowKey:
+    """Five-tuple identifying a TCP flow."""
+
+    src: str
+    src_port: int
+    dst: str
+    dst_port: int
+    proto: str = "TCP"
+
+
+@dataclass
+class FlowState:
+    packets: List
+    bytes: int = 0
+    start_time: float = 0.0
+    last_seen: float = 0.0
+    payload: bytes = field(default_factory=bytes)
+
+
+class MachineLearningAnalyzer:
+    """Client for Ollama-hosted models."""
+
+    def __init__(self, url: str):
+        self.url = url.rstrip("/")
+
+    def analyze(self, features: Dict) -> Dict:
+        payload = {"model": "transformer-seq", "prompt": json.dumps(features)}
+        try:
+            resp = requests.post(self.url, json=payload, timeout=5)
+            resp.raise_for_status()
+            return resp.json()
+        except requests.RequestException:
+            return {"error": "Ollama request failed"}
+
+
+class BaselineModel:
+    """Simple statistical baseline of flow features."""
+
+    def __init__(self):
+        self.samples: List[np.ndarray] = []
+
+    def update(self, vector: Iterable[float]) -> None:
+        self.samples.append(np.fromiter(vector, dtype=float))
+
+    def score(self, vector: Iterable[float]) -> float:
+        if not self.samples:
+            return 0.0
+        mat = np.vstack(self.samples)
+        mean = mat.mean(axis=0)
+        return float(np.linalg.norm(np.fromiter(vector, dtype=float) - mean))
+
+
+class ThreatIntelCorrelator:
+    """Placeholder for STIX/TAXII threat intelligence lookups."""
+
+    def __init__(self):
+        self.indicators = set()
+
+    def check(self, flow: FlowState) -> List[str]:
+        matches = []
+        for ip in [pkt[IP].src for pkt in flow.packets if IP in pkt]:
+            if ip in self.indicators:
+                matches.append(ip)
+        return matches
+
+
+class TrafficEngine:
+    def __init__(self, iface: str, ollama_url: str) -> None:
+        self.iface = iface
+        self.capture_filter = "tcp"
+        self.flows: Dict[FlowKey, FlowState] = {}
+        self.ml = MachineLearningAnalyzer(ollama_url)
+        self.baseline = BaselineModel()
+        self.threatintel = ThreatIntelCorrelator()
+
+    def start(self) -> None:
+        sniff(
+            iface=self.iface,
+            filter=self.capture_filter,
+            prn=self._process_packet,
+            store=False,
+        )
+
+    def _process_packet(self, pkt):
+        if not (IP in pkt and TCP in pkt):
+            return
+        ip = pkt[IP]
+        tcp = pkt[TCP]
+        key = FlowKey(ip.src, tcp.sport, ip.dst, tcp.dport)
+        state = self.flows.setdefault(key, FlowState([], start_time=time.time()))
+        state.packets.append(pkt)
+        state.bytes += len(pkt)
+        state.last_seen = time.time()
+        if Raw in pkt:
+            state.payload += bytes(pkt[Raw].load)
+        if tcp.flags.F or tcp.flags.R:
+            self._finalize_flow(key)
+
+    def _finalize_flow(self, key: FlowKey) -> None:
+        state = self.flows.pop(key, None)
+        if not state:
+            return
+        features = self._extract_features(state)
+        ml_result = self.ml.analyze(features)
+        deviation = self.baseline.score(features.values())
+        self.baseline.update(features.values())
+        threats = self.threatintel.check(state)
+        report = {
+            "flow": key.__dict__,
+            "features": features,
+            "ml_result": ml_result,
+            "baseline_deviation": deviation,
+            "threat_matches": threats,
+        }
+        print(json.dumps(report))
+
+    @staticmethod
+    def _extract_features(state: FlowState) -> Dict:
+        duration = state.last_seen - state.start_time
+        return {
+            "packet_count": len(state.packets),
+            "total_bytes": state.bytes,
+            "duration": duration,
+            "payload_size": len(state.payload),
+        }
+
+
+def main() -> None:
+    parser = argparse.ArgumentParser(description="Network traffic analysis engine")
+    parser.add_argument("--iface", default="eth0", help="Network interface to sniff")
+    parser.add_argument(
+        "--ollama-url",
+        default="http://localhost:11434/api/generate",
+        help="Ollama inference API URL",
+    )
+    args = parser.parse_args()
+    engine = TrafficEngine(args.iface, args.ollama_url)
+    engine.start()
+
+
+if __name__ == "__main__":
+    main()