diff --git a/src/main/scala/ch05/Autobot.scala b/src/main/scala/ch05/Autobot.scala
new file mode 100644
index 0000000..13386e4
--- /dev/null
+++ b/src/main/scala/ch05/Autobot.scala
@@ -0,0 +1,63 @@
+package ch05
+
+import scala.concurrent.Future
+import cats.data.EitherT
+import scala.concurrent.ExecutionContext.Implicits.global
+import scala.concurrent.Await
+import scala.concurrent.duration.*
+
+/*
+5.4 Exercise: Monads: Transform and Roll Out
+
+The Autobots, well-known robots in disguise, frequently send messages
+during battle requesting the power levels of their team mates.
+This helps them coordinate strategies and launch devastating attacks.
+
+Transmissions take time in Earth’s viscous atmosphere, and messages are
+occasionally lost due to satellite malfunction or sabotage by pesky Decepticons8.
+
+Optimus Prime is getting tired of the nested for comprehensions in his neural matrix.
+Help him by rewriting Response using a monad transformer.
+ */
+object Autobot:
+
+  type Response[A] = EitherT[Future, String, A]
+
+  val powerLevels = Map(
+    "Jazz"      -> 6,
+    "Bumblebee" -> 8,
+    "Hot Rod"   -> 10
+  )
+
+  /*
+  Implement getPowerLevel to retrieve data from a set of imaginary allies.
+  If an Autobot isn’t in the powerLevels map, return an error message reporting
+  that they were unreachable. Include the name in the message for good effect.
+   */
+  def getPowerLevel(ally: String): Response[Int] =
+    powerLevels.get(ally) match
+      case Some(avg) => EitherT.right(Future(avg))
+      case None      => EitherT.left(Future(s"$ally unreachable"))
+
+  /*
+  Two autobots can perform a special move if their combined power level is greater than 15.
+  If either ally is unavailable, fail with an appropriate error message.
+   */
+  def canSpecialMove(ally1: String, ally2: String): Response[Boolean] =
+    for
+      lvl1 <- getPowerLevel(ally1)
+      lvl2 <- getPowerLevel(ally2)
+    yield (lvl1 + lvl2) > 15
+
+  /*
+  Write a method tacticalReport that takes two ally names and prints
+  a message saying whether they can perform a special move.
+   */
+  def tacticalReport(ally1: String, ally2: String): String =
+    val stack: Future[Either[String, Boolean]] =
+      canSpecialMove(ally1, ally2).value
+
+    Await.result(stack, 1.second) match
+      case Left(msg)    => s"Comms error: $msg"
+      case Right(true)  => s"$ally1 and $ally2 are ready to roll out!"
+      case Right(false) => s"$ally1 and $ally2 need a recharge."
diff --git a/src/main/scala/ch05/ch05.worksheet.sc b/src/main/scala/ch05/ch05.worksheet.sc
new file mode 100644
index 0000000..6ab6f82
--- /dev/null
+++ b/src/main/scala/ch05/ch05.worksheet.sc
@@ -0,0 +1,71 @@
+import scala.concurrent.Await
+import scala.concurrent.Future
+import cats.data.{EitherT, OptionT}
+import cats.syntax.applicative.catsSyntaxApplicativeId
+import scala.concurrent.ExecutionContext.Implicits.global
+import scala.concurrent.duration.*
+
+type ListOption[A] = OptionT[List, A]
+
+val result1: ListOption[Int] = OptionT(List(Option(10)))
+
+val result2: ListOption[Int] = 32.pure[ListOption]
+
+result1.flatMap { (x: Int) =>
+  result2.map { (y: Int) =>
+    x + y
+  }
+}
+
+type FutureEither[A] = EitherT[Future, String, A]
+
+type FutureEitherOption[A] = OptionT[FutureEither, A]
+
+val futureEitherOr: FutureEitherOption[Int] =
+  for {
+    a <- 10.pure[FutureEitherOption]
+    b <- 32.pure[FutureEitherOption]
+  } yield a + b
+
+val intermediate = futureEitherOr.value
+// intermediate: FutureEither[Option[Int]] = EitherT(
+//   Future(Success(Right(Some(42))))
+// )
+
+val stack = intermediate.value
+// stack: Future[Either[String, Option[Int]]] = Future(Success(Right(Some(42))))
+
+Await.result(stack, 1.second)
+
+import cats.data.Writer
+
+type Logged[A] = Writer[List[String], A]
+
+// Methods generally return untransformed stacks:
+def parseNumber(str: String): Logged[Option[Int]] =
+  util.Try(str.toInt).toOption match {
+    case Some(num) => Writer(List(s"Read $str"), Some(num))
+    case None      => Writer(List(s"Failed on $str"), None)
+  }
+
+// Consumers use monad transformers locally to simplify composition:
+def addAll(a: String, b: String, c: String): Logged[Option[Int]] =
+  val result = 
+    for
+      a <- OptionT(parseNumber(a))
+      b <- OptionT(parseNumber(b))
+      c <- OptionT(parseNumber(c))
+    yield a + b + c
+
+  result.value
+
+
+// This approach doesn't force OptionT on other users' code:
+val x = addAll("1", "2", "3")
+// result1: Logged[Option[Int]] = WriterT(
+//   (List("Read 1", "Read 2", "Read 3"), Some(6))
+// )
+val y = addAll("1", "a", "3")
+// result2: Logged[Option[Int]] = WriterT(
+//   (List("Read 1", "Failed on a"), None)
+// )
\ No newline at end of file
diff --git a/src/test/scala/ch05/AutobotSpec.scala b/src/test/scala/ch05/AutobotSpec.scala
new file mode 100644
index 0000000..5514606
--- /dev/null
+++ b/src/test/scala/ch05/AutobotSpec.scala
@@ -0,0 +1,15 @@
+package ch05
+
+import org.scalatest.funspec.AnyFunSpec
+import org.scalatest.matchers.should.Matchers.shouldBe
+
+class AutobotSpec extends AnyFunSpec:
+  it("should generate a tactitcal report"):
+    val report1 = Autobot.tacticalReport("Jazz", "Bumblebee")
+    report1 `shouldBe` "Jazz and Bumblebee need a recharge."
+
+    val report2 = Autobot.tacticalReport("Bumblebee", "Hot Rod")
+    report2 `shouldBe` "Bumblebee and Hot Rod are ready to roll out!"
+
+    val report3 = Autobot.tacticalReport("Jazz", "Ironhide")
+    report3 `shouldBe` "Comms error: Ironhide unreachable"