diff --git a/PRIVACY.md b/PRIVACY.md
new file mode 100644
index 0000000..4031c5d
--- /dev/null
+++ b/PRIVACY.md
@@ -0,0 +1,37 @@
+# Privacy Policy
+
+**Tether API** is an open source Android app that exposes phone status via a local HTTP API.
+
+## Data Collection
+
+This app does **not** collect, store, or transmit any personal data to external servers.
+
+## Permissions
+
+The app requests the following permissions:
+
+| Permission | Purpose |
+|------------|---------|
+| `READ_PHONE_STATE` | Read network connection type and carrier name |
+| `ACCESS_FINE_LOCATION` | Required by Android 10+ to access signal strength |
+| `POST_NOTIFICATIONS` | Display foreground service notification |
+
+## Data Access
+
+Phone status (signal strength, carrier, battery level) is only accessible via a local HTTP server running on port 8765. This server is **only reachable from devices tethered to your phone** (USB or WiFi hotspot) and is not exposed to the internet.
+
+## Third Parties
+
+This app does not include any analytics, tracking, or advertising SDKs. No data is shared with third parties.
+
+## Open Source
+
+The complete source code is available at: https://github.com/USER/android-tether-api
+
+## Contact
+
+For questions about this privacy policy, open an issue on the GitHub repository.
+
+---
+
+Last updated: December 2024