diff --git a/core/alerts/__init__.py b/core/alerts/__init__.py
new file mode 100644
index 0000000..ca9a752
--- /dev/null
+++ b/core/alerts/__init__.py
@@ -0,0 +1,11 @@
+from .rule_engine import (
+    create_alert_rule,
+    list_alert_rules,
+    delete_alert_rule,
+    get_alert_rule
+)
+from .alert_scheduler import (
+    start_monitoring,
+    stop_monitoring,
+    check_alerts_once
+)
\ No newline at end of file
diff --git a/core/alerts/alert_scheduler.py b/core/alerts/alert_scheduler.py
new file mode 100644
index 0000000..8185957
--- /dev/null
+++ b/core/alerts/alert_scheduler.py
@@ -0,0 +1,86 @@
+import os
+import time
+import threading
+from datetime import datetime
+from typing import List, Dict
+
+from .rule_engine import list_alert_rules, delete_alert_rule
+from .notification_handler import send_alert_notification
+from ..compute import list_vms, monitor_vm
+from ..bigquery import get_bigquery_usage_by_day_user
+
+_monitoring_active = False
+_monitoring_thread = None
+
+def start_monitoring(check_interval_seconds: int = 60) -> None:
+    """Start background monitoring"""
+    global _monitoring_active, _monitoring_thread
+    
+    if _monitoring_active:
+        return
+    
+    _monitoring_active = True
+    _monitoring_thread = threading.Thread(target=_monitoring_loop, args=(check_interval_seconds,), daemon=True)
+    _monitoring_thread.start()
+
+def stop_monitoring() -> None:
+    """Stop background monitoring"""
+    global _monitoring_active
+    _monitoring_active = False
+
+def check_alerts_once() -> List[Dict]:
+    """Check all rules once"""
+    triggered_alerts = []
+    rules = list_alert_rules()
+    
+    for rule in rules:
+        if rule.get("enabled", True):
+            alert = _evaluate_rule(rule)
+            if alert:
+                triggered_alerts.append(alert)
+                send_alert_notification(alert)
+                delete_alert_rule(rule["name"])
+    
+    return triggered_alerts
+
+def _monitoring_loop(check_interval_seconds: int) -> None:
+    """Background monitoring loop"""
+    while _monitoring_active:
+        try:
+            check_alerts_once()
+        except Exception as e:
+            print(f"Monitoring error: {e}")
+        time.sleep(check_interval_seconds)
+
+def _evaluate_rule(rule: Dict) -> Dict:
+    """Check if rule threshold is exceeded"""
+    current_value = _get_metric_value(rule["resource_type"], rule["metric"])
+    
+    if current_value and current_value > rule["threshold"]:
+        return {
+            "rule_name": rule["name"],
+            "resource_type": rule["resource_type"],
+            "metric": rule["metric"],
+            "current_value": current_value,
+            "threshold": rule["threshold"],
+            "triggered_at": datetime.now().isoformat()
+        }
+    return None
+
+def _get_metric_value(resource_type: str, metric: str):
+    """Get current metric value (simplified demo version)"""
+    try:
+        if resource_type == "vm" and metric == "cpu_utilization":
+            # For the sake of our demo, you can just replace this with a specific cpu_utilization value
+            vms = list_vms(os.environ['GCP_PROJECT_NUMBER'], os.environ['GCP_ZONE'])
+            if vms:
+                cpu_data = monitor_vm(vms[0]["selfLink"])
+                if cpu_data:
+                    vm_name = list(cpu_data.keys())[0]
+                    cpu_values = cpu_data[vm_name]["value"]
+                    return cpu_values[-1] * 100 if cpu_values else None # Return last value in percentage
+        
+    except Exception as e:
+        print(f"Error getting {resource_type}.{metric}: {e}")
+    
+    return None
\ No newline at end of file
diff --git a/core/alerts/alert_storage.py b/core/alerts/alert_storage.py
new file mode 100644
index 0000000..2e2e861
--- /dev/null
+++ b/core/alerts/alert_storage.py
@@ -0,0 +1,45 @@
+import json
+import os
+from typing import List, Dict
+
+ALERT_RULES_FILE = "alert_rules.json"
+
+def load_rules() -> List[Dict]:
+    """Load all alert rules from file"""
+    if not os.path.exists(ALERT_RULES_FILE):
+        return []
+    
+    try:
+        with open(ALERT_RULES_FILE, 'r') as f:
+            return json.load(f)
+    except:
+        return []
+
+def save_rules(rules: List[Dict]) -> None:
+    """Save all rules to file"""
+    with open(ALERT_RULES_FILE, 'w') as f:
+        json.dump(rules, f, indent=2)
+
+def save_rule(rule: Dict) -> None:
+    """Save a single alert rule"""
+    rules = load_rules()
+    
+    for i, existing in enumerate(rules):
+        if existing["name"] == rule["name"]:
+            rules[i] = rule
+            break
+    else:
+        rules.append(rule)
+    
+    save_rules(rules)
+
+def delete_rule(rule_name: str) -> bool:
+    """Delete a rule by name"""
+    rules = load_rules()
+    new_rules = []
+    for r in rules:
+        if r["name"] != rule_name:
+            new_rules.append(r) 
+    rules = new_rules 
+    save_rules(rules)
+    return True
\ No newline at end of file
diff --git a/core/alerts/notification_handler.py b/core/alerts/notification_handler.py
new file mode 100644
index 0000000..1f96ddd
--- /dev/null
+++ b/core/alerts/notification_handler.py
@@ -0,0 +1,19 @@
+"""Simple notification handler for alerts"""
+
+from datetime import datetime
+from typing import Dict
+
+def send_alert_notification(alert: Dict) -> None:
+    """Send alert notification (console only for demo)"""
+    message = format_alert_message(alert)
+    print("\n" + "="*40)
+    print("🚨 ALERT TRIGGERED 🚨")
+    print(f"Rule: {alert['rule_name']}")
+    print(f"Current: {alert['current_value']} | Threshold: {alert['threshold']}")
+    print(f"Time: {datetime.now().strftime('%H:%M:%S')}")
+    print("="*40)
+    print("User :> ", end="", flush=True)
+
+def format_alert_message(alert: Dict) -> str:
+    """Format alert into readable message"""
+    return f"Alert: {alert['rule_name']} - {alert['metric']} is {alert['current_value']}, exceeds {alert['threshold']}"
\ No newline at end of file
diff --git a/core/alerts/rule_engine.py b/core/alerts/rule_engine.py
new file mode 100644
index 0000000..33bac61
--- /dev/null
+++ b/core/alerts/rule_engine.py
@@ -0,0 +1,31 @@
+from datetime import datetime
+from typing import Dict, List
+from .alert_storage import save_rule, load_rules, delete_rule
+
+def create_alert_rule(rule_name: str, resource_type: str, metric: str, threshold: float) -> dict:
+    """Create a simple alert rule"""
+    rule = {
+        "name": rule_name,
+        "resource_type": resource_type,
+        "metric": metric,
+        "threshold": threshold,
+        "created": datetime.now().isoformat(),
+        "enabled": True
+    }
+    save_rule(rule)
+    return rule
+
+def list_alert_rules() -> List[dict]:
+    """Get all alert rules"""
+    return load_rules()
+
+def delete_alert_rule(rule_name: str) -> bool:
+    """Delete an alert rule by name"""
+    return delete_rule(rule_name)
+
+def get_alert_rule(rule_name: str) -> dict:
+    """Get a specific rule by name"""
+    for rule in load_rules():
+        if rule["name"] == rule_name:
+            return rule
+    return None
\ No newline at end of file
diff --git a/core/bot.py b/core/bot.py
index 81b5b28..42bfc88 100644
--- a/core/bot.py
+++ b/core/bot.py
@@ -20,6 +20,11 @@
     monitor_vm
 )
 from .service_accounts import list_custom_service_accounts
+from .alerts import (
+    create_alert_rule,
+    list_alert_rules,
+    delete_alert_rule
+)
 
 
 def create_bot():
@@ -34,12 +39,13 @@ def create_bot():
         list_datasets, get_bigquery_usage_by_user, get_bytes_loaded_to_dataset,
         get_bigquery_usage_by_day_user,
         list_cloud_run_jobs, get_job_executions, get_cloud_run_job_execution_logs,
-        list_custom_service_accounts
+        list_custom_service_accounts,
+        create_alert_rule, list_alert_rules, delete_alert_rule,
     ]
 
     instruction = f"""
     You are a helpful, knowledgeable, and tool-aware assistant integrated with an organization's Google Cloud Platform (GCP) environment.  
-    Your primary responsibility is to assist a DevOps executive in monitoring and managing cloud infrastructure — especially virtual machines (VMs) and the BigQuery data warehouse.
+    Your primary responsibility is to assist a DevOps executive in monitoring and managing cloud infrastructure — especially virtual machines (VMs), BigQuery data warehouse, and **proactive alerting**.
 
     You can access and invoke specific tools connected to the GCP account. When a user asks a question, you will:
 
@@ -116,6 +122,8 @@ def create_bot():
     For table output, ensure the columns are aligned using spaces for readability. Use fixed-width formatting like in GitHub-flavored Markdown.
     For list output, use a numbered list format.
     For tool failures, provide a clear error message and suggest possible next steps.
+    
+    **Important**: When background monitoring is started, it will continuously check alert rules and send notifications to the console when thresholds are exceeded.
     """
 
     client = genai.Client(api_key=os.environ["GENAI_API_KEY"])
diff --git a/main.py b/main.py
index 7c399de..02c33b7 100644
--- a/main.py
+++ b/main.py
@@ -5,9 +5,11 @@
 A QnA interface for monitoring GCP environments using Google Gemini API
 """
 import sys
+import os
 
 from core.bot import create_bot
 from core.utils.env_utils import load_environment_variables
+from core.alerts.alert_scheduler import start_monitoring, stop_monitoring
 
 
 def main():
@@ -18,6 +20,7 @@ def main():
         load_environment_variables()
 
         chat = create_bot()
+        start_monitoring()
 
         print("GCP Monitoring Bot started. Type 'q', 'quit', or 'exit' to stop.")
         print("-" * 50)
@@ -32,6 +35,12 @@ def main():
     except Exception as e:
         print(f"Error: {e}", file=sys.stderr)
         return 1
+    
+    finally:
+        stop_monitoring()
+        # Hard coded file name for now
+        if os.path.exists("alert_rules.json"):
+            os.remove("alert_rules.json")  
 
     return 0