diff --git a/services/tools/create_svc_directory.sh b/services/tools/create_svc_directory.sh
new file mode 100755
index 0000000..cf28d6e
--- /dev/null
+++ b/services/tools/create_svc_directory.sh
@@ -0,0 +1,28 @@
+#!/usr/bin/env bash
+# Script to create a service directory with Docker Compose and .env files
+
+set -euo pipefail
+
+GIT_REPO_ROOT=$(git rev-parse --show-toplevel)
+
+function create_svc_directory() {
+    local service_name="${1}"
+    local service_path="${GIT_REPO_ROOT}/services/${service_name}"
+
+    mkdir -p "${service_path}"
+
+    printf "# Docker Compose for service %s created at %s\n" \
+        "${service_name}" "$(TZ=Europe/Helsinki date)" > "${service_path}/docker-compose.yml"
+
+    printf "# Dot Env for service %s created at %s\n" \
+        "${service_name}" "$(TZ=Europe/Helsinki date)" > "${service_path}/.env"
+
+    echo "Service directory '${service_name}' created successfully at '${service_path}'."
+}
+
+if [ $# -ne 1 ]; then
+    echo "Usage: $0 <service_name>"
+    exit 1
+fi
+
+create_svc_directory "$1"