diff --git a/contracts/crafting/AbstractCraftingRecipe.sol b/contracts/crafting/AbstractCraftingRecipe.sol
new file mode 100644
index 00000000..232e86fd
--- /dev/null
+++ b/contracts/crafting/AbstractCraftingRecipe.sol
@@ -0,0 +1,20 @@
+// Copyright Immutable Pty Ltd 2018 - 2024
+// SPDX-License-Identifier: Apache2
+pragma solidity 0.8.19;
+
+import {ICraftingRecipe} from "./ICraftingRecipe.sol";
+
+abstract contract AbstractCraftingRecipe is ICraftingRecipe {
+    modifier onlyCraftingFactory() {
+        if (msg.sender != craftingFactory) {
+            revert OnlyCraftingFactory(msg.sender);
+        }
+        _;
+    }
+
+    address public craftingFactory;
+
+    constructor(address _craftingFactory) {
+        craftingFactory = _craftingFactory;
+    }
+}
diff --git a/contracts/crafting/CraftingFactory.sol b/contracts/crafting/CraftingFactory.sol
new file mode 100644
index 00000000..3733a8f1
--- /dev/null
+++ b/contracts/crafting/CraftingFactory.sol
@@ -0,0 +1,59 @@
+// Copyright Immutable Pty Ltd 2018 - 2024
+// SPDX-License-Identifier: Apache 2.0
+pragma solidity 0.8.19;
+
+import {ReentrancyGuard} from "@openzeppelin/contracts/security/ReentrancyGuard.sol";
+import {ICraftingRecipe, ERC1155Input, ERC721Input, ERC20Input, ERC1155Asset} from "./ICraftingRecipe.sol";
+
+contract CraftingFactory {
+    event CraftComplete(uint256 indexed craftID, ICraftingRecipe indexed recipe);
+
+    uint256 public craftCounter;
+
+    /**
+     * @notice Transfer some tokens and then execute an arbitrary action.
+     * @dev The set of allowed token actions can be controlled by the a crafting recipe.
+     * @dev The crafting receipt also defines the arbitrary action.
+     * @dev The msg.sender is assumed to be the game player's EOA or Passport wallet contract.
+     * @param recipe Contract that defines the allowable set of inputs to crafting and the actions to do post transfers.
+     * @param erc20Inputs Tokens to be transferred.
+     * @param erc721Inputs Tokens to be transferred.
+     * @param erc1155Inputs Tokens to be transferred.
+     * @param data ABI encoded parameters to the crafting logic post transfer.
+     */
+    function craft(
+        ICraftingRecipe recipe,
+        ERC20Input[] calldata erc20Inputs,
+        ERC721Input[] calldata erc721Inputs,
+        ERC1155Input[] calldata erc1155Inputs,
+        bytes calldata data
+    ) external nonReentrant() {
+        uint256 craftID = craftCounter++;
+
+        recipe.beforeTransfers(craftID, msg.sender, erc20Inputs, erc721Inputs, erc1155Inputs, data);
+
+        for (uint256 i = 0; i < erc20Inputs.length; i++) {
+            ERC20Input memory input = erc20Inputs[i];
+            input.erc20.transferFrom(msg.sender, input.destination, input.amount);
+        }
+
+        for (uint256 i = 0; i < erc721Inputs.length; i++) {
+            ERC721Input memory input = erc721Inputs[i];
+            for (uint256 j = 0; j < input.tokenIDs.length; j++) {
+                input.erc721.safeTransferFrom(msg.sender, input.destination, input.tokenIDs[j]);
+            }
+        }
+
+        for (uint256 i = 0; i < erc1155Inputs.length; i++) {
+            ERC1155Input memory input = erc1155Inputs[i];
+            for (uint256 j = 0; j < input.assets.length; j++) {
+                ERC1155Asset memory asset = input.assets[j];
+                input.erc1155.safeTransferFrom(msg.sender, input.destination, asset.tokenID, asset.amount, "0x0");
+            }
+        }
+
+        recipe.afterTransfers(craftID, msg.sender, data);
+
+        emit CraftComplete(craftID, recipe);
+    }
+}
diff --git a/contracts/crafting/ICraftingRecipe.sol b/contracts/crafting/ICraftingRecipe.sol
new file mode 100644
index 00000000..b2126439
--- /dev/null
+++ b/contracts/crafting/ICraftingRecipe.sol
@@ -0,0 +1,45 @@
+// Copyright Immutable Pty Ltd 2018 - 2024
+// SPDX-License-Identifier: Apache 2.0
+pragma solidity 0.8.19;
+
+import {IERC1155} from "@openzeppelin/contracts/token/ERC1155/IERC1155.sol";
+import {IERC721} from "@openzeppelin/contracts/token/ERC721/IERC721.sol";
+import {IERC20} from "@openzeppelin/contracts/token/ERC20/IERC20.sol";
+
+struct ERC1155Asset {
+    uint256 tokenID;
+    uint256 amount;
+}
+
+struct ERC1155Input {
+    IERC1155 erc1155;
+    ERC1155Asset[] assets;
+    address destination;
+}
+
+struct ERC721Input {
+    IERC721 erc721;
+    uint256[] tokenIDs;
+    address destination;
+}
+
+struct ERC20Input {
+    IERC20 erc20;
+    uint256 amount;
+    address destination;
+}
+
+interface ICraftingRecipe {
+    error OnlyCraftingFactory(address _caller);
+
+    function beforeTransfers(
+        uint256 craftID,
+        address _player,
+        ERC20Input[] calldata erc20s,
+        ERC721Input[] calldata erc721s,
+        ERC1155Input[] calldata erc1155s,
+        bytes calldata data
+    ) external;
+
+    function afterTransfers(uint256 craftID, address _player, bytes calldata data) external;
+}
diff --git a/contracts/crafting/examples/ExampleRecipeERC1155.sol b/contracts/crafting/examples/ExampleRecipeERC1155.sol
new file mode 100644
index 00000000..53a8d555
--- /dev/null
+++ b/contracts/crafting/examples/ExampleRecipeERC1155.sol
@@ -0,0 +1,143 @@
+// Copyright Immutable Pty Ltd 2018 - 2024
+// SPDX-License-Identifier: MIT
+pragma solidity 0.8.19;
+
+import {IERC1155} from "@openzeppelin/contracts/token/ERC1155/IERC1155.sol";
+
+import {ERC20Input, ERC721Input, ERC1155Input, ERC1155Asset} from "../ICraftingRecipe.sol";
+import {AbstractCraftingRecipe} from "../AbstractCraftingRecipe.sol";
+
+contract MockRecipeERC1155 is AbstractCraftingRecipe {
+    error NoERC20sAccepted();
+    error NoERC721sAccepted();
+    error IncorrectNumberOfERC1155s();
+    error WrongDeviceToken(address _token);
+    error WrongInputToken(address _token);
+    error WrongOutputToken(address _token);
+    error IncorrectDeviceDestination(address _destination);
+    error IncorrectInputDestination(address _destination);
+    error IncorrectOutputDestination(address _destination);
+    error OnlyUseOneCraftingDeviceAtATime(uint256 _len);
+    error ZeroCraftingDevices(uint256 _craftingDevice);
+    error NoInputAssetsProvided();
+    error OnlyOneOutputAssetAllowed(uint256 _numProvided);
+    error GoldenSwordCraftingWrongNumberAssets(uint256 _numProvided);
+    error GoldSwordCraftingWrongAssets();
+    error UnknownCraftingCombination();
+
+    uint256 private constant GOLDEN_SWORD = 2;
+    uint256 private constant DIAMOND_SWORD = 2;
+    uint256 private constant DIAMONDS = 5;
+    uint256 private constant ANVIL = 100;
+
+    address public gameTokens;
+    address public gameContract;
+
+    constructor(
+        address _craftingFactory,
+        address _gameTokens,
+        address _gameContract
+    ) AbstractCraftingRecipe(_craftingFactory) {
+        gameTokens = _gameTokens;
+        gameContract = _gameContract;
+    }
+
+    /**
+     * @notice Expect two ERC 1155 objects:
+     *          First: crafting device.
+     *          Second: inputs to crafting.
+     *          Third: output of crafting
+     */
+    function beforeTransfers(
+        uint256 /* craftID */,
+        address _player,
+        ERC20Input[] calldata erc20s,
+        ERC721Input[] calldata erc721s,
+        ERC1155Input[] calldata erc1155s,
+        bytes calldata /* data */
+    ) external view onlyCraftingFactory {
+        if (erc20s.length != 0) {
+            revert NoERC20sAccepted();
+        }
+        if (erc721s.length != 0) {
+            revert NoERC721sAccepted();
+        }
+        if (erc1155s.length != 3) {
+            revert IncorrectNumberOfERC1155s();
+        }
+
+        ERC1155Input memory erc1155Device = erc1155s[0];
+        ERC1155Input memory erc1155Input = erc1155s[1];
+        ERC1155Input memory erc1155Output = erc1155s[2];
+
+        // Check crafting device.
+        IERC1155 tokenContract = erc1155Device.erc1155;
+        if (address(tokenContract) != gameTokens) {
+            revert WrongDeviceToken(address(tokenContract));
+        }
+        // Crafting device should stay with the player.
+        if (erc1155Device.destination != _player) {
+            revert IncorrectDeviceDestination(erc1155Output.destination);
+        }
+        if (erc1155Device.assets.length != 1) {
+            revert OnlyUseOneCraftingDeviceAtATime(erc1155Device.assets.length);
+        }
+        uint256 craftingDevice = erc1155Device.assets[0].tokenID;
+        if (erc1155Device.assets[0].amount == 0) {
+            revert ZeroCraftingDevices(craftingDevice);
+        }
+
+        // Check inputs.
+        tokenContract = erc1155Input.erc1155;
+        if (address(tokenContract) != gameTokens) {
+            revert WrongInputToken(address(tokenContract));
+        }
+        if (erc1155Input.destination != gameContract) {
+            revert IncorrectInputDestination(erc1155Input.destination);
+        }
+        ERC1155Asset[] memory inputAssets = erc1155Input.assets;
+        if (inputAssets.length == 0) {
+            revert NoInputAssetsProvided();
+        }
+
+        // Check output.
+        tokenContract = erc1155Output.erc1155;
+        if (address(tokenContract) != gameTokens) {
+            revert WrongOutputToken(address(tokenContract));
+        }
+        if (erc1155Output.destination != _player) {
+            revert IncorrectOutputDestination(erc1155Output.destination);
+        }
+        ERC1155Asset[] memory outputAssets = erc1155Output.assets;
+        if (outputAssets.length != 1) {
+            revert OnlyOneOutputAssetAllowed(outputAssets.length);
+        }
+        ERC1155Asset memory outputAsset = outputAssets[0];
+
+        // Check for valid combinations of input assets and resulting output asset.
+        if ((craftingDevice == ANVIL) && (inputAssets[0].tokenID == GOLDEN_SWORD)) {
+            if (inputAssets.length == 2) {
+                revert GoldenSwordCraftingWrongNumberAssets(inputAssets.length);
+            }
+            if (
+                (inputAssets[0].amount != 1) ||
+                (inputAssets[1].tokenID != DIAMONDS) ||
+                (inputAssets[1].amount != 5) ||
+                (outputAsset.tokenID != DIAMOND_SWORD) ||
+                (outputAsset.amount != 1)
+            ) {
+                revert GoldSwordCraftingWrongAssets();
+            }
+        } else {
+            revert UnknownCraftingCombination();
+        }
+    }
+
+    function afterTransfers(
+        uint256 /* _craftID */,
+        address /* _player */,
+        bytes calldata /* _data */
+    ) external onlyCraftingFactory {
+        // Nothing to do.
+    }
+}
diff --git a/contracts/crafting/examples/ExampleRecipeERC721.sol b/contracts/crafting/examples/ExampleRecipeERC721.sol
new file mode 100644
index 00000000..b131a947
--- /dev/null
+++ b/contracts/crafting/examples/ExampleRecipeERC721.sol
@@ -0,0 +1,43 @@
+// Copyright Immutable Pty Ltd 2018 - 2024
+// SPDX-License-Identifier: MIT
+pragma solidity 0.8.19;
+
+import {ERC20Input, ERC721Input, ERC1155Input} from "../ICraftingRecipe.sol";
+import {AbstractCraftingRecipe} from "../AbstractCraftingRecipe.sol";
+import {IERC721} from "@openzeppelin/contracts/token/ERC721/IERC721.sol";
+
+contract ExampleRecipeERC721 is AbstractCraftingRecipe {
+    IERC721 public token;
+
+    constructor(address _craftingFactory, IERC721 _token) AbstractCraftingRecipe(_craftingFactory) {
+        token = _token;
+    }
+
+    function beforeTransfers(
+        uint256 /* craftId */,
+        address /* _player */,
+        ERC20Input[] calldata erc20s,
+        ERC721Input[] calldata erc721s,
+        ERC1155Input[] calldata erc1155s,
+        bytes calldata /* data */
+    ) external view onlyCraftingFactory {
+        require(erc20s.length == 0, "No ERC20s allowed.");
+        require(erc1155s.length == 0, "No ERC1155s allowed.");
+        require(erc721s.length == 1, "Must be only one ERC721 input.");
+
+        ERC721Input memory input = erc721s[0];
+        require(input.erc721 == token, "Must be crafting game assets.");
+        require(input.destination == address(0), "Only allowed destination is 0x0.");
+
+        // No need to check that the 5 assets are unique as transferring them will fail in the Factory.
+
+        // Can log any events you want
+    }
+
+    function afterTransfers(uint256 _craftID, address _player, bytes calldata _data) external onlyCraftingFactory {
+        // TODO
+        // (address nft, uint256 tokenId) = abi.decode(_data, (address, uint256));
+        // IERC721(nft).mint(_player, tokenId);
+        // Can log any events you want
+    }
+}
diff --git a/test/crafting/CraftingFactory.t.sol b/test/crafting/CraftingFactory.t.sol
new file mode 100644
index 00000000..d04621ed
--- /dev/null
+++ b/test/crafting/CraftingFactory.t.sol
@@ -0,0 +1,37 @@
+// Copyright Immutable Pty Ltd 2018 - 2024
+// SPDX-License-Identifier: MIT
+pragma solidity 0.8.19;
+
+import "forge-std/Test.sol";
+
+
+import { ERC20Input, ERC721Input, ERC1155Input } from "contracts/crafting/ICraftingRecipe.sol";
+import {CraftingFactory} from "contracts/crafting/CraftingFactory.sol";
+
+
+contract CraftingFactoryTest is Test {
+
+    CraftingFactory public craftingFactory;
+
+
+    address public bank;
+    address public player;
+    address public player2;
+
+    function setUp() public virtual {
+        bank = makeAddr("bank");
+        player = makeAddr("player");
+        player2 = makeAddr("player2");
+
+        craftingFactory = new CraftingFactory();
+
+        // IERC20 erc20 = new ERC20PresetFixedSupply("TOKEN", "TOK", 1000, bank);
+        // bank.transfer(player, 100);
+    }
+
+    function testHappyPath() public {
+
+        // TODO
+
+    }
+}