diff --git a/pom.xml b/pom.xml
index 4816f46d2..d0f9f9fd8 100644
--- a/pom.xml
+++ b/pom.xml
@@ -49,7 +49,7 @@
 		<module>intercepting-filter</module>
 		<module>poison-pill</module>
     <module>lazy-loading</module>
-    <module>dao</module>
+    <module>service-layer</module>
   </modules>
 
 	<dependencyManagement>
diff --git a/dao/pom.xml b/service-layer/bin/pom.xml
similarity index 100%
rename from dao/pom.xml
rename to service-layer/bin/pom.xml
diff --git a/service-layer/pom.xml b/service-layer/pom.xml
new file mode 100644
index 000000000..34f265167
--- /dev/null
+++ b/service-layer/pom.xml
@@ -0,0 +1,26 @@
+<?xml version="1.0"?>
+<project xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd" xmlns="http://maven.apache.org/POM/4.0.0"
+    xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
+  <modelVersion>4.0.0</modelVersion>
+  <parent>
+    <groupId>com.iluwatar</groupId>
+    <artifactId>java-design-patterns</artifactId>
+    <version>1.0-SNAPSHOT</version>
+  </parent>
+  <artifactId>service-layer</artifactId>
+  <dependencies>
+	<dependency>
+	    <groupId>org.hibernate</groupId>
+	    <artifactId>hibernate-core</artifactId>
+	</dependency>
+	<dependency>
+		<groupId>com.h2database</groupId>
+		<artifactId>h2</artifactId>
+	</dependency>  
+    <dependency>
+      <groupId>junit</groupId>
+      <artifactId>junit</artifactId>
+      <scope>test</scope>
+    </dependency>
+  </dependencies>
+</project>
diff --git a/dao/src/main/java/com/iluwatar/App.java b/service-layer/src/main/java/com/iluwatar/App.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/App.java
rename to service-layer/src/main/java/com/iluwatar/App.java
diff --git a/dao/src/main/java/com/iluwatar/BaseEntity.java b/service-layer/src/main/java/com/iluwatar/BaseEntity.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/BaseEntity.java
rename to service-layer/src/main/java/com/iluwatar/BaseEntity.java
diff --git a/dao/src/main/java/com/iluwatar/Dao.java b/service-layer/src/main/java/com/iluwatar/Dao.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/Dao.java
rename to service-layer/src/main/java/com/iluwatar/Dao.java
diff --git a/dao/src/main/java/com/iluwatar/DaoBaseImpl.java b/service-layer/src/main/java/com/iluwatar/DaoBaseImpl.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/DaoBaseImpl.java
rename to service-layer/src/main/java/com/iluwatar/DaoBaseImpl.java
diff --git a/dao/src/main/java/com/iluwatar/HibernateUtil.java b/service-layer/src/main/java/com/iluwatar/HibernateUtil.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/HibernateUtil.java
rename to service-layer/src/main/java/com/iluwatar/HibernateUtil.java
diff --git a/dao/src/main/java/com/iluwatar/MagicService.java b/service-layer/src/main/java/com/iluwatar/MagicService.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/MagicService.java
rename to service-layer/src/main/java/com/iluwatar/MagicService.java
diff --git a/dao/src/main/java/com/iluwatar/MagicServiceImpl.java b/service-layer/src/main/java/com/iluwatar/MagicServiceImpl.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/MagicServiceImpl.java
rename to service-layer/src/main/java/com/iluwatar/MagicServiceImpl.java
diff --git a/dao/src/main/java/com/iluwatar/Spell.java b/service-layer/src/main/java/com/iluwatar/Spell.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/Spell.java
rename to service-layer/src/main/java/com/iluwatar/Spell.java
diff --git a/dao/src/main/java/com/iluwatar/SpellDao.java b/service-layer/src/main/java/com/iluwatar/SpellDao.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/SpellDao.java
rename to service-layer/src/main/java/com/iluwatar/SpellDao.java
diff --git a/dao/src/main/java/com/iluwatar/SpellDaoImpl.java b/service-layer/src/main/java/com/iluwatar/SpellDaoImpl.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/SpellDaoImpl.java
rename to service-layer/src/main/java/com/iluwatar/SpellDaoImpl.java
diff --git a/dao/src/main/java/com/iluwatar/Spellbook.java b/service-layer/src/main/java/com/iluwatar/Spellbook.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/Spellbook.java
rename to service-layer/src/main/java/com/iluwatar/Spellbook.java
diff --git a/dao/src/main/java/com/iluwatar/SpellbookDao.java b/service-layer/src/main/java/com/iluwatar/SpellbookDao.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/SpellbookDao.java
rename to service-layer/src/main/java/com/iluwatar/SpellbookDao.java
diff --git a/dao/src/main/java/com/iluwatar/SpellbookDaoImpl.java b/service-layer/src/main/java/com/iluwatar/SpellbookDaoImpl.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/SpellbookDaoImpl.java
rename to service-layer/src/main/java/com/iluwatar/SpellbookDaoImpl.java
diff --git a/dao/src/main/java/com/iluwatar/Wizard.java b/service-layer/src/main/java/com/iluwatar/Wizard.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/Wizard.java
rename to service-layer/src/main/java/com/iluwatar/Wizard.java
diff --git a/dao/src/main/java/com/iluwatar/WizardDao.java b/service-layer/src/main/java/com/iluwatar/WizardDao.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/WizardDao.java
rename to service-layer/src/main/java/com/iluwatar/WizardDao.java
diff --git a/dao/src/main/java/com/iluwatar/WizardDaoImpl.java b/service-layer/src/main/java/com/iluwatar/WizardDaoImpl.java
similarity index 100%
rename from dao/src/main/java/com/iluwatar/WizardDaoImpl.java
rename to service-layer/src/main/java/com/iluwatar/WizardDaoImpl.java
diff --git a/dao/src/test/java/com/iluwatar/AppTest.java b/service-layer/src/test/java/com/iluwatar/AppTest.java
similarity index 100%
rename from dao/src/test/java/com/iluwatar/AppTest.java
rename to service-layer/src/test/java/com/iluwatar/AppTest.java