diff --git a/examples/observe_basic.py b/examples/observe_basic.py
new file mode 100644
index 0000000..00d0389
--- /dev/null
+++ b/examples/observe_basic.py
@@ -0,0 +1,91 @@
+"""Basic observe() demo for TealTiger.
+Uses a mock OpenAI client so you can run this without an API key.
+Shows cost tracking and the freeze()/unfreeze() kill switch.
+"""
+
+from tealtiger.observe import FrozenAgentError, freeze, observe, unfreeze
+
+
+# Mock classes for OpenAI client response, to avoid actual API calls.
+class MockUsage:
+    """Mock usage object matching OpenAI response.usage schema."""
+
+    def __init__(self, prompt_tokens=10, completion_tokens=20, total_tokens=30):
+        self.prompt_tokens = prompt_tokens
+        self.completion_tokens = completion_tokens
+        self.total_tokens = total_tokens
+
+
+class MockMessage:
+    """Mock message in a chat completion choice."""
+
+    def __init__(self, content="Hello!", tool_calls=None):
+        self.content = content
+        self.tool_calls = tool_calls
+
+
+class MockChoice:
+    """Mock choice in a chat completion response."""
+
+    def __init__(self, message=None):
+        self.message = message or MockMessage()
+
+
+class MockOpenAIResponse:
+    """Mock OpenAI response."""
+
+    def __init__(self, model="gpt-4o", usage=None, choices=None):
+        self.model = model
+        self.usage = usage or MockUsage()
+        self.choices = choices or [MockChoice()]
+
+
+class MockCompletions:
+    """Mock completions object."""
+
+    def create(self, **kwargs):
+        return MockOpenAIResponse()
+
+
+class MockChat:
+    """Mock chat object."""
+
+    def __init__(self):
+        self.completions = MockCompletions()
+
+
+class MockOpenAI:
+    """Mock OpenAI client."""
+
+    def __init__(self):
+        self.chat = MockChat()
+        self.base_url = "https://api.openai.com/v1"
+
+
+def main():
+    # Wrap the client — drop-in proxy; call it like a normal OpenAI client
+    client = observe(MockOpenAI(), agent_id="demo-agent")
+    # 1) Normal API request
+    response = client.chat.completions.create(
+        model="gpt-4o",
+        messages=[{"role": "user", "content": "Hello!"}],
+    )
+    print(response.choices[0].message.content)
+    print(client.get_cost())
+    # 2) Kill switch: freeze blocks further calls for the agent
+    freeze("demo-agent")
+    try:
+        client.chat.completions.create(model="gpt-4o", messages=[])
+    except FrozenAgentError as e:
+        print("blocked:", e)
+    # 3) Unfreeze restores normal operation
+    unfreeze("demo-agent")
+    response = client.chat.completions.create(
+        model="gpt-4o",
+        messages=[{"role": "user", "content": "Back online"}],
+    )
+    print(response.choices[0].message.content)
+
+
+if __name__ == "__main__":
+    main()