diff --git a/memorystore/valkey/caching/demo/app/main.tf b/memorystore/valkey/caching/demo/app/main.tf
new file mode 100644
index 00000000000..ada2ba4df58
--- /dev/null
+++ b/memorystore/valkey/caching/demo/app/main.tf
@@ -0,0 +1,139 @@
+provider "google" {
+  project = "cloud-memorystore-demos"
+  region  = "us-central1"
+}
+
+data "google_project" "project" {
+  project_id = "cloud-memorystore-demos"
+}
+
+resource "google_compute_network" "app_network" {
+  name = "caching-app-network"
+}
+
+resource "google_compute_firewall" "allow_http" {
+  name    = "caching-app-allow-http-8080"
+  network = google_compute_network.app_network.name
+
+  allow {
+    protocol = "tcp"
+    ports    = ["8080"]
+  }
+
+  source_ranges = ["0.0.0.0/0"]
+
+  depends_on = [google_compute_network.app_network]
+}
+
+resource "google_cloud_run_v2_service" "app" {
+  name     = "caching-app-service"
+  location = "us-central1"
+
+  template {
+    containers {
+      image = "replace" # Will be set at a later time
+
+      env {
+        name  = "VALKEY_HOST"
+        value = module.valkey.discovery_endpoints[0]["address"]
+      }
+
+      env {
+        name  = "VALKEY_PORT"
+        value = module.valkey.discovery_endpoints[0]["port"]
+      }
+
+      env {
+        name  = "DB_URL"
+        value = "jdbc:postgresql://${google_sql_database_instance.postgres.public_ip_address}/${google_sql_database.postgres_db.name}"
+      }
+
+      env {
+        name  = "DB_USERNAME"
+        value = google_sql_user.postgres_user.name
+      }
+
+      env {
+        name  = "DB_PASSWORD"
+        value = google_sql_user.postgres_user.password
+      }
+
+      ports {
+        container_port = 8080
+      }
+    }
+
+    vpc_access {
+      network_interfaces {
+        network = google_compute_network.app_network.name
+        subnetwork = google_compute_network.app_network.name
+        tags = []
+      }
+    }
+  }
+
+  depends_on = [
+    google_compute_network.app_network,
+    module.valkey,
+    google_sql_database_instance.postgres
+  ]
+}
+
+module "valkey" {
+  source         = "terraform-google-modules/memorystore/google//modules/valkey"
+  version        = "12.0"
+
+  instance_id    = "caching-app-valkey-instance"
+  project_id     = data.google_project.project.project_id
+  location       = "us-central1"
+  node_type      = "SHARED_CORE_NANO"
+  shard_count    = 1
+  engine_version = "VALKEY_7_2"
+
+  network = google_compute_network.app_network.name
+
+  service_connection_policies = {
+    caching_valkey_scp = {
+      subnet_names = [google_compute_network.app_network.name]
+    }
+  }
+
+  depends_on = [google_compute_network.app_network]
+}
+
+resource "google_sql_database_instance" "postgres" {
+  name             = "caching-app-postgres-instance"
+  database_version = "POSTGRES_16"
+  region           = "us-central1"
+
+  settings {
+    edition = "ENTERPRISE"
+    tier    = "db-custom-1-3840"
+
+    ip_configuration {
+      ipv4_enabled = true
+
+      authorized_networks {
+        name  = "caching-app-access"
+        value = "0.0.0.0/0"
+      }
+    }
+  }
+
+  depends_on = [google_compute_network.app_network]
+}
+
+resource "google_sql_user" "postgres_user" {
+  name     = "admin"
+  instance = google_sql_database_instance.postgres.name
+  password = "password123" # Set this to the password you want to use for the user
+
+  depends_on = [google_sql_database_instance.postgres]
+}
+
+resource "google_sql_database" "postgres_db" {
+  name     = "caching-app-db"
+  instance = google_sql_database_instance.postgres.name
+
+  depends_on = [google_sql_database_instance.postgres]
+}
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