diff --git a/.gitignore b/.gitignore
index b81c6af..bf9a08a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,3 +1,6 @@
+# Ignore pycache directory
+__pycache__/
+
 # Ignore virtual environment directory
 .venv/
 
@@ -17,4 +20,7 @@ plots/
 
 # Ignore plot file
 *.png
-*.jpg
\ No newline at end of file
+*.jpg
+
+# Ignore everything with delete_me in name
+*delete_me*
\ No newline at end of file
diff --git a/data/embedded_padded/test.pt b/data/embedded_padded/test.pt
new file mode 100644
index 0000000..c806369
Binary files /dev/null and b/data/embedded_padded/test.pt differ
diff --git a/data/embedded_padded/train.pt b/data/embedded_padded/train.pt
new file mode 100644
index 0000000..0a04318
Binary files /dev/null and b/data/embedded_padded/train.pt differ
diff --git a/data/embedded_padded/val.pt b/data/embedded_padded/val.pt
new file mode 100644
index 0000000..2da4843
Binary files /dev/null and b/data/embedded_padded/val.pt differ
diff --git a/data/idx_based_padded/test.pt b/data/idx_based_padded/test.pt
new file mode 100644
index 0000000..91a44cd
Binary files /dev/null and b/data/idx_based_padded/test.pt differ
diff --git a/data/idx_based_padded/train.pt b/data/idx_based_padded/train.pt
new file mode 100644
index 0000000..9e28544
Binary files /dev/null and b/data/idx_based_padded/train.pt differ
diff --git a/data/idx_based_padded/val.pt b/data/idx_based_padded/val.pt
new file mode 100644
index 0000000..c59c227
Binary files /dev/null and b/data/idx_based_padded/val.pt differ
diff --git a/dataset_generator.py b/dataset_generator.py
new file mode 100644
index 0000000..a0f7118
--- /dev/null
+++ b/dataset_generator.py
@@ -0,0 +1,123 @@
+"""
+This file contains the dataset generation and preprocessing.
+"""
+import pandas as pd
+import numpy as np
+from sklearn.model_selection import train_test_split
+from nltk.tokenize import word_tokenize
+import gensim
+import torch
+import os
+
+from HumorDataset import HumorDataset
+
+def get_embedding_idx(model, word):
+    if word in model.wv:
+        return model.wv.key_to_index[word]
+    else:
+        return unk_index
+
+def get_embedding_vector(model, word):
+    if word in model.wv:
+        return model.wv[word]
+    else:
+        return np.zeros(model.vector_size)
+
+def encode_tokens(tokens, vector=False):
+    if vector:
+        return [get_embedding_vector(model_embedding, token) for token in tokens]
+    else:
+        return [get_embedding_idx(model_embedding, token) for token in tokens]
+
+def pad_sequences(sequences, max_len, pad_index):
+    return np.array([np.pad(seq, (0, max_len - len(seq)), mode='constant', constant_values=pad_index) if len(seq) < max_len else seq[:max_len] for seq in sequences])
+
+
+def split_data(X, y, test_size=0.1, val_size=0.1):
+    X_train, X_test, y_train, y_test = train_test_split(X, y, test_size=test_size + val_size, random_state=42)
+    val_split_ratio = val_size / (val_size + test_size)
+    X_test, X_val, y_test, y_val = train_test_split(X_train, y_train, test_size=val_split_ratio, random_state=42)
+
+    ret_dict = {
+        'train': {'X': X_train, 'y': y_train},
+        'test': {'X': X_test, 'y': y_test},
+        'val': {'X': X_val, 'y': y_val}
+    }
+    return ret_dict
+
+def save_data(data_dict, path, prefix, vocab_size=0, emb_dim=None):
+    if not os.path.exists(path):
+        print('Creating directory:', path)
+        os.makedirs(path)
+    print('saving data into:', path)
+    for key, value in data_dict.items():
+        # tansform to Dataset
+        dataset = HumorDataset(value['X'], value['y'], vocab_size, emb_dim)
+        # save dataset
+        torch.save(dataset, path + prefix + key + '.pt')
+    
+if __name__ == "__main__":
+    # Load the data from csv
+    df = pd.read_csv('data/hack.csv')
+    print(df.shape)
+
+    df = df.dropna(subset=['humor_rating'])
+
+    # find median of humor_rating
+    median_rating = df['humor_rating'].median()
+    #print('median and therefore middle of humor_rating:', median_rating)
+
+    df['y'] = df['humor_rating'] > median_rating 
+
+    # transfrom data into dataset
+    X = df['text']
+    y = df['y']
+
+    # Tokenize the data with nltk
+    tokens = [word_tokenize(text.lower()) for text in X]
+
+    vocab_size = len(set([word for sentence in tokens for word in sentence]))
+    print('vocab size:', vocab_size)
+
+    # Pad the sequences 
+    # NOTE: Info comes from data explore notebook: 280 is max length, 
+    # 139 contains 80% and 192 contains 95% of the data
+    max_len = 280
+    padded_indices = pad_sequences(tokens, max_len=max_len, pad_index='<PAD>')
+
+    # split data into train, test, and validation
+    data_dict = split_data(padded_indices, y)
+
+    # TODO: test gloVe embeddings
+    # Embed the data with word2vec
+    model_embedding = gensim.models.Word2Vec(tokens, window=5, min_count=1, workers=4)
+
+    # Add a special token for out-of-vocabulary words
+    model_embedding.wv.add_vector('<UNK>', np.zeros(model_embedding.vector_size))
+    unk_index = model_embedding.wv.key_to_index['<UNK>']
+
+   # Add padding index for padding
+    model_embedding.wv.add_vector('<PAD>', np.zeros(model_embedding.vector_size))
+    pad_index = model_embedding.wv.key_to_index['<PAD>']
+
+
+    data_idx_based = data_dict.copy()
+    vector_based = False
+
+    for key in data_idx_based.keys():
+        data_idx_based[key]['X'] = [encode_tokens(tokens, vector_based) for tokens in data_dict[key]['X']]
+        # print shape of data
+        #print(key, len(data_dict[key]['X']), len(data_dict[key]['y']))
+
+    # save the data
+    save_data(data_idx_based, 'data/idx_based_padded/', '', vocab_size)
+
+    vector_based = True
+    # Encode the tokens
+    for key in data_dict.keys():
+        data_dict[key]['X'] = [encode_tokens(tokens, vector_based) for tokens in data_dict[key]['X']]
+        # print shape of data
+        #print(key, len(data_dict[key]['X']), len(data_dict[key]['y']))
+        
+    # Save the data
+    save_data(data_dict, 'data/embedded_padded/', '', vocab_size, emb_dim=model_embedding.vector_size)