diff --git a/examples/README.md b/examples/README.md
index e95fd3dfe..710f28912 100644
--- a/examples/README.md
+++ b/examples/README.md
@@ -8,6 +8,7 @@ The scripts in this directory provide various examples of using the Confluent Py
 
 - [producer.py](producer.py): Read lines from stdin and send them to a Kafka topic.
 - [consumer.py](consumer.py): Read messages from a Kafka topic.
+- [cooperative_consumer.py](cooperative_consumer.py): Consumer using cooperative incremental rebalancing with `on_assign`, `on_revoke`, and `on_lost` callbacks.
 - [context_manager_example.py](context_manager_example.py): **Demonstrates context manager (`with` statement) usage for Producer, Consumer, and AdminClient** - shows automatic resource cleanup when exiting the `with` block.
 
 ## AsyncIO Examples
diff --git a/examples/cooperative_consumer.py b/examples/cooperative_consumer.py
new file mode 100644
index 000000000..904bbb9d5
--- /dev/null
+++ b/examples/cooperative_consumer.py
@@ -0,0 +1,135 @@
+#!/usr/bin/env python
+#
+# Copyright 2025 Confluent Inc.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+# http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+#
+
+#
+# Example Consumer using cooperative incremental rebalancing.
+#
+# Unlike the eager (default) rebalancing strategy, cooperative rebalancing
+# allows consumers to continue processing messages from partitions that are
+# not being reassigned during a rebalance. Only the partitions that need to
+# move between consumers are revoked and reassigned.
+#
+# Usage:
+#   python cooperative_consumer.py <bootstrap-brokers> <group> <topic1> [<topic2> ..]
+#
+
+import logging
+import sys
+
+from confluent_kafka import Consumer, KafkaException
+
+
+def on_assign(consumer, partitions):
+    """Called when partitions are incrementally assigned to this consumer."""
+    print('Partitions assigned: {}'.format(
+        ['{} [{}]'.format(p.topic, p.partition) for p in partitions]))
+
+
+def on_revoke(consumer, partitions):
+    """Called when partitions are incrementally revoked from this consumer.
+
+    With cooperative rebalancing, only the partitions that are moving to
+    another consumer are revoked. The consumer continues to own and process
+    all other partitions without interruption.
+
+    Commit offsets here for at-least-once delivery semantics.
+    """
+    print('Partitions revoked: {}'.format(
+        ['{} [{}]'.format(p.topic, p.partition) for p in partitions]))
+    try:
+        consumer.commit(asynchronous=False)
+    except KafkaException as e:
+        print('Commit failed during revoke: {}'.format(e))
+
+
+def on_lost(consumer, partitions):
+    """Called when partitions are lost (e.g., session timeout exceeded).
+
+    Unlike revoke, lost partitions cannot be committed because the consumer
+    is no longer part of the group. Use this callback to clean up any
+    partition-specific local state.
+    """
+    print('Partitions lost: {}'.format(
+        ['{} [{}]'.format(p.topic, p.partition) for p in partitions]))
+
+
+if __name__ == '__main__':
+    if len(sys.argv) < 4:
+        sys.stderr.write(
+            'Usage: {} <bootstrap-brokers> <group> <topic1> [<topic2> ..]\n'.format(sys.argv[0]))
+        sys.exit(1)
+
+    broker = sys.argv[1]
+    group = sys.argv[2]
+    topics = sys.argv[3:]
+
+    # Consumer configuration with cooperative-sticky assignor.
+    # See https://github.com/confluentinc/librdkafka/blob/master/CONFIGURATION.md
+    conf = {
+        'bootstrap.servers': broker,
+        'group.id': group,
+        'partition.assignment.strategy': 'cooperative-sticky',
+        'auto.offset.reset': 'earliest',
+        'enable.auto.offset.store': False,
+    }
+
+    # Create logger for consumer (logs will be emitted when poll() is called)
+    logger = logging.getLogger('consumer')
+    logger.setLevel(logging.DEBUG)
+    handler = logging.StreamHandler()
+    handler.setFormatter(logging.Formatter('%(asctime)-15s %(levelname)-8s %(message)s'))
+    logger.addHandler(handler)
+
+    # Create Consumer instance
+    c = Consumer(conf, logger=logger)
+
+    # Subscribe to topics with cooperative rebalance callbacks.
+    # The on_lost callback is important: if you commit on revoke but don't
+    # set on_lost, a lost-partitions event will be routed to on_revoke
+    # which may attempt to commit offsets that the broker will reject.
+    c.subscribe(topics,
+                on_assign=on_assign,
+                on_revoke=on_revoke,
+                on_lost=on_lost)
+
+    # Read messages from Kafka, print to stdout
+    try:
+        while True:
+            msg = c.poll(timeout=1.0)
+            if msg is None:
+                continue
+            if msg.error():
+                raise KafkaException(msg.error())
+            else:
+                sys.stderr.write(
+                    '%% %s [%d] at offset %d with key %s:\n'
+                    % (msg.topic(), msg.partition(), msg.offset(), str(msg.key()))
+                )
+                print(msg.value())
+                # Store the offset associated with msg to a local cache.
+                # Stored offsets are committed to Kafka by a background
+                # thread every 'auto.commit.interval.ms'.
+                # Explicitly storing offsets after processing gives
+                # at-least once semantics.
+                c.store_offsets(msg)
+
+    except KeyboardInterrupt:
+        sys.stderr.write('%% Aborted by user\n')
+
+    finally:
+        # Close down consumer to commit final offsets.
+        c.close()