diff --git a/examples/customer-managed-policies/.header.md b/examples/customer-managed-policies/.header.md
new file mode 100644
index 0000000..060e460
--- /dev/null
+++ b/examples/customer-managed-policies/.header.md
@@ -0,0 +1,40 @@
+This directory contains examples of using the module to create users and groups and assign permissions with **Inline Policies**.
+
+**IMPORTANT:** Ensure that the name of your object matches the name of your principal (e.g. user name or group name). See the following example with object/principal names 'Admin' and 'nuzumaki':
+
+```hcl
+  sso_groups = {
+    Admin : {
+      group_name        = "Admin"
+      group_description = "Admin IAM Identity Center Group"
+    },
+  }
+
+  // Create desired USERS in IAM Identity Center
+  sso_users = {
+    nuzumaki : {
+      group_membership = ["Admin",]
+      user_name        = "nuzumaki"
+      given_name       = "Naruto"
+      family_name      = "Uzumaki"
+      email            = "nuzumaki@hiddenleaf.village"
+    },
+  }
+
+```
+
+These names are referenced throughout the module. Failure to do this may lead to unintentional errors such as the following:
+
+```
+Error: Invalid index
+│
+│   on ../../main.tf line 141, in resource "aws_identitystore_group_membership" "sso_group_membership":
+│  141:   member_id = (contains(local.this_users, each.value.user_name) ? aws_identitystore_user.sso_users[each.value.user_name].user_id : data.aws_identitystore_user.existing_sso_users[each.value.user_name].id)
+│     ├────────────────
+│     │ aws_identitystore_user.sso_users is object with 2 attributes
+│     │ each.value.user_name is "nuzumaki"
+│
+│ The given key does not identify an element in this collection value.
+```
+
+To resolve this, ensure your object and principal names are the same and re-run `terraform plan` and `terraform apply`.
diff --git a/examples/customer-managed-policies/README.md b/examples/customer-managed-policies/README.md
new file mode 100644
index 0000000..8ff95ca
--- /dev/null
+++ b/examples/customer-managed-policies/README.md
@@ -0,0 +1,72 @@
+<!-- BEGIN_TF_DOCS -->
+This directory contains examples of using the module to create users and groups and assign permissions with **Inline Policies**.
+
+**IMPORTANT:** Ensure that the name of your object matches the name of your principal (e.g. user name or group name). See the following example with object/principal names 'Admin' and 'nuzumaki':
+
+```hcl
+  sso_groups = {
+    Admin : {
+      group_name        = "Admin"
+      group_description = "Admin IAM Identity Center Group"
+    },
+  }
+
+  // Create desired USERS in IAM Identity Center
+  sso_users = {
+    nuzumaki : {
+      group_membership = ["Admin",]
+      user_name        = "nuzumaki"
+      given_name       = "Naruto"
+      family_name      = "Uzumaki"
+      email            = "nuzumaki@hiddenleaf.village"
+    },
+  }
+
+```
+
+These names are referenced throughout the module. Failure to do this may lead to unintentional errors such as the following:
+
+```
+Error: Invalid index
+│
+│   on ../../main.tf line 141, in resource "aws_identitystore_group_membership" "sso_group_membership":
+│  141:   member_id = (contains(local.this_users, each.value.user_name) ? aws_identitystore_user.sso_users[each.value.user_name].user_id : data.aws_identitystore_user.existing_sso_users[each.value.user_name].id)
+│     ├────────────────
+│     │ aws_identitystore_user.sso_users is object with 2 attributes
+│     │ each.value.user_name is "nuzumaki"
+│
+│ The given key does not identify an element in this collection value.
+```
+
+To resolve this, ensure your object and principal names are the same and re-run `terraform plan` and `terraform apply`.
+
+## Requirements
+
+No requirements.
+
+## Providers
+
+| Name | Version |
+|------|---------|
+| <a name="provider_aws"></a> [aws](#provider\_aws) | n/a |
+
+## Modules
+
+| Name | Source | Version |
+|------|--------|---------|
+| <a name="module_aws-iam-identity-center"></a> [aws-iam-identity-center](#module\_aws-iam-identity-center) | ../.. | n/a |
+
+## Resources
+
+| Name | Type |
+|------|------|
+| [aws_organizations_organization.org](https://registry.terraform.io/providers/hashicorp/aws/latest/docs/data-sources/organizations_organization) | data source |
+
+## Inputs
+
+No inputs.
+
+## Outputs
+
+No outputs.
+<!-- END_TF_DOCS -->
\ No newline at end of file
diff --git a/examples/customer-managed-policies/locals.tf b/examples/customer-managed-policies/locals.tf
new file mode 100644
index 0000000..922f5e9
--- /dev/null
+++ b/examples/customer-managed-policies/locals.tf
@@ -0,0 +1,14 @@
+# Fetch Account Id from SSM Parameter Store
+data "aws_ssm_parameter" "account1_account_id" {
+  name = "tf-aws-iam-idc-module-testing-account1-account-id" // replace with your SSM Parameter Key
+}
+
+locals {
+  # Account IDs
+  account1_account_id = nonsensitive(data.aws_ssm_parameter.account1_account_id.value)
+  # account1_account_id = "111111111111"
+  # account2_account_id = "222222222222"
+  # account3_account_id = "333333333333"
+  # account4_account_id = "444444444444"
+
+}
diff --git a/examples/customer-managed-policies/main.tf b/examples/customer-managed-policies/main.tf
new file mode 100644
index 0000000..49802ab
--- /dev/null
+++ b/examples/customer-managed-policies/main.tf
@@ -0,0 +1,112 @@
+data "aws_organizations_organization" "org" {}
+
+module "aws-iam-identity-center" {
+  source = "../.." // local example
+  # source = "aws-ia/iam-identity-center/aws" // remote example
+
+  existing_sso_groups = {
+    AWSControlTowerAdmins : {
+      group_name = "AWSControlTowerAdmins" # this must be the name of a sso group that already exists in your AWS account
+    }
+  }
+
+  sso_groups = {
+    Admin : {
+      group_name        = "Admin"
+      group_description = "Admin Group"
+    },
+    Dev : {
+      group_name        = "Dev"
+      group_description = "Dev Group"
+    },
+  }
+  sso_users = {
+    nuzumaki : {
+      group_membership = ["Admin", "Dev", "AWSControlTowerAdmins"]
+      user_name        = "nuzumaki"
+      given_name       = "Naruto"
+      family_name      = "Uzumaki"
+      email            = "nuzumaki@hiddenleaf.village"
+    },
+    suchiha : {
+      group_membership = ["Dev", "AWSControlTowerAdmins"]
+      user_name        = "suchiha"
+      given_name       = "Sasuke"
+      family_name      = "Uchiha"
+      email            = "suchiha@hiddenleaf.village"
+    },
+  }
+
+  existing_permission_sets = {
+    AWSAdministratorAccess : {
+      permission_set_name = "AWSAdministratorAccess" # this must be the name of a permission set that already exists in your AWS account
+    },
+  }
+
+  permission_sets = {
+    AdministratorAccess = {
+      description          = "Provides full access to AWS services and resources",
+      session_duration     = "PT3H",
+      aws_managed_policies = ["arn:aws:iam::aws:policy/AdministratorAccess"]
+
+      customer_managed_policies = [
+        "MyExampleOrgAdminAccess",
+      ]
+
+      tags = { ManagedBy = "Terraform" }
+    },
+    ViewOnlyAccess = {
+      description          = "This policy grants permissions to view resources and basic metadata across all AWS services",
+      session_duration     = "PT3H",
+      aws_managed_policies = ["arn:aws:iam::aws:policy/job-function/ViewOnlyAccess"]
+      managed_policy_arn   = "arn:aws:iam::aws:policy/job-function/ViewOnlyAccess"
+
+      customer_managed_policies = [
+        {
+          name = "MyExampleOrgViewOnlyAccess"
+          path = "/foo/example/"
+        }
+      ]
+
+      permissions_boundary = {
+        managed_policy_arn = "arn:aws:iam::aws:policy/job-function/ViewOnlyAccess"
+      }
+      tags = { ManagedBy = "Terraform" }
+    },
+  }
+  account_assignments = {
+    Admin : {
+      principal_name = "Admin"
+      principal_type = "GROUP"
+      principal_idp  = "INTERNAL"
+      permission_sets = [
+        "AdministratorAccess",
+        "ViewOnlyAccess",
+        // existing permission set
+        "AWSAdministratorAccess",
+      ]
+      account_ids = [
+        // replace with your own account id
+        local.account1_account_id,
+        # local.account2_account_id
+        # local.account3_account_id
+        # local.account4_account_id
+      ]
+    },
+    Dev : {
+      principal_name = "Dev"
+      principal_type = "GROUP"
+      principal_idp  = "INTERNAL"
+      permission_sets = [
+        "ViewOnlyAccess",
+      ]
+      account_ids = [
+        // replace with your own account id
+        local.account1_account_id,
+        # local.account2_account_id
+        # local.account3_account_id
+        # local.account4_account_id
+      ]
+    },
+  }
+}
diff --git a/locals.tf b/locals.tf
index d996c3d..0b5575c 100644
--- a/locals.tf
+++ b/locals.tf
@@ -78,8 +78,8 @@ locals {
     for pset_name, pset_index in local.customer_managed_permission_sets : [
       for policy in pset_index.customer_managed_policies : {
         pset_name   = pset_name
-        policy_name = policy
-        # path = path
+        policy_name = try(policy.name, policy)
+        policy_path = try(policy.path, "/")
       } if pset_index.customer_managed_policies != null && can(pset_index.customer_managed_policies)
     ]
   ])
@@ -207,7 +207,7 @@ locals {
   ])
 
   # Creating a local variable by flattening the complex type related to Applications to extract a simple structure representing
-  # app assignments access scopes 
+  # app assignments access scopes
   apps_assignments_access_scopes = flatten([
     for app in var.sso_applications : [
       for ass_acc_scope in app.assignments_access_scope : {
diff --git a/main.tf b/main.tf
index 9fa2617..e88611a 100644
--- a/main.tf
+++ b/main.tf
@@ -191,7 +191,7 @@ resource "aws_ssoadmin_customer_managed_policy_attachment" "pset_customer_manage
   permission_set_arn = aws_ssoadmin_permission_set.pset[each.value.pset_name].arn
   customer_managed_policy_reference {
     name = each.value.policy_name
-    path = "/"
+    path = each.value.policy_path
   }
 
 }
@@ -271,7 +271,7 @@ resource "aws_ssoadmin_application" "sso_apps" {
   tags = each.value.tags
 }
 
-# SSO - Applications Assigments Configuration 
+# SSO - Applications Assigments Configuration
 resource "aws_ssoadmin_application_assignment_configuration" "sso_apps_assignments_configs" {
   for_each = {
     for idx, assignment_config in local.apps_assignments_configs :
@@ -281,7 +281,7 @@ resource "aws_ssoadmin_application_assignment_configuration" "sso_apps_assignmen
   assignment_required = each.value.assignment_required
 }
 
-# SSO - Application Assignments access scope 
+# SSO - Application Assignments access scope
 resource "aws_ssoadmin_application_access_scope" "sso_apps_assignments_access_scope" {
   for_each = {
     for idx, app_access_scope in local.apps_assignments_access_scopes :
@@ -289,20 +289,20 @@ resource "aws_ssoadmin_application_access_scope" "sso_apps_assignments_access_sc
   }
   application_arn = aws_ssoadmin_application.sso_apps[each.value.app_name].application_arn
   authorized_targets = [
-    for target in each.value.authorized_targets : aws_ssoadmin_application.sso_apps[target].application_arn 
+    for target in each.value.authorized_targets : aws_ssoadmin_application.sso_apps[target].application_arn
   ]
   #authorized_targets = each.value.authorized_targets
   scope = each.value.scope
 }
 
-# SSO - Applications Assignments 
+# SSO - Applications Assignments
 # Groups assignments
 resource "aws_ssoadmin_application_assignment" "sso_apps_groups_assignments" {
   for_each = {
     for idx, assignment in local.apps_groups_assignments :
     "${assignment.app_name}-${assignment.group_name}" => assignment
   }
-  application_arn = aws_ssoadmin_application.sso_apps[each.value.app_name].application_arn 
+  application_arn = aws_ssoadmin_application.sso_apps[each.value.app_name].application_arn
   principal_id    = (contains(local.this_groups, each.value.group_name) ? aws_identitystore_group.sso_groups[each.value.group_name].group_id : data.aws_identitystore_group.existing_sso_groups[each.value.group_name].group_id)
   principal_type  = each.value.principal_type
 }
@@ -313,22 +313,22 @@ resource "aws_ssoadmin_application_assignment" "sso_apps_users_assignments" {
     for idx, assignment in local.apps_users_assignments :
     "${assignment.app_name}-${assignment.user_name}" => assignment
   }
-  application_arn = aws_ssoadmin_application.sso_apps[each.value.app_name].application_arn 
+  application_arn = aws_ssoadmin_application.sso_apps[each.value.app_name].application_arn
   principal_id    = (contains(local.this_users, each.value.user_name) ? aws_identitystore_user.sso_users[each.value.user_name].user_id : data.aws_identitystore_user.existing_sso_users[each.value.user_name].user_id)
   principal_type  = each.value.principal_type
 }
 
 # SSO Instance Access Control Attributes
-resource  "aws_ssoadmin_instance_access_control_attributes" "sso_access_control_attributes" {
-  count = length(var.sso_instance_access_control_attributes) <= 0 ? 0 : 1
+resource "aws_ssoadmin_instance_access_control_attributes" "sso_access_control_attributes" {
+  count        = length(var.sso_instance_access_control_attributes) <= 0 ? 0 : 1
   instance_arn = local.ssoadmin_instance_arn
   dynamic "attribute" {
     for_each = var.sso_instance_access_control_attributes
     content {
-      key   = attribute.key
+      key = attribute.key
       value {
         source = attribute.value.source
       }
     }
   }
-}
\ No newline at end of file
+}
diff --git a/tests/08_customer_managed_policies.tftest.hcl b/tests/08_customer_managed_policies.tftest.hcl
new file mode 100644
index 0000000..5b55cf4
--- /dev/null
+++ b/tests/08_customer_managed_policies.tftest.hcl
@@ -0,0 +1,13 @@
+run "unit_test" {
+  command = plan
+  module {
+    source = "./examples/customer-managed-policies"
+  }
+}
+
+run "e2e_test" {
+  command = apply
+  module {
+    source = "./examples/customer-managed-policies"
+  }
+}
diff --git a/variables.tf b/variables.tf
index 5fa4a95..662651d 100644
--- a/variables.tf
+++ b/variables.tf
@@ -151,7 +151,7 @@ variable "sso_instance_access_control_attributes" {
   description = "List of attributes for access control. This is used to create the enable and use attributes for access control."
   type = list(object({
     attribute_name = string
-    source = set(string)
+    source         = set(string)
   }))
   default = []
   validation {
@@ -166,7 +166,7 @@ variable "sso_instance_access_control_attributes" {
     condition = alltrue([
       for attr in var.sso_instance_access_control_attributes :
       attr.source != null &&
-      length(attr.source) > 0 &&  # checks if the set is not empty
+      length(attr.source) > 0 &&                # checks if the set is not empty
       alltrue([for s in attr.source : s != ""]) # checks no empty strings in set
     ])
     error_message = "The attribute source is mandatory and must contain non-empty strings."