diff --git a/tig-challenges/src/knapsack.rs b/tig-challenges/src/knapsack.rs
index 9e8fe49..6968a98 100644
--- a/tig-challenges/src/knapsack.rs
+++ b/tig-challenges/src/knapsack.rs
@@ -195,12 +195,128 @@ impl SubInstance {
 
         // Step 1: Initial solution obtained by greedily selecting items based on value-weight ratio
         let mut selected_items = Vec::with_capacity(difficulty.num_items);
+        let mut unselected_items = Vec::with_capacity(difficulty.num_items);
         let mut total_weight = 0;
+        let mut total_value = 0;
+        let mut is_selected = vec![false; difficulty.num_items];
 
         for &(item, _) in &item_values {
             if total_weight + weights[item] <= max_weight {
                 total_weight += weights[item];
+                total_value += values[item] as i32;
+
+                for &prev_item in &selected_items {
+                    total_value += interaction_values[item][prev_item];
+                }
                 selected_items.push(item);
+                is_selected[item] = true;
+            } else {
+                unselected_items.push(item);
+            }
+        }
+
+        // Step 2: Improvement of solution with Local Search and Tabu-List
+        // Precompute sum of interaction values with each selected item for all items
+        let mut interaction_sum_list = vec![0; difficulty.num_items];
+        for x in 0..difficulty.num_items {
+            interaction_sum_list[x] = values[x] as i32;
+            for &item in &selected_items {
+                interaction_sum_list[x] += interaction_values[x][item];
+            }
+        }
+
+        let mut min_selected_item_values = i32::MAX;
+        for x in 0..difficulty.num_items {
+            if is_selected[x] {
+                min_selected_item_values = min_selected_item_values.min(interaction_sum_list[x]);
+            }
+        }
+
+        // Optimized local search with tabu list
+        let max_iterations = 100;
+        let mut tabu_list = vec![0; difficulty.num_items];
+
+        for _ in 0..max_iterations {
+            let mut best_improvement = 0;
+            let mut best_swap = None;
+
+            for i in 0..unselected_items.len() {
+                let new_item = unselected_items[i];
+                if tabu_list[new_item] > 0 {
+                    continue;
+                }
+
+                let new_item_values_sum = interaction_sum_list[new_item];
+                if new_item_values_sum < best_improvement + min_selected_item_values {
+                    continue;
+                }
+
+                // Compute minimal weight of remove_item required to put new_item
+                let min_weight =
+                    weights[new_item] as i32 - (max_weight as i32 - total_weight as i32);
+                for j in 0..selected_items.len() {
+                    let remove_item = selected_items[j];
+                    if tabu_list[remove_item] > 0 {
+                        continue;
+                    }
+
+                    // Don't check the weight if there is enough remaining capacity
+                    if min_weight > 0 {
+                        // Skip a remove_item if the remaining capacity after removal is insufficient to push a new_item
+                        let removed_item_weight = weights[remove_item] as i32;
+                        if removed_item_weight < min_weight {
+                            continue;
+                        }
+                    }
+
+                    let remove_item_values_sum = interaction_sum_list[remove_item];
+                    let value_diff = new_item_values_sum
+                        - remove_item_values_sum
+                        - interaction_values[new_item][remove_item];
+
+                    if value_diff > best_improvement {
+                        best_improvement = value_diff;
+                        best_swap = Some((i, j));
+                    }
+                }
+            }
+
+            if let Some((unselected_index, selected_index)) = best_swap {
+                let new_item = unselected_items[unselected_index];
+                let remove_item = selected_items[selected_index];
+
+                selected_items.swap_remove(selected_index);
+                unselected_items.swap_remove(unselected_index);
+                selected_items.push(new_item);
+                unselected_items.push(remove_item);
+
+                is_selected[new_item] = true;
+                is_selected[remove_item] = false;
+
+                total_value += best_improvement;
+                total_weight = total_weight + weights[new_item] - weights[remove_item];
+
+                // Update sum of interaction values after swapping items
+                min_selected_item_values = i32::MAX;
+                for x in 0..difficulty.num_items {
+                    interaction_sum_list[x] +=
+                        interaction_values[x][new_item] - interaction_values[x][remove_item];
+                    if is_selected[x] {
+                        min_selected_item_values =
+                            min_selected_item_values.min(interaction_sum_list[x]);
+                    }
+                }
+
+                // Update tabu list
+                tabu_list[new_item] = 3;
+                tabu_list[remove_item] = 3;
+            } else {
+                break; // No improvement found, terminate local search
+            }
+
+            // Decrease tabu counters
+            for t in tabu_list.iter_mut() {
+                *t = if *t > 0 { *t - 1 } else { 0 };
             }
         }