diff --git a/src/geogenalg/application/generalize_contours.py b/src/geogenalg/application/generalize_contours.py
new file mode 100644
index 0000000..4fd77ca
--- /dev/null
+++ b/src/geogenalg/application/generalize_contours.py
@@ -0,0 +1,110 @@
+#  Copyright (c) 2026 National Land Survey of Finland (Maanmittauslaitos)
+#
+#  This file is part of geogen-algorithms.
+#
+#  SPDX-License-Identifier: MIT
+
+from typing import ClassVar
+
+from cartagen.utils import gaussian_smoothing
+from geopandas import GeoDataFrame
+from pydantic import Field
+
+from geogenalg.application import (
+    BaseAlgorithm,
+    ReferenceDataInformation,
+    supports_identity,
+)
+from geogenalg.continuity import (
+    add_contiguous_lines_information,
+    smooth_linestring_connections,
+)
+from geogenalg.core.geometry import assign_z_from_attribute
+from geogenalg.identity import hash_duplicate_indexes
+from geogenalg.split import split_lines_by_points
+
+SNAP_DISTANCE = 1.0
+
+
+@supports_identity
+class GeneralizeContours(BaseAlgorithm):
+    """Generalize contour line geometries.
+
+    Input should contain LineString geometries representing contours.
+
+    Reference data should contain Point geometries representing
+    positions of slope lines.
+
+    Output is a GeoDataFrame containing generalized contour lines.
+
+    The algorithm does the following steps:
+        1. Filter contours based on elevation interval.
+        2. Split contours at slope reference points to preserve fixed locations.
+        3. Apply Gaussian smoothing to contour geometries.
+        4. Smooth connections between adjacent contour segments.
+        5. Remove short contour lines.
+    """
+
+    interval: float = Field(5, gt=0)
+    """Elevation interval used for contour filtering."""
+    gaussian_filter_strength: float = Field(8, ge=0)
+    """Sigma value used for Gaussian smoothing."""
+    length_threshold: float = Field(200, ge=0)
+    """Minimum length for contour line."""
+    level_attribute: str = Field("elevation_value")
+    """Attribute containing contour elevation values."""
+    reference_key: str = Field("slope")
+    """Reference Point or MultiPoint data key for slope lines."""
+
+    valid_input_geometry_types: ClassVar = {"LineString"}
+
+    reference_data_schema: ClassVar = {
+        "reference_key": ReferenceDataInformation(
+            required=True,
+            valid_geometry_types={"Point"},
+        ),
+    }
+
+    def _execute(
+        self,
+        data: GeoDataFrame,
+        reference_data: dict[str, GeoDataFrame],
+    ) -> GeoDataFrame:
+        gdf = data.copy()
+        reference_gdf = reference_data[self.reference_key]
+        gdf.geometry = gdf.geometry.force_2d()
+
+        # Filter contours by elevation interval
+        gdf = gdf[gdf[self.level_attribute] % self.interval == 0]
+
+        if gdf.empty:
+            return gdf.copy()
+
+        # Split contours at slope line positions
+        gdf = split_lines_by_points(gdf, reference_gdf, SNAP_DISTANCE)
+
+        # Gaussian smoothing
+        gdf.geometry = gdf.geometry.apply(
+            lambda geom: gaussian_smoothing(geom, sigma=self.gaussian_filter_strength)
+        )
+
+        # Smooth line connections
+        gdf = smooth_linestring_connections(gdf)
+
+        # TODO: Handle potentially intersecting contours after smoothing
+
+        # Add information about the total length of the continuous contour
+        gdf = add_contiguous_lines_information(
+            gdf, GeoDataFrame(geometry=[], crs=gdf.crs)
+        )
+
+        # Remove short contours
+        gdf = gdf[gdf["contiguous_length"] >= self.length_threshold]
+
+        gdf = hash_duplicate_indexes(gdf, "contour")
+        gdf = assign_z_from_attribute(gdf, self.level_attribute, overwrite_z=True)
+        return gdf.drop(
+            [column for column in gdf.columns if column not in data.columns], axis=1
+        )
+
+        # TODO: reduce the number of vertices
diff --git a/src/geogenalg/split.py b/src/geogenalg/split.py
index 3186858..f5ef786 100644
--- a/src/geogenalg/split.py
+++ b/src/geogenalg/split.py
@@ -119,4 +119,4 @@ def split_lines_by_points(
         return copy_gdf_as_empty(lines_gdf)
 
     result = combine_gdfs(result_rows, ignore_index=False)
-    return GeoDataFrame(result, crs=lines_gdf.crs)
+    return GeoDataFrame(result, geometry=lines_gdf.geometry.name, crs=lines_gdf.crs)
diff --git a/test/application/test_generalize_contours.py b/test/application/test_generalize_contours.py
new file mode 100644
index 0000000..6708392
--- /dev/null
+++ b/test/application/test_generalize_contours.py
@@ -0,0 +1,53 @@
+#  Copyright (c) 2026 National Land Survey of Finland (Maanmittauslaitos)
+#
+#  This file is part of geogen-algorithms.
+#
+#  SPDX-License-Identifier: MIT
+
+
+from pathlib import Path
+
+from conftest import IntegrationTest
+
+from geogenalg.application.generalize_contours import GeneralizeContours
+from geogenalg.testing import GeoPackagePath
+from geogenalg.utility.dataframe_processing import read_gdf_from_file_and_set_index
+
+UNIQUE_ID_COLUMN = "kmtk_id"
+
+
+def test_generalize_contours(
+    testdata_path: Path,
+    tmp_path: Path,
+) -> None:
+    gpkg = GeoPackagePath(testdata_path / "contours.gpkg")
+
+    slope_data = read_gdf_from_file_and_set_index(
+        testdata_path / "contours.gpkg",
+        UNIQUE_ID_COLUMN,
+        layer="slope_line",
+    )
+
+    slope_path = tmp_path / "slope.gpkg"
+    slope_data.to_file(slope_path, layer="slope")
+
+    IntegrationTest(
+        input_uri=gpkg.to_input("contour"),
+        control_uri=gpkg.to_input("contour_control"),
+        algorithm=GeneralizeContours(
+            interval=5,
+            gaussian_filter_strength=8,
+            length_threshold=200,
+            level_attribute="n60_elevation_value",
+            reference_key="slope",
+        ),
+        unique_id_column=UNIQUE_ID_COLUMN,
+        check_missing_reference=True,
+        reference_uris={
+            "slope": GeoPackagePath(slope_path).to_input("slope"),
+        },
+        assert_function_arguments={
+            "check_less_precise": True,
+        },
+        dummy_data_mandatory_columns=["n60_elevation_value"],
+    ).run()
diff --git a/test/testdata/contours.gpkg b/test/testdata/contours.gpkg
new file mode 100644
index 0000000..0f48bf5
Binary files /dev/null and b/test/testdata/contours.gpkg differ