diff --git a/pytest.ini b/pytest.ini
new file mode 100644
index 0000000..46a2ec7
--- /dev/null
+++ b/pytest.ini
@@ -0,0 +1,21 @@
+[pytest]
+testpaths = tests
+python_files = test_*.py
+python_classes = Test*
+python_functions = test_*
+addopts = 
+    --cov=.
+    --cov-report=term-missing
+    --cov-report=html
+    -v
+    --doctest-modules
+    --strict-markers
+
+markers =
+    unit: marks unit tests
+    integration: marks integration tests
+    slow: marks slow tests
+
+filterwarnings =
+    ignore::DeprecationWarning
+    ignore::UserWarning
\ No newline at end of file
diff --git a/requirements.txt b/requirements.txt
index ae5b535..add60fd 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -56,3 +56,6 @@ Werkzeug==1.0.1
 wrapt==1.12.1
 xlrd==1.2.0
 XlsxWriter==1.2.8
+# Test dependencies
+pytest
+pytest-cov
\ No newline at end of file
diff --git a/tests/conftest.py b/tests/conftest.py
new file mode 100644
index 0000000..8b831f6
--- /dev/null
+++ b/tests/conftest.py
@@ -0,0 +1,26 @@
+import os
+import sys
+import pytest
+
+# Add project root to Python path
+sys.path.insert(0, os.path.abspath(os.path.join(os.path.dirname(__file__), '..')))
+
+def pytest_configure(config):
+    """
+    Configure pytest settings and add custom markers
+    """
+    config.addinivalue_line(
+        "markers", 
+        "unit: mark a test as a unit test"
+    )
+    config.addinivalue_line(
+        "markers", 
+        "integration: mark a test as an integration test"
+    )
+
+@pytest.fixture(scope='session')
+def project_root():
+    """
+    Fixture to provide the project root directory path
+    """
+    return os.path.abspath(os.path.join(os.path.dirname(__file__), '..'))
\ No newline at end of file
diff --git a/tests/test_basic_config.py b/tests/test_basic_config.py
new file mode 100644
index 0000000..8769ae6
--- /dev/null
+++ b/tests/test_basic_config.py
@@ -0,0 +1,16 @@
+import os
+import pytest
+
+def test_project_structure(project_root):
+    """
+    Verify basic project configuration
+    """
+    assert os.path.exists(project_root), "Project root directory should exist"
+    assert os.path.exists(os.path.join(project_root, 'app.py')), "Main application file should exist"
+
+@pytest.mark.unit
+def test_pytest_markers():
+    """
+    Ensure pytest can recognize custom markers
+    """
+    assert True, "Unit marker test should pass"
\ No newline at end of file