diff --git a/.vscode/settings.json b/.vscode/settings.json
index 58c9ef4..4361a33 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -4,5 +4,6 @@
         "microbots",
         "ollama",
         "qwen"
-    ]
-}
\ No newline at end of file
+    ],
+    "python.testing.pytestEnabled": true
+}
diff --git a/README.md b/README.md
index 43ec527..3c8f474 100644
--- a/README.md
+++ b/README.md
@@ -4,7 +4,6 @@ MicroBots is a lightweight, extensible AI agent for code comprehension and contr
 into automation pipelines, mounting a target directory with explicit read-only or read/write modes so LLMs can safely
 inspect, refactor, or generate files with least‑privilege access.
 
-
 ```py
 from microbots import WritingBot
 
@@ -35,7 +34,6 @@ This project is currently **under active development**. Features, APIs, and inte
 pip install microbots
 ```
 
-
 ## ✨LLM Support
 
 Azure OpenAI Models - Add the below environment variables in a `.env` file in the root of your application
@@ -43,6 +41,7 @@ Azure OpenAI Models - Add the below environment variables in a `.env` file in th
 ```env
 OPEN_AI_END_POINT=XXXXXXXXXXXXXXXXXXXXXXXXXX
 OPEN_AI_KEY=XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
+AZURE_OPENAI_DEPLOYMENT_NAME=XXXXXXXXXXXXXXXXXXXXXX
 ```
 
 ## 🤖 Bots & Usage Examples
@@ -50,10 +49,8 @@ OPEN_AI_KEY=XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
 Pre-requisite for the below example code of Bots:
 From the root of your application, Create a folder called  `code` inside which clone the repo `https://github.com/swe-agent/test-repo/`. Now run the code
 
-
 ### 📖 ReadingBot
 
-
 ```py
 from microbots import ReadingBot
 
@@ -69,7 +66,6 @@ print(runResult)
 
 The `ReadingBot` will read the files inside `code` folder and will extract information based on specific instructions given to the bot.
 
-
 ### ✍️ WritingBot
 
 Pre-requisite for the example code:
@@ -90,7 +86,61 @@ The `WritingBot` will read and write the files inside `code` folder based on spe
 
 ## ⚙️ How it works
 
-
 ![Overall Architecture Image](./docs/images/overall_architecture.png)
 
-The MicroBots create a containerized environment and mount the specified directory with restricting the permissions to read-only or read/write based on Bot used. It ensures that the AI agents operate within defined boundaries which enhances security and control over code modifications as well as protecting the local environment.
\ No newline at end of file
+The MicroBots create a containerized environment and mount the specified directory with restricting the permissions to read-only or read/write based on Bot used. It ensures that the AI agents operate within defined boundaries which enhances security and control over code modifications as well as protecting the local environment.
+
+## 🛠️ Local Development Setup
+
+**Prerequisites:** Python 3.11+, Docker
+
+**Setup:**
+
+```bash
+git clone https://github.com/microsoft/minions.git
+cd minions
+python -m venv .venv
+source .venv/bin/activate
+pip install -e ".[dev]"
+```
+
+**LLM Provider (choose any combination):**
+
+```env
+# Azure OpenAI
+OPEN_AI_END_POINT=https://your-endpoint.openai.azure.com/openai/v1/
+OPEN_AI_KEY=your-api-key
+AZURE_OPENAI_DEPLOYMENT_NAME=gpt-5
+OPEN_AI_DEPLOYMENT_NAME=gpt-5
+
+# Anthropic
+ANTHROPIC_API_KEY=your-api-key
+ANTHROPIC_END_POINT=https://api.anthropic.com/
+ANTHROPIC_DEPLOYMENT_NAME=claude-3-5-sonnet-20241022
+
+# Ollama (local) - see test/llm/README_OLLAMA_TESTING.md
+LOCAL_MODEL_NAME=qwen2.5-coder:latest
+LOCAL_MODEL_PORT=11434
+```
+
+```env
+# Required for basic tests
+LOCAL_MODEL_NAME=fake_model
+LOCAL_MODEL_PORT=12345
+
+# Required for BrowserBot tests
+BROWSER_USE_LLM_MODEL="gpt-5"
+BROWSER_USE_LLM_TEMPERATURE=1
+AZURE_OPENAI_API_KEY=your-api-key
+AZURE_OPENAI_ENDPOINT=https://your-endpoint.openai.azure.com/
+AZURE_OPENAI_API_VERSION="2025-01-01-preview"
+```
+
+**Run tests:**
+
+```bash
+pytest -m unit                # Fast unit tests (no Docker)
+pytest -m integration         # Integration tests (requires Docker)
+pytest -m "not slow"          # Skip slow tests
+pytest                        # Run all tests
+```
diff --git a/pyproject.toml b/pyproject.toml
index e926116..e64662e 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "setuptools.build_meta"
 
 [project]
 name = "microbots"
-dynamic = ["version", "dependencies"]
+dynamic = ["version", "dependencies", "optional-dependencies"]
 description = "container-based autonomous agent framework"
 readme = "README.md"
 license = { file = "LICENSE" }
@@ -23,6 +23,7 @@ requires-python = ">=3.11"
 
 [tool.setuptools.dynamic]
 dependencies = { file = ["requirements.txt"] }
+optional-dependencies.dev = { file = ["requirements-dev.txt"] }
 
 [tool.setuptools_scm]
 # This tells setuptools-scm to get version from git tags
@@ -32,4 +33,4 @@ where = ["src"]
 
 [project.urls]
 "Source Repo" = "https://github.com/microsoft/minions"
-Issues = "https://github.com/microsoft/minions/issues"
\ No newline at end of file
+Issues = "https://github.com/microsoft/minions/issues"
diff --git a/requirements-dev.txt b/requirements-dev.txt
new file mode 100644
index 0000000..ee4ba01
--- /dev/null
+++ b/requirements-dev.txt
@@ -0,0 +1,2 @@
+pytest
+pytest-asyncio