diff --git a/.cursorrules b/.cursorrules
new file mode 100644
index 0000000..af1fbe6
--- /dev/null
+++ b/.cursorrules
@@ -0,0 +1,20 @@
+# Project Rules
+
+## Testing Policy
+- **Mandatory Tests**: All new features and bug fixes must be accompanied by tests.
+- **Unit/Integration Tests**: Use **Vitest** for testing utilities, hooks, and components.
+- **E2E Tests**: Use **Playwright** for critical user flows (auth, core features).
+- **Coverage**: Aim for high coverage on business logic and critical paths.
+
+## Tech Stack
+- **Framework**: Next.js 15 (App Router)
+- **Language**: TypeScript
+- **Styling**: Tailwind CSS
+- **Database**: PostgreSQL with Drizzle ORM
+- **State Management**: React Query
+
+## Code Style
+- **Functional Components**: Use arrow functions for components.
+- **Types**: strict TypeScript usage (avoid `any`).
+- **Imports**: Use absolute imports (`@/...`).
+
diff --git a/.gitignore b/.gitignore
index dce92ca..eaed81d 100644
--- a/.gitignore
+++ b/.gitignore
@@ -36,3 +36,7 @@ yarn-error.log*
 next-env.d.ts
 
 .turbo/
+
+playwright-report/
+
+test-results/
diff --git a/app/dashboard/page.test.tsx b/app/dashboard/page.test.tsx
new file mode 100644
index 0000000..9bce6a0
--- /dev/null
+++ b/app/dashboard/page.test.tsx
@@ -0,0 +1,120 @@
+import { render, screen, fireEvent, waitFor } from '@testing-library/react';
+import { describe, it, expect, vi, beforeEach } from 'vitest';
+import Dashboard from './page';
+import { QueryClient, QueryClientProvider } from '@tanstack/react-query';
+
+// Mock next/navigation
+vi.mock('next/navigation', () => ({
+  useRouter: () => ({
+    push: vi.fn(),
+  }),
+}));
+
+// Mock ResizeObserver
+global.ResizeObserver = class ResizeObserver {
+  observe() {}
+  unobserve() {}
+  disconnect() {}
+};
+
+// Mock fetch
+global.fetch = vi.fn();
+
+const createTestQueryClient = () => new QueryClient({
+  defaultOptions: {
+    queries: {
+      retry: false,
+    },
+  },
+});
+
+describe('Dashboard', () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+    
+    // Mock Auth Response
+    (global.fetch as any).mockImplementation((url: string) => {
+      if (url === '/api/auth') {
+        return Promise.resolve({
+          json: () => Promise.resolve({ authenticated: true, token: 'test-token' }),
+        });
+      }
+      if (url === '/api/habits') {
+        return Promise.resolve({
+          ok: true,
+          json: () => Promise.resolve({
+            habits: [
+              {
+                id: 1,
+                name: 'Test Habit',
+                type: 'neutral',
+                totalLogs: 5,
+                logsLastWeek: 2,
+                logsLastMonth: 5,
+                createdAt: new Date().toISOString(),
+                lastLoggedAt: new Date().toISOString(),
+              }
+            ]
+          }),
+        });
+      }
+      return Promise.resolve({ ok: true, json: () => Promise.resolve({}) });
+    });
+  });
+
+  it('renders habits correctly', async () => {
+    render(
+      <QueryClientProvider client={createTestQueryClient()}>
+        <Dashboard />
+      </QueryClientProvider>
+    );
+
+    await waitFor(() => {
+      expect(screen.getByText('Test Habit')).toBeInTheDocument();
+    });
+  });
+
+  it('opens edit dialog when edit button is clicked', async () => {
+    render(
+      <QueryClientProvider client={createTestQueryClient()}>
+        <Dashboard />
+      </QueryClientProvider>
+    );
+
+    await waitFor(() => {
+      expect(screen.getByText('Test Habit')).toBeInTheDocument();
+    });
+
+    const editBtn = screen.getByTestId('edit-habit-1');
+    fireEvent.click(editBtn);
+
+    await waitFor(() => {
+      expect(screen.getByRole('dialog')).toBeInTheDocument();
+      expect(screen.getByText('Edit Habit')).toBeInTheDocument();
+      expect(screen.getByDisplayValue('Test Habit')).toBeInTheDocument();
+    });
+  });
+
+  it('opens archive confirmation when archive button is clicked', async () => {
+    render(
+      <QueryClientProvider client={createTestQueryClient()}>
+        <Dashboard />
+      </QueryClientProvider>
+    );
+
+    await waitFor(() => {
+      expect(screen.getByText('Test Habit')).toBeInTheDocument();
+    });
+
+    // Open Edit Dialog
+    fireEvent.click(screen.getByTestId('edit-habit-1'));
+    await waitFor(() => screen.getByRole('dialog'));
+
+    // Click Archive
+    fireEvent.click(screen.getByText('Archive Habit'));
+
+    await waitFor(() => {
+      expect(screen.getByText('Confirm Delete')).toBeInTheDocument();
+    });
+  });
+});
diff --git a/app/dashboard/page.tsx b/app/dashboard/page.tsx
index d66ad68..af42ef5 100644
--- a/app/dashboard/page.tsx
+++ b/app/dashboard/page.tsx
@@ -451,6 +451,7 @@ export default function Dashboard() {
                       size="icon"
                       className="h-8 w-8 opacity-0 transition-opacity group-hover:opacity-100 hover:bg-black/20"
                       onClick={(e) => openEditDialog(e, habit)}
+                      data-testid={`edit-habit-${habit.id}`}
                     >
                       <MoreVertical className="h-4 w-4" />
                     </Button>
diff --git a/package.json b/package.json
index 53c7b2f..b77e76f 100644
--- a/package.json
+++ b/package.json
@@ -8,6 +8,9 @@
     "build": "next build",
     "start": "next start",
     "lint": "next typegen && eslint . && npx tsc --noEmit",
+    "test": "vitest",
+    "test:e2e": "playwright test",
+    "test:coverage": "vitest run --coverage",
     "db:generate": "drizzle-kit generate",
     "db:migrate": "drizzle-kit migrate",
     "db:push": "drizzle-kit push",
diff --git a/playwright.config.ts b/playwright.config.ts
new file mode 100644
index 0000000..9e5c8d0
--- /dev/null
+++ b/playwright.config.ts
@@ -0,0 +1,26 @@
+import { defineConfig, devices } from '@playwright/test';
+
+export default defineConfig({
+  testDir: './tests/e2e',
+  fullyParallel: true,
+  forbidOnly: !!process.env.CI,
+  retries: process.env.CI ? 2 : 0,
+  workers: process.env.CI ? 1 : undefined,
+  reporter: 'list',
+  use: {
+    baseURL: 'http://localhost:3000',
+    trace: 'on-first-retry',
+  },
+  projects: [
+    {
+      name: 'chromium',
+      use: { ...devices['Desktop Chrome'] },
+    },
+  ],
+  webServer: {
+    command: 'pnpm dev',
+    url: 'http://localhost:3000',
+    reuseExistingServer: !process.env.CI,
+  },
+});
+
diff --git a/tests/e2e/smoke.spec.ts b/tests/e2e/smoke.spec.ts
new file mode 100644
index 0000000..8daf6ff
--- /dev/null
+++ b/tests/e2e/smoke.spec.ts
@@ -0,0 +1,14 @@
+import { test, expect } from '@playwright/test';
+
+test('landing page loads and has create account button', async ({ page }) => {
+  await page.goto('/');
+  await expect(page.getByRole('heading', { name: 'Track Every Day' })).toBeVisible();
+  await expect(page.getByRole('button', { name: 'Start Tracking Now' })).toBeVisible();
+});
+
+test('can navigate to login input', async ({ page }) => {
+  await page.goto('/');
+  await page.getByRole('button', { name: 'I Have a Token' }).click();
+  await expect(page.getByLabel('Access Token')).toBeVisible();
+});
+
diff --git a/vitest.config.ts b/vitest.config.ts
new file mode 100644
index 0000000..deef3bc
--- /dev/null
+++ b/vitest.config.ts
@@ -0,0 +1,17 @@
+import { defineConfig } from 'vitest/config';
+import react from '@vitejs/plugin-react';
+import path from 'path';
+
+export default defineConfig({
+  plugins: [react()],
+  test: {
+    environment: 'jsdom',
+    globals: true,
+    setupFiles: ['./vitest.setup.ts'],
+    alias: {
+      '@': path.resolve(__dirname, './'),
+    },
+    // Exclude E2E tests from Vitest
+    exclude: ['**/node_modules/**', '**/dist/**', '**/e2e/**', '**/tests/e2e/**'],
+  },
+});
diff --git a/vitest.setup.ts b/vitest.setup.ts
new file mode 100644
index 0000000..adee3c8
--- /dev/null
+++ b/vitest.setup.ts
@@ -0,0 +1,2 @@
+import '@testing-library/jest-dom';
+