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new file mode 100644
index 0000000..b9e85e9
--- /dev/null
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+develop-eggs/
+dist/
+downloads/
+eggs/
+.eggs/
+lib/
+lib64/
+parts/
+sdist/
+var/
+wheels/
+share/python-wheels/
+*.egg-info/
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+*.egg
+MANIFEST
+
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+*.manifest
+*.spec
+
+# Installer logs
+pip-log.txt
+pip-delete-this-directory.txt
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+.tox/
+.nox/
+.coverage
+.coverage.*
+.cache
+nosetests.xml
+coverage.xml
+*.cover
+*.py,cover
+.hypothesis/
+.pytest_cache/
+cover/
+
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+*.pot
+
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+local_settings.py
+db.sqlite3
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+
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+
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+
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+
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+
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+
+# pyenv
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+
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+
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+
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+.pdm-python
+__pypackages__/
+
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+
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+
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+venv.bak/
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+
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+
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+
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+
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+
+# pytype static type analyzer
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+
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+
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+
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+
+# Claude
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+!.claude/CLAUDE.md
+
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+Thumbs.db
+
+# Docker
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+
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+*.temp
+*.swp
+*.swo
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+
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+*.pkl
+*.pickle
+*.joblib
+*.model
+*.pth
+*.pt
+checkpoints/
+logs/
+runs/
+wandb/
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+
+[[package]]
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+optional = false
+python-versions = ">=3.9"
+groups = ["dev"]
+files = [
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+[package.extras]
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+testing = ["coverage", "pytest", "pytest-benchmark"]
+
+[[package]]
+name = "pytest"
+version = "7.4.4"
+description = "pytest: simple powerful testing with Python"
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+python-versions = ">=3.7"
+groups = ["dev"]
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+iniconfig = "*"
+packaging = "*"
+pluggy = ">=0.12,<2.0"
+tomli = {version = ">=1.0.0", markers = "python_version < \"3.11\""}
+
+[package.extras]
+testing = ["argcomplete", "attrs (>=19.2.0)", "hypothesis (>=3.56)", "mock", "nose", "pygments (>=2.7.2)", "requests", "setuptools", "xmlschema"]
+
+[[package]]
+name = "pytest-cov"
+version = "4.1.0"
+description = "Pytest plugin for measuring coverage."
+optional = false
+python-versions = ">=3.7"
+groups = ["dev"]
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+]
+
+[package.dependencies]
+coverage = {version = ">=5.2.1", extras = ["toml"]}
+pytest = ">=4.6"
+
+[package.extras]
+testing = ["fields", "hunter", "process-tests", "pytest-xdist", "six", "virtualenv"]
+
+[[package]]
+name = "pytest-mock"
+version = "3.14.1"
+description = "Thin-wrapper around the mock package for easier use with pytest"
+optional = false
+python-versions = ">=3.8"
+groups = ["dev"]
+files = [
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+
+[package.dependencies]
+pytest = ">=6.2.5"
+
+[package.extras]
+dev = ["pre-commit", "pytest-asyncio", "tox"]
+
+[[package]]
+name = "tomli"
+version = "2.2.1"
+description = "A lil' TOML parser"
+optional = false
+python-versions = ">=3.8"
+groups = ["dev"]
+markers = "python_full_version <= \"3.11.0a6\""
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+]
+
+[[package]]
+name = "typing-extensions"
+version = "4.14.0"
+description = "Backported and Experimental Type Hints for Python 3.9+"
+optional = false
+python-versions = ">=3.9"
+groups = ["dev"]
+markers = "python_version < \"3.11\""
+files = [
+    {file = "typing_extensions-4.14.0-py3-none-any.whl", hash = "sha256:a1514509136dd0b477638fc68d6a91497af5076466ad0fa6c338e44e359944af"},
+    {file = "typing_extensions-4.14.0.tar.gz", hash = "sha256:8676b788e32f02ab42d9e7c61324048ae4c6d844a399eebace3d4979d75ceef4"},
+]
+
+[metadata]
+lock-version = "2.1"
+python-versions = "^3.9"
+content-hash = "93b6d831551a0cfe8146a1691217b1fab1aeb499bb45ad94e33f41ed22c0fe27"
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 0000000..f8fd1da
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,97 @@
+[tool.poetry]
+name = "bmw-labeltool-lite"
+version = "0.1.0"
+description = "Training and Inference Engine"
+authors = ["BMW InnovationLab"]
+readme = "README.md"
+packages = [
+    { include = "docker_sdk_api" },
+    { include = "inference_api" },
+    { include = "training_api" }
+]
+
+[tool.poetry.dependencies]
+python = "^3.9"
+
+[tool.poetry.group.dev.dependencies]
+pytest = "^7.4.4"
+pytest-cov = "^4.1.0"
+pytest-mock = "^3.12.0"
+
+[tool.poetry.scripts]
+test = "pytest:main"
+tests = "pytest:main"
+
+[tool.pytest.ini_options]
+minversion = "6.0"
+addopts = [
+    "-ra",
+    "-q",
+    "--strict-markers",
+    "--strict-config",
+    "--cov=docker_sdk_api",
+    "--cov=inference_api", 
+    "--cov=training_api",
+    "--cov-branch",
+    "--cov-report=term-missing:skip-covered",
+    "--cov-report=html:htmlcov",
+    "--cov-report=xml:coverage.xml",
+    "--cov-fail-under=80"
+]
+testpaths = ["tests"]
+python_files = ["test_*.py", "*_test.py"]
+python_classes = ["Test*"]
+python_functions = ["test_*"]
+markers = [
+    "unit: marks tests as unit tests (fast, isolated)",
+    "integration: marks tests as integration tests (may require external resources)",
+    "slow: marks tests as slow (deselect with '-m \"not slow\"')"
+]
+filterwarnings = [
+    "error",
+    "ignore::UserWarning",
+    "ignore::DeprecationWarning"
+]
+
+[tool.coverage.run]
+source = ["docker_sdk_api", "inference_api", "training_api"]
+omit = [
+    "*/tests/*",
+    "*/test_*",
+    "*/__pycache__/*",
+    "*/site-packages/*",
+    "*/distutils/*",
+    "*/venv/*",
+    "*/.venv/*",
+    "*/migrations/*",
+    "*/config/*",
+    "*/setup.py"
+]
+
+[tool.coverage.report]
+precision = 2
+show_missing = true
+skip_covered = true
+exclude_lines = [
+    "pragma: no cover",
+    "def __repr__",
+    "if self.debug:",
+    "if settings.DEBUG",
+    "raise AssertionError",
+    "raise NotImplementedError",
+    "if 0:",
+    "if __name__ == .__main__.:",
+    "if TYPE_CHECKING:",
+    "class .*\\bProtocol\\):",
+    "@(abc\\.)?abstractmethod"
+]
+
+[tool.coverage.html]
+directory = "htmlcov"
+
+[tool.coverage.xml]
+output = "coverage.xml"
+
+[build-system]
+requires = ["poetry-core"]
+build-backend = "poetry.core.masonry.api"
\ No newline at end of file
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/conftest.py b/tests/conftest.py
new file mode 100644
index 0000000..9b007ad
--- /dev/null
+++ b/tests/conftest.py
@@ -0,0 +1,184 @@
+"""Shared pytest fixtures and configuration for all tests."""
+
+import os
+import shutil
+import tempfile
+from pathlib import Path
+from typing import Generator, Dict, Any
+
+import pytest
+from unittest.mock import Mock, MagicMock
+
+
+@pytest.fixture
+def temp_dir() -> Generator[Path, None, None]:
+    """Create a temporary directory for test files."""
+    temp_path = tempfile.mkdtemp()
+    yield Path(temp_path)
+    shutil.rmtree(temp_path, ignore_errors=True)
+
+
+@pytest.fixture
+def mock_config() -> Dict[str, Any]:
+    """Provide a mock configuration dictionary."""
+    return {
+        "api_version": "v1",
+        "host": "localhost",
+        "port": 8080,
+        "debug": True,
+        "log_level": "DEBUG",
+        "database": {
+            "host": "localhost",
+            "port": 5432,
+            "name": "test_db",
+            "user": "test_user",
+            "password": "test_password"
+        },
+        "redis": {
+            "host": "localhost",
+            "port": 6379,
+            "db": 0
+        },
+        "model_config": {
+            "batch_size": 32,
+            "epochs": 10,
+            "learning_rate": 0.001
+        }
+    }
+
+
+@pytest.fixture
+def mock_logger() -> Mock:
+    """Provide a mock logger."""
+    logger = Mock()
+    logger.debug = Mock()
+    logger.info = Mock()
+    logger.warning = Mock()
+    logger.error = Mock()
+    logger.exception = Mock()
+    return logger
+
+
+@pytest.fixture
+def sample_image_path(temp_dir: Path) -> Path:
+    """Create a sample image file path."""
+    image_path = temp_dir / "sample_image.jpg"
+    image_path.write_bytes(b"fake image content")
+    return image_path
+
+
+@pytest.fixture
+def sample_model_path(temp_dir: Path) -> Path:
+    """Create a sample model file path."""
+    model_path = temp_dir / "sample_model.h5"
+    model_path.write_bytes(b"fake model content")
+    return model_path
+
+
+@pytest.fixture
+def mock_request() -> Mock:
+    """Provide a mock HTTP request object."""
+    request = Mock()
+    request.method = "GET"
+    request.path = "/api/v1/test"
+    request.headers = {"Content-Type": "application/json"}
+    request.json = Mock(return_value={})
+    request.args = {}
+    request.files = {}
+    return request
+
+
+@pytest.fixture
+def mock_response() -> Mock:
+    """Provide a mock HTTP response object."""
+    response = Mock()
+    response.status_code = 200
+    response.json = Mock(return_value={})
+    response.text = ""
+    return response
+
+
+@pytest.fixture
+def sample_training_data() -> Dict[str, Any]:
+    """Provide sample training data structure."""
+    return {
+        "dataset_name": "test_dataset",
+        "images": [
+            {"id": 1, "path": "/data/image1.jpg", "label": "cat"},
+            {"id": 2, "path": "/data/image2.jpg", "label": "dog"}
+        ],
+        "labels": ["cat", "dog", "bird"],
+        "split_ratio": {"train": 0.8, "val": 0.1, "test": 0.1}
+    }
+
+
+@pytest.fixture
+def sample_inference_data() -> Dict[str, Any]:
+    """Provide sample inference data structure."""
+    return {
+        "image_path": "/data/test_image.jpg",
+        "model_name": "test_model",
+        "confidence_threshold": 0.5,
+        "max_detections": 10
+    }
+
+
+@pytest.fixture
+def mock_docker_client() -> Mock:
+    """Provide a mock Docker client."""
+    client = Mock()
+    client.containers = Mock()
+    client.images = Mock()
+    client.networks = Mock()
+    client.volumes = Mock()
+    return client
+
+
+@pytest.fixture(autouse=True)
+def reset_environment():
+    """Reset environment variables before each test."""
+    original_env = os.environ.copy()
+    yield
+    os.environ.clear()
+    os.environ.update(original_env)
+
+
+@pytest.fixture
+def mock_database_connection() -> Mock:
+    """Provide a mock database connection."""
+    connection = Mock()
+    connection.execute = Mock(return_value=Mock())
+    connection.commit = Mock()
+    connection.rollback = Mock()
+    connection.close = Mock()
+    return connection
+
+
+@pytest.fixture
+def async_mock():
+    """Create an async mock object."""
+    return MagicMock(__aenter__=MagicMock(return_value=None),
+                     __aexit__=MagicMock(return_value=None))
+
+
+@pytest.fixture
+def mock_file_upload() -> Dict[str, Any]:
+    """Provide a mock file upload object."""
+    return {
+        "filename": "test_file.txt",
+        "content_type": "text/plain",
+        "data": b"test file content"
+    }
+
+
+def pytest_configure(config):
+    """Configure pytest with custom settings."""
+    config.addinivalue_line(
+        "markers", "requires_gpu: mark test as requiring GPU"
+    )
+    config.addinivalue_line(
+        "markers", "requires_docker: mark test as requiring Docker"
+    )
+    config.addinivalue_line(
+        "markers", "requires_network: mark test as requiring network access"
+    )
\ No newline at end of file
diff --git a/tests/integration/__init__.py b/tests/integration/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/test_infrastructure_validation.py b/tests/test_infrastructure_validation.py
new file mode 100644
index 0000000..c74f4f0
--- /dev/null
+++ b/tests/test_infrastructure_validation.py
@@ -0,0 +1,106 @@
+"""Validation tests to ensure testing infrastructure is properly set up."""
+
+import os
+from pathlib import Path
+
+import pytest
+
+
+class TestInfrastructureValidation:
+    """Validate that the testing infrastructure is properly configured."""
+
+    def test_pytest_installed(self):
+        """Verify pytest is available."""
+        assert pytest.__version__
+
+    def test_project_structure_exists(self):
+        """Verify required project directories exist."""
+        workspace_root = Path("/workspace")
+        assert workspace_root.exists()
+        assert (workspace_root / "tests").exists()
+        assert (workspace_root / "tests" / "unit").exists()
+        assert (workspace_root / "tests" / "integration").exists()
+
+    def test_conftest_exists(self):
+        """Verify conftest.py exists with fixtures."""
+        conftest_path = Path("/workspace/tests/conftest.py")
+        assert conftest_path.exists()
+        assert conftest_path.stat().st_size > 0
+
+    def test_pyproject_toml_exists(self):
+        """Verify pyproject.toml exists with proper configuration."""
+        pyproject_path = Path("/workspace/pyproject.toml")
+        assert pyproject_path.exists()
+        
+        content = pyproject_path.read_text()
+        assert "[tool.poetry]" in content
+        assert "[tool.pytest.ini_options]" in content
+        assert "[tool.coverage.run]" in content
+
+    @pytest.mark.unit
+    def test_unit_marker(self):
+        """Verify unit test marker works."""
+        assert True
+
+    @pytest.mark.integration
+    def test_integration_marker(self):
+        """Verify integration test marker works."""
+        assert True
+
+    @pytest.mark.slow
+    def test_slow_marker(self):
+        """Verify slow test marker works."""
+        assert True
+
+    def test_fixtures_available(self, temp_dir, mock_config, mock_logger):
+        """Verify custom fixtures are available and working."""
+        assert temp_dir.exists()
+        assert isinstance(temp_dir, Path)
+        
+        assert isinstance(mock_config, dict)
+        assert "api_version" in mock_config
+        
+        assert hasattr(mock_logger, "info")
+        assert hasattr(mock_logger, "error")
+
+    def test_sample_data_fixtures(self, sample_training_data, sample_inference_data):
+        """Verify data fixtures provide expected structure."""
+        assert "dataset_name" in sample_training_data
+        assert "images" in sample_training_data
+        assert len(sample_training_data["images"]) > 0
+        
+        assert "image_path" in sample_inference_data
+        assert "model_name" in sample_inference_data
+
+    def test_mock_fixtures(self, mock_request, mock_response, mock_docker_client):
+        """Verify mock fixtures are properly configured."""
+        assert mock_request.method == "GET"
+        assert mock_response.status_code == 200
+        assert hasattr(mock_docker_client, "containers")
+
+    def test_file_fixtures(self, sample_image_path, sample_model_path):
+        """Verify file fixtures create actual files."""
+        assert sample_image_path.exists()
+        assert sample_image_path.suffix == ".jpg"
+        
+        assert sample_model_path.exists()
+        assert sample_model_path.suffix == ".h5"
+
+    def test_coverage_configuration(self):
+        """Verify coverage is properly configured."""
+        pyproject_path = Path("/workspace/pyproject.toml")
+        content = pyproject_path.read_text()
+        
+        assert "--cov=docker_sdk_api" in content
+        assert "--cov=inference_api" in content
+        assert "--cov=training_api" in content
+        assert "--cov-fail-under=80" in content
+
+    def test_scripts_configured(self):
+        """Verify poetry scripts are configured."""
+        pyproject_path = Path("/workspace/pyproject.toml")
+        content = pyproject_path.read_text()
+        
+        assert "[tool.poetry.scripts]" in content
+        assert 'test = "pytest:main"' in content
+        assert 'tests = "pytest:main"' in content
\ No newline at end of file
diff --git a/tests/unit/__init__.py b/tests/unit/__init__.py
new file mode 100644
index 0000000..e69de29