diff --git a/Makefile b/Makefile
index da5b7f9887..144116d504 100644
--- a/Makefile
+++ b/Makefile
@@ -141,5 +141,8 @@ generate:
 	@echo "Generating CLI code..."
 	$(GENKIT_BINARY) update-sdk
 
+# Create a scratch testing environment to run tests on DBR.
+dbr-scratch:
+	deco env run -i -n azure-prod-ucws -- go test -test.v -run TestSetupDbrRunner github.com/databricks/cli/acceptance -count 1
 
-.PHONY: lint lintfull tidy lintcheck fmt fmtfull test cover showcover build snapshot snapshot-release schema integration integration-short acc-cover acc-showcover docs ws links checks test-update test-update-aws test-update-all generate-validation
+.PHONY: lint lintfull tidy lintcheck fmt fmtfull test cover showcover build snapshot snapshot-release schema integration integration-short acc-cover acc-showcover docs ws links checks test-update test-update-aws test-update-all generate-validation dbr_scratch
diff --git a/acceptance/acceptance_test.go b/acceptance/acceptance_test.go
index 4db5858657..b395cb9b4d 100644
--- a/acceptance/acceptance_test.go
+++ b/acceptance/acceptance_test.go
@@ -466,6 +466,13 @@ func getSkipReason(config *internal.TestConfig, configPath string) string {
 			return fmt.Sprintf("Disabled via RequiresCluster setting in %s (TEST_DEFAULT_CLUSTER_ID is empty)", configPath)
 		}
 
+		if isTruePtr(config.RequiresWorkspaceFilesystem) {
+			isDBR := os.Getenv("DATABRICKS_RUNTIME_VERSION") != ""
+			if !isDBR || !WorkspaceTmpDir {
+				return fmt.Sprintf("Disabled via RequiresWorkspaceFilesystem setting in %s (DATABRICKS_RUNTIME_VERSION=%s, WorkspaceTmpDir=%v)", configPath, os.Getenv("DATABRICKS_RUNTIME_VERSION"), WorkspaceTmpDir)
+			}
+		}
+
 	} else {
 		// Local run
 		if !isTruePtr(config.Local) {
@@ -516,7 +523,7 @@ func runTest(t *testing.T,
 		// If the test is being run on DBR, auth is already configured
 		// by the dbr_runner notebook by reading a token from the notebook context and
 		// setting DATABRICKS_TOKEN and DATABRICKS_HOST environment variables.
-		_, _, tmpDir = workspaceTmpDir(t.Context(), t)
+		tmpDir = workspaceTmpDir(context.Background(), t)
 
 		// Run DBR tests on the workspace file system to mimic usage from
 		// DABs in the workspace.
diff --git a/acceptance/dbr_test.go b/acceptance/dbr_test.go
index ab0aea32ba..6bdd0bd168 100644
--- a/acceptance/dbr_test.go
+++ b/acceptance/dbr_test.go
@@ -1,20 +1,29 @@
 package acceptance_test
 
 import (
+	"bytes"
 	"context"
+	"encoding/json"
+	"errors"
 	"fmt"
+	"os"
+	"path"
+	"path/filepath"
+	"strconv"
 	"testing"
 	"time"
 
+	"github.com/databricks/cli/internal/testarchive"
 	"github.com/databricks/cli/libs/filer"
 	"github.com/databricks/databricks-sdk-go"
+	"github.com/databricks/databricks-sdk-go/apierr"
 	"github.com/databricks/databricks-sdk-go/service/workspace"
 	"github.com/google/uuid"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 )
 
-func workspaceTmpDir(ctx context.Context, t *testing.T) (*databricks.WorkspaceClient, filer.Filer, string) {
+func workspaceTmpDir(ctx context.Context, t *testing.T) string {
 	w, err := databricks.NewWorkspaceClient()
 	require.NoError(t, err)
 
@@ -29,19 +38,128 @@ func workspaceTmpDir(ctx context.Context, t *testing.T) (*databricks.WorkspaceCl
 		uuid.New().String(),
 	)
 
+	// Create the directory using os.MkdirAll (via FUSE)
+	err = os.MkdirAll(tmpDir, 0o755)
+	require.NoError(t, err)
+
 	t.Cleanup(func() {
-		err := w.Workspace.Delete(ctx, workspace.Delete{
-			Path:      tmpDir,
-			Recursive: true,
-		})
+		// Remove the directory using os.RemoveAll (via FUSE)
+		err := os.RemoveAll(tmpDir)
 		assert.NoError(t, err)
 	})
 
-	err = w.Workspace.MkdirsByPath(ctx, tmpDir)
+	return tmpDir
+}
+
+// Stable scratch directory to run and iterate on DBR tests.
+func workspaceStableDir(ctx context.Context, t *testing.T) (w *databricks.WorkspaceClient, f filer.Filer, path string) {
+	w, err := databricks.NewWorkspaceClient()
+	require.NoError(t, err)
+
+	currentUser, err := w.CurrentUser.Me(ctx)
+	require.NoError(t, err)
+
+	path = fmt.Sprintf("/Workspace/Users/%s/dbr_scratch", currentUser.UserName)
+
+	// Delete the directory if it exists.
+	err = w.Workspace.Delete(ctx, workspace.Delete{
+		Path:      path,
+		Recursive: true,
+	})
+	var aerr *apierr.APIError
+	if err != nil && (!errors.As(err, &aerr) || aerr.ErrorCode != "RESOURCE_DOES_NOT_EXIST") {
+		t.Fatalf("Failed to delete directory %s: %v", path, err)
+	}
+
+	err = w.Workspace.MkdirsByPath(ctx, path)
 	require.NoError(t, err)
 
-	f, err := filer.NewWorkspaceFilesClient(w, tmpDir)
+	// Create a filer client for the workspace.
+	f, err = filer.NewWorkspaceFilesClient(w, path)
 	require.NoError(t, err)
 
-	return w, f, tmpDir
+	return w, f, path
+}
+
+func buildAndUploadArchive(ctx context.Context, t *testing.T, f filer.Filer) {
+	archiveDir := t.TempDir()
+	binDir := t.TempDir()
+	archiveName := "archive.tar.gz"
+
+	// Build the CLI archives and upload to the workspace.
+	testarchive.CreateArchive(archiveDir, binDir, "..")
+
+	archiveReader, err := os.Open(filepath.Join(archiveDir, archiveName))
+	require.NoError(t, err)
+
+	err = f.Write(ctx, archiveName, archiveReader)
+	require.NoError(t, err)
+
+	err = archiveReader.Close()
+	require.NoError(t, err)
+}
+
+func uploadScratchRunner(ctx context.Context, t *testing.T, f filer.Filer, w *databricks.WorkspaceClient, dir string) string {
+	runnerReader, err := os.Open("scratch_dbr_runner.ipynb")
+	require.NoError(t, err)
+
+	err = f.Write(ctx, "scratch_dbr_runner.ipynb", runnerReader)
+	require.NoError(t, err)
+
+	err = runnerReader.Close()
+	require.NoError(t, err)
+
+	status, err := w.Workspace.GetStatusByPath(ctx, path.Join(dir, "scratch_dbr_runner"))
+	require.NoError(t, err)
+
+	url := w.Config.Host + "/editor/notebooks/" + strconv.FormatInt(status.ObjectId, 10)
+
+	return url
+}
+
+func uploadParams(ctx context.Context, t *testing.T, f filer.Filer) {
+	names := []string{
+		"CLOUD_ENV",
+		"TEST_DEFAULT_CLUSTER_ID",
+		"TEST_DEFAULT_WAREHOUSE_ID",
+		"TEST_INSTANCE_POOL_ID",
+		"TEST_METASTORE_ID",
+	}
+
+	env := make(map[string]string)
+	for _, name := range names {
+		env[name] = os.Getenv(name)
+	}
+
+	b, err := json.MarshalIndent(env, "", "  ")
+	require.NoError(t, err)
+
+	err = f.Write(ctx, "params.json", bytes.NewReader(b))
+	require.NoError(t, err)
+}
+
+// Running this test will setup a DBR test runner the configured workspace.
+// You'll need to run the tests by actually running the notebook on the workspace.
+func TestSetupDbrRunner(t *testing.T) {
+	ctx := t.Context()
+	w, f, dir := workspaceStableDir(ctx, t)
+
+	t.Logf("Building and uploading archive...")
+	buildAndUploadArchive(ctx, t, f)
+
+	t.Logf("Uploading params...")
+	uploadParams(ctx, t, f)
+
+	t.Logf("Uploading runner...")
+	url := uploadScratchRunner(ctx, t, f, w, dir)
+
+	t.Logf("Created DBR testing notebook at: %s", url)
+}
+
+func TestArchive(t *testing.T) {
+	archiveDir := t.TempDir()
+	binDir := t.TempDir()
+	testarchive.CreateArchive(archiveDir, binDir, "..")
+
+	assert.FileExists(t, filepath.Join(archiveDir, "archive.tar.gz"))
 }
diff --git a/acceptance/internal/config.go b/acceptance/internal/config.go
index 5f3d030947..689fbc78de 100644
--- a/acceptance/internal/config.go
+++ b/acceptance/internal/config.go
@@ -55,6 +55,11 @@ type TestConfig struct {
 	// If true and Cloud=true, run this test only if a default warehouse is available in the cloud environment
 	RequiresWarehouse *bool
 
+	// If true run this test only if running on DBR with workspace filesystem
+	// Note that this implicitly implies Cloud=true since running on the workspace
+	// file system is only supported for integration tests.
+	RequiresWorkspaceFilesystem *bool
+
 	// If set, current user will be set to a service principal-like UUID instead of email (default is false)
 	IsServicePrincipal *bool
 
diff --git a/acceptance/internal/materialized_config.go b/acceptance/internal/materialized_config.go
index 3233d3907c..f58aae7d03 100644
--- a/acceptance/internal/materialized_config.go
+++ b/acceptance/internal/materialized_config.go
@@ -9,30 +9,32 @@ import (
 const MaterializedConfigFile = "out.test.toml"
 
 type MaterializedConfig struct {
-	GOOS                 map[string]bool     `toml:"GOOS,omitempty"`
-	CloudEnvs            map[string]bool     `toml:"CloudEnvs,omitempty"`
-	Local                *bool               `toml:"Local,omitempty"`
-	Cloud                *bool               `toml:"Cloud,omitempty"`
-	CloudSlow            *bool               `toml:"CloudSlow,omitempty"`
-	RequiresUnityCatalog *bool               `toml:"RequiresUnityCatalog,omitempty"`
-	RequiresCluster      *bool               `toml:"RequiresCluster,omitempty"`
-	RequiresWarehouse    *bool               `toml:"RequiresWarehouse,omitempty"`
-	EnvMatrix            map[string][]string `toml:"EnvMatrix,omitempty"`
+	GOOS                        map[string]bool     `toml:"GOOS,omitempty"`
+	CloudEnvs                   map[string]bool     `toml:"CloudEnvs,omitempty"`
+	Local                       *bool               `toml:"Local,omitempty"`
+	Cloud                       *bool               `toml:"Cloud,omitempty"`
+	CloudSlow                   *bool               `toml:"CloudSlow,omitempty"`
+	RequiresUnityCatalog        *bool               `toml:"RequiresUnityCatalog,omitempty"`
+	RequiresCluster             *bool               `toml:"RequiresCluster,omitempty"`
+	RequiresWarehouse           *bool               `toml:"RequiresWarehouse,omitempty"`
+	RequiresWorkspaceFilesystem *bool               `toml:"RequiresWorkspaceFilesystem,omitempty"`
+	EnvMatrix                   map[string][]string `toml:"EnvMatrix,omitempty"`
 }
 
 // GenerateMaterializedConfig creates a TOML representation of the configuration fields
 // that determine where and how a test is executed
 func GenerateMaterializedConfig(config TestConfig) (string, error) {
 	materialized := MaterializedConfig{
-		GOOS:                 config.GOOS,
-		CloudEnvs:            config.CloudEnvs,
-		Local:                config.Local,
-		Cloud:                config.Cloud,
-		CloudSlow:            config.CloudSlow,
-		RequiresUnityCatalog: config.RequiresUnityCatalog,
-		RequiresCluster:      config.RequiresCluster,
-		RequiresWarehouse:    config.RequiresWarehouse,
-		EnvMatrix:            config.EnvMatrix,
+		GOOS:                        config.GOOS,
+		CloudEnvs:                   config.CloudEnvs,
+		Local:                       config.Local,
+		Cloud:                       config.Cloud,
+		CloudSlow:                   config.CloudSlow,
+		RequiresUnityCatalog:        config.RequiresUnityCatalog,
+		RequiresCluster:             config.RequiresCluster,
+		RequiresWarehouse:           config.RequiresWarehouse,
+		RequiresWorkspaceFilesystem: config.RequiresWorkspaceFilesystem,
+		EnvMatrix:                   config.EnvMatrix,
 	}
 
 	var buf bytes.Buffer
diff --git a/acceptance/scratch_dbr_runner.ipynb b/acceptance/scratch_dbr_runner.ipynb
new file mode 100644
index 0000000000..9bddab026d
--- /dev/null
+++ b/acceptance/scratch_dbr_runner.ipynb
@@ -0,0 +1,212 @@
+{
+ "cells": [
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "id": "d9fd5224",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "import tarfile\n",
+    "from pathlib import Path\n",
+    "\n",
+    "\n",
+    "def extract_cli_archive():\n",
+    "    src = \"archive.tar.gz\"\n",
+    "    dst = Path(\"/tmp/cli_archive\")\n",
+    "\n",
+    "    with tarfile.open(src, \"r:gz\") as tar:\n",
+    "        tar.extractall(path=dst)\n",
+    "\n",
+    "    print(f\"Extracted {src} to {dst}\")\n",
+    "\n",
+    "\n",
+    "extract_cli_archive()"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "id": "13fd9a7f",
+   "metadata": {},
+   "outputs": [
+    {
+     "ename": "",
+     "evalue": "",
+     "output_type": "error",
+     "traceback": [
+      "\u001b[1;31mRunning cells with '.venv (Python 3.13.2)' requires the ipykernel package.\n",
+      "\u001b[1;31mInstall 'ipykernel' into the Python environment. \n",
+      "\u001b[1;31mCommand: '/Users/shreyas.goenka/repos/cli2/.venv/bin/python -m pip install ipykernel -U --force-reinstall'"
+     ]
+    }
+   ],
+   "source": [
+    "import os\n",
+    "import json\n",
+    "from dbruntime.databricks_repl_context import get_context\n",
+    "import subprocess\n",
+    "import multiprocessing\n",
+    "\n",
+    "\n",
+    "class Runner:\n",
+    "    def __init__(self, archive_dir):\n",
+    "        # Load environment variables to set in the test runner.\n",
+    "        self.env = os.environ.copy()\n",
+    "        with open(\"params.json\", \"r\") as f:\n",
+    "            params = json.load(f)\n",
+    "        for k, v in params.items():\n",
+    "            self.env[k] = v\n",
+    "\n",
+    "        # Configure PATH to include go, uv and jq.\n",
+    "        self.env[\"PATH\"] = f\"{archive_dir}/bin/amd64:{archive_dir}/bin/amd64/go/bin:{self.env['PATH']}\"\n",
+    "\n",
+    "        ctx = get_context()\n",
+    "        workspace_url = spark.conf.get(\"spark.databricks.workspaceUrl\")\n",
+    "\n",
+    "        # Configure auth for the acceptance tests.\n",
+    "        self.env[\"DATABRICKS_TOKEN\"] = ctx.apiToken\n",
+    "        self.env[\"DATABRICKS_HOST\"] = workspace_url\n",
+    "\n",
+    "        # Configure working directory to the root of the CLI repo.\n",
+    "        self.exec_dir = Path(archive_dir) / \"cli\"\n",
+    "\n",
+    "        # Terraform needs to be installed on the workspace file system to be used by the acceptance tests.\n",
+    "        # Otherwise creating symlinks in .databricks fails.\n",
+    "        self.terraform_dir = os.getcwd() + \"/terraform\"\n",
+    "\n",
+    "    def run(self, prefix):\n",
+    "        cmd = [\n",
+    "            \"go\",\n",
+    "            \"tool\",\n",
+    "            \"gotestsum\",\n",
+    "            \"--format\",\n",
+    "            \"testname\",\n",
+    "            \"--no-summary=skipped\",\n",
+    "            \"--\",\n",
+    "            \"-timeout\",\n",
+    "            \"7200s\",\n",
+    "            \"-test.v\",\n",
+    "            \"-run\",\n",
+    "            prefix,\n",
+    "            \"github.com/databricks/cli/acceptance\",\n",
+    "            \"-workspace-tmp-dir\",\n",
+    "            \"-terraform-dir\",\n",
+    "            self.terraform_dir,\n",
+    "            \"-tail\",\n",
+    "        ]\n",
+    "\n",
+    "        subprocess.run(cmd, env=self.env, check=True, cwd=self.exec_dir)\n",
+    "\n",
+    "    # Debug helper to run commands and see the output.\n",
+    "    def run_script_with_logs(self, name, input_script):\n",
+    "        cmd = [\n",
+    "            \"go\",\n",
+    "            \"tool\",\n",
+    "            \"gotestsum\",\n",
+    "            \"--format\",\n",
+    "            \"testname\",\n",
+    "            \"--no-summary=skipped\",\n",
+    "            \"--\",\n",
+    "            \"-timeout\",\n",
+    "            \"7200s\",\n",
+    "            \"-test.v\",\n",
+    "            \"-run\",\n",
+    "            \"TestAccept/\" + name,\n",
+    "            \"github.com/databricks/cli/acceptance\",\n",
+    "            \"-workspace-tmp-dir\",\n",
+    "            \"-terraform-dir\",\n",
+    "            self.terraform_dir,\n",
+    "            \"-tail\",\n",
+    "        ]\n",
+    "\n",
+    "        with open(self.exec_dir / \"acceptance\" / name / \"script\", \"w\") as f:\n",
+    "            f.write(input_script)\n",
+    "\n",
+    "        subprocess.run(cmd, env=self.env, check=True, cwd=self.exec_dir)\n",
+    "\n",
+    "    # Debug helper to run commands and see the output.\n",
+    "    def run_with_script(self, name, input_script):\n",
+    "        cmd = [\n",
+    "            \"go\",\n",
+    "            \"test\",\n",
+    "            \"-timeout\",\n",
+    "            \"7200s\",\n",
+    "            \"-test.v\",\n",
+    "            \"-run\",\n",
+    "            \"TestAccept/\" + name,\n",
+    "            \"github.com/databricks/cli/acceptance\",\n",
+    "            \"-update\",\n",
+    "            \"-workspace-tmp-dir\",\n",
+    "            \"-terraform-dir\",\n",
+    "            self.terraform_dir,\n",
+    "        ]\n",
+    "\n",
+    "        with open(self.exec_dir / \"acceptance\" / name / \"script\", \"w\") as f:\n",
+    "            f.write(input_script)\n",
+    "\n",
+    "        try:\n",
+    "            subprocess.run(\n",
+    "                cmd, env=self.env, check=True, cwd=self.exec_dir, stdout=subprocess.DEVNULL, stderr=subprocess.DEVNULL\n",
+    "            )\n",
+    "        except subprocess.CalledProcessError:\n",
+    "            pass\n",
+    "\n",
+    "        with open(self.exec_dir / \"acceptance\" / name / \"output.txt\", \"r\") as f:\n",
+    "            print(f.read())"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "id": "271c44d8",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "runner = Runner(\"/tmp/cli_archive\")\n",
+    "runner.run_with_script(\n",
+    "    \"selftest/dbr\",\n",
+    "    r\"\"\"\n",
+    "echo \"========================= START OF SCRIPT =====================\"\n",
+    "DASHBOARD_DISPLAY_NAME=\"test bundle-deploy-dashboard $(uuid)\"\n",
+    "export DASHBOARD_DISPLAY_NAME\n",
+    "\n",
+    "trace cat databricks.yml\n",
+    "\n",
+    "envsubst < databricks.yml.tmpl > databricks.yml\n",
+    "\n",
+    "trace cat databricks.yml\n",
+    "echo \"========================= END OF SCRIPT =====================\"\n",
+    "\"\"\",\n",
+    ")"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "id": "4d141de5",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "# Call .run on the runner to run the tests. Please the the previous cells before running tests here.\n",
+    "\n",
+    "# Example:\n",
+    "runner = Runner(\"/tmp/cli_archive\")\n",
+    "runner.run(\"selftest/dbr\")"
+   ]
+  }
+ ],
+ "metadata": {
+  "kernelspec": {
+   "display_name": ".venv",
+   "language": "python",
+   "name": "python3"
+  },
+  "language_info": {
+   "name": "python",
+   "version": "3.13.2"
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 5
+}
diff --git a/acceptance/selftest/dbr/script b/acceptance/selftest/dbr/script
new file mode 100644
index 0000000000..afcb033a50
--- /dev/null
+++ b/acceptance/selftest/dbr/script
@@ -0,0 +1,30 @@
+#!/bin/bash
+
+printf "=== Verify running on DBR\n"
+if [ -z "$DATABRICKS_RUNTIME_VERSION" ]; then
+  echo "ERROR: DATABRICKS_RUNTIME_VERSION is not set"
+  exit 1
+fi
+echo "DATABRICKS_RUNTIME_VERSION is set: $DATABRICKS_RUNTIME_VERSION"
+
+printf "\n=== Verify current directory is on workspace filesystem\n"
+trace pwd
+
+current_dir=$(pwd)
+if [[ ! "$current_dir" =~ ^/Workspace/Users/ ]]; then
+  echo "ERROR: Current directory is not in /Workspace/Users/"
+  echo "Current directory: $current_dir"
+  exit 1
+fi
+
+echo "SUCCESS: Current directory is in workspace filesystem"
+
+printf "\n=== Verify current user matches directory\n"
+expected_path="/Workspace/Users/$CURRENT_USER_NAME"
+if [[ ! "$current_dir" =~ ^$expected_path ]]; then
+  echo "ERROR: Current directory does not start with $expected_path"
+  echo "Current directory: $current_dir"
+  exit 1
+fi
+
+echo "SUCCESS: Current directory is under $expected_path"
diff --git a/acceptance/selftest/dbr/test.toml b/acceptance/selftest/dbr/test.toml
new file mode 100644
index 0000000000..55b1193eb2
--- /dev/null
+++ b/acceptance/selftest/dbr/test.toml
@@ -0,0 +1,2 @@
+Cloud = true
+RequiresWorkspaceFilesystem = true