diff --git a/apps/api/.env.test b/apps/api/.env.test
new file mode 100644
index 0000000..e71fab2
--- /dev/null
+++ b/apps/api/.env.test
@@ -0,0 +1,11 @@
+# Development .env for API\
+# DATABASE_URL="postgresql://neondb_owner:npg_PCxbvGSROi20@ep-spring-term-a1xllvq2-pooler.ap-southeast-1.aws.neon.tech/neondb?sslmode=require&channel_binding=require"
+DATABASE_URL="postgresql://composter:composter@localhost:5435/composter_test?schema=public"
+BETTER_AUTH_SECRET="232522c037dd020b411fda839874791acf1dc4c9c15f3c41996ff27cc68481ba"
+NODE_ENV="development"
+PORT=3000
+RESEND_API_KEY=""
+FROM_EMAIL=""
+# Local URLs
+BETTER_AUTH_URL="http://localhost:3000"
+CLIENT_URL="http://localhost:5173"
diff --git a/docker-compose.test.yaml b/docker-compose.test.yaml
new file mode 100644
index 0000000..d1e1204
--- /dev/null
+++ b/docker-compose.test.yaml
@@ -0,0 +1,13 @@
+services:
+  postgres-test:
+    image: postgres:17
+    container_name: composter-db-test
+    restart: "no" 
+    ports:
+      - "5435:5432" 
+    environment:
+      POSTGRES_USER: composter
+      POSTGRES_PASSWORD: composter
+      POSTGRES_DB: composter_test 
+    tmpfs:
+      - /var/lib/postgresql/data
\ No newline at end of file
diff --git a/package-lock.json b/package-lock.json
index ca437a0..3f80dd7 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -13,6 +13,7 @@
         "@changesets/cli": "^2.27.0",
         "@playwright/test": "^1.58.0",
         "@types/node": "^25.0.10",
+        "dotenv-cli": "^11.0.0",
         "prettier": "^3.0.0",
         "turbo": "^2.3.0"
       }
@@ -8887,6 +8888,51 @@
         "url": "https://dotenvx.com"
       }
     },
+    "node_modules/dotenv-cli": {
+      "version": "11.0.0",
+      "resolved": "https://registry.npmjs.org/dotenv-cli/-/dotenv-cli-11.0.0.tgz",
+      "integrity": "sha512-r5pA8idbk7GFWuHEU7trSTflWcdBpQEK+Aw17UrSHjS6CReuhrrPcyC3zcQBPQvhArRHnBo/h6eLH1fkCvNlww==",
+      "dev": true,
+      "license": "MIT",
+      "dependencies": {
+        "cross-spawn": "^7.0.6",
+        "dotenv": "^17.1.0",
+        "dotenv-expand": "^12.0.0",
+        "minimist": "^1.2.6"
+      },
+      "bin": {
+        "dotenv": "cli.js"
+      }
+    },
+    "node_modules/dotenv-expand": {
+      "version": "12.0.3",
+      "resolved": "https://registry.npmjs.org/dotenv-expand/-/dotenv-expand-12.0.3.tgz",
+      "integrity": "sha512-uc47g4b+4k/M/SeaW1y4OApx+mtLWl92l5LMPP0GNXctZqELk+YGgOPIIC5elYmUH4OuoK3JLhuRUYegeySiFA==",
+      "dev": true,
+      "license": "BSD-2-Clause",
+      "dependencies": {
+        "dotenv": "^16.4.5"
+      },
+      "engines": {
+        "node": ">=12"
+      },
+      "funding": {
+        "url": "https://dotenvx.com"
+      }
+    },
+    "node_modules/dotenv-expand/node_modules/dotenv": {
+      "version": "16.6.1",
+      "resolved": "https://registry.npmjs.org/dotenv/-/dotenv-16.6.1.tgz",
+      "integrity": "sha512-uBq4egWHTcTt33a72vpSG0z3HnPuIl6NqYcTrKEg2azoEyl2hpW0zqlxysq2pK9HlDIHyHyakeYaYnSAwd8bow==",
+      "dev": true,
+      "license": "BSD-2-Clause",
+      "engines": {
+        "node": ">=12"
+      },
+      "funding": {
+        "url": "https://dotenvx.com"
+      }
+    },
     "node_modules/drizzle-orm": {
       "version": "0.45.1",
       "resolved": "https://registry.npmjs.org/drizzle-orm/-/drizzle-orm-0.45.1.tgz",
diff --git a/package.json b/package.json
index 0a88702..b83556f 100644
--- a/package.json
+++ b/package.json
@@ -14,6 +14,8 @@
     "format": "prettier --write \"**/*.{ts,tsx,md}\"",
     "test:e2e": "npx playwright test",
     "test:e2e:watch": "npx playwright test --watch",
+    "setup:dev": "node scripts/test-bootstrap.js dev",
+    "setup:test": "node scripts/test-bootstrap.js test",
     "show-report:e2e": "npx playwright show-report",
     "changeset": "changeset",
     "version-packages": "changeset version",
@@ -23,6 +25,7 @@
     "@changesets/cli": "^2.27.0",
     "@playwright/test": "^1.58.0",
     "@types/node": "^25.0.10",
+    "dotenv-cli": "^11.0.0",
     "prettier": "^3.0.0",
     "turbo": "^2.3.0"
   },
diff --git a/playwright.config.ts b/playwright.config.ts
index 1169a89..03a83bf 100644
--- a/playwright.config.ts
+++ b/playwright.config.ts
@@ -1,4 +1,8 @@
 import { defineConfig, devices } from '@playwright/test';
+import dotenv from 'dotenv';
+import path from 'path';
+
+dotenv.config({ path: path.resolve(__dirname, 'apps/api/.env.test') });
 
 /**
  * Read environment variables from file.
@@ -26,7 +30,7 @@ export default defineConfig({
   /* Shared settings for all the projects below. See https://playwright.dev/docs/api/class-testoptions. */
   use: {
     /* Base URL to use in actions like `await page.goto('')`. */
-    baseURL: 'http://localhost:3000',
+    baseURL: process.env.CLIENT_URL || 'http://localhost:5173',
 
     /* Collect trace when retrying the failed test. See https://playwright.dev/docs/trace-viewer */
     trace:'on',
@@ -86,9 +90,9 @@ export default defineConfig({
   ],
 
   /* Run your local dev server before starting the tests */
-  // webServer: {
-  //   command: 'npm run start',
-  //   url: 'http://localhost:3000',
-  //   reuseExistingServer: !process.env.CI,
-  // },
+  webServer: {
+    command: 'npm run dev',
+    url: 'http://localhost:5173',
+    reuseExistingServer: !process.env.CI,
+  },
 });
diff --git a/scripts/test-bootstrap.js b/scripts/test-bootstrap.js
new file mode 100644
index 0000000..c3d7360
--- /dev/null
+++ b/scripts/test-bootstrap.js
@@ -0,0 +1,74 @@
+const { execSync, spawn } = require('child_process');
+const fs = require('fs');
+const path = require('path');
+
+const mode = process.argv[2];
+
+if(!['dev', 'test'].includes(mode)) {
+    console.error("Usage: node scripts/test-bootstrap.js dev or test");
+    process.exit(0);
+}
+
+const isTest = mode === 'test'
+const ROOT_DIR = process.cwd();
+const API_DIR = path.join(ROOT_DIR, 'apps/api');
+
+//configuration
+const CONFIG = {
+    dockerFile: isTest ? 'docker-compose.test.yaml' : 'docker-compose.yaml',
+    envFile: isTest ? '.env.test' : '.env',
+}
+
+const run = (cmd, cwd = ROOT_DIR) => {
+    try {
+        console.log(`> ${cmd}`);
+        execSync(cmd, { stdio: 'inherit', cwd, env: process.env });
+    } catch (e) {
+        console.error(`❌ Command failed: ${cmd}`);
+        process.exit(1);
+    }
+};
+
+async function main() {
+    console.log(`🚀 Setting up ${mode.toUpperCase()} environment...`);
+
+    if(!fs.existsSync(ROOT_DIR, 'node_modules')){
+        run('npm install');
+    }
+
+    console.log('🐳 Resetting Database Containers...');
+    try{
+        execSync(`docker compose -f ${CONFIG.dockerFile} down -v`)
+    } catch(error){
+        //Ignore if already down
+    }
+
+    console.log('🐳 Starting Database...');
+    run(`docker compose -f ${CONFIG.dockerFile} up -d`);
+
+    console.log(`Waiting for db to be ready...`)
+    await new Promise(r=>setTimeout(r, 5000));
+
+    console.log('🔄 Syncing Schema...');
+
+    const envFile = `npx dotenv-cli -e ${CONFIG.envFile} --`
+
+    if(isTest){
+        run(`${envFile} npx prisma migrate dev --name test`, API_DIR)
+
+        console.log(`better-auth migrations`)
+        run(`${envFile} npx @better-auth/cli migrate --config auth/auth.js`, API_DIR)
+    } else {
+        run(`${envFile} npx prisma migrate dev --name dev`, API_DIR)
+
+        console.log(`better-auth migrations`)
+        run(`${envFile} npx @better-auth/cli migrate --config auth/auth.js`, API_DIR)
+    }
+
+    console.log(`✅ Setup complete!`)
+}
+
+main().catch((e)=>{
+    console.error(e);
+    process.exit(1);
+})
\ No newline at end of file
diff --git a/tests/api/health.spec.ts b/tests/api/health.spec.ts
new file mode 100644
index 0000000..0b48448
--- /dev/null
+++ b/tests/api/health.spec.ts
@@ -0,0 +1,6 @@
+import {test, expect } from "@playwright/test";
+
+test('API Health Check', async({request}) =>{
+    const response = await request.get('api/health')
+    expect(response.ok()).toBeTruthy()
+})
\ No newline at end of file