diff --git a/.gitignore b/.gitignore
index a9dedaa..ec0a770 100644
--- a/.gitignore
+++ b/.gitignore
@@ -5,3 +5,4 @@ dist/
 build/
 .venv/
 .pytest_cache/
+specs/
diff --git a/src/__init__.py b/src/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/src/hello.py b/src/hello.py
new file mode 100644
index 0000000..3c2df23
--- /dev/null
+++ b/src/hello.py
@@ -0,0 +1,3 @@
+def hello(name: str) -> str:
+    """Return a greeting string for the given name."""
+    return f"Hello, {name}!"
diff --git a/tests/test_hello.py b/tests/test_hello.py
new file mode 100644
index 0000000..6c0e62a
--- /dev/null
+++ b/tests/test_hello.py
@@ -0,0 +1,13 @@
+from src.hello import hello
+
+
+def test_hello_world() -> None:
+    assert hello("World") == "Hello, World!"
+
+
+def test_hello_empty() -> None:
+    assert hello("") == "Hello, !"
+
+
+def test_hello_alice() -> None:
+    assert hello("Alice") == "Hello, Alice!"