diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..a6ec870
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,108 @@
+# Byte-compiled / optimized / DLL files
+__pycache__/
+*.py[cod]
+*$py.class
+
+# C extensions
+*.so
+
+# Distribution / packaging
+.Python
+build/
+develop-eggs/
+dist/
+downloads/
+eggs/
+.eggs/
+lib/
+lib64/
+parts/
+sdist/
+var/
+wheels/
+*.egg-info/
+.installed.cfg
+*.egg
+MANIFEST
+
+# PyInstaller
+#  Usually these files are written by a python script from a template
+#  before PyInstaller builds the exe, so as to inject date/other infos into it.
+*.manifest
+*.spec
+
+# Unit test / coverage reports
+htmlcov/
+.tox/
+.coverage
+.coverage.*
+.cache
+nosetests.xml
+coverage.xml
+*.cover
+.hypothesis/
+.pytest_cache/
+
+# Translations
+*.mo
+*.pot
+
+# Django stuff:
+*.log
+local_settings.py
+db.sqlite3
+
+# Flask stuff:
+instance/
+.webassets-cache
+
+# Scrapy stuff:
+.scrapy
+
+# Sphinx documentation
+docs/_build/
+
+# PyBuilder
+target/
+
+# Jupyter Notebook
+.ipynb_checkpoints
+
+# pyenv
+.python-version
+
+# celery beat schedule file
+celerybeat-schedule
+
+# SageMath parsed files
+*.sage.py
+
+# Environments
+.env
+.venv
+env/
+venv/
+ENV/
+env.bak/
+venv.bak/
+
+# Spyder project settings
+.spyderproject
+.spyproject
+
+# Rope project settings
+.ropeproject
+
+# mkdocs documentation
+/site
+
+# mypy
+.mypy_cache/
+.dmypy.json
+dmypy.json
+
+# Test artifacts
+/tmp/test-output*/
+/tmp/test-projects/
+tests/__pycache__/
+tests/.pytest_cache/
diff --git a/Makefile b/Makefile
index e24ba95..9705b26 100644
--- a/Makefile
+++ b/Makefile
@@ -36,7 +36,7 @@ test-gen:
 
 test-full:
 	@echo "Running full test suite..."
-	$(PYTHON) run_tests.py
+	$(PYTHON) tests/run_tests.py
 
 test: test-basic test-gen test-full
 	@echo "All tests completed!"
diff --git a/README.md b/README.md
index e790b70..ac9878e 100644
--- a/README.md
+++ b/README.md
@@ -94,10 +94,10 @@ make tox-all       # Run all tox environments
 
 ```bash
 # Individual test scripts
-python validate_template.py    # Comprehensive validation
-python quick_test.py          # Quick validation
-python run_tests.py           # Full test suite
-python -m pytest test_cookiecutter.py -v  # Pytest tests
+python validate_template.py          # Comprehensive validation
+python tests/quick_test.py           # Quick validation
+python tests/run_tests.py            # Full test suite
+python -m pytest tests/test_cookiecutter.py -v  # Pytest tests
 ```
 
 ### Available Tox Environments
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 0000000..1f3807d
--- /dev/null
+++ b/tests/__init__.py
@@ -0,0 +1,6 @@
+"""
+Tests for the Django OAuth2 Cookiecutter template.
+
+This package contains all test files for validating the cookiecutter template
+structure, functionality, and generated project quality.
+"""
diff --git a/quick_test.py b/tests/quick_test.py
similarity index 98%
rename from quick_test.py
rename to tests/quick_test.py
index f35f695..da0af0c 100644
--- a/quick_test.py
+++ b/tests/quick_test.py
@@ -17,7 +17,7 @@ def main():
     print("Django OAuth2 Cookiecutter Template - Quick Validation")
     print("=" * 60)
     
-    template_dir = os.path.dirname(os.path.abspath(__file__))
+    template_dir = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
     errors = []
     
     # Test 1: Check cookiecutter.json exists and is valid
diff --git a/run_tests.py b/tests/run_tests.py
similarity index 98%
rename from run_tests.py
rename to tests/run_tests.py
index 5ee3fb5..9161694 100755
--- a/run_tests.py
+++ b/tests/run_tests.py
@@ -39,7 +39,7 @@ def run_basic_validation():
     # Run the validation script
     result = subprocess.run([
         python_exe, 
-        os.path.join(os.path.dirname(__file__), "validate_template.py")
+        os.path.join(os.path.dirname(os.path.dirname(__file__)), "validate_template.py")
     ], capture_output=True, text=True)
     
     if result.returncode == 0:
diff --git a/test_cookiecutter.py b/tests/test_cookiecutter.py
similarity index 99%
rename from test_cookiecutter.py
rename to tests/test_cookiecutter.py
index 5910751..b70993e 100644
--- a/test_cookiecutter.py
+++ b/tests/test_cookiecutter.py
@@ -29,7 +29,7 @@ def temp_dir():
 @pytest.fixture
 def template_dir():
     """Get the template directory path."""
-    return os.path.dirname(os.path.abspath(__file__))
+    return os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
 
 
 @pytest.fixture
diff --git a/tox.ini b/tox.ini
index 2744b8e..bdea6bf 100644
--- a/tox.ini
+++ b/tox.ini
@@ -7,7 +7,7 @@ skip_missing_interpreters = true
 deps = 
     -r{toxinidir}/test-requirements.txt
 commands = 
-    python -m pytest test_cookiecutter.py -v
+    python -m pytest tests/test_cookiecutter.py -v
 
 [testenv:validate]
 deps = 
@@ -19,13 +19,13 @@ commands =
 deps = 
     -r{toxinidir}/test-requirements.txt
 commands = 
-    python quick_test.py
+    python tests/quick_test.py
 
 [testenv:template-test]
 deps = 
     -r{toxinidir}/test-requirements.txt
 commands = 
-    python run_tests.py
+    python tests/run_tests.py
 
 [testenv:lint]
 deps = 
@@ -50,7 +50,7 @@ deps =
     -r{toxinidir}/test-requirements.txt
     coverage>=7.0.0
 commands = 
-    coverage run -m pytest test_cookiecutter.py
+    coverage run -m pytest tests/test_cookiecutter.py
     coverage report -m
     coverage html
     coverage xml
@@ -60,8 +60,8 @@ deps =
     -r{toxinidir}/test-requirements.txt
 commands = 
     python validate_template.py
-    python quick_test.py
-    python -m pytest test_cookiecutter.py -v
+    python tests/quick_test.py
+    python -m pytest tests/test_cookiecutter.py -v
 
 [flake8]
 max-line-length = 88