diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
new file mode 100644
index 0000000..df7781f
--- /dev/null
+++ b/.github/workflows/test.yml
@@ -0,0 +1,48 @@
+name: Tests
+
+on:
+  push:
+    branches: [ main, master ]
+  pull_request:
+    branches: [ main, master ]
+
+jobs:
+  test:
+    runs-on: ubuntu-latest
+    
+    steps:
+    - uses: actions/checkout@v3
+    
+    - name: Set up Python
+      uses: actions/setup-python@v4
+      with:
+        python-version: '3.9'
+        
+    - name: Install dependencies
+      run: |
+        python -m pip install --upgrade pip
+        pip install -r requirements.txt
+        pip install pytest pytest-cov coverage-badge
+        
+    - name: Run tests with pytest and generate coverage
+      run: |
+        pytest --cov=penify_hook tests/ --cov-report=xml --cov-report=term
+        
+    - name: Generate coverage badge
+      run: |
+        coverage-badge -o coverage.svg -f
+        
+    - name: Commit coverage badge
+      if: github.ref == 'refs/heads/main' || github.ref == 'refs/heads/master'
+      run: |
+        git config --local user.email "action@github.com"
+        git config --local user.name "GitHub Action"
+        git add coverage.svg
+        git diff --quiet && git diff --staged --quiet || git commit -m "Update coverage badge" -a
+        
+    - name: Push coverage badge
+      if: github.ref == 'refs/heads/main' || github.ref == 'refs/heads/master'
+      uses: ad-m/github-push-action@master
+      with:
+        github_token: ${{ secrets.GITHUB_TOKEN }}
+        branch: ${{ github.ref }}
diff --git a/README.md b/README.md
index b431ac7..db0ad8c 100644
--- a/README.md
+++ b/README.md
@@ -1,7 +1,17 @@
 # Penify CLI Tool
 
+![Tests](https://github.com/yourorganization/penify-cli/workflows/Tests/badge.svg)
+![Coverage](./coverage.svg)
+
 A CLI tool to generate smart commit messages, code documentation, and more.
 
+## Features
+
+- Automatically generate documentation for your code
+- Support for multiple programming languages
+- Git hook integration for automatic documentation on commits
+- Folder and file analysis
+
 ## Installation
 
 Install from PyPI:
@@ -129,6 +139,12 @@ To set up the development environment:
    pip install -e .
    ```
 
+### Running Tests
+
+```bash
+pytest
+```
+
 ## License
 
 This project is licensed under the MIT License.
diff --git a/pytest.ini b/pytest.ini
index 51e40e5..3ce8914 100644
--- a/pytest.ini
+++ b/pytest.ini
@@ -1,5 +1,8 @@
 [pytest]
+testpaths = tests
 python_files = test_*.py
 python_classes = Test*
 python_functions = test_*
-testpaths = tests
+
+# Coverage settings
+addopts = --cov=penify_hook --cov-report=term --cov-report=xml
diff --git a/requirements.txt b/requirements.txt
index f2991f4..0679314 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,4 +1,10 @@
-# requirements.txt
+# Basic requirements
+requests>=2.25.0
+gitpython>=3.1.0
+tqdm>=4.62.0
 
-requests
-GitPython
\ No newline at end of file
+# Testing requirements
+pytest>=7.0.0
+pytest-cov>=4.0.0
+coverage>=6.0.0
+coverage-badge>=1.1.0
\ No newline at end of file