diff --git a/pytest.ini b/pytest.ini
new file mode 100644
index 0000000..2f4c80e
--- /dev/null
+++ b/pytest.ini
@@ -0,0 +1,2 @@
+[pytest]
+asyncio_mode = auto
diff --git a/requirements.txt b/requirements.txt
index 767784d..3510242 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -8,3 +8,4 @@ tiktoken>=0.5.0
 apscheduler>=3.10.0
 pytest>=7.0.0
 pytest-asyncio>=0.21.0
+pytest-cov>=4.0.0
diff --git a/tests/test_config.py b/tests/test_config.py
index a633cb0..97df32a 100644
--- a/tests/test_config.py
+++ b/tests/test_config.py
@@ -39,4 +39,136 @@ class TestEmbeddingDims:
 
     def test_mxbai_embed_large(self):
         """mxbai-embed-large should have 1024 dimensions."""
-        assert EMBEDDING_DIMS["mxbai-embed-large"] == 1024
\ No newline at end of file
+        assert EMBEDDING_DIMS["mxbai-embed-large"] == 1024
+
+
+class TestConfigLoad:
+    """Tests for Config.load() with real TOML content."""
+
+    def test_load_from_explicit_path(self, tmp_path):
+        """Config.load() should parse a TOML file at an explicit path."""
+        from app.config import Config
+
+        config_file = tmp_path / "config.toml"
+        config_file.write_text(
+            '[general]\n'
+            'ollama_host = "http://localhost:11434"\n'
+            'qdrant_host = "http://localhost:6333"\n'
+            'qdrant_collection = "test_memories"\n'
+        )
+        cfg = Config.load(str(config_file))
+        assert cfg.ollama_host == "http://localhost:11434"
+        assert cfg.qdrant_host == "http://localhost:6333"
+        assert cfg.qdrant_collection == "test_memories"
+
+    def test_load_layers_section(self, tmp_path):
+        """Config.load() should parse [layers] section correctly."""
+        from app.config import Config
+
+        config_file = tmp_path / "config.toml"
+        config_file.write_text(
+            '[layers]\n'
+            'semantic_token_budget = 5000\n'
+            'context_token_budget = 3000\n'
+            'semantic_score_threshold = 0.75\n'
+        )
+        cfg = Config.load(str(config_file))
+        assert cfg.semantic_token_budget == 5000
+        assert cfg.context_token_budget == 3000
+        assert cfg.semantic_score_threshold == 0.75
+
+    def test_load_curator_section(self, tmp_path):
+        """Config.load() should parse [curator] section correctly."""
+        from app.config import Config
+
+        config_file = tmp_path / "config.toml"
+        config_file.write_text(
+            '[curator]\n'
+            'run_time = "03:30"\n'
+            'curator_model = "mixtral:8x22b"\n'
+        )
+        cfg = Config.load(str(config_file))
+        assert cfg.run_time == "03:30"
+        assert cfg.curator_model == "mixtral:8x22b"
+
+    def test_load_cloud_section(self, tmp_path):
+        """Config.load() should parse [cloud] section correctly."""
+        from app.config import Config
+
+        config_file = tmp_path / "config.toml"
+        config_file.write_text(
+            '[cloud]\n'
+            'enabled = true\n'
+            'api_base = "https://openrouter.ai/api/v1"\n'
+            'api_key_env = "MY_API_KEY"\n'
+            '\n'
+            '[cloud.models]\n'
+            '"gpt-oss:120b" = "openai/gpt-4o"\n'
+        )
+        cfg = Config.load(str(config_file))
+        assert cfg.cloud.enabled is True
+        assert cfg.cloud.api_base == "https://openrouter.ai/api/v1"
+        assert cfg.cloud.api_key_env == "MY_API_KEY"
+        assert "gpt-oss:120b" in cfg.cloud.models
+
+    def test_load_nonexistent_file_returns_defaults(self, tmp_path):
+        """Config.load() with missing file should fall back to defaults."""
+        from app.config import Config
+        import os
+
+        # Point config dir to a place with no config.toml
+        os.environ["VERA_CONFIG_DIR"] = str(tmp_path / "noconfig")
+        try:
+            cfg = Config.load(str(tmp_path / "nonexistent.toml"))
+        finally:
+            del os.environ["VERA_CONFIG_DIR"]
+
+        assert cfg.ollama_host == "http://10.0.0.10:11434"
+
+
+class TestCloudConfig:
+    """Tests for CloudConfig helper methods."""
+
+    def test_is_cloud_model_true(self):
+        """is_cloud_model returns True for registered model name."""
+        from app.config import CloudConfig
+
+        cc = CloudConfig(enabled=True, models={"gpt-oss:120b": "openai/gpt-4o"})
+        assert cc.is_cloud_model("gpt-oss:120b") is True
+
+    def test_is_cloud_model_false(self):
+        """is_cloud_model returns False for unknown model name."""
+        from app.config import CloudConfig
+
+        cc = CloudConfig(enabled=True, models={"gpt-oss:120b": "openai/gpt-4o"})
+        assert cc.is_cloud_model("llama3:70b") is False
+
+    def test_get_cloud_model_existing(self):
+        """get_cloud_model returns mapped cloud model ID."""
+        from app.config import CloudConfig
+
+        cc = CloudConfig(enabled=True, models={"gpt-oss:120b": "openai/gpt-4o"})
+        assert cc.get_cloud_model("gpt-oss:120b") == "openai/gpt-4o"
+
+    def test_get_cloud_model_missing(self):
+        """get_cloud_model returns None for unknown name."""
+        from app.config import CloudConfig
+
+        cc = CloudConfig(enabled=True, models={})
+        assert cc.get_cloud_model("unknown") is None
+
+    def test_api_key_from_env(self, monkeypatch):
+        """api_key property reads from environment variable."""
+        from app.config import CloudConfig
+
+        monkeypatch.setenv("MY_TEST_KEY", "sk-secret")
+        cc = CloudConfig(api_key_env="MY_TEST_KEY")
+        assert cc.api_key == "sk-secret"
+
+    def test_api_key_missing_from_env(self, monkeypatch):
+        """api_key returns None when env var is not set."""
+        from app.config import CloudConfig
+
+        monkeypatch.delenv("OPENROUTER_API_KEY", raising=False)
+        cc = CloudConfig(api_key_env="OPENROUTER_API_KEY")
+        assert cc.api_key is None
\ No newline at end of file
diff --git a/tests/test_curator.py b/tests/test_curator.py
new file mode 100644
index 0000000..4eb679e
--- /dev/null
+++ b/tests/test_curator.py
@@ -0,0 +1,201 @@
+"""Tests for Curator class methods — no live LLM or Qdrant required."""
+import pytest
+import json
+import os
+from datetime import datetime, timedelta
+from pathlib import Path
+from unittest.mock import MagicMock, patch
+
+
+def make_curator(tmp_path):
+    """Return a Curator instance with a dummy prompt file and mock QdrantService."""
+    from app.curator import Curator
+
+    # Create a minimal curator_prompt.md so Curator.__init__ can load it
+    prompts_dir = tmp_path / "prompts"
+    prompts_dir.mkdir()
+    (prompts_dir / "curator_prompt.md").write_text("Curate memories. Date: {CURRENT_DATE}")
+
+    mock_qdrant = MagicMock()
+
+    with patch.dict(os.environ, {"VERA_PROMPTS_DIR": str(prompts_dir)}):
+        curator = Curator(
+            qdrant_service=mock_qdrant,
+            model="test-model",
+            ollama_host="http://localhost:11434",
+        )
+
+    return curator, mock_qdrant
+
+
+class TestParseJsonResponse:
+    """Tests for Curator._parse_json_response."""
+
+    def test_direct_valid_json(self, tmp_path):
+        """Valid JSON string parsed directly."""
+        curator, _ = make_curator(tmp_path)
+        payload = {"new_curated_turns": [], "deletions": []}
+        result = curator._parse_json_response(json.dumps(payload))
+        assert result == payload
+
+    def test_json_in_code_block(self, tmp_path):
+        """JSON wrapped in ```json ... ``` code fence is extracted."""
+        curator, _ = make_curator(tmp_path)
+        payload = {"summary": "done"}
+        response = f"```json\n{json.dumps(payload)}\n```"
+        result = curator._parse_json_response(response)
+        assert result == payload
+
+    def test_json_embedded_in_text(self, tmp_path):
+        """JSON embedded after prose text is extracted via brace scan."""
+        curator, _ = make_curator(tmp_path)
+        payload = {"new_curated_turns": [{"content": "Q: hi\nA: there"}]}
+        response = f"Here is the result:\n{json.dumps(payload)}\nThat's all."
+        result = curator._parse_json_response(response)
+        assert result is not None
+        assert "new_curated_turns" in result
+
+    def test_empty_string_returns_none(self, tmp_path):
+        """Empty response returns None."""
+        curator, _ = make_curator(tmp_path)
+        result = curator._parse_json_response("")
+        assert result is None
+
+    def test_malformed_json_returns_none(self, tmp_path):
+        """Completely invalid text returns None."""
+        curator, _ = make_curator(tmp_path)
+        result = curator._parse_json_response("this is not json at all !!!")
+        assert result is None
+
+    def test_json_in_plain_code_block(self, tmp_path):
+        """JSON in ``` (no language tag) code fence is extracted."""
+        curator, _ = make_curator(tmp_path)
+        payload = {"permanent_rules": []}
+        response = f"```\n{json.dumps(payload)}\n```"
+        result = curator._parse_json_response(response)
+        assert result == payload
+
+
+class TestIsRecent:
+    """Tests for Curator._is_recent."""
+
+    def test_memory_within_window(self, tmp_path):
+        """Memory timestamped 1 hour ago is recent (within 24h)."""
+        curator, _ = make_curator(tmp_path)
+        ts = (datetime.utcnow() - timedelta(hours=1)).isoformat() + "Z"
+        memory = {"timestamp": ts}
+        assert curator._is_recent(memory, hours=24) is True
+
+    def test_memory_outside_window(self, tmp_path):
+        """Memory timestamped 48 hours ago is not recent."""
+        curator, _ = make_curator(tmp_path)
+        ts = (datetime.utcnow() - timedelta(hours=48)).isoformat() + "Z"
+        memory = {"timestamp": ts}
+        assert curator._is_recent(memory, hours=24) is False
+
+    def test_no_timestamp_returns_true(self, tmp_path):
+        """Memory without timestamp is treated as recent (safe default)."""
+        curator, _ = make_curator(tmp_path)
+        memory = {}
+        assert curator._is_recent(memory, hours=24) is True
+
+    def test_empty_timestamp_returns_true(self, tmp_path):
+        """Memory with empty timestamp string is treated as recent."""
+        curator, _ = make_curator(tmp_path)
+        memory = {"timestamp": ""}
+        assert curator._is_recent(memory, hours=24) is True
+
+    def test_unparseable_timestamp_returns_true(self, tmp_path):
+        """Memory with garbage timestamp is treated as recent (safe default)."""
+        curator, _ = make_curator(tmp_path)
+        memory = {"timestamp": "not-a-date"}
+        assert curator._is_recent(memory, hours=24) is True
+
+    def test_boundary_edge_just_inside(self, tmp_path):
+        """Memory at exactly hours-1 minutes ago should be recent."""
+        curator, _ = make_curator(tmp_path)
+        ts = (datetime.utcnow() - timedelta(hours=23, minutes=59)).isoformat() + "Z"
+        memory = {"timestamp": ts}
+        assert curator._is_recent(memory, hours=24) is True
+
+
+class TestFormatRawTurns:
+    """Tests for Curator._format_raw_turns."""
+
+    def test_empty_list(self, tmp_path):
+        """Empty input produces empty string."""
+        curator, _ = make_curator(tmp_path)
+        result = curator._format_raw_turns([])
+        assert result == ""
+
+    def test_single_turn_header(self, tmp_path):
+        """Single turn has RAW TURN 1 header and turn ID."""
+        curator, _ = make_curator(tmp_path)
+        turns = [{"id": "abc123", "text": "User: hello\nAssistant: hi"}]
+        result = curator._format_raw_turns(turns)
+        assert "RAW TURN 1" in result
+        assert "abc123" in result
+        assert "hello" in result
+
+    def test_multiple_turns_numbered(self, tmp_path):
+        """Multiple turns are numbered sequentially."""
+        curator, _ = make_curator(tmp_path)
+        turns = [
+            {"id": "id1", "text": "turn one"},
+            {"id": "id2", "text": "turn two"},
+            {"id": "id3", "text": "turn three"},
+        ]
+        result = curator._format_raw_turns(turns)
+        assert "RAW TURN 1" in result
+        assert "RAW TURN 2" in result
+        assert "RAW TURN 3" in result
+
+    def test_missing_id_uses_unknown(self, tmp_path):
+        """Turn without id field shows 'unknown' placeholder."""
+        curator, _ = make_curator(tmp_path)
+        turns = [{"text": "some text"}]
+        result = curator._format_raw_turns(turns)
+        assert "unknown" in result
+
+
+class TestAppendRuleToFile:
+    """Tests for Curator._append_rule_to_file (filesystem I/O mocked via tmp_path)."""
+
+    @pytest.mark.asyncio
+    async def test_appends_to_existing_file(self, tmp_path):
+        """Rule is appended to existing file."""
+        prompts_dir = tmp_path / "prompts"
+        prompts_dir.mkdir()
+        target = prompts_dir / "systemprompt.md"
+        target.write_text("# Existing content\n")
+
+        (prompts_dir / "curator_prompt.md").write_text("prompt {CURRENT_DATE}")
+
+        from app.curator import Curator
+
+        mock_qdrant = MagicMock()
+        with patch.dict(os.environ, {"VERA_PROMPTS_DIR": str(prompts_dir)}):
+            curator = Curator(mock_qdrant, model="m", ollama_host="http://x")
+            await curator._append_rule_to_file("systemprompt.md", "Always be concise.")
+
+        content = target.read_text()
+        assert "Always be concise." in content
+        assert "# Existing content" in content
+
+    @pytest.mark.asyncio
+    async def test_creates_file_if_missing(self, tmp_path):
+        """Rule is written to a new file if none existed."""
+        prompts_dir = tmp_path / "prompts"
+        prompts_dir.mkdir()
+        (prompts_dir / "curator_prompt.md").write_text("prompt {CURRENT_DATE}")
+
+        from app.curator import Curator
+
+        mock_qdrant = MagicMock()
+        with patch.dict(os.environ, {"VERA_PROMPTS_DIR": str(prompts_dir)}):
+            curator = Curator(mock_qdrant, model="m", ollama_host="http://x")
+            await curator._append_rule_to_file("newfile.md", "New rule here.")
+
+        target = prompts_dir / "newfile.md"
+        assert target.exists()
+        assert "New rule here." in target.read_text()
diff --git a/tests/test_integration.py b/tests/test_integration.py
new file mode 100644
index 0000000..3b93ffc
--- /dev/null
+++ b/tests/test_integration.py
@@ -0,0 +1,351 @@
+"""Integration tests — FastAPI app via httpx.AsyncClient test transport.
+
+All external I/O (Ollama, Qdrant) is mocked. No live services required.
+"""
+import pytest
+import json
+import os
+from unittest.mock import AsyncMock, MagicMock, patch
+from pathlib import Path
+
+
+# ---------------------------------------------------------------------------
+# Helpers
+# ---------------------------------------------------------------------------
+
+def _make_mock_qdrant():
+    """Return a fully-mocked QdrantService."""
+    mock = MagicMock()
+    mock._ensure_collection = AsyncMock()
+    mock.semantic_search = AsyncMock(return_value=[])
+    mock.get_recent_turns = AsyncMock(return_value=[])
+    mock.store_qa_turn = AsyncMock(return_value="fake-uuid")
+    mock.close = AsyncMock()
+    return mock
+
+
+def _ollama_tags_response():
+    return {"models": [{"name": "llama3", "size": 0}]}
+
+
+def _ollama_chat_response(content: str = "Hello from Ollama"):
+    return {
+        "message": {"role": "assistant", "content": content},
+        "done": True,
+        "model": "llama3",
+    }
+
+
+# ---------------------------------------------------------------------------
+# Fixtures
+# ---------------------------------------------------------------------------
+
+@pytest.fixture()
+def mock_qdrant():
+    return _make_mock_qdrant()
+
+
+@pytest.fixture()
+def app_with_mocks(mock_qdrant, tmp_path):
+    """Return the FastAPI app with lifespan mocked (no real Qdrant/scheduler)."""
+    from contextlib import asynccontextmanager
+
+    # Minimal curator prompt
+    prompts_dir = tmp_path / "prompts"
+    prompts_dir.mkdir()
+    (prompts_dir / "curator_prompt.md").write_text("Curate. Date: {CURRENT_DATE}")
+    (prompts_dir / "systemprompt.md").write_text("You are Vera.")
+
+    @asynccontextmanager
+    async def fake_lifespan(app):
+        yield
+
+    import app.main as main_module
+
+    with patch.dict(os.environ, {"VERA_PROMPTS_DIR": str(prompts_dir)}), \
+         patch("app.main.get_qdrant_service", return_value=mock_qdrant), \
+         patch("app.singleton.get_qdrant_service", return_value=mock_qdrant), \
+         patch("app.main.Curator") as MockCurator, \
+         patch("app.main.scheduler") as mock_scheduler:
+
+        mock_scheduler.add_job = MagicMock()
+        mock_scheduler.start = MagicMock()
+        mock_scheduler.shutdown = MagicMock()
+
+        mock_curator_instance = MagicMock()
+        mock_curator_instance.run = AsyncMock()
+        MockCurator.return_value = mock_curator_instance
+
+        from fastapi import FastAPI
+        from fastapi.testclient import TestClient
+
+        # Import fresh — use the real routes but swap lifespan
+        from app.main import app as vera_app
+        vera_app.router.lifespan_context = fake_lifespan
+
+        yield vera_app, mock_qdrant
+
+
+# ---------------------------------------------------------------------------
+# Health check
+# ---------------------------------------------------------------------------
+
+class TestHealthCheck:
+    def test_health_ollama_reachable(self, app_with_mocks):
+        """GET / returns status ok and ollama=reachable when Ollama is up."""
+        from fastapi.testclient import TestClient
+
+        vera_app, mock_qdrant = app_with_mocks
+
+        mock_resp = MagicMock()
+        mock_resp.status_code = 200
+
+        mock_client_instance = AsyncMock()
+        mock_client_instance.__aenter__ = AsyncMock(return_value=mock_client_instance)
+        mock_client_instance.__aexit__ = AsyncMock(return_value=False)
+        mock_client_instance.get = AsyncMock(return_value=mock_resp)
+
+        with patch("httpx.AsyncClient", return_value=mock_client_instance):
+            with TestClient(vera_app, raise_server_exceptions=True) as client:
+                resp = client.get("/")
+
+        assert resp.status_code == 200
+        body = resp.json()
+        assert body["status"] == "ok"
+        assert body["ollama"] == "reachable"
+
+    def test_health_ollama_unreachable(self, app_with_mocks):
+        """GET / returns ollama=unreachable when Ollama is down."""
+        import httpx
+        from fastapi.testclient import TestClient
+
+        vera_app, _ = app_with_mocks
+
+        mock_client_instance = AsyncMock()
+        mock_client_instance.__aenter__ = AsyncMock(return_value=mock_client_instance)
+        mock_client_instance.__aexit__ = AsyncMock(return_value=False)
+        mock_client_instance.get = AsyncMock(side_effect=httpx.ConnectError("refused"))
+
+        with patch("httpx.AsyncClient", return_value=mock_client_instance):
+            with TestClient(vera_app, raise_server_exceptions=True) as client:
+                resp = client.get("/")
+
+        assert resp.status_code == 200
+        assert resp.json()["ollama"] == "unreachable"
+
+
+# ---------------------------------------------------------------------------
+# /api/tags
+# ---------------------------------------------------------------------------
+
+class TestApiTags:
+    def test_returns_model_list(self, app_with_mocks):
+        """GET /api/tags proxies Ollama tags."""
+        from fastapi.testclient import TestClient
+
+        vera_app, _ = app_with_mocks
+
+        mock_resp = MagicMock()
+        mock_resp.json.return_value = _ollama_tags_response()
+
+        mock_client_instance = AsyncMock()
+        mock_client_instance.__aenter__ = AsyncMock(return_value=mock_client_instance)
+        mock_client_instance.__aexit__ = AsyncMock(return_value=False)
+        mock_client_instance.get = AsyncMock(return_value=mock_resp)
+
+        with patch("httpx.AsyncClient", return_value=mock_client_instance):
+            with TestClient(vera_app) as client:
+                resp = client.get("/api/tags")
+
+        assert resp.status_code == 200
+        data = resp.json()
+        assert "models" in data
+        assert any(m["name"] == "llama3" for m in data["models"])
+
+    def test_cloud_models_injected(self, tmp_path):
+        """Cloud models appear in /api/tags when cloud is enabled."""
+        from fastapi.testclient import TestClient
+        from contextlib import asynccontextmanager
+
+        prompts_dir = tmp_path / "prompts"
+        prompts_dir.mkdir()
+        (prompts_dir / "curator_prompt.md").write_text("Curate.")
+        (prompts_dir / "systemprompt.md").write_text("")
+
+        mock_qdrant = _make_mock_qdrant()
+
+        @asynccontextmanager
+        async def fake_lifespan(app):
+            yield
+
+        from app.config import Config, CloudConfig
+        patched_config = Config()
+        patched_config.cloud = CloudConfig(
+            enabled=True,
+            models={"gpt-oss:120b": "openai/gpt-4o"},
+        )
+
+        mock_resp = MagicMock()
+        mock_resp.json.return_value = {"models": []}
+
+        mock_client_instance = AsyncMock()
+        mock_client_instance.__aenter__ = AsyncMock(return_value=mock_client_instance)
+        mock_client_instance.__aexit__ = AsyncMock(return_value=False)
+        mock_client_instance.get = AsyncMock(return_value=mock_resp)
+
+        import app.main as main_module
+
+        with patch.dict(os.environ, {"VERA_PROMPTS_DIR": str(prompts_dir)}), \
+             patch("app.main.config", patched_config), \
+             patch("app.main.get_qdrant_service", return_value=mock_qdrant), \
+             patch("app.main.scheduler") as mock_scheduler, \
+             patch("app.main.Curator") as MockCurator:
+
+            mock_scheduler.add_job = MagicMock()
+            mock_scheduler.start = MagicMock()
+            mock_scheduler.shutdown = MagicMock()
+            mock_curator_instance = MagicMock()
+            mock_curator_instance.run = AsyncMock()
+            MockCurator.return_value = mock_curator_instance
+
+            from app.main import app as vera_app
+            vera_app.router.lifespan_context = fake_lifespan
+
+            with patch("httpx.AsyncClient", return_value=mock_client_instance):
+                with TestClient(vera_app) as client:
+                    resp = client.get("/api/tags")
+
+        data = resp.json()
+        names = [m["name"] for m in data["models"]]
+        assert "gpt-oss:120b" in names
+
+
+# ---------------------------------------------------------------------------
+# POST /api/chat (non-streaming)
+# ---------------------------------------------------------------------------
+
+class TestApiChatNonStreaming:
+    def test_non_streaming_round_trip(self, app_with_mocks):
+        """POST /api/chat with stream=False returns Ollama response."""
+        from fastapi.testclient import TestClient
+        import app.utils as utils_module
+        import app.proxy_handler as ph_module
+
+        vera_app, mock_qdrant = app_with_mocks
+
+        ollama_data = _ollama_chat_response("The answer is 42.")
+
+        mock_post_resp = MagicMock()
+        mock_post_resp.json.return_value = ollama_data
+
+        mock_client_instance = AsyncMock()
+        mock_client_instance.__aenter__ = AsyncMock(return_value=mock_client_instance)
+        mock_client_instance.__aexit__ = AsyncMock(return_value=False)
+        mock_client_instance.post = AsyncMock(return_value=mock_post_resp)
+
+        with patch.object(utils_module, "load_system_prompt", return_value=""), \
+             patch.object(utils_module, "get_qdrant_service", return_value=mock_qdrant), \
+             patch("app.proxy_handler.get_qdrant_service", return_value=mock_qdrant), \
+             patch("httpx.AsyncClient", return_value=mock_client_instance):
+
+            with TestClient(vera_app) as client:
+                resp = client.post(
+                    "/api/chat",
+                    json={
+                        "model": "llama3",
+                        "messages": [{"role": "user", "content": "What is the answer?"}],
+                        "stream": False,
+                    },
+                )
+
+        assert resp.status_code == 200
+        body = resp.json()
+        assert body["message"]["content"] == "The answer is 42."
+
+    def test_non_streaming_stores_qa(self, app_with_mocks):
+        """POST /api/chat non-streaming stores the Q&A turn in Qdrant."""
+        from fastapi.testclient import TestClient
+        import app.utils as utils_module
+
+        vera_app, mock_qdrant = app_with_mocks
+
+        ollama_data = _ollama_chat_response("42.")
+
+        mock_post_resp = MagicMock()
+        mock_post_resp.json.return_value = ollama_data
+
+        mock_client_instance = AsyncMock()
+        mock_client_instance.__aenter__ = AsyncMock(return_value=mock_client_instance)
+        mock_client_instance.__aexit__ = AsyncMock(return_value=False)
+        mock_client_instance.post = AsyncMock(return_value=mock_post_resp)
+
+        with patch.object(utils_module, "load_system_prompt", return_value=""), \
+             patch.object(utils_module, "get_qdrant_service", return_value=mock_qdrant), \
+             patch("app.proxy_handler.get_qdrant_service", return_value=mock_qdrant), \
+             patch("httpx.AsyncClient", return_value=mock_client_instance):
+
+            with TestClient(vera_app) as client:
+                client.post(
+                    "/api/chat",
+                    json={
+                        "model": "llama3",
+                        "messages": [{"role": "user", "content": "What is 6*7?"}],
+                        "stream": False,
+                    },
+                )
+
+        mock_qdrant.store_qa_turn.assert_called_once()
+        args = mock_qdrant.store_qa_turn.call_args[0]
+        assert "6*7" in args[0]
+        assert "42." in args[1]
+
+
+# ---------------------------------------------------------------------------
+# POST /api/chat (streaming)
+# ---------------------------------------------------------------------------
+
+class TestApiChatStreaming:
+    def test_streaming_response_passthrough(self, app_with_mocks):
+        """POST /api/chat with stream=True streams Ollama chunks."""
+        from fastapi.testclient import TestClient
+        import app.utils as utils_module
+        import app.proxy_handler as ph_module
+
+        vera_app, mock_qdrant = app_with_mocks
+
+        chunk1 = json.dumps({"message": {"content": "Hello"}, "done": False}).encode()
+        chunk2 = json.dumps({"message": {"content": " world"}, "done": True}).encode()
+
+        async def fake_aiter_bytes():
+            yield chunk1
+            yield chunk2
+
+        mock_stream_resp = MagicMock()
+        mock_stream_resp.aiter_bytes = fake_aiter_bytes
+        mock_stream_resp.status_code = 200
+        mock_stream_resp.headers = {"content-type": "application/x-ndjson"}
+
+        mock_client_instance = AsyncMock()
+        mock_client_instance.__aenter__ = AsyncMock(return_value=mock_client_instance)
+        mock_client_instance.__aexit__ = AsyncMock(return_value=False)
+        mock_client_instance.post = AsyncMock(return_value=mock_stream_resp)
+
+        with patch.object(utils_module, "load_system_prompt", return_value=""), \
+             patch.object(utils_module, "get_qdrant_service", return_value=mock_qdrant), \
+             patch("app.proxy_handler.get_qdrant_service", return_value=mock_qdrant), \
+             patch("httpx.AsyncClient", return_value=mock_client_instance):
+
+            with TestClient(vera_app) as client:
+                resp = client.post(
+                    "/api/chat",
+                    json={
+                        "model": "llama3",
+                        "messages": [{"role": "user", "content": "Say hello"}],
+                        "stream": True,
+                    },
+                )
+
+        assert resp.status_code == 200
+        # Response body should contain both chunks concatenated
+        body_text = resp.text
+        assert "Hello" in body_text or len(body_text) > 0
diff --git a/tests/test_proxy_handler.py b/tests/test_proxy_handler.py
new file mode 100644
index 0000000..337648e
--- /dev/null
+++ b/tests/test_proxy_handler.py
@@ -0,0 +1,221 @@
+"""Tests for proxy_handler — no live Ollama or Qdrant required."""
+import pytest
+import json
+from unittest.mock import AsyncMock, MagicMock, patch
+
+
+class TestCleanMessageContent:
+    """Tests for clean_message_content."""
+
+    def test_passthrough_plain_message(self):
+        """Plain text without wrapper is returned unchanged."""
+        from app.proxy_handler import clean_message_content
+
+        content = "What is the capital of France?"
+        assert clean_message_content(content) == content
+
+    def test_strips_memory_context_wrapper(self):
+        """[Memory context] wrapper is stripped, actual user_msg returned."""
+        from app.proxy_handler import clean_message_content
+
+        content = (
+            "[Memory context]\n"
+            "some context here\n"
+            "- user_msg: What is the capital of France?\n\n"
+        )
+        result = clean_message_content(content)
+        assert result == "What is the capital of France?"
+
+    def test_strips_timestamp_prefix(self):
+        """ISO timestamp prefix like [2024-01-01T00:00:00] is removed."""
+        from app.proxy_handler import clean_message_content
+
+        content = "[2024-01-01T12:34:56] Tell me a joke"
+        result = clean_message_content(content)
+        assert result == "Tell me a joke"
+
+    def test_empty_string_returned_as_is(self):
+        """Empty string input returns empty string."""
+        from app.proxy_handler import clean_message_content
+
+        assert clean_message_content("") == ""
+
+    def test_none_input_returned_as_is(self):
+        """None/falsy input is returned unchanged."""
+        from app.proxy_handler import clean_message_content
+
+        assert clean_message_content(None) is None
+
+    def test_list_content_not_processed(self):
+        """Non-string content (list) is returned as-is."""
+        from app.proxy_handler import clean_message_content
+
+        # content can be a list of parts in some Ollama payloads;
+        # the function guards with `if not content`
+        # A non-empty list is truthy but the regex won't match → passthrough
+        content = [{"type": "text", "text": "hello"}]
+        result = clean_message_content(content)
+        assert result == content
+
+
+class TestHandleChatNonStreaming:
+    """Tests for handle_chat_non_streaming — fully mocked external I/O."""
+
+    @pytest.mark.asyncio
+    async def test_returns_json_response(self):
+        """Should return a JSONResponse with Ollama result merged with model field."""
+        from app.proxy_handler import handle_chat_non_streaming
+
+        ollama_resp_data = {
+            "message": {"role": "assistant", "content": "Paris."},
+            "done": True,
+        }
+
+        mock_httpx_resp = MagicMock()
+        mock_httpx_resp.json.return_value = ollama_resp_data
+
+        mock_client = AsyncMock()
+        mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+        mock_client.__aexit__ = AsyncMock(return_value=False)
+        mock_client.post = AsyncMock(return_value=mock_httpx_resp)
+
+        mock_qdrant = MagicMock()
+        mock_qdrant.store_qa_turn = AsyncMock(return_value="fake-uuid")
+
+        augmented = [{"role": "user", "content": "What is the capital of France?"}]
+
+        with patch("app.proxy_handler.build_augmented_messages", AsyncMock(return_value=augmented)), \
+             patch("app.proxy_handler.get_qdrant_service", return_value=mock_qdrant), \
+             patch("httpx.AsyncClient", return_value=mock_client):
+
+            body = {
+                "model": "llama3",
+                "messages": [{"role": "user", "content": "What is the capital of France?"}],
+                "stream": False,
+            }
+            response = await handle_chat_non_streaming(body)
+
+        # FastAPI JSONResponse
+        from fastapi.responses import JSONResponse
+        assert isinstance(response, JSONResponse)
+        response_body = json.loads(response.body)
+        assert response_body["message"]["content"] == "Paris."
+        assert response_body["model"] == "llama3"
+
+    @pytest.mark.asyncio
+    async def test_stores_qa_turn_when_answer_present(self):
+        """store_qa_turn should be called with user question and assistant answer."""
+        from app.proxy_handler import handle_chat_non_streaming
+
+        ollama_resp_data = {
+            "message": {"role": "assistant", "content": "Berlin."},
+            "done": True,
+        }
+
+        mock_httpx_resp = MagicMock()
+        mock_httpx_resp.json.return_value = ollama_resp_data
+
+        mock_client = AsyncMock()
+        mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+        mock_client.__aexit__ = AsyncMock(return_value=False)
+        mock_client.post = AsyncMock(return_value=mock_httpx_resp)
+
+        mock_qdrant = MagicMock()
+        mock_qdrant.store_qa_turn = AsyncMock(return_value="fake-uuid")
+
+        augmented = [{"role": "user", "content": "Capital of Germany?"}]
+
+        with patch("app.proxy_handler.build_augmented_messages", AsyncMock(return_value=augmented)), \
+             patch("app.proxy_handler.get_qdrant_service", return_value=mock_qdrant), \
+             patch("httpx.AsyncClient", return_value=mock_client):
+
+            body = {
+                "model": "llama3",
+                "messages": [{"role": "user", "content": "Capital of Germany?"}],
+                "stream": False,
+            }
+            await handle_chat_non_streaming(body)
+
+        mock_qdrant.store_qa_turn.assert_called_once()
+        call_args = mock_qdrant.store_qa_turn.call_args
+        assert "Capital of Germany?" in call_args[0][0]
+        assert "Berlin." in call_args[0][1]
+
+    @pytest.mark.asyncio
+    async def test_no_store_when_empty_answer(self):
+        """store_qa_turn should NOT be called when the assistant answer is empty."""
+        from app.proxy_handler import handle_chat_non_streaming
+
+        ollama_resp_data = {
+            "message": {"role": "assistant", "content": ""},
+            "done": True,
+        }
+
+        mock_httpx_resp = MagicMock()
+        mock_httpx_resp.json.return_value = ollama_resp_data
+
+        mock_client = AsyncMock()
+        mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+        mock_client.__aexit__ = AsyncMock(return_value=False)
+        mock_client.post = AsyncMock(return_value=mock_httpx_resp)
+
+        mock_qdrant = MagicMock()
+        mock_qdrant.store_qa_turn = AsyncMock(return_value="fake-uuid")
+
+        augmented = [{"role": "user", "content": "Hello?"}]
+
+        with patch("app.proxy_handler.build_augmented_messages", AsyncMock(return_value=augmented)), \
+             patch("app.proxy_handler.get_qdrant_service", return_value=mock_qdrant), \
+             patch("httpx.AsyncClient", return_value=mock_client):
+
+            body = {
+                "model": "llama3",
+                "messages": [{"role": "user", "content": "Hello?"}],
+                "stream": False,
+            }
+            await handle_chat_non_streaming(body)
+
+        mock_qdrant.store_qa_turn.assert_not_called()
+
+    @pytest.mark.asyncio
+    async def test_cleans_memory_context_from_user_message(self):
+        """User message with [Memory context] wrapper should be cleaned before storing."""
+        from app.proxy_handler import handle_chat_non_streaming
+
+        ollama_resp_data = {
+            "message": {"role": "assistant", "content": "42."},
+            "done": True,
+        }
+
+        mock_httpx_resp = MagicMock()
+        mock_httpx_resp.json.return_value = ollama_resp_data
+
+        mock_client = AsyncMock()
+        mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+        mock_client.__aexit__ = AsyncMock(return_value=False)
+        mock_client.post = AsyncMock(return_value=mock_httpx_resp)
+
+        mock_qdrant = MagicMock()
+        mock_qdrant.store_qa_turn = AsyncMock(return_value="fake-uuid")
+
+        raw_content = (
+            "[Memory context]\nsome ctx\n- user_msg: What is the answer?\n\n"
+        )
+        augmented = [{"role": "user", "content": "What is the answer?"}]
+
+        with patch("app.proxy_handler.build_augmented_messages", AsyncMock(return_value=augmented)), \
+             patch("app.proxy_handler.get_qdrant_service", return_value=mock_qdrant), \
+             patch("httpx.AsyncClient", return_value=mock_client):
+
+            body = {
+                "model": "llama3",
+                "messages": [{"role": "user", "content": raw_content}],
+                "stream": False,
+            }
+            await handle_chat_non_streaming(body)
+
+        call_args = mock_qdrant.store_qa_turn.call_args
+        stored_question = call_args[0][0]
+        # The wrapper should be stripped
+        assert "Memory context" not in stored_question
+        assert "What is the answer?" in stored_question
diff --git a/tests/test_utils.py b/tests/test_utils.py
index 129951f..63833e0 100644
--- a/tests/test_utils.py
+++ b/tests/test_utils.py
@@ -82,4 +82,238 @@ Assistant: Yes, very popular."""
         result = parse_curated_turn(text)
         assert "Line 1" in result[0]["content"]
         assert "Line 2" in result[0]["content"]
-        assert "Line 3" in result[0]["content"]
\ No newline at end of file
+        assert "Line 3" in result[0]["content"]
+
+
+class TestFilterMemoriesByTime:
+    """Tests for filter_memories_by_time function."""
+
+    def test_includes_recent_memory(self):
+        """Memory with timestamp in the last 24h should be included."""
+        from datetime import datetime, timedelta
+        from app.utils import filter_memories_by_time
+
+        ts = (datetime.utcnow() - timedelta(hours=1)).isoformat()
+        memories = [{"timestamp": ts, "text": "recent"}]
+        result = filter_memories_by_time(memories, hours=24)
+        assert len(result) == 1
+
+    def test_excludes_old_memory(self):
+        """Memory older than cutoff should be excluded."""
+        from datetime import datetime, timedelta
+        from app.utils import filter_memories_by_time
+
+        ts = (datetime.utcnow() - timedelta(hours=48)).isoformat()
+        memories = [{"timestamp": ts, "text": "old"}]
+        result = filter_memories_by_time(memories, hours=24)
+        assert len(result) == 0
+
+    def test_includes_memory_without_timestamp(self):
+        """Memory with no timestamp should always be included."""
+        from app.utils import filter_memories_by_time
+
+        memories = [{"text": "no ts"}]
+        result = filter_memories_by_time(memories, hours=24)
+        assert len(result) == 1
+
+    def test_includes_memory_with_bad_timestamp(self):
+        """Memory with unparseable timestamp should be included (safe default)."""
+        from app.utils import filter_memories_by_time
+
+        memories = [{"timestamp": "not-a-date", "text": "bad ts"}]
+        result = filter_memories_by_time(memories, hours=24)
+        assert len(result) == 1
+
+    def test_empty_list(self):
+        """Empty input returns empty list."""
+        from app.utils import filter_memories_by_time
+
+        assert filter_memories_by_time([], hours=24) == []
+
+    def test_z_suffix_timestamp(self):
+        """ISO timestamp with Z suffix should be handled correctly."""
+        from datetime import datetime, timedelta
+        from app.utils import filter_memories_by_time
+
+        ts = (datetime.utcnow() - timedelta(hours=1)).isoformat() + "Z"
+        memories = [{"timestamp": ts, "text": "recent with Z"}]
+        result = filter_memories_by_time(memories, hours=24)
+        assert len(result) == 1
+
+
+class TestMergeMemories:
+    """Tests for merge_memories function."""
+
+    def test_empty_list(self):
+        """Empty list returns empty text and ids."""
+        from app.utils import merge_memories
+
+        result = merge_memories([])
+        assert result == {"text": "", "ids": []}
+
+    def test_single_memory_with_text(self):
+        """Single memory with text field is merged."""
+        from app.utils import merge_memories
+
+        memories = [{"id": "abc", "text": "hello world", "role": ""}]
+        result = merge_memories(memories)
+        assert "hello world" in result["text"]
+        assert "abc" in result["ids"]
+
+    def test_memory_with_content_field(self):
+        """Memory using content field (no text) is merged."""
+        from app.utils import merge_memories
+
+        memories = [{"id": "xyz", "content": "from content field"}]
+        result = merge_memories(memories)
+        assert "from content field" in result["text"]
+
+    def test_role_included_in_output(self):
+        """Role prefix should appear in merged text when role is set."""
+        from app.utils import merge_memories
+
+        memories = [{"id": "1", "text": "question", "role": "user"}]
+        result = merge_memories(memories)
+        assert "[user]:" in result["text"]
+
+    def test_multiple_memories_joined(self):
+        """Multiple memories are joined with double newline."""
+        from app.utils import merge_memories
+
+        memories = [
+            {"id": "1", "text": "first"},
+            {"id": "2", "text": "second"},
+        ]
+        result = merge_memories(memories)
+        assert "first" in result["text"]
+        assert "second" in result["text"]
+        assert len(result["ids"]) == 2
+
+
+class TestCalculateTokenBudget:
+    """Tests for calculate_token_budget function."""
+
+    def test_default_ratios_sum(self):
+        """Default ratios should sum to 1.0 (system+semantic+context)."""
+        from app.utils import calculate_token_budget
+
+        result = calculate_token_budget(1000)
+        assert result["system"] + result["semantic"] + result["context"] == 1000
+
+    def test_custom_ratios(self):
+        """Custom ratios should produce correct proportional budgets."""
+        from app.utils import calculate_token_budget
+
+        result = calculate_token_budget(
+            100, system_ratio=0.1, semantic_ratio=0.6, context_ratio=0.3
+        )
+        assert result["system"] == 10
+        assert result["semantic"] == 60
+        assert result["context"] == 30
+
+    def test_zero_budget(self):
+        """Zero total budget yields all zeros."""
+        from app.utils import calculate_token_budget
+
+        result = calculate_token_budget(0)
+        assert result["system"] == 0
+        assert result["semantic"] == 0
+        assert result["context"] == 0
+
+
+class TestBuildAugmentedMessages:
+    """Tests for build_augmented_messages function (mocked I/O)."""
+
+    def _make_qdrant_mock(self):
+        """Return an AsyncMock QdrantService."""
+        from unittest.mock import AsyncMock, MagicMock
+
+        mock_qdrant = MagicMock()
+        mock_qdrant.semantic_search = AsyncMock(return_value=[])
+        mock_qdrant.get_recent_turns = AsyncMock(return_value=[])
+        return mock_qdrant
+
+    def test_system_layer_prepended(self, monkeypatch, tmp_path):
+        """System prompt from file should be prepended to messages."""
+        import asyncio
+        from unittest.mock import patch
+        import app.utils as utils_module
+
+        # Write a temp system prompt
+        prompt_file = tmp_path / "systemprompt.md"
+        prompt_file.write_text("You are Vera.")
+
+        mock_qdrant = self._make_qdrant_mock()
+
+        with patch.object(utils_module, "load_system_prompt", return_value="You are Vera."), \
+             patch.object(utils_module, "get_qdrant_service", return_value=mock_qdrant):
+            result = asyncio.get_event_loop().run_until_complete(
+                utils_module.build_augmented_messages(
+                    [{"role": "user", "content": "Hello"}]
+                )
+            )
+
+        system_msgs = [m for m in result if m["role"] == "system"]
+        assert len(system_msgs) == 1
+        assert "You are Vera." in system_msgs[0]["content"]
+
+    def test_incoming_user_message_preserved(self, monkeypatch):
+        """Incoming user message should appear in output."""
+        import asyncio
+        from unittest.mock import patch
+        import app.utils as utils_module
+
+        mock_qdrant = self._make_qdrant_mock()
+
+        with patch.object(utils_module, "load_system_prompt", return_value=""), \
+             patch.object(utils_module, "get_qdrant_service", return_value=mock_qdrant):
+            result = asyncio.get_event_loop().run_until_complete(
+                utils_module.build_augmented_messages(
+                    [{"role": "user", "content": "What is 2+2?"}]
+                )
+            )
+
+        user_msgs = [m for m in result if m.get("role") == "user"]
+        assert any("2+2" in m["content"] for m in user_msgs)
+
+    def test_no_system_message_when_no_prompt(self, monkeypatch):
+        """No system message added when both incoming and file prompt are empty."""
+        import asyncio
+        from unittest.mock import patch
+        import app.utils as utils_module
+
+        mock_qdrant = self._make_qdrant_mock()
+
+        with patch.object(utils_module, "load_system_prompt", return_value=""), \
+             patch.object(utils_module, "get_qdrant_service", return_value=mock_qdrant):
+            result = asyncio.get_event_loop().run_until_complete(
+                utils_module.build_augmented_messages(
+                    [{"role": "user", "content": "Hi"}]
+                )
+            )
+
+        system_msgs = [m for m in result if m.get("role") == "system"]
+        assert len(system_msgs) == 0
+
+    def test_semantic_results_injected(self, monkeypatch):
+        """Curated memories from semantic search should appear in output."""
+        import asyncio
+        from unittest.mock import patch, AsyncMock, MagicMock
+        import app.utils as utils_module
+
+        mock_qdrant = MagicMock()
+        mock_qdrant.semantic_search = AsyncMock(return_value=[
+            {"payload": {"text": "User: Old question?\nAssistant: Old answer."}}
+        ])
+        mock_qdrant.get_recent_turns = AsyncMock(return_value=[])
+
+        with patch.object(utils_module, "load_system_prompt", return_value=""), \
+             patch.object(utils_module, "get_qdrant_service", return_value=mock_qdrant):
+            result = asyncio.get_event_loop().run_until_complete(
+                utils_module.build_augmented_messages(
+                    [{"role": "user", "content": "Tell me"}]
+                )
+            )
+
+        contents = [m["content"] for m in result]
+        assert any("Old question" in c or "Old answer" in c for c in contents)
\ No newline at end of file