diff --git a/.actrc b/.actrc
new file mode 100644
index 0000000..483cd68
--- /dev/null
+++ b/.actrc
@@ -0,0 +1,3 @@
+# Act configuration for local CI testing
+--platform ubuntu-latest=catthehacker/ubuntu:act-latest
+--pull=false
diff --git a/.busted b/.busted
new file mode 100644
index 0000000..7ae8144
--- /dev/null
+++ b/.busted
@@ -0,0 +1,13 @@
+return {
+  _all = {
+    coverage = false,
+    lpath = "lua/?.lua;lua/?/init.lua",
+    lua = "nlua",
+    pattern = ".*_spec%.lua",
+    ROOT = { "tests" },
+    verbose = true,
+    ["suppress-pending"] = false,
+    ["show-error-list"] = true,
+  },
+}
+
diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 5b5d766..a98ca92 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -10,13 +10,41 @@ on:
 
 jobs:
   tests:
+    name: Run tests
     runs-on: ubuntu-latest
     timeout-minutes: 5
+    strategy:
+      matrix:
+        neovim_version: ["nightly", "stable"]
     steps:
       - uses: actions/checkout@v4
-      - uses: rhysd/action-setup-vim@v1
+      - name: Install dependencies
+        run: |
+          sudo apt-get update
+          sudo apt-get install -y build-essential gcc make luarocks lua5.1 liblua5.1-dev
+      - name: Setup Neovim
+        uses: rhysd/action-setup-vim@v1
         with:
           neovim: true
-          version: nightly
-      - name: Run Tests
-        run: make test
+          version: ${{ matrix.neovim_version }}
+      - name: Install test dependencies
+        run: |
+          sudo luarocks install busted
+          sudo luarocks install nlua
+          sudo luarocks install luassert
+      - name: Run tests
+        env:
+          NEOVIM_VERSION: ${{ matrix.neovim_version }}
+        run: |
+          set -euo pipefail
+          export PATH="/usr/local/bin:$PATH"
+
+          echo "Running tests for Neovim ${{ matrix.neovim_version }}..."
+          echo "================================================"
+
+          if [ -f "scripts/test-runner.sh" ]; then
+            chmod +x scripts/test-runner.sh
+            ./scripts/test-runner.sh || exit $?
+          else
+            busted --verbose tests/ || exit $?
+          fi
diff --git a/.github/workflows/luarocks.yml b/.github/workflows/luarocks.yml
index 68d8d45..19d876c 100644
--- a/.github/workflows/luarocks.yml
+++ b/.github/workflows/luarocks.yml
@@ -4,7 +4,6 @@ on:
   push:
     tags: # Will upload to luarocks.org when a tag is pushed
       - "*"
-  pull_request: # Will test a local install without uploading to luarocks.org
   workflow_dispatch:
 
 jobs:
diff --git a/.gitignore b/.gitignore
index 86c495e..002b49e 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,2 +1,16 @@
 /.tests
 /test
+.env
+.env.*
+*.private
+*.secret
+.actrc.local
+.luarocks/
+*.rock
+*.src.rock
+.DS_Store
+*.swp
+*.swo
+*~
+.vscode/
+.idea/
diff --git a/Makefile b/Makefile
index c3f74a0..cb898e4 100644
--- a/Makefile
+++ b/Makefile
@@ -1,4 +1,25 @@
-.PHONY: test
+.PHONY: test test-verbose test-minimal test-tap test-ci test-stable test-nightly
 
 test:
-	nvim -l ./tests/busted.lua tests/
+	@./scripts/test-runner.sh
+
+test-verbose:
+	@./scripts/test-runner.sh --verbose
+
+test-minimal:
+	@./scripts/test-runner.sh --minimal
+
+test-tap:
+	@./scripts/test-runner.sh --tap
+
+test-ci:
+	@command -v act >/dev/null 2>&1 || { echo "act is not installed"; exit 1; }
+	act -W .github/workflows/ci.yml
+
+test-ci-stable:
+	@command -v act >/dev/null 2>&1 || { echo "act is not installed"; exit 1; }
+	act -W .github/workflows/ci.yml -j tests --matrix neovim_version:stable
+
+test-ci-nightly:
+	@command -v act >/dev/null 2>&1 || { echo "act is not installed"; exit 1; }
+	act -W .github/workflows/ci.yml -j tests --matrix neovim_version:nightly
diff --git a/image.nvim-scm-1.rockspec b/image.nvim-scm-1.rockspec
index 697ad0c..3b965ca 100644
--- a/image.nvim-scm-1.rockspec
+++ b/image.nvim-scm-1.rockspec
@@ -18,10 +18,25 @@ dependencies = {
 }
 
 source = {
-  url = "git://github.com/3rd/image.nvim"
+  url = "git://github.com/3rd/image.nvim",
 }
 
-test_dependencies = {}
+test_dependencies = {
+  "nlua",
+  "busted",
+  "luassert",
+}
+
+test = {
+  type = "busted",
+  platforms = {
+    unix = {
+      flags = {
+        "--config-file=.busted",
+      },
+    },
+  },
+}
 
 build = {
   type = "builtin",
diff --git a/scripts/test-runner.sh b/scripts/test-runner.sh
new file mode 100755
index 0000000..9d4890e
--- /dev/null
+++ b/scripts/test-runner.sh
@@ -0,0 +1,79 @@
+#!/usr/bin/env bash
+set -o pipefail
+
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+CYAN='\033[0;36m'
+NC='\033[0m' # No Color
+BOLD='\033[1m'
+
+color() {
+  echo -e "${1}${2}${NC}"
+}
+
+# Header
+echo ""
+color "${CYAN}${BOLD}" "╔══════════════════════════════════════════════════════════════╗"
+color "${CYAN}${BOLD}" "║                   image.nvim Test Suite                     ║"
+color "${CYAN}${BOLD}" "╚══════════════════════════════════════════════════════════════╝"
+echo ""
+
+# check if running in CI
+if [ -n "$CI" ]; then
+  color "${BLUE}" "Environment: GitHub Actions CI"
+  color "${BLUE}" "Neovim Version: ${NEOVIM_VERSION:-unknown}"
+else
+  color "${BLUE}" "Environment: Local"
+  if command -v nvim &>/dev/null; then
+    NVIM_VERSION=$(nvim --version | head -n1)
+    color "${BLUE}" "Neovim Version: $NVIM_VERSION"
+  fi
+fi
+
+echo ""
+color "${YELLOW}" "Test Files:"
+color "${YELLOW}" "───────────"
+
+# list test files
+for file in tests/**/*_spec.lua; do
+  if [ -f "$file" ]; then
+    echo "  • $(basename $file)"
+  fi
+done
+
+echo ""
+color "${CYAN}" "Running Tests..."
+color "${CYAN}" "════════════════"
+echo ""
+
+if [ "$1" == "--tap" ]; then
+  # TAP
+  busted --output=TAP --verbose tests/
+  TEST_RESULT=$?
+elif [ "$1" == "--minimal" ]; then
+  # minimal output
+  busted tests/
+  TEST_RESULT=$?
+else
+  # default: verbose
+  busted --output=gtest --verbose tests/ 2>&1 | sed 's/^/  /'
+  TEST_RESULT=${PIPESTATUS[0]}
+fi
+
+echo ""
+color "${CYAN}" "════════════════"
+
+# summary
+if [ $TEST_RESULT -eq 0 ]; then
+  echo ""
+  color "${GREEN}${BOLD}" "✓ All tests passed!"
+  echo ""
+else
+  echo ""
+  color "${RED}${BOLD}" "✗ Tests failed!"
+  echo ""
+  exit $TEST_RESULT
+fi
+