diff --git a/.github/actions/free-disk-space/action.yml b/.github/actions/free-disk-space/action.yml
new file mode 100644
index 00000000..fc34d192
--- /dev/null
+++ b/.github/actions/free-disk-space/action.yml
@@ -0,0 +1,19 @@
+name: 'Free Disk Space'
+description: 'Frees disk space on the runner'
+runs:
+  using: "composite"
+  steps:
+    - run: |
+        df -h
+        sudo docker rmi "$(docker image ls -aq)" >/dev/null 2>&1 || true
+        sudo rm -rf \
+          /usr/share/dotnet /usr/local/lib/android /opt/ghc \
+          /usr/local/share/powershell /usr/share/swift /usr/local/.ghcup \
+          /usr/lib/jvm || true
+        sudo apt install aptitude -y >/dev/null 2>&1
+        sudo aptitude purge '~n ^mysql' -f -y >/dev/null 2>&1
+        sudo aptitude purge '~n ^dotnet' -f -y >/dev/null 2>&1
+        sudo apt-get autoremove -y >/dev/null 2>&1
+        sudo apt-get autoclean -y >/dev/null 2>&1
+        df -h
+      shell: bash
diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
new file mode 100644
index 00000000..e2a81b03
--- /dev/null
+++ b/.github/workflows/test.yml
@@ -0,0 +1,117 @@
+# SPDX-License-Identifier: Apache-2.0
+
+name: Test
+
+on:
+  workflow_dispatch:
+  push:
+    branches:
+      - "main"
+      - "release-**"
+    paths:
+      - '**.py'
+      - 'pyproject.toml'
+      - 'requirements*.txt'
+      - 'tox.ini'
+      - '.github/workflows/test.yml' # This workflow
+  pull_request:
+    branches:
+      - "main"
+      - "release-**"
+    paths:
+      - '**.py'
+      - 'pyproject.toml'
+      - 'requirements*.txt'
+      - 'tox.ini'
+      - '.github/workflows/test.yml' # This workflow
+
+env:
+  LC_ALL: en_US.UTF-8
+
+defaults:
+  run:
+    shell: bash
+
+permissions:
+  contents: read
+
+jobs:
+  test:
+    name: "${{ matrix.python }} on ${{ matrix.platform }}"
+    runs-on: "${{ matrix.platform }}"
+    strategy:
+      matrix:
+        python:
+          - "3.10"
+          - "3.11"
+        platform:
+          - "ubuntu-latest"
+        include:
+          - python: "3.11"
+            platform: "macos-latest"
+    steps:
+      - name: "Harden Runner"
+        uses: step-security/harden-runner@17d0e2bd7d51742c71671bd19fa12bdc9d40a3d6 # v2.8.1
+        with:
+          egress-policy: audit # TODO: change to 'egress-policy: block' after couple of runs
+
+      - name: Checkout
+        uses: actions/checkout@692973e3d937129bcbf40652eb9f2f61becf3332 # v4.1.7
+        with:
+          # https://github.com/actions/checkout/issues/249
+          fetch-depth: 0
+
+      - name: Free disk space
+        if: matrix.platform != 'macos-latest'
+        uses: ./.github/actions/free-disk-space
+
+      - name: Install the expect package
+        if: startsWith(matrix.platform, 'ubuntu')
+        run: |
+          sudo apt-get install -y expect
+
+      - name: Install tools on MacOS
+        if: startsWith(matrix.platform, 'macos')
+        run: |
+          brew install expect coreutils bash
+
+      - name: Setup Python ${{ matrix.python }}
+        uses: actions/setup-python@82c7e631bb3cdc910f68e0081d67478d79c6982d # v5.1.0
+        with:
+          python-version: ${{ matrix.python }}
+          cache: pip
+          cache-dependency-path: |
+            **/pyproject.toml
+            **/requirements*.txt
+
+      - name: Remove llama-cpp-python from cache
+        run: |
+          pip cache remove llama_cpp_python
+
+      - name: Cache huggingface
+        uses: actions/cache@0c45773b623bea8c8e75f6c82b208c3cf94ea4f9 # v4.0.2
+        with:
+          path: ~/.cache/huggingface
+          # config contains DEFAULT_MODEL
+          key: huggingface-${{ hashFiles('src/instructlab/configuration.py') }}
+
+      - name: Install dependencies
+        run: |
+          python -m pip install --upgrade pip
+          python -m pip install tox tox-gh>=1.2
+
+      - name: Run unit tests with tox
+        run: |
+          tox
+
+      - name: Remove llama-cpp-python from cache
+        if: always()
+        run: |
+          pip cache remove llama_cpp_python
+
+  test-workflow-complete:
+    needs: ["test"]
+    runs-on: ubuntu-latest
+    steps:
+      - name: Test Workflow Complete
+        run: echo "Test Workflow Complete"
diff --git a/requirements-dev.txt b/requirements-dev.txt
index 533fdde5..033460c0 100644
--- a/requirements-dev.txt
+++ b/requirements-dev.txt
@@ -7,4 +7,8 @@ instructlab>=0.17.0
 pre-commit>=3.0.4,<4.0
 pylint>=2.16.2,<4.0
 pylint-pydantic
+pytest
+pytest-asyncio
+pytest-cov
+pytest-html
 tox>=4.4.2,<5
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/test_utils.py b/tests/test_utils.py
new file mode 100644
index 00000000..f4540c55
--- /dev/null
+++ b/tests/test_utils.py
@@ -0,0 +1,57 @@
+# SPDX-License-Identifier: Apache-2.0
+
+# Standard
+from unittest.mock import Mock, patch
+
+# Third Party
+import git
+import pytest
+import yaml
+
+# First Party
+from instructlab.sdg import utils
+
+# Local
+from .testdata import testdata
+
+
+class TestUtils:
+    """Test collection in instructlab.utils."""
+
+    def test_chunk_docs_wc_exeeds_ctx_window(self):
+        with pytest.raises(ValueError) as exc:
+            utils.chunk_document(
+                documents=testdata.documents,
+                chunk_word_count=1000,
+                server_ctx_size=1034,
+            )
+        assert (
+            "Given word count (1000) per doc will exceed the server context window size (1034)"
+            in str(exc.value)
+        )
+
+    def test_chunk_docs_chunk_overlap_error(self):
+        with pytest.raises(ValueError) as exc:
+            utils.chunk_document(
+                documents=testdata.documents,
+                chunk_word_count=5,
+                server_ctx_size=1034,
+            )
+        assert (
+            "Got a larger chunk overlap (100) than chunk size (24), should be smaller"
+            in str(exc.value)
+        )
+
+    def test_chunk_docs_long_lines(self):
+        chunk_words = 50
+        chunks = utils.chunk_document(
+            documents=testdata.long_line_documents,
+            chunk_word_count=chunk_words,
+            server_ctx_size=4096,
+        )
+        max_tokens = utils.num_tokens_from_words(chunk_words)
+        max_chars = utils.num_chars_from_tokens(max_tokens)
+        max_chars += utils.DEFAULT_CHUNK_OVERLAP  # add in the chunk overlap
+        max_chars += 50  # and a bit extra for some really long words
+        for chunk in chunks:
+            assert len(chunk) <= max_chars
diff --git a/tests/testdata/testdata.py b/tests/testdata/testdata.py
new file mode 100644
index 00000000..8f32bb09
--- /dev/null
+++ b/tests/testdata/testdata.py
@@ -0,0 +1,25 @@
+# SPDX-License-Identifier: Apache-2.0
+
+documents = [
+    """Knowledge is an awareness of facts, a familiarity with individuals and situations, 
+      or a practical skill. Knowledge of facts, also called propositional knowledge, is often characterized 
+      as true belief that is distinct from opinion or guesswork by virtue of justification. 
+      While there is wide agreement among philosophers that propositional knowledge is a form of true belief, 
+      many controversies focus on justification. This includes questions like how to understand justification, 
+      whether it is needed at all, and whether something else besides it is needed. 
+      These controversies intensified in the latter half of the 20th century due to a series of thought experiments 
+      called Gettier cases that provoked alternative definitions."""
+]
+
+long_line_documents = [
+    (
+        "Knowledge is an awareness of facts, a familiarity with individuals and situations,"
+        "or a practical skill. Knowledge of facts, also called propositional knowledge, is often characterized "
+        "as true belief that is distinct from opinion or guesswork by virtue of justification. "
+        "While there is wide agreement among philosophers that propositional knowledge is a form of true belief, "
+        "many controversies focus on justification. This includes questions like how to understand justification, "
+        "whether it is needed at all, and whether something else besides it is needed. "
+        "These controversies intensified in the latter half of the 20th century due to a series of thought experiments "
+        "called Gettier cases that provoked alternative definitions."
+    )
+]
diff --git a/tox.ini b/tox.ini
index cf564a1b..bbb0acf7 100644
--- a/tox.ini
+++ b/tox.ini
@@ -3,9 +3,22 @@
 [tox]
 # py3-unit runs unit tests with 'python3'
 # py311-unit runs the same tests with 'python3.11'
-envlist = ruff, lint, mypy, spellcheck
+envlist = ruff, lint, mypy, spellcheck, py3-unit
 minversion = 4.4
 
+[testenv]
+description = run tests (unit, unitcov)
+# Use PyTorch CPU build instead of CUDA build in test envs. CUDA dependencies
+# are huge. This reduces venv from 5.7 GB to 1.5 GB.
+setenv =
+    PIP_EXTRA_INDEX_URL=https://download.pytorch.org/whl/cpu
+package = wheel
+wheel_build_env = pkg
+deps = -r requirements-dev.txt
+commands =
+    unit: {envpython} -m pytest {posargs:tests}
+    unitcov: {envpython} -W error::UserWarning -m pytest --cov=instructlab.sdg --cov-report term --cov-report=html:coverage-{env_name} --cov-report=xml:coverage-{env_name}.xml --html=durations/{env_name}.html {posargs:tests -m "not (examples or slow)"}
+
 # format, check, and linting targets don't build and install the project to
 # speed up testing.
 [testenv:lint]
@@ -59,3 +72,8 @@ deps =
   pytest
 commands =
   mypy src
+
+[gh]
+python =
+    3.11 = py311-unitcov
+    3.10 = py310-unitcov