diff --git a/__tests__/wallets/manager.test.ts b/__tests__/wallets/manager.test.ts
new file mode 100644
index 0000000..f0497d3
--- /dev/null
+++ b/__tests__/wallets/manager.test.ts
@@ -0,0 +1,267 @@
+import { beforeEach, describe, expect, it, jest, spyOn } from 'bun:test'
+import { NetworkId } from 'src/network/constants'
+import { WalletManager } from 'src/wallets/manager'
+import { WalletId } from 'src/wallets/supported/constants'
+import { DeflyWallet } from 'src/wallets/supported/defly'
+import { PeraWallet } from 'src/wallets/supported/pera'
+
+const deflyResumeSession = spyOn(DeflyWallet.prototype, 'resumeSession').mockImplementation(() =>
+  Promise.resolve()
+)
+const peraResumeSession = spyOn(PeraWallet.prototype, 'resumeSession').mockImplementation(() =>
+  Promise.resolve()
+)
+
+// Suppress console output
+spyOn(console, 'info').mockImplementation(() => {})
+spyOn(console, 'warn').mockImplementation(() => {})
+spyOn(console, 'groupCollapsed').mockImplementation(() => {})
+
+// Mock localStorage
+const localStorageMock = (() => {
+  let store: Record<string, any> = {}
+  return {
+    getItem: (key: string) => store[key] || null,
+    setItem: (key: string, value: any) => (store[key] = value.toString()),
+    clear: () => (store = {})
+  }
+})()
+Object.defineProperty(global, 'localStorage', {
+  value: localStorageMock
+})
+
+describe('WalletManager', () => {
+  beforeEach(() => {
+    localStorageMock.clear()
+  })
+
+  describe('constructor', () => {
+    it('initializes with default network and wallets', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      expect(manager.wallets.length).toBe(2)
+      expect(manager.activeNetwork).toBe(NetworkId.TESTNET)
+      expect(manager.algodClient).toBeDefined()
+    })
+
+    it('initializes with custom network and wallets', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA],
+        network: NetworkId.MAINNET
+      })
+      expect(manager.wallets.length).toBe(2)
+      expect(manager.activeNetwork).toBe(NetworkId.MAINNET)
+      expect(manager.algodClient).toBeDefined()
+    })
+
+    it('initializes with custom algod config', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA],
+        network: NetworkId.LOCALNET,
+        algod: {
+          baseServer: 'http://localhost',
+          port: '1234',
+          token: '1234',
+          headers: {
+            'X-API-Key': '1234'
+          }
+        }
+      })
+
+      expect(manager.wallets.length).toBe(2)
+      expect(manager.activeNetwork).toBe(NetworkId.LOCALNET)
+      expect(manager.algodClient).toBeDefined()
+    })
+  })
+
+  describe('initializeWallets', () => {
+    it('initializes wallets from string array', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      expect(manager.wallets.length).toBe(2)
+    })
+
+    it('initializes wallets from WalletIdConfig array', () => {
+      const manager = new WalletManager({
+        wallets: [
+          {
+            id: WalletId.DEFLY,
+            options: {
+              shouldShowSignTxnToast: false
+            }
+          },
+          {
+            id: WalletId.WALLETCONNECT,
+            options: {
+              projectId: '1234'
+            }
+          }
+        ]
+      })
+      expect(manager.wallets.length).toBe(2)
+    })
+
+    it('initializes wallets from mixed array', () => {
+      const manager = new WalletManager({
+        wallets: [
+          WalletId.DEFLY,
+          {
+            id: WalletId.WALLETCONNECT,
+            options: {
+              projectId: '1234'
+            }
+          }
+        ]
+      })
+      expect(manager.wallets.length).toBe(2)
+    })
+
+    it('initializes wallets with custom metadata', () => {
+      const manager = new WalletManager({
+        wallets: [
+          {
+            id: WalletId.DEFLY,
+            metadata: {
+              name: 'Custom Wallet',
+              icon: 'icon'
+            }
+          }
+        ]
+      })
+      expect(manager.wallets.length).toBe(1)
+      expect(manager.wallets[0]?.metadata.name).toBe('Custom Wallet')
+      expect(manager.wallets[0]?.metadata.icon).toBe('icon')
+    })
+
+    // @todo: Test for handling of invalid wallet configurations
+  })
+
+  describe('setActiveNetwork', () => {
+    it('sets active network correctly', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      manager.setActiveNetwork(NetworkId.MAINNET)
+      expect(manager.activeNetwork).toBe(NetworkId.MAINNET)
+    })
+
+    // @todo: Test for handling of invalid network
+  })
+
+  describe('subscribe', () => {
+    it('adds and removes a subscriber', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      const callback = jest.fn()
+      const unsubscribe = manager.subscribe(callback)
+
+      // Trigger a state change
+      manager.setActiveNetwork(NetworkId.MAINNET)
+
+      expect(callback).toHaveBeenCalled()
+
+      unsubscribe()
+      // Trigger another state change
+      manager.setActiveNetwork(NetworkId.BETANET)
+
+      expect(callback).toHaveBeenCalledTimes(1) // Should not be called again
+    })
+  })
+
+  describe('activeWallet', () => {
+    const serializedState = {
+      wallets: {
+        _type: 'Map',
+        data: [
+          [
+            'pera',
+            {
+              accounts: [
+                {
+                  name: 'Pera Wallet 1',
+                  address: '7ZUECA7HFLZTXENRV24SHLU4AVPUTMTTDUFUBNBD64C73F3UHRTHAIOF6Q'
+                },
+                {
+                  name: 'Pera Wallet 2',
+                  address: 'N2C374IRX7HEX2YEQWJBTRSVRHRUV4ZSF76S54WV4COTHRUNYRCI47R3WU'
+                }
+              ],
+              activeAccount: {
+                name: 'Pera Wallet 1',
+                address: '7ZUECA7HFLZTXENRV24SHLU4AVPUTMTTDUFUBNBD64C73F3UHRTHAIOF6Q'
+              }
+            }
+          ]
+        ]
+      },
+      activeWallet: 'pera',
+      activeNetwork: 'testnet'
+    }
+
+    beforeEach(() => {
+      localStorageMock.setItem('@txnlab/use-wallet', JSON.stringify(serializedState))
+    })
+
+    it('returns the active wallet', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      expect(manager.activeWallet?.id).toBe(WalletId.PERA)
+    })
+
+    it('returns null if no active wallet', () => {
+      localStorageMock.clear()
+
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      expect(manager.activeWallet).toBeNull()
+    })
+
+    it('returns active wallet accounts', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      expect(manager.activeWalletAccounts?.length).toBe(2)
+      expect(manager.activeWalletAddresses).toEqual([
+        '7ZUECA7HFLZTXENRV24SHLU4AVPUTMTTDUFUBNBD64C73F3UHRTHAIOF6Q',
+        'N2C374IRX7HEX2YEQWJBTRSVRHRUV4ZSF76S54WV4COTHRUNYRCI47R3WU'
+      ])
+    })
+
+    it('removes wallets in state that are not in config', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY]
+      })
+      expect(manager.wallets.length).toBe(1)
+      expect(manager.wallets[0]?.id).toBe(WalletId.DEFLY)
+      expect(manager.activeWallet).toBeNull()
+    })
+  })
+
+  describe('Transaction Signing', () => {
+    it('throws error if no active wallet', () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      expect(() => manager.signTransactions).toThrow()
+    })
+
+    // @todo: Tests for successful signing
+  })
+
+  describe('resumeSessions', () => {
+    it('resumes sessions for all wallets', async () => {
+      const manager = new WalletManager({
+        wallets: [WalletId.DEFLY, WalletId.PERA]
+      })
+      await manager.resumeSessions()
+
+      expect(deflyResumeSession).toHaveBeenCalled()
+      expect(peraResumeSession).toHaveBeenCalled()
+    })
+  })
+})