diff --git a/.dockerignore b/.dockerignore
new file mode 100644
index 0000000..efcc8aa
--- /dev/null
+++ b/.dockerignore
@@ -0,0 +1,5 @@
+.github
+.gitignore
+.dockerignore
+Dockerfile
+tests
\ No newline at end of file
diff --git a/tests/README.md b/tests/README.md
new file mode 100644
index 0000000..4fafbf8
--- /dev/null
+++ b/tests/README.md
@@ -0,0 +1,13 @@
+# Docker Autoheal Tests
+
+Docker Compose is used to build and deploy test environment.
+
+test.sh waits on watch-autoheal exit code.
+
+Currently setup to a very basic exit 1 on invalid restart and exit 0 on valid restart. 
+
+## Run tests
+```
+cd tests
+./tests.sh
+```
diff --git a/tests/docker-compose.autoheal.yml b/tests/docker-compose.autoheal.yml
new file mode 100644
index 0000000..1f55a83
--- /dev/null
+++ b/tests/docker-compose.autoheal.yml
@@ -0,0 +1,11 @@
+version: '3.7'
+
+services:
+
+  watch-autoheal:
+    container_name: watch-autoheal
+    build: watch-autoheal
+    restart: "no"
+    volumes:
+      - "/var/run/docker.sock:/var/run/docker.sock"
+    network_mode: none
diff --git a/tests/docker-compose.yml b/tests/docker-compose.yml
new file mode 100644
index 0000000..f35b431
--- /dev/null
+++ b/tests/docker-compose.yml
@@ -0,0 +1,42 @@
+version: '3.7'
+
+services:
+
+  should-keep-restarting:
+    image: alpine
+    container_name: should-keep-restarting
+    network_mode: none
+    restart: "no"
+    healthcheck:
+      test: exit 1
+      interval: 3s
+      timeout: 1s
+      retries: 3
+      start_period: 5s
+    command: tail -f /dev/null
+
+  shouldnt-restart:
+    image: alpine
+    container_name: shouldnt-restart
+    network_mode: none
+    restart: "no"
+    healthcheck:
+      test: exit 0
+      interval: 2s
+      timeout: 1s
+      retries: 1
+      start_period: 1s
+    command: tail -f /dev/null
+
+
+  autoheal:
+    container_name: autoheal
+    build:
+      context: ../
+    restart: unless-stopped
+    environment:
+      AUTOHEAL_CONTAINER_LABEL: "all"
+      AUTOHEAL_INTERVAL: "10"
+    volumes:
+      - "/var/run/docker.sock:/var/run/docker.sock"
+    network_mode: none
diff --git a/tests/tests.sh b/tests/tests.sh
new file mode 100755
index 0000000..83af29b
--- /dev/null
+++ b/tests/tests.sh
@@ -0,0 +1,16 @@
+#!/usr/bin/env bash
+set -euxo pipefail
+
+COMPOSE_PROJECT_NAME=autoheal-test
+
+function cleanup()
+{
+    exit_status=$?
+    echo "exit was $exit_status"
+    docker-compose -f docker-compose.autoheal.yml -f docker-compose.yml rm -f || true
+    exit "$exit_status"
+}
+trap cleanup EXIT
+docker-compose up --build -d
+docker-compose -f docker-compose.autoheal.yml up --build --exit-code-from watch-autoheal watch-autoheal
+
diff --git a/tests/watch-autoheal/Dockerfile b/tests/watch-autoheal/Dockerfile
new file mode 100644
index 0000000..9f28f04
--- /dev/null
+++ b/tests/watch-autoheal/Dockerfile
@@ -0,0 +1,9 @@
+FROM alpine:latest
+
+RUN apk --update add bash docker
+
+
+WORKDIR /app
+COPY . .
+
+ENTRYPOINT ["/app/entrypoint.sh"]
\ No newline at end of file
diff --git a/tests/watch-autoheal/entrypoint.sh b/tests/watch-autoheal/entrypoint.sh
new file mode 100755
index 0000000..2f77c6b
--- /dev/null
+++ b/tests/watch-autoheal/entrypoint.sh
@@ -0,0 +1,17 @@
+#!/usr/bin/env bash
+set -euxo pipefail
+
+listenToDockerEvents()
+{
+docker events --filter 'container=should-keep-restarting' --filter 'container=shouldnt-restart' --filter 'event=restart' | while read LOGLINE
+do
+  echo "$LOGLINE"
+  # may be more elaborate checks here.
+   [[ "${LOGLINE}" == *"container restart "*"name=shouldnt-restart"* ]] && echo "ERR: No restarts expected on shouldnt-restart container!" && pkill -9 docker && exit 1
+   [[ "${LOGLINE}" == *"container restart "*"name=should-keep-restarting"* ]] && echo "OK: Expected restart on should-keep-restarting container!" && pkill -9 docker && exit 0
+done
+
+}
+
+export -f listenToDockerEvents
+timeout 60s bash -c listenToDockerEvents