diff --git a/bootstraprag/cli.py b/bootstraprag/cli.py
index 2a3dc73..2c85ddf 100644
--- a/bootstraprag/cli.py
+++ b/bootstraprag/cli.py
@@ -24,7 +24,6 @@ def create_zip(project_name):
 @click.option('--observability', type=click.Choice([]), prompt=False)
 def create(project_name, framework, template, observability):
     template_choices = []
-    observability_choices = []
     framework_choices = ['llamaindex', 'None']
     framework = inquirer.select(
         message="Which technology would you like to use ('None' will make you to use qdrant direct search)?",
diff --git a/requirements.txt b/requirements.txt
index b7d4e51..1a39592 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,3 +1,4 @@
 click==8.1.7
 python-dotenv==1.0.1
-inquirerpy==0.3.4
\ No newline at end of file
+inquirerpy==0.3.4
+pytest==8.3.2
\ No newline at end of file
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/test_cli.py b/tests/test_cli.py
new file mode 100644
index 0000000..cf9edc9
--- /dev/null
+++ b/tests/test_cli.py
@@ -0,0 +1,46 @@
+import pytest
+from click.testing import CliRunner
+from unittest.mock import patch
+from bootstraprag.cli import cli, download_and_extract_template  # replace 'your_cli_module' with the actual module name
+
+
+@pytest.fixture
+def runner():
+    return CliRunner()
+
+
+def test_create_project_without_overwrite(runner):
+    # Mock Path.exists to simulate that the project directory already exists
+    with patch('pathlib.Path.exists', return_value=True), \
+            patch('shutil.copytree') as mock_copy, \
+            patch('InquirerPy.inquirer.select') as mock_inquirer_select:
+        # Ensure copytree wasn't called since the directory exists
+        mock_copy.assert_not_called()
+        # Ensure no prompt was triggered
+        mock_inquirer_select.assert_not_called()
+
+        # The prompts should not be triggered because the function should exit early
+        result = runner.invoke(cli, ['create', 'test_project'])
+
+        # Assert that the command exited with success (in this case we expect no project creation)
+        assert result.exit_code == 0, f"Exit code was {result.exit_code}, output: {result.output}"
+        assert "Error: Project directory test_project already exists!" in result.output
+
+
+def test_framework_selection_llamaindex(runner):
+    with patch('InquirerPy.inquirer.select.execute', return_value='llamaindex'):
+        result = runner.invoke(cli, ['create', 'test_project'])
+        assert result.exit_code == 0
+        assert 'You have selected framework: llamaindex' in result.output
+
+
+def test_download_and_extract_template_with_observability():
+    with patch('shutil.copytree') as mock_copy:
+        download_and_extract_template('test_project', 'llamaindex', 'simple-rag', 'Yes')
+        mock_copy.assert_called_once()
+
+
+def test_download_and_extract_template_without_observability():
+    with patch('shutil.copytree') as mock_copy:
+        download_and_extract_template('test_project', 'llamaindex', 'simple-rag', 'No')
+        mock_copy.assert_called_once()