diff --git a/pytest.ini b/pytest.ini
new file mode 100644
index 0000000..bac807f
--- /dev/null
+++ b/pytest.ini
@@ -0,0 +1,45 @@
+[tool:pytest]
+# Pytest configuration for all component tests
+
+testpaths = tests
+python_files = test_*.py
+python_classes = Test*
+python_functions = test_*
+
+# Coverage settings
+addopts = 
+    --verbose
+    --strict-markers
+    --tb=short
+    --cov-report=term-missing
+    --cov-report=html
+    --cov-report=xml
+
+# Markers
+markers =
+    unit: Unit tests that don't require ESPHome compilation
+    integration: Integration tests that compile ESPHome configurations
+    slow: Tests that take a long time to run
+
+# Timeout for tests (in seconds)
+timeout = 300
+
+# Coverage options
+[coverage:run]
+source = components/panasonic_heatpump
+omit = 
+    */tests/*
+    */test_*
+
+[coverage:report]
+exclude_lines =
+    pragma: no cover
+    def __repr__
+    raise AssertionError
+    raise NotImplementedError
+    if __name__ == .__main__.:
+    if TYPE_CHECKING:
+    @abstractmethod
+
+[coverage:html]
+directory = htmlcov