diff --git a/packages/solarwinds-apm/package.json b/packages/solarwinds-apm/package.json
index 607a56e9..25f39c7b 100644
--- a/packages/solarwinds-apm/package.json
+++ b/packages/solarwinds-apm/package.json
@@ -41,7 +41,8 @@
     "build": "tsc",
     "lint": "prettier --check . && eslint . --max-warnings=0",
     "lint:fix": "eslint --fix . && prettier --write .",
-    "publish": "node ../../scripts/publish.js"
+    "publish": "node ../../scripts/publish.js",
+    "test": "swtest -p test/tsconfig.json -c src"
   },
   "dependencies": {
     "@opentelemetry/auto-instrumentations-node": "^0.39.0",
@@ -74,6 +75,7 @@
   "devDependencies": {
     "@opentelemetry/api": "1.4.x",
     "@solarwinds-apm/eslint-config": "workspace:^",
+    "@solarwinds-apm/test": "workspace:^",
     "@types/node": "^16.0.0",
     "eslint": "^8.47.0",
     "json5": "^2.2.3",
diff --git a/packages/solarwinds-apm/test/config.test.ts b/packages/solarwinds-apm/test/config.test.ts
new file mode 100644
index 00000000..8ca7ff8a
--- /dev/null
+++ b/packages/solarwinds-apm/test/config.test.ts
@@ -0,0 +1,77 @@
+import { DiagLogLevel } from "@opentelemetry/api"
+import { ExtendedSwConfiguration, readConfig } from "../src/config"
+import { describe, it, expect, beforeEach } from "@solarwinds-apm/test"
+import { oboe } from "@solarwinds-apm/bindings"
+
+describe("readConfig", () => {
+  beforeEach(() => {
+    for (const key of Object.keys(process.env)) {
+      if (key.startsWith("SW_APM_")) Reflect.deleteProperty(process.env, key)
+    }
+    process.env.SW_APM_SERVICE_KEY = "token:name"
+  })
+
+  it("returns proper defaults", () => {
+    const config = readConfig()
+    const expected: ExtendedSwConfiguration = {
+      token: "token",
+      serviceName: "name",
+      enabled: true,
+      otelLogLevel: DiagLogLevel.INFO,
+      oboeLogLevel: oboe.DEBUG_INFO,
+      triggerTraceEnabled: true,
+      runtimeMetrics: true,
+      insertTraceContextIntoLogs: false,
+      insertTraceContextIntoQueries: false,
+    }
+
+    expect(config).to.deep.include(expected)
+  })
+
+  it("parses booleans", () => {
+    process.env.SW_APM_ENABLED = "0"
+
+    const config = readConfig()
+    expect(config).to.include({ enabled: false })
+  })
+
+  it("parses tracing mode", () => {
+    process.env.SW_APM_TRACING_MODE = "enabled"
+
+    const config = readConfig()
+    expect(config).to.include({ tracingMode: true })
+  })
+
+  it("parses trusted path", () => {
+    process.env.SW_APM_TRUSTED_PATH = "package.json"
+
+    const config = readConfig()
+    expect(config.certificate).to.include("solarwinds-apm")
+  })
+
+  it("parses transaction settings", () => {
+    process.env.SW_APM_CONFIG_FILE = "test/test.config.js"
+
+    const config = readConfig()
+    expect(config.transactionSettings).not.to.be.undefined
+    expect(config.transactionSettings).to.have.length(3)
+  })
+
+  it("throws on bad boolean", () => {
+    process.env.SW_APM_ENABLED = "foo"
+
+    expect(readConfig).to.throw()
+  })
+
+  it("throws on bad tracing mode", () => {
+    process.env.SW_APM_TRACING_MODE = "foo"
+
+    expect(readConfig).to.throw()
+  })
+
+  it("throws on non-existent trusted path", () => {
+    process.env.SW_APM_TRUSTED_PATH = "foo"
+
+    expect(readConfig).to.throw()
+  })
+})
diff --git a/packages/solarwinds-apm/test/test.config.js b/packages/solarwinds-apm/test/test.config.js
new file mode 100644
index 00000000..acf7e94c
--- /dev/null
+++ b/packages/solarwinds-apm/test/test.config.js
@@ -0,0 +1,7 @@
+module.exports = {
+  transactionSettings: [
+    { tracing: "enabled", regex: /^hello$/ },
+    { tracing: "disabled", regex: "[A-Z]" },
+    { tracing: "enabled", matcher: (ident) => ident.startsWith("foo") },
+  ],
+}
diff --git a/packages/solarwinds-apm/test/tsconfig.json b/packages/solarwinds-apm/test/tsconfig.json
new file mode 100644
index 00000000..73d600c7
--- /dev/null
+++ b/packages/solarwinds-apm/test/tsconfig.json
@@ -0,0 +1,4 @@
+{
+  "extends": "../../../tsconfig.base.test.json",
+  "references": [{ "path": "../tsconfig.json" }]
+}