diff --git a/pkg/observability/logger_test.go b/pkg/observability/logger_test.go
new file mode 100644
index 0000000..9ddc715
--- /dev/null
+++ b/pkg/observability/logger_test.go
@@ -0,0 +1,85 @@
+package observability
+
+import (
+	"context"
+	"log/slog"
+	"testing"
+)
+
+func TestNewLogger(t *testing.T) {
+	logger := NewLogger(slog.LevelInfo)
+	if logger == nil {
+		t.Fatal("NewLogger returned nil")
+	}
+}
+
+func TestLogger_Debug(t *testing.T) {
+	logger := NewLogger(slog.LevelDebug)
+	// Should not panic
+	logger.Debug("test message", "key", "value")
+}
+
+func TestLogger_Info(t *testing.T) {
+	logger := NewLogger(slog.LevelInfo)
+	// Should not panic
+	logger.Info("test message", "key", "value")
+}
+
+func TestLogger_Warn(t *testing.T) {
+	logger := NewLogger(slog.LevelWarn)
+	// Should not panic
+	logger.Warn("test message", "key", "value")
+}
+
+func TestLogger_Error(t *testing.T) {
+	logger := NewLogger(slog.LevelError)
+	// Should not panic
+	logger.Error("test message", "key", "value")
+}
+
+func TestLogger_With(t *testing.T) {
+	logger := NewLogger(slog.LevelInfo)
+	contextLogger := logger.With("component", "test")
+
+	if contextLogger == nil {
+		t.Fatal("With() returned nil")
+	}
+
+	// Should not panic
+	contextLogger.Info("test message")
+}
+
+func TestLogger_WithContext(t *testing.T) {
+	logger := NewLogger(slog.LevelInfo)
+	ctx := context.Background()
+	contextLogger := logger.WithContext(ctx)
+
+	if contextLogger == nil {
+		t.Fatal("WithContext() returned nil")
+	}
+
+	// Should not panic
+	contextLogger.Info("test message")
+}
+
+func TestLogger_AllLevels(t *testing.T) {
+	levels := []slog.Level{
+		slog.LevelDebug,
+		slog.LevelInfo,
+		slog.LevelWarn,
+		slog.LevelError,
+	}
+
+	for _, level := range levels {
+		logger := NewLogger(level)
+		if logger == nil {
+			t.Errorf("NewLogger(%v) returned nil", level)
+		}
+
+		// All log methods should work regardless of level
+		logger.Debug("debug")
+		logger.Info("info")
+		logger.Warn("warn")
+		logger.Error("error")
+	}
+}
diff --git a/pkg/observability/metrics_test.go b/pkg/observability/metrics_test.go
new file mode 100644
index 0000000..76d3ff5
--- /dev/null
+++ b/pkg/observability/metrics_test.go
@@ -0,0 +1,65 @@
+package observability
+
+import (
+	"testing"
+)
+
+func TestNewMetrics(t *testing.T) {
+	metrics := NewMetrics("test")
+	if metrics == nil {
+		t.Fatal("NewMetrics returned nil")
+	}
+}
+
+func TestMetrics_RecordSwapEvent(t *testing.T) {
+	metrics := NewMetrics("test")
+
+	// Should not panic
+	metrics.RecordSwapEvent("uniswap-v2", true)
+	metrics.RecordSwapEvent("uniswap-v3", false)
+}
+
+func TestMetrics_RecordParseLatency(t *testing.T) {
+	metrics := NewMetrics("test")
+
+	// Should not panic
+	metrics.RecordParseLatency("uniswap-v2", 0.005)
+	metrics.RecordParseLatency("uniswap-v3", 0.003)
+}
+
+func TestMetrics_RecordArbitrageOpportunity(t *testing.T) {
+	metrics := NewMetrics("test")
+
+	// Should not panic
+	metrics.RecordArbitrageOpportunity(0.1)
+	metrics.RecordArbitrageOpportunity(0.5)
+}
+
+func TestMetrics_RecordExecution(t *testing.T) {
+	metrics := NewMetrics("test")
+
+	// Should not panic
+	metrics.RecordExecution(true, 0.05)
+	metrics.RecordExecution(false, -0.01)
+}
+
+func TestMetrics_PoolCacheSize(t *testing.T) {
+	metrics := NewMetrics("test")
+
+	// Should not panic
+	metrics.IncrementPoolCacheSize()
+	metrics.IncrementPoolCacheSize()
+	metrics.DecrementPoolCacheSize()
+}
+
+func TestMetrics_AllMethods(t *testing.T) {
+	metrics := NewMetrics("test")
+
+	// Test all methods in sequence
+	metrics.RecordSwapEvent("uniswap-v2", true)
+	metrics.RecordParseLatency("uniswap-v2", 0.004)
+	metrics.RecordArbitrageOpportunity(0.08)
+	metrics.RecordExecution(true, 0.05)
+	metrics.IncrementPoolCacheSize()
+	metrics.DecrementPoolCacheSize()
+}