diff --git a/storage/src/nullifier.rs b/storage/src/nullifier.rs
index 050c180..5033fa6 100644
--- a/storage/src/nullifier.rs
+++ b/storage/src/nullifier.rs
@@ -3,7 +3,7 @@ use serde::{Deserialize, Serialize};
 use crate::merkle_tree_public::TreeHashType;
 
 //ToDo: Update Nullifier model, when it is clear
-#[derive(Debug, Serialize, Deserialize, Clone, Default)]
+#[derive(Debug, Serialize, Deserialize, Clone, Default, PartialEq, Eq)]
 ///General nullifier object
 pub struct UTXONullifier {
     pub utxo_hash: TreeHashType,
diff --git a/utxo/src/utxo_core.rs b/utxo/src/utxo_core.rs
index d076598..834c4c1 100644
--- a/utxo/src/utxo_core.rs
+++ b/utxo/src/utxo_core.rs
@@ -6,7 +6,7 @@ use storage::{merkle_tree_public::TreeHashType, nullifier::UTXONullifier, Accoun
 ///Raw asset data
 pub type Asset = Vec<u8>;
 
-#[derive(Debug)]
+#[derive(Debug, PartialEq, Eq, Clone)]
 ///Container for raw utxo payload
 pub struct UTXO {
     pub hash: TreeHashType,
@@ -53,3 +53,93 @@ impl UTXO {
         Ok(serde_json::from_slice(&self.asset)?)
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use storage::{merkle_tree_public::TreeHashType, nullifier::UTXONullifier, AccountId};
+
+    #[derive(Serialize, Deserialize, PartialEq, Debug)]
+    struct TestAsset {
+        id: u32,
+        name: String,
+    }
+
+    fn sample_account() -> AccountId {
+        AccountId::default()
+    }
+
+    fn sample_nullifier() -> UTXONullifier {
+        UTXONullifier::default()
+    }
+
+    fn sample_tree_hash() -> TreeHashType {
+        TreeHashType::default()
+    }
+
+    fn sample_payload() -> UTXOPayload {
+        UTXOPayload {
+            owner: sample_account(),
+            asset: serde_json::to_vec(&TestAsset {
+                id: 1,
+                name: "Test".to_string(),
+            })
+            .unwrap(),
+        }
+    }
+
+    #[test]
+    fn test_create_utxo_from_payload() {
+        let payload = sample_payload();
+        let utxo = UTXO::create_utxo_from_payload(payload.clone());
+
+        // Ensure hash is created and the UTXO fields are correctly assigned
+        assert_eq!(utxo.owner, payload.owner);
+        assert_eq!(utxo.asset, payload.asset);
+        assert!(utxo.nullifier.is_none());
+    }
+
+    #[test]
+    fn test_consume_utxo() {
+        let payload = sample_payload();
+        let mut utxo = UTXO::create_utxo_from_payload(payload);
+
+        let nullifier = sample_nullifier();
+
+        // First consumption should succeed
+        assert!(utxo.consume_utxo(nullifier.clone()).is_ok());
+        assert_eq!(utxo.nullifier, Some(nullifier));
+
+        // Second consumption should fail
+        let result = utxo.consume_utxo(sample_nullifier());
+        assert!(result.is_err());
+    }
+
+    #[test]
+    fn test_interpret_asset() {
+        let payload = sample_payload();
+        let utxo = UTXO::create_utxo_from_payload(payload);
+
+        // Interpret asset as TestAsset
+        let interpreted: TestAsset = utxo.interpret_asset().unwrap();
+
+        assert_eq!(
+            interpreted,
+            TestAsset {
+                id: 1,
+                name: "Test".to_string()
+            }
+        );
+    }
+
+    #[test]
+    fn test_interpret_invalid_asset() {
+        let mut payload = sample_payload();
+        payload.asset = vec![0, 1, 2, 3]; // Invalid data for deserialization
+        let utxo = UTXO::create_utxo_from_payload(payload);
+
+        // This should fail because the asset is not valid JSON for TestAsset
+        let result: Result<TestAsset> = utxo.interpret_asset();
+        assert!(result.is_err());
+    }
+}
diff --git a/utxo/src/utxo_tree.rs b/utxo/src/utxo_tree.rs
index 147c458..b391fc0 100644
--- a/utxo/src/utxo_tree.rs
+++ b/utxo/src/utxo_tree.rs
@@ -72,3 +72,118 @@ impl Default for UTXOSparseMerkleTree {
         Self::new()
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use crate::utxo_core::{UTXOPayload, UTXO};
+    use storage::{merkle_tree_public::TreeHashType, AccountId};
+
+    fn sample_utxo_payload() -> UTXOPayload {
+        UTXOPayload {
+            owner: AccountId::default(),
+            asset: vec![1, 2, 3],
+        }
+    }
+
+    fn sample_utxo() -> UTXO {
+        UTXO::create_utxo_from_payload(sample_utxo_payload())
+    }
+
+    #[test]
+    fn test_utxo_sparse_merkle_tree_new() {
+        let smt = UTXOSparseMerkleTree::new();
+        assert!(smt.curr_root.is_none());
+        assert_eq!(smt.store.len(), 0);
+    }
+
+    #[test]
+    fn test_insert_item() {
+        let mut smt = UTXOSparseMerkleTree::new();
+        let utxo = sample_utxo();
+
+        let result = smt.insert_item(utxo.clone());
+
+        // Test insertion is successful
+        assert!(result.is_ok());
+
+        // Test UTXO is now stored in the tree
+        assert_eq!(smt.store.get(&utxo.hash).unwrap().hash, utxo.hash);
+
+        // Test curr_root is updated
+        assert!(smt.curr_root.is_some());
+    }
+
+    #[test]
+    fn test_insert_items() {
+        let mut smt = UTXOSparseMerkleTree::new();
+        let utxo1 = sample_utxo();
+        let utxo2 = sample_utxo();
+
+        let result = smt.insert_items(vec![utxo1.clone(), utxo2.clone()]);
+
+        // Test insertion of multiple items is successful
+        assert!(result.is_ok());
+
+        // Test UTXOs are now stored in the tree
+        assert!(smt.store.get(&utxo1.hash).is_some());
+        assert!(smt.store.get(&utxo2.hash).is_some());
+
+        // Test curr_root is updated
+        assert!(smt.curr_root.is_some());
+    }
+
+    #[test]
+    fn test_get_item_exists() {
+        let mut smt = UTXOSparseMerkleTree::new();
+        let utxo = sample_utxo();
+
+        smt.insert_item(utxo.clone()).unwrap();
+
+        // Test that the UTXO can be retrieved by hash
+        let retrieved_utxo = smt.get_item(utxo.hash).unwrap();
+        assert!(retrieved_utxo.is_some());
+        assert_eq!(retrieved_utxo.unwrap().hash, utxo.hash);
+    }
+
+    #[test]
+    fn test_get_item_not_exists() {
+        let mut smt = UTXOSparseMerkleTree::new();
+        let utxo = sample_utxo();
+
+        // Insert one UTXO and try to fetch a different hash
+        smt.insert_item(utxo).unwrap();
+
+        let non_existent_hash = TreeHashType::default();
+        let result = smt.get_item(non_existent_hash).unwrap();
+
+        // Test that retrieval for a non-existent UTXO returns None
+        assert!(result.is_none());
+    }
+
+    #[test]
+    fn test_get_membership_proof() {
+        let mut smt = UTXOSparseMerkleTree::new();
+        let utxo = sample_utxo();
+
+        smt.insert_item(utxo.clone()).unwrap();
+
+        // Fetch membership proof for the inserted UTXO
+        let proof = smt.get_membership_proof(utxo.hash).unwrap();
+
+        // Test proof is generated successfully
+        assert!(proof.is_some());
+    }
+
+    #[test]
+    fn test_get_membership_proof_not_exists() {
+        let mut smt = UTXOSparseMerkleTree::new();
+
+        // Try fetching proof for a non-existent UTXO hash
+        let non_existent_hash = TreeHashType::default();
+        let proof = smt.get_membership_proof(non_existent_hash).unwrap();
+
+        // Test no proof is generated for a non-existent UTXO
+        assert!(proof.is_none());
+    }
+}