diff --git a/package-lock.json b/package-lock.json
index fb5df9e58a..1a892453e0 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -33367,7 +33367,8 @@
         "@waku/proto": "^0.0.8",
         "@waku/utils": "0.0.20",
         "async-mutex": "^0.5.0",
-        "libp2p": "^1.8.1"
+        "libp2p": "^1.8.1",
+        "p-event": "^6.0.1"
       },
       "devDependencies": {
         "@rollup/plugin-commonjs": "^25.0.7",
@@ -33375,15 +33376,16 @@
         "@rollup/plugin-node-resolve": "^15.2.3",
         "@rollup/plugin-replace": "^5.0.5",
         "@types/chai": "^4.3.11",
-        "@types/mocha": "^10.0.6",
+        "@types/mocha": "^10.0.9",
         "@waku/build-utils": "*",
-        "chai": "^4.3.10",
+        "chai": "^5.1.1",
         "cspell": "^8.6.1",
         "interface-datastore": "^8.2.10",
-        "mocha": "^10.3.0",
+        "mocha": "^10.7.3",
         "npm-run-all": "^4.1.5",
         "rollup": "^4.12.0",
-        "sinon": "^18.0.0"
+        "sinon": "^19.0.2",
+        "ts-node": "^10.9.2"
       },
       "engines": {
         "node": ">=20"
diff --git a/packages/sdk/.mocharc.cjs b/packages/sdk/.mocharc.cjs
index dc72692443..f7f8438d06 100644
--- a/packages/sdk/.mocharc.cjs
+++ b/packages/sdk/.mocharc.cjs
@@ -1,26 +1,27 @@
 const config = {
-  extension: ['ts'],
-  spec: 'src/**/*.spec.ts',
-  require: ['ts-node/register', 'isomorphic-fetch'],
-  loader: 'ts-node/esm',
-  nodeOptions: [
-    'experimental-specifier-resolution=node',
-    'loader=ts-node/esm'
-  ],
-  exit: true
-};
-
-if (process.env.CI) {
-  console.log("Running tests in parallel");
-  config.parallel = true;
-  config.jobs = 6;
-  console.log("Activating allure reporting");
-  config.reporter = 'mocha-multi-reporters';
-  config.reporterOptions = {
-    configFile: '.mocha.reporters.json'
+    extension: ['ts'],
+    spec: 'src/**/*.spec.ts',
+    require: ['ts-node/register', 'isomorphic-fetch'],
+    loader: 'ts-node/esm',
+    nodeOptions: [
+      'experimental-specifier-resolution=node',
+      'loader=ts-node/esm'
+    ],
+    exit: true
   };
-} else {
-  console.log("Running tests serially. To enable parallel execution update mocha config");
-}
-
-module.exports = config;
+  
+  if (process.env.CI) {
+    console.log("Running tests in parallel");
+    config.parallel = true;
+    config.jobs = 6;
+    console.log("Activating allure reporting");
+    config.reporter = 'mocha-multi-reporters';
+    config.reporterOptions = {
+      configFile: '.mocha.reporters.json'
+    };
+  } else {
+    console.log("Running tests serially. To enable parallel execution update mocha config");
+  }
+  
+  module.exports = config;
+  
diff --git a/packages/sdk/package.json b/packages/sdk/package.json
index f64abf3543..ea1adc53bb 100644
--- a/packages/sdk/package.json
+++ b/packages/sdk/package.json
@@ -74,23 +74,25 @@
     "@waku/utils": "0.0.20",
     "@waku/message-hash": "0.1.16",
     "async-mutex": "^0.5.0",
-    "libp2p": "^1.8.1"
+    "libp2p": "^1.8.1",
+    "p-event": "^6.0.1"
   },
   "devDependencies": {
-    "@types/mocha": "^10.0.6",
     "@types/chai": "^4.3.11",
     "@rollup/plugin-commonjs": "^25.0.7",
     "@rollup/plugin-json": "^6.0.0",
     "@rollup/plugin-node-resolve": "^15.2.3",
     "@rollup/plugin-replace": "^5.0.5",
+    "@types/mocha": "^10.0.9",
     "@waku/build-utils": "*",
-    "mocha": "^10.3.0",
-    "sinon": "^18.0.0",
-    "chai": "^4.3.10",
+    "chai": "^5.1.1",
     "cspell": "^8.6.1",
     "interface-datastore": "^8.2.10",
+    "mocha": "^10.7.3",
     "npm-run-all": "^4.1.5",
-    "rollup": "^4.12.0"
+    "rollup": "^4.12.0",
+    "sinon": "^19.0.2",
+    "ts-node": "^10.9.2"
   },
   "peerDependencies": {
     "@libp2p/bootstrap": "^10"
diff --git a/packages/sdk/src/protocols/peer_manager.spec.ts b/packages/sdk/src/protocols/peer_manager.spec.ts
new file mode 100644
index 0000000000..bea3bb0c6d
--- /dev/null
+++ b/packages/sdk/src/protocols/peer_manager.spec.ts
@@ -0,0 +1,148 @@
+import { Peer, PeerId } from "@libp2p/interface";
+import { ConnectionManager, LightPushCodec } from "@waku/core";
+import { BaseProtocol } from "@waku/core/lib/base_protocol";
+import { Logger } from "@waku/utils";
+import { expect } from "chai";
+import sinon from "sinon";
+
+import { PeerManager } from "./peer_manager.js";
+
+describe("PeerManager", () => {
+  let peerManager: PeerManager;
+  let mockConnectionManager: sinon.SinonStubbedInstance<ConnectionManager>;
+  let mockCore: sinon.SinonStubbedInstance<BaseProtocol>;
+  let mockLogger: any;
+
+  beforeEach(() => {
+    mockConnectionManager = sinon.createStubInstance(ConnectionManager);
+    mockCore = sinon.createStubInstance(BaseProtocol);
+    mockLogger = {
+      info: sinon.stub(),
+      warn: sinon.stub(),
+      error: sinon.stub(),
+      debug: sinon.stub(),
+      extend: sinon.stub().returns({
+        info: sinon.stub(),
+        warn: sinon.stub(),
+        error: sinon.stub(),
+        debug: sinon.stub()
+      })
+    };
+
+    mockCore.multicodec = LightPushCodec;
+
+    peerManager = new PeerManager(
+      mockConnectionManager as any,
+      mockCore as any,
+      mockLogger as Logger
+    );
+  });
+
+  afterEach(() => {
+    sinon.restore();
+  });
+
+  const createMockPeer = (id: string): Peer =>
+    ({
+      id: {
+        toString: () => id
+      } as PeerId
+    }) as Peer;
+
+  describe("addPeer", () => {
+    it("should add a peer", async () => {
+      const peer = createMockPeer("peer1");
+      await peerManager.addPeer(peer);
+
+      expect(mockConnectionManager.attemptDial.calledWith(peer.id)).to.be.true;
+      expect(
+        mockLogger.info.calledWith(sinon.match(/Added and dialed peer: peer1/))
+      ).to.be.true;
+      expect(await peerManager.getPeerCount()).to.equal(1);
+    });
+  });
+
+  describe("removePeer", () => {
+    it("should remove a peer", async () => {
+      const peer = createMockPeer("peer1");
+      await peerManager.addPeer(peer);
+      await peerManager.removePeer(peer.id);
+
+      expect(mockLogger.info.calledWith(sinon.match(/Removed peer: peer1/))).to
+        .be.true;
+      expect(await peerManager.getPeerCount()).to.equal(0);
+    });
+  });
+
+  describe("getPeerCount", () => {
+    it("should return the correct number of peers", async () => {
+      await peerManager.addPeer(createMockPeer("peer1"));
+      await peerManager.addPeer(createMockPeer("peer2"));
+
+      const count = await peerManager.getPeerCount();
+      expect(count).to.equal(2);
+    });
+  });
+
+  describe("hasPeers", () => {
+    it("should return true when peers exist", async () => {
+      await peerManager.addPeer(createMockPeer("peer1"));
+      const result = await peerManager.hasPeers();
+      expect(result).to.be.true;
+    });
+
+    it("should return false when no peers exist", async () => {
+      const result = await peerManager.hasPeers();
+      expect(result).to.be.false;
+    });
+  });
+
+  describe("removeExcessPeers", () => {
+    it("should remove the specified number of excess peers", async () => {
+      await peerManager.addPeer(createMockPeer("peer1"));
+      await peerManager.addPeer(createMockPeer("peer2"));
+      await peerManager.addPeer(createMockPeer("peer3"));
+
+      await peerManager.removeExcessPeers(2);
+
+      const count = await peerManager.getPeerCount();
+      expect(count).to.equal(1);
+      expect(mockLogger.info.calledWith(`Removing 2 excess peer(s)`)).to.be
+        .true;
+    });
+  });
+
+  describe("findAndAddPeers", () => {
+    it("should find and add new peers", async () => {
+      const newPeers = [createMockPeer("peer1"), createMockPeer("peer2")];
+      mockCore.getPeers.resolves(newPeers);
+
+      const addedPeers = await peerManager.findAndAddPeers(2);
+
+      expect(addedPeers).to.have.lengthOf(2);
+      expect(mockConnectionManager.attemptDial.callCount).to.equal(2);
+    });
+
+    it("should not add existing peers", async () => {
+      const existingPeer = createMockPeer("existing");
+      await peerManager.addPeer(existingPeer);
+
+      const newPeers = [existingPeer, createMockPeer("new")];
+      mockCore.getPeers.resolves(newPeers);
+
+      const addedPeers = await peerManager.findAndAddPeers(2);
+
+      expect(addedPeers).to.have.lengthOf(1);
+      expect(mockConnectionManager.attemptDial.callCount).to.equal(2); // Once for existing, once for new
+    });
+
+    it("should log when no additional peers are found", async () => {
+      mockCore.getPeers.resolves([]);
+
+      await peerManager.findAndAddPeers(2);
+
+      expect(mockLogger.warn.calledWith("No additional peers found")).to.be
+        .true;
+    });
+  });
+});
diff --git a/packages/sdk/tsconfig.json b/packages/sdk/tsconfig.json
index eebbc51585..5c32edfbcc 100644
--- a/packages/sdk/tsconfig.json
+++ b/packages/sdk/tsconfig.json
@@ -5,6 +5,6 @@
     "rootDir": "src",
     "tsBuildInfoFile": "dist/.tsbuildinfo"
   },
-  "include": ["src"],
-  "exclude": ["src/**/*.spec.ts", "src/test_utils"]
+  "include": ["src/**/*.ts"],
+  "exclude": ["src/test_utils"]
 }
diff --git a/packages/tests/tests/health-manager/node.spec.ts b/packages/tests/tests/health-manager/node.spec.ts
index cbccb7d34e..f29e4d98b9 100644
--- a/packages/tests/tests/health-manager/node.spec.ts
+++ b/packages/tests/tests/health-manager/node.spec.ts
@@ -17,7 +17,7 @@ import {
   TestShardInfo
 } from "./utils.js";
 
-describe.only("Node Health Status Matrix Tests", function () {
+describe("Node Health Status Matrix Tests", function () {
   let waku: LightNode;
   let serviceNodes: ServiceNode[];