diff --git a/.gitignore b/.gitignore
index e69de29b..1c97ed29 100644
--- a/.gitignore
+++ b/.gitignore
@@ -0,0 +1,6 @@
+__pycache__/
+.venv/
+.pytest_cache/
+
+# IDE files
+.idea/
diff --git a/README.md b/README.md
index 494f1c75..6c217209 100644
--- a/README.md
+++ b/README.md
@@ -41,3 +41,58 @@ Your solution should include at least one real workflow, for example:
 - When you are complete, put up a Pull Request against this repository with your changes.
 - A short summary of your approach and tools used in your PR submission
 - Any additional information or approach that helped you.
+
+++++++++++++++++++++++++++++++++++++++++++++++
+
+## Local Setup and Usage
+
+### Clone the Repository
+```bash
+https://github.com/jeevan-puli/spec-driven-development/tree/resource-management-api
+```
+check out the feature branch:
+```bash
+git checkout resource-management-api
+```
+
+### Create and Activate Virtual Environment (Python)
+```bash
+python3 -m venv .venv
+source .venv/bin/activate
+```
+### Install Dependencies
+```bash
+pip install -r requirements.txt
+```
+### Run the Application
+Start the FastAPI server locally:
+```bash
+uvicorn app.main:app --reload
+```
+Verify the API is running by opening:
+```bash
+http://127.0.0.1:8000/docs
+```
+
+### You can also manually verify the API:
+```bash
+curl -X POST http://127.0.0.1:8000/resources \
+  -H "Content-Type: application/json" \
+  -d '{"name":"example","type":"demo"}'
+```
+### Run Tests (without readable logs)
+Execute the full test suite:
+```bash
+pytest
+```
+### Run Tests (with readable logs)
+Execute the full test suite:
+```bash
+pytest --log-cli-level=INFO
+```
+
+## Code Generation Usage
+Modern code generation tools (ChatGPT / Codex-style models) were used to
+accelerate scaffolding of the API and test cases. All generated code was
+reviewed and refined manually to ensure correctness, determinism, and
+coverage of edge cases.
diff --git a/SPECS/feature-template.md b/SPECS/feature-template.md
deleted file mode 100644
index 7dbc70a5..00000000
--- a/SPECS/feature-template.md
+++ /dev/null
@@ -1,14 +0,0 @@
-# Feature Spec: <Feature Name>
-
-## Goal
-- 
-
-## Scope
-- In:
-- Out:
-
-## Requirements
-- 
-
-## Acceptance Criteria
-- [ ] 
\ No newline at end of file
diff --git a/SPECS/resource-managment-api.md b/SPECS/resource-managment-api.md
new file mode 100644
index 00000000..2606755b
--- /dev/null
+++ b/SPECS/resource-managment-api.md
@@ -0,0 +1,33 @@
+# Feature Spec: Resource Management API
+
+## Goal
+Provide a simple backend API to create, retrieve, and filter resources in a spec-driven manner,
+serving as a test target for API and contract testing.
+
+## Scope
+### In:
+- Create a resource via API
+- Retrieve all resources
+- Filter resources by type
+- Validate request and response schemas
+
+### Out:
+- Authentication / authorization
+- External persistence (DB, cloud services)
+- Frontend UI
+
+## Requirements
+- The API must support creating a resource with required fields.
+- Each resource must be assigned a unique ID.
+- Resources must be retrievable via a GET endpoint.
+- Filtering by resource type must be supported.
+- Invalid requests must return clear error responses.
+- API responses must conform to a stable schema.
+
+## Acceptance Criteria
+- [ ] POST /resources creates a resource with valid input
+- [ ] GET /resources returns all created resources
+- [ ] GET /resources?type=<type> filters resources correctly
+- [ ] Missing required fields return a 400 error
+- [ ] Invalid resource type returns a validation error
+- [ ] Response schema remains consistent across requests
diff --git a/TODO.md b/TODO.md
index b5d82042..764a54e5 100644
--- a/TODO.md
+++ b/TODO.md
@@ -1,7 +1,7 @@
 # TODO
 
 ## Refactor Proposals
-- 
+- None at this time
 
 ## New Feature Proposals
-- 
\ No newline at end of file
+- None at this time
diff --git a/app/__init__.py b/app/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/app/main.py b/app/main.py
new file mode 100644
index 00000000..d542a89d
--- /dev/null
+++ b/app/main.py
@@ -0,0 +1,49 @@
+from __future__ import annotations
+
+from typing import Optional
+from uuid import uuid4
+
+from fastapi import FastAPI, Query
+from fastapi.exceptions import RequestValidationError
+from fastapi.responses import JSONResponse
+from pydantic import BaseModel
+
+app = FastAPI(title="Resource Management API")
+
+# In-memory storage: id -> resource
+resources: dict[str, "Resource"] = {}
+
+
+class ResourceIn(BaseModel):
+    name: str
+    type: str
+
+
+class Resource(ResourceIn):
+    id: str
+
+
+@app.exception_handler(RequestValidationError)
+async def validation_exception_handler(request, exc):
+    return JSONResponse(status_code=400, content={"detail": "Invalid input"})
+
+
+@app.post("/resources", response_model=Resource)
+def create_resource(payload: ResourceIn) -> Resource:
+    resource = Resource(id=str(uuid4()), **payload.dict())
+    resources[resource.id] = resource
+    return resource
+
+
+@app.get("/resources", response_model=list[Resource])
+def list_resources(type: Optional[str] = Query(default=None)) -> list[Resource]:
+    items = list(resources.values())
+    if type is not None:
+        items = [r for r in items if r.type == type]
+    return items
+
+@app.get("/health")
+def health():
+    return {"status": "ok"}
+
+
diff --git a/pytest.ini b/pytest.ini
new file mode 100644
index 00000000..27eec68e
--- /dev/null
+++ b/pytest.ini
@@ -0,0 +1,3 @@
+[pytest]
+testpaths = tests
+python_files = test_*.py
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 00000000..2522ad0e
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,4 @@
+fastapi
+uvicorn
+pytest
+httpx
diff --git a/tests/conftest.py b/tests/conftest.py
new file mode 100644
index 00000000..9e20faf2
--- /dev/null
+++ b/tests/conftest.py
@@ -0,0 +1,6 @@
+import sys
+from pathlib import Path
+
+# Add project root to PYTHONPATH
+ROOT_DIR = Path(__file__).resolve().parents[1]
+sys.path.append(str(ROOT_DIR))
diff --git a/tests/test_resources_api.py b/tests/test_resources_api.py
new file mode 100644
index 00000000..58dc98b9
--- /dev/null
+++ b/tests/test_resources_api.py
@@ -0,0 +1,119 @@
+import logging
+
+logger = logging.getLogger(__name__)
+
+from fastapi.testclient import TestClient
+
+from app.main import app, resources
+
+client = TestClient(app)
+
+
+def setup_function():
+    # Ensure deterministic tests by clearing in-memory storage
+    resources.clear()
+
+
+def test_create_resource_success():
+    logger.info("Creating resource with valid payload")
+
+    response = client.post(
+        "/resources",
+        json={"name": "resource-1", "type": "demo"},
+    )
+
+    logger.info("Create response status=%s body=%s", response.status_code, response.json())
+
+    assert response.status_code == 200
+    body = response.json()
+
+    assert "id" in body
+    assert body["name"] == "resource-1"
+    assert body["type"] == "demo"
+
+
+def test_list_resources_returns_created_items():
+    logger.info("Creating multiple resources for list test")
+
+    client.post("/resources", json={"name": "r1", "type": "demo"})
+    client.post("/resources", json={"name": "r2", "type": "test"})
+
+    logger.info("Fetching all resources")
+
+    response = client.get("/resources")
+    logger.info("List response status=%s body=%s", response.status_code, response.json())
+
+    assert response.status_code == 200
+    body = response.json()
+
+    assert len(body) == 2
+    names = [item["name"] for item in body]
+    assert "r1" in names
+    assert "r2" in names
+
+
+def test_filter_resources_by_type():
+    logger.info("Creating resources with different types")
+
+    client.post("/resources", json={"name": "r1", "type": "demo"})
+    client.post("/resources", json={"name": "r2", "type": "test"})
+
+    logger.info("Filtering resources by type=demo")
+
+    response = client.get("/resources", params={"type": "demo"})
+    logger.info("Filter response status=%s body=%s", response.status_code, response.json())
+
+    assert response.status_code == 200
+    body = response.json()
+
+    assert len(body) == 1
+    assert body[0]["name"] == "r1"
+    assert body[0]["type"] == "demo"
+
+
+def test_create_resource_missing_required_fields_returns_400():
+    logger.info("Creating resource with missing required fields")
+
+    response = client.post("/resources", json={})
+    logger.info("Validation response status=%s body=%s", response.status_code, response.json())
+
+    assert response.status_code == 400
+    assert response.json() == {"detail": "Invalid input"}
+
+
+def test_create_resource_invalid_payload_returns_400():
+    logger.info("Creating resource with invalid payload types")
+
+    response = client.post(
+        "/resources",
+        json={"name": 123, "type": ["not", "a", "string"]},
+    )
+
+    logger.info("Invalid payload response status=%s body=%s", response.status_code, response.json())
+
+    assert response.status_code == 400
+    assert response.json() == {"detail": "Invalid input"}
+
+
+def test_response_schema_contains_expected_fields():
+    logger.info("Validating response schema for created resource")
+
+    response = client.post(
+        "/resources",
+        json={"name": "schema-test", "type": "demo"},
+    )
+
+    body = response.json()
+    logger.info("Schema validation response body=%s", body)
+
+    assert set(body.keys()) == {"id", "name", "type"}
+
+
+def test_list_resources_returns_empty_list_when_no_resources_exist():
+    logger.info("Listing resources when no resources exist")
+
+    response = client.get("/resources")
+    logger.info("Empty list response status=%s body=%s", response.status_code, response.json())
+
+    assert response.status_code == 200
+    assert response.json() == []