diff --git a/tests/forge/unit/Buckets.t.sol b/tests/forge/unit/Buckets.t.sol
new file mode 100644
index 000000000..b7558b8f9
--- /dev/null
+++ b/tests/forge/unit/Buckets.t.sol
@@ -0,0 +1,190 @@
+// SPDX-License-Identifier: UNLICENSED
+pragma solidity 0.8.18;
+
+import '../utils/DSTestPlus.sol';
+import '../utils/BucketInstance.sol';
+
+contract BucketsTest is DSTestPlus {
+
+    BucketInstance internal _bucket;
+
+    address internal _lender;
+    address internal _lender2;
+
+    function setUp() public {
+        _startTest();
+
+        _lender  = makeAddr("lender");
+        _lender2 = makeAddr("lender");
+
+        _bucket = new BucketInstance();
+    }
+ 
+    /**
+     *  @notice Tests adding collateral to a bucket.
+     */
+    function testBucketAddCollateral() external {
+        
+        // single lender adding collateral to a bucket
+        // lender adds 100 collateral to bucket 23_659.397731825701207700
+        uint256 addedLp = _bucket.addCollateral(_lender, 0, 100 * 1e18, _p236_59); 
+
+        (uint256 lps, uint256 collateral, uint256 bankruptcyTime) = _bucket.getBucket();
+        assertEq(23659.397731825701207700 * 1e18, lps);
+        assertEq(23659.397731825701207700 * 1e18, addedLp);
+        assertEq(100 * 1e18, collateral);
+        assertEq(0, bankruptcyTime);
+
+        (uint256 lenderLps, uint256 lenderDepositTime) = _bucket.getLender(_lender);
+        assertEq(23659.397731825701207700 * 1e18, lenderLps);
+        assertEq(block.timestamp, lenderDepositTime);
+
+        // multiple lenders add collateral to the same bucket
+        // lender2 adds 50 collateral to bucket 23_659.397731825701207700
+        addedLp = _bucket.addCollateral(_lender2, 0, 50 * 1e18, _p236_59); 
+
+        (lps, collateral, bankruptcyTime) = _bucket.getBucket();
+        assertEq(35489.096597738551811550 * 1e18, lps);
+        assertEq(11829.698865912850603850 * 1e18, addedLp);
+        assertEq(150 * 1e18, collateral);
+        assertEq(0, bankruptcyTime);
+
+        (lenderLps, lenderDepositTime) = _bucket.getLender(_lender2);
+        assertEq(35489.096597738551811550 * 1e18, lenderLps);
+        assertEq(block.timestamp, lenderDepositTime);
+    }
+
+    /**
+     *  @notice Tests adding lender LP to a bucket
+     */
+    function testBucketAddLenderLP() external {
+
+        // single lender gets 15_000 lp in a bucket
+        _bucket.addLenderLP(0, _lender, 15_000 * 1e18);
+
+        // since add collateral was not touched, nothing is in the bucket
+        (uint256 lps, uint256 collateral, uint256 bankruptcyTime) = _bucket.getBucket();
+        assertEq(0, lps);
+        assertEq(0, collateral);
+        assertEq(0, bankruptcyTime);
+
+        (uint256 lenderLps, uint256 lenderDepositTime) = _bucket.getLender(_lender);
+        assertEq(15_000.0 * 1e18, lenderLps);
+        assertEq(block.timestamp, lenderDepositTime);
+
+        // single lender attempts to add 15_000 lp in a bankrupt bucket
+        _bucket.addLenderLP(block.timestamp + 10, _lender, 15_000 * 1e18);
+
+        (lenderLps, lenderDepositTime) = _bucket.getLender(_lender);
+        assertEq(15_000.0 * 1e18, lenderLps); // lp amount doesn't change
+        assertEq(block.timestamp, lenderDepositTime);
+    }
+
+    /**
+     *  @notice Tests collateralToLP method
+     */
+    function testBucketCollateralToLP() external {
+
+        // 0 deposit, 0 collateral in bucket, 0 collateral is added
+        assertEq(
+            Buckets.collateralToLP(
+                0,
+                0,
+                0,
+                0,
+                _p236_59,
+                Math.Rounding.Down
+            ), 0
+        );
+
+        // 0 deposit, 0 collateral in bucket, 100 collateral is added 
+        assertEq(
+            Buckets.collateralToLP(
+                0,
+                0,
+                0,
+                100 * 1e18,
+                _p236_59,
+                Math.Rounding.Down
+            ), 23_659.397731825701207700 * 1e18
+        );
+ 
+        // 0 deposit, 100 collateral in bucket, 100 collateral is added 
+        assertEq(
+            Buckets.collateralToLP(
+                100 * 1e18,                      // exisiting collateral
+                23659.397731825701207700 * 1e18, // exisiting lp
+                0,                               // existing deposit
+                50 * 1e18,                       // collateral to add
+                _p236_59,
+                Math.Rounding.Down
+            ), 11829.698865912850603850 * 1e18
+        );
+    }
+
+    /**
+     *  @notice Tests quoteTokensToLP method
+     */
+    function testBucketQuoteTokensToLP() external {
+        
+        // 0 deposit, 0 collateral in bucket, 10 qt is added
+        assertEq(
+            Buckets.quoteTokensToLP(
+                0,
+                0,
+                0,
+                0,
+                _p236_59,
+                Math.Rounding.Down
+            ), 0
+        );
+
+        // 0 deposit, 0 collateral in bucket, 10 qt is added
+        assertEq(
+            Buckets.quoteTokensToLP(
+                0,
+                0,
+                0,
+                10 * 1e18,
+                _p236_59,
+                Math.Rounding.Down
+            ), 10 * 1e18
+        );
+
+        // 0 deposit, 1 collateral but no exisiting LP
+        assertEq(
+            Buckets.quoteTokensToLP(
+                1 * 1e18,
+                0,
+                0,
+                10 * 1e18,
+                _p236_59,
+                Math.Rounding.Down
+            ), 10 * 1e18
+        );
+
+        // 0 deposit, 1 collateral but no exisiting LP
+        assertEq(
+            Buckets.quoteTokensToLP(
+                1 * 1e18,
+                0,
+                0,
+                10 * 1e18,
+                _p236_59,
+                Math.Rounding.Down
+            ), 10 * 1e18
+        );
+
+        // 0 deposit, 100 collateral, healthy LP
+        assertEq(
+            Buckets.quoteTokensToLP(
+                100 * 1e18,
+                23_659.397731825701207700 * 1e18,
+                0,
+                10 * 1e18,
+                _p236_59,
+                Math.Rounding.Down
+            ), 10 * 1e18
+        );
+    }
+}
\ No newline at end of file
diff --git a/tests/forge/utils/BucketInstance.sol b/tests/forge/utils/BucketInstance.sol
new file mode 100644
index 000000000..ab9776873
--- /dev/null
+++ b/tests/forge/utils/BucketInstance.sol
@@ -0,0 +1,44 @@
+// SPDX-License-Identifier: UNLICENSED
+pragma solidity 0.8.18;
+
+import './DSTestPlus.sol';
+
+import 'src/libraries/internal/Buckets.sol';
+
+contract BucketInstance is DSTestPlus {
+    using Buckets for Bucket;
+
+    Bucket public bucket;
+
+    function addCollateral(
+        address lender_,
+        uint256 deposit_,
+        uint256 collateralAmountToAdd_,
+        uint256 bucketPrice_
+    ) public returns (uint256 addedLP_) {
+        return bucket.addCollateral(lender_, deposit_, collateralAmountToAdd_, bucketPrice_);
+    }
+
+    function addLenderLP(
+        uint256 bankruptcyTime_,
+        address lender_,
+        uint256 lpAmount_
+    ) public {
+        bucket.addLenderLP(bankruptcyTime_, lender_, lpAmount_);
+    }
+
+    function getBucket() external view returns (uint256 lps, uint256 collateral, uint256 bankruptcyTime) {
+        lps = bucket.lps;
+        collateral = bucket.collateral;
+        bankruptcyTime = bucket.bankruptcyTime; 
+    }
+
+    function getLender(
+        address _lender
+    ) external view returns (uint256 lps, uint256 depositTime) {
+        Lender memory lender = bucket.lenders[_lender];
+        lps = lender.lps;
+        depositTime = lender.depositTime;
+    }
+
+}