diff --git a/.env b/.env
new file mode 100644
index 000000000..dc223bf0b
--- /dev/null
+++ b/.env
@@ -0,0 +1,2 @@
+# required for vscode testing activity to discover tests
+DJANGO_SETTINGS_MODULE=tests.settings
\ No newline at end of file
diff --git a/.vscode/settings.json b/.vscode/settings.json
new file mode 100644
index 000000000..fee847fe4
--- /dev/null
+++ b/.vscode/settings.json
@@ -0,0 +1,8 @@
+{
+    "python.testing.pytestArgs": [
+        "tests",
+        "--no-cov"
+    ],
+    "python.testing.unittestEnabled": false,
+    "python.testing.pytestEnabled": true
+}
\ No newline at end of file
diff --git a/docs/contributing.rst b/docs/contributing.rst
index 648993024..4f0b88b32 100644
--- a/docs/contributing.rst
+++ b/docs/contributing.rst
@@ -272,6 +272,27 @@ In test code, anywhere the database is referenced the Django router needs to be
 
 Without the 'using' option, this test fails in the multiple database scenario because 'default' will be used instead.
 
+Debugging the Tests Interactively
+---------------------------------
+
+Interactive Debugging allows you to set breakpoints and inspect the state of the program at runtime. We strongly
+recommend using an interactive debugger to streamline your development process.
+
+VS Code
+^^^^^^^
+
+VS Code is a popular IDE that supports debugging Python code. You can debug the tests interactively in VS Code by
+following these steps:
+
+.. code-block:: bash
+
+    pip install .[dev]
+    # open the project in VS Code
+    # click Testing (erlenmeyer flask) on the Activity Bar
+    # select the test you want to run or debug
+
+
+
 Code conventions matter
 -----------------------
 
diff --git a/pyproject.toml b/pyproject.toml
index ccd154d4d..401d33cab 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -40,6 +40,14 @@ dependencies = [
 	"jwcrypto >= 1.5.0",
 ]
 
+[project.optional-dependencies]
+dev = [
+	"pytest",
+	"pytest-cov",
+	"m2r",
+	"sphinx-rtd-theme",
+]
+
 [project.urls]
 Homepage = "https://django-oauth-toolkit.readthedocs.io/"
 Repository = "https://github.com/jazzband/django-oauth-toolkit"