diff --git a/e2e_tests/conftest.py b/e2e_tests/conftest.py
new file mode 100644
index 00000000..12b975e2
--- /dev/null
+++ b/e2e_tests/conftest.py
@@ -0,0 +1,19 @@
+import pytest
+import subprocess
+import time
+import os
+
+@pytest.fixture(scope="session", autouse=True)
+def docker_compose_setup():
+    """Spin up Docker containers for OPAL services using docker-compose."""
+    compose_file = os.path.abspath("./docker-compose.yml")
+
+    subprocess.run(["docker-compose", "-f", compose_file, "up", "-d"])
+    
+    # Wait for services to be up and running
+    time.sleep(60)
+    
+    yield
+    
+    # Tear down the Docker services after tests
+    subprocess.run(["docker-compose", "-f", compose_file, "down"])
diff --git a/e2e_tests/docker-compose.yml b/e2e_tests/docker-compose.yml
new file mode 100644
index 00000000..ef3dca27
--- /dev/null
+++ b/e2e_tests/docker-compose.yml
@@ -0,0 +1,20 @@
+services:
+  opal_server:
+    image: permitio/opal-server:${OPAL_IMAGE_TAG:-latest}
+    ports:
+      - "7002:7002"
+    healthcheck:
+      test: ["CMD", "curl", "-f", "http://localhost:7002/health"]
+      interval: 10s
+      timeout: 10s
+      retries: 5
+  
+  opal_client:
+    image: permitio/opal-client:${OPAL_IMAGE_TAG:-latest}
+    ports:
+      - "7776:7000"
+    healthcheck:
+      test: ["CMD", "curl", "-f", "http://opal_server:7002/health"]
+      interval: 10s
+      timeout: 10s
+      retries: 5
diff --git a/e2e_tests/requirements.txt b/e2e_tests/requirements.txt
new file mode 100644
index 00000000..35b47dca
--- /dev/null
+++ b/e2e_tests/requirements.txt
@@ -0,0 +1,3 @@
+pytest
+requests
+docker
\ No newline at end of file
diff --git a/e2e_tests/tests/test_e2e.py b/e2e_tests/tests/test_e2e.py
new file mode 100644
index 00000000..50b205ca
--- /dev/null
+++ b/e2e_tests/tests/test_e2e.py
@@ -0,0 +1,12 @@
+import requests
+
+def test_opal_server_health():
+    """Test OPAL Server health endpoint."""
+    response = requests.get("http://localhost:7002/policy-data")
+    assert response.status_code == 200
+
+def test_opal_client_health():
+    """Test OPAL Client endpoint."""
+    response = requests.get("http://localhost:7766/ready")
+    assert response.status_code == 200
+    assert 'connected' in response.json()