diff --git a/pyscriptjs/Makefile b/pyscriptjs/Makefile
index fed7c837..050ffced 100644
--- a/pyscriptjs/Makefile
+++ b/pyscriptjs/Makefile
@@ -2,14 +2,15 @@ tag := latest
 git_hash ?= $(shell git log -1 --pretty=format:%h)
 
 base_dir ?= $(shell git rev-parse --show-toplevel)
-src_dir ?= $(base_dir)/src
+src_dir ?= $(base_dir)/pyscriptjs/src
 examples ?=  ../$(base_dir)/examples
 app_dir ?= $(shell git rev-parse --show-prefix)
 
 CONDA_EXE := conda
-CONDA_ENV ?= ./env
+CONDA_ENV ?= $(base_dir)/pyscriptjs/env
 env := $(CONDA_ENV)
 conda_run := $(CONDA_EXE) run -p $(env)
+PYTEST_EXE := $(CONDA_ENV)/bin/pytest
 GOOD_NODE_VER := 14
 GOOD_NPM_VER := 6
 NODE_VER    := $(shell node -v | cut -d. -f1 | sed 's/^v\(.*\)/\1/')
@@ -74,11 +75,11 @@ test:
 test-local:
 	make examples
 	npm run build
-	pytest -vvs $(ARGS) tests/ --log-cli-level=warning
+	pytest -vvs $(ARGS) tests/integration/ --log-cli-level=warning
 
 test-py:
-	@echo "Tests are coming :( this is a placeholder and it's meant to fail!"
-	$(conda_run) pytest -vv $(ARGS) tests/ --log-cli-level=warning
+	@echo "Tests from $(src_dir)"
+	$(PYTEST_EXE) -vv $(ARGS) tests/py-unit/ --log-cli-level=warning
 
 test-ts:
 	@echo "Tests are coming :( this is a placeholder and it's meant to fail!"
diff --git a/pyscriptjs/src/interpreter.ts b/pyscriptjs/src/interpreter.ts
index 5ff662d0..0153ebd6 100644
--- a/pyscriptjs/src/interpreter.ts
+++ b/pyscriptjs/src/interpreter.ts
@@ -3,7 +3,7 @@ import type { PyodideInterface } from './pyodide';
 
 // eslint-disable-next-line
 // @ts-ignore
-import pyscript from './pyscript.py';
+import pyscript from './python/pyscript.py';
 
 let pyodide: PyodideInterface;
 
diff --git a/pyscriptjs/src/pyscript.py b/pyscriptjs/src/python/pyscript.py
similarity index 100%
rename from pyscriptjs/src/pyscript.py
rename to pyscriptjs/src/python/pyscript.py
diff --git a/pyscriptjs/tests/__init__.py b/pyscriptjs/tests/integration/__init__.py
similarity index 100%
rename from pyscriptjs/tests/__init__.py
rename to pyscriptjs/tests/integration/__init__.py
diff --git a/pyscriptjs/tests/conftest.py b/pyscriptjs/tests/integration/conftest.py
similarity index 100%
rename from pyscriptjs/tests/conftest.py
rename to pyscriptjs/tests/integration/conftest.py
diff --git a/pyscriptjs/tests/support.py b/pyscriptjs/tests/integration/support.py
similarity index 99%
rename from pyscriptjs/tests/support.py
rename to pyscriptjs/tests/integration/support.py
index 991151be..9dee415a 100644
--- a/pyscriptjs/tests/support.py
+++ b/pyscriptjs/tests/integration/support.py
@@ -3,7 +3,7 @@ import time
 import py
 import pytest
 
-ROOT = py.path.local(__file__).dirpath("..", "..")
+ROOT = py.path.local(__file__).dirpath("..", "..", "..")
 BUILD = ROOT.join("pyscriptjs", "build")
 
 
diff --git a/pyscriptjs/tests/test_00_support.py b/pyscriptjs/tests/integration/test_00_support.py
similarity index 100%
rename from pyscriptjs/tests/test_00_support.py
rename to pyscriptjs/tests/integration/test_00_support.py
diff --git a/pyscriptjs/tests/test_01_basic.py b/pyscriptjs/tests/integration/test_01_basic.py
similarity index 100%
rename from pyscriptjs/tests/test_01_basic.py
rename to pyscriptjs/tests/integration/test_01_basic.py
diff --git a/pyscriptjs/tests/test_py_button.py b/pyscriptjs/tests/integration/test_py_button.py
similarity index 100%
rename from pyscriptjs/tests/test_py_button.py
rename to pyscriptjs/tests/integration/test_py_button.py
diff --git a/pyscriptjs/tests/test_zz_examples.py b/pyscriptjs/tests/integration/test_zz_examples.py
similarity index 100%
rename from pyscriptjs/tests/test_zz_examples.py
rename to pyscriptjs/tests/integration/test_zz_examples.py
diff --git a/pyscriptjs/tests/py-unit/__init__.py b/pyscriptjs/tests/py-unit/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/pyscriptjs/tests/py-unit/conftest.py b/pyscriptjs/tests/py-unit/conftest.py
new file mode 100644
index 00000000..bac4bbfd
--- /dev/null
+++ b/pyscriptjs/tests/py-unit/conftest.py
@@ -0,0 +1,8 @@
+"""All data required for testing examples"""
+import pathlib
+import sys
+
+# current working directory
+base_path = pathlib.Path().absolute()
+python_source = base_path / "src" / "python"
+sys.path.append(str(python_source))
diff --git a/pyscriptjs/tests/py-unit/js.py b/pyscriptjs/tests/py-unit/js.py
new file mode 100644
index 00000000..d42a250e
--- /dev/null
+++ b/pyscriptjs/tests/py-unit/js.py
@@ -0,0 +1,5 @@
+"""Mock module that emulates some of the pyodide js module features for the sake of tests"""
+from unittest.mock import Mock
+
+document = Mock()
+console = Mock()
diff --git a/pyscriptjs/tests/py-unit/micropip.py b/pyscriptjs/tests/py-unit/micropip.py
new file mode 100644
index 00000000..ce3d762f
--- /dev/null
+++ b/pyscriptjs/tests/py-unit/micropip.py
@@ -0,0 +1,4 @@
+"""Mock module that emulates some of the pyodide js module features for the sake of tests"""
+from unittest.mock import Mock
+
+install = Mock()
diff --git a/pyscriptjs/tests/py-unit/test_pyscript.py b/pyscriptjs/tests/py-unit/test_pyscript.py
new file mode 100644
index 00000000..17ea9c48
--- /dev/null
+++ b/pyscriptjs/tests/py-unit/test_pyscript.py
@@ -0,0 +1,22 @@
+from unittest.mock import Mock
+
+import pyscript
+
+
+class TestElement:
+    def test_id_is_correct(self):
+        el = pyscript.Element("something")
+        assert el.id == "something"
+
+    def test_element(self, monkeypatch):
+        el = pyscript.Element("something")
+        document_mock = Mock()
+        call_result = "some_result"
+        document_mock.querySelector = Mock(return_value=call_result)
+        monkeypatch.setattr(pyscript, "document", document_mock)
+        assert not el._element
+        real_element = el.element
+        assert real_element
+        assert pyscript.document.querySelector.call_count == 1
+        pyscript.document.querySelector.assert_called_with("#something")
+        assert real_element == call_result