diff --git a/test/GreeterTest.js b/test/GreeterTest.js
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+++ b/test/GreeterTest.js
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+const { expect } = require('chai');
+const { ethers } = require('hardhat');
+
+describe('GreeterFactory', function () {
+  let GreeterFactory, greeterFactory;
+  let owner, user1, user2;
+  const INITIAL_GREETING = 'Hello, Chunk Network!';
+  const NEW_GREETING = 'Updated Greeting for Testing';
+
+  beforeEach(async function () {
+    [owner, user1, user2] = await ethers.getSigners();
+
+    const GreeterFactoryContract = await ethers.getContractFactory('GreeterFactory');
+    greeterFactory = await GreeterFactoryContract.deploy();
+    await greeterFactory.deployed();
+  });
+
+  describe('Greeter Creation', function () {
+    it('should create a new Greeter contract with initial greeting', async function () {
+      const tx = await greeterFactory.connect(user1).createGreeter(INITIAL_GREETING);
+      const receipt = await tx.wait();
+      
+      const greeterAddress = receipt.events.find(e => e.event === 'GreeterCreated').args.greeterAddress;
+      const Greeter = await ethers.getContractAt('Greeter', greeterAddress);
+
+      const currentGreeting = await Greeter.greet();
+      expect(currentGreeting).to.equal(INITIAL_GREETING);
+    });
+
+    it('should track created Greeter contracts per user', async function () {
+      await greeterFactory.connect(user1).createGreeter(INITIAL_GREETING);
+      await greeterFactory.connect(user1).createGreeter(NEW_GREETING);
+
+      const userGreeters = await greeterFactory.getUserGreeters(user1.address);
+      expect(userGreeters.length).to.equal(2);
+    });
+  });
+
+  describe('Greeting Modification', function () {
+    let userGreeter;
+
+    beforeEach(async function () {
+      const tx = await greeterFactory.connect(user1).createGreeter(INITIAL_GREETING);
+      const receipt = await tx.wait();
+      
+      const greeterAddress = receipt.events.find(e => e.event === 'GreeterCreated').args.greeterAddress;
+      userGreeter = await ethers.getContractAt('Greeter', greeterAddress);
+    });
+
+    it('should allow owner to update greeting', async function () {
+      await userGreeter.connect(user1).setGreeting(NEW_GREETING);
+      const updatedGreeting = await userGreeter.greet();
+      
+      expect(updatedGreeting).to.equal(NEW_GREETING);
+    });
+
+    it('should prevent non-owners from updating greeting', async function () {
+      await expect(
+        userGreeter.connect(user2).setGreeting(NEW_GREETING)
+      ).to.be.revertedWith('Only owner can update greeting');
+    });
+  });
+
+  describe('Factory Limits', function () {
+    it('should limit maximum Greeter contracts per user', async function () {
+      const MAX_GREETERS = 5;
+      
+      for (let i = 0; i < MAX_GREETERS; i++) {
+        await greeterFactory.connect(user1).createGreeter(`Greeting ${i}`);
+      }
+
+      await expect(
+        greeterFactory.connect(user1).createGreeter('Extra Greeting')
+      ).to.be.revertedWith('Maximum Greeter contracts reached');
+    });
+  });
+});
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