diff --git a/internal/database/manager_test.go b/internal/database/manager_test.go
new file mode 100644
index 0000000..e016f4e
--- /dev/null
+++ b/internal/database/manager_test.go
@@ -0,0 +1,314 @@
+package database
+
+import (
+	"database/sql"
+	"os"
+	"path/filepath"
+	"testing"
+
+	"git.omicron.one/omicron/linkshare/internal/version"
+)
+
+func TestOpenClose(t *testing.T) {
+	// Create temp file for database
+	tempFile, err := os.CreateTemp("", "linkshare-test-*.db")
+	if err != nil {
+		t.Fatalf("Failed to create temp file: %v", err)
+	}
+	defer os.Remove(tempFile.Name())
+	tempFile.Close()
+
+	// Test opening
+	db, err := Open(tempFile.Name())
+	if err != nil {
+		t.Fatalf("Failed to open database: %v", err)
+	}
+
+	// Test closing
+	err = db.Close()
+	if err != nil {
+		t.Fatalf("Failed to close database: %v", err)
+	}
+}
+
+func TestInitialize(t *testing.T) {
+	// Create temp directory for test data
+	tempDir, err := os.MkdirTemp("", "linkshare-test-*")
+	if err != nil {
+		t.Fatalf("Failed to create temp directory: %v", err)
+	}
+	defer os.RemoveAll(tempDir)
+
+	// Create schema directory and current.sql file
+	schemaDir := filepath.Join(tempDir, "schema")
+	err = os.Mkdir(schemaDir, 0o755)
+	if err != nil {
+		t.Fatalf("Failed to create schema directory: %v", err)
+	}
+
+	// Write test schema to file
+	schemaContent := `CREATE TABLE settings (
+    key TEXT PRIMARY KEY,
+    value TEXT NOT NULL,
+    kind TEXT CHECK(kind IN ('int', 'string', 'bool', 'json', 'glob')) NOT NULL
+);
+
+INSERT INTO settings (key, value, kind) VALUES ('schema-version', '1', 'int');`
+
+	err = os.WriteFile(filepath.Join(schemaDir, "current.sql"), []byte(schemaContent), 0o644)
+	if err != nil {
+		t.Fatalf("Failed to write schema file: %v", err)
+	}
+
+	// Create temp database file
+	dbPath := filepath.Join(tempDir, "test.db")
+
+	// Open database
+	db, err := Open(dbPath)
+	if err != nil {
+		t.Fatalf("Failed to open database: %v", err)
+	}
+	defer db.Close()
+
+	// Test initialization
+	err = db.Initialize(schemaDir)
+	if err != nil {
+		t.Fatalf("Failed to initialize database: %v", err)
+	}
+
+	// Test already initialized error
+	err = db.Initialize(schemaDir)
+	if err != ErrAlreadyInitialized {
+		t.Fatalf("Expected ErrAlreadyInitialized, got: %v", err)
+	}
+}
+
+func TestCheckInitialized(t *testing.T) {
+	// Create temp file for database
+	tempFile, err := os.CreateTemp("", "linkshare-test-*.db")
+	if err != nil {
+		t.Fatalf("Failed to create temp file: %v", err)
+	}
+	defer os.Remove(tempFile.Name())
+	tempFile.Close()
+
+	// Open database
+	db, err := Open(tempFile.Name())
+	if err != nil {
+		t.Fatalf("Failed to open database: %v", err)
+	}
+	defer db.Close()
+
+	// Test not initialized
+	err = db.CheckInitialized()
+	if err != ErrNotInitialized {
+		t.Fatalf("Expected ErrNotInitialized, got: %v", err)
+	}
+
+	// Initialize the database manually for testing
+	_, err = db.conn.Exec("CREATE TABLE settings (key TEXT PRIMARY KEY, value TEXT NOT NULL, kind TEXT NOT NULL)")
+	if err != nil {
+		t.Fatalf("Failed to create settings table: %v", err)
+	}
+
+	// Test initialized
+	err = db.CheckInitialized()
+	if err != nil {
+		t.Fatalf("Expected nil error after initialization, got: %v", err)
+	}
+}
+
+func TestGetSchemaVersion(t *testing.T) {
+	// Create temp file for database
+	tempFile, err := os.CreateTemp("", "linkshare-test-*.db")
+	if err != nil {
+		t.Fatalf("Failed to create temp file: %v", err)
+	}
+	defer os.Remove(tempFile.Name())
+	tempFile.Close()
+
+	// Open database
+	db, err := Open(tempFile.Name())
+	if err != nil {
+		t.Fatalf("Failed to open database: %v", err)
+	}
+	defer db.Close()
+
+	// Initialize the database manually for testing
+	_, err = db.conn.Exec("CREATE TABLE settings (key TEXT PRIMARY KEY, value TEXT NOT NULL, kind TEXT NOT NULL)")
+	if err != nil {
+		t.Fatalf("Failed to create settings table: %v", err)
+	}
+
+	_, err = db.conn.Exec("INSERT INTO settings (key, value, kind) VALUES ('schema-version', '1', 'int')")
+	if err != nil {
+		t.Fatalf("Failed to insert schema version: %v", err)
+	}
+
+	// Test schema version
+	version, err := db.GetSchemaVersion()
+	if err != nil {
+		t.Fatalf("Failed to get schema version: %v", err)
+	}
+	if version != 1 {
+		t.Fatalf("Expected schema version 1, got: %d", version)
+	}
+
+	// Test invalid schema version
+	_, err = db.conn.Exec("UPDATE settings SET value = 'invalid' WHERE key = 'schema-version'")
+	if err != nil {
+		t.Fatalf("Failed to update schema version: %v", err)
+	}
+
+	_, err = db.GetSchemaVersion()
+	if err == nil {
+		t.Fatal("Expected error for invalid schema version, got nil")
+	}
+}
+
+func TestCheckSchemaVersion(t *testing.T) {
+	// Create temp file for database
+	tempFile, err := os.CreateTemp("", "linkshare-test-*.db")
+	if err != nil {
+		t.Fatalf("Failed to create temp file: %v", err)
+	}
+	defer os.Remove(tempFile.Name())
+	tempFile.Close()
+
+	// Open database
+	db, err := Open(tempFile.Name())
+	if err != nil {
+		t.Fatalf("Failed to open database: %v", err)
+	}
+	defer db.Close()
+
+	// Test not initialized
+	err = db.CheckSchemaVersion()
+	if err != ErrNotInitialized {
+		t.Fatalf("Expected ErrNotInitialized, got: %v", err)
+	}
+
+	// Initialize the database manually
+	_, err = db.conn.Exec("CREATE TABLE settings (key TEXT PRIMARY KEY, value TEXT NOT NULL, kind TEXT NOT NULL)")
+	if err != nil {
+		t.Fatalf("Failed to create settings table: %v", err)
+	}
+
+	// Store current schema version
+	originalSchemaVersion := version.SchemaVersion
+	defer func() {
+		// Restore original schema version after test
+		version.SchemaVersion = originalSchemaVersion
+	}()
+
+	// Test version match
+	_, err = db.conn.Exec("INSERT INTO settings (key, value, kind) VALUES ('schema-version', '1', 'int')")
+	if err != nil {
+		t.Fatalf("Failed to insert schema version: %v", err)
+	}
+	version.SchemaVersion = 1
+	err = db.CheckSchemaVersion()
+	if err != nil {
+		t.Fatalf("Expected nil error for matching schema versions, got: %v", err)
+	}
+
+	// Test outdated version
+	version.SchemaVersion = 2
+	err = db.CheckSchemaVersion()
+	if err != ErrSchemaOutdated {
+		t.Fatalf("Expected ErrSchemaOutdated, got: %v", err)
+	}
+
+	// Test unsupported version
+	version.SchemaVersion = 1
+	_, err = db.conn.Exec("UPDATE settings SET value = '2' WHERE key = 'schema-version'")
+	if err != nil {
+		t.Fatalf("Failed to update schema version: %v", err)
+	}
+	err = db.CheckSchemaVersion()
+	if err != ErrSchemaUnsupported {
+		t.Fatalf("Expected ErrSchemaUnsupported, got: %v", err)
+	}
+}
+
+func TestTransaction(t *testing.T) {
+	// Create temp file for database
+	tempFile, err := os.CreateTemp("", "linkshare-test-*.db")
+	if err != nil {
+		t.Fatalf("Failed to create temp file: %v", err)
+	}
+	defer os.Remove(tempFile.Name())
+	tempFile.Close()
+
+	// Open database
+	db, err := Open(tempFile.Name())
+	if err != nil {
+		t.Fatalf("Failed to open database: %v", err)
+	}
+	defer db.Close()
+
+	// Initialize the database manually for testing
+	_, err = db.conn.Exec("CREATE TABLE test (id INTEGER PRIMARY KEY, value TEXT)")
+	if err != nil {
+		t.Fatalf("Failed to create test table: %v", err)
+	}
+
+	// Test successful transaction
+	err = db.Transaction(func(tx *sql.Tx) error {
+		_, err := tx.Exec("INSERT INTO test (value) VALUES (?)", "test-value")
+		return err
+	})
+	if err != nil {
+		t.Fatalf("Transaction failed: %v", err)
+	}
+
+	// Verify data was inserted
+	var value string
+	err = db.conn.QueryRow("SELECT value FROM test WHERE id = 1").Scan(&value)
+	if err != nil {
+		t.Fatalf("Failed to query test value: %v", err)
+	}
+	if value != "test-value" {
+		t.Fatalf("Expected 'test-value', got: %s", value)
+	}
+
+	// Test failed transaction
+	err = db.Transaction(func(tx *sql.Tx) error {
+		_, err := tx.Exec("INSERT INTO test (value) VALUES (?)", "should-rollback")
+		if err != nil {
+			return err
+		}
+		return sql.ErrTxDone // Force rollback
+	})
+	if err == nil {
+		t.Fatal("Expected error from failed transaction, got nil")
+	}
+
+	// Verify data was not inserted (rollback worked)
+	var count int
+	err = db.conn.QueryRow("SELECT COUNT(*) FROM test WHERE value = 'should-rollback'").Scan(&count)
+	if err != nil {
+		t.Fatalf("Failed to query test count: %v", err)
+	}
+	if count != 0 {
+		t.Fatalf("Expected count 0 after rollback, got: %d", count)
+	}
+
+	// Test panic in transaction
+	panicked := false
+	func() {
+		defer func() {
+			if r := recover(); r != nil {
+				panicked = true
+			}
+		}()
+
+		_ = db.Transaction(func(tx *sql.Tx) error {
+			panic("test panic")
+		})
+	}()
+
+	if !panicked {
+		t.Fatal("Expected panic to be propagated")
+	}
+}