diff --git a/test/multisig/MultisigFactory.ts b/test/multisig/MultisigFactory.ts
new file mode 100644
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--- /dev/null
+++ b/test/multisig/MultisigFactory.ts
@@ -0,0 +1,169 @@
+import { expect } from "chai";
+import { ethers, upgrades } from "hardhat";
+import { MultisigFactory, Multisig, MasterMultisig } from "../../typechain-types";
+import { SignerWithAddress } from "@nomiclabs/hardhat-ethers/signers";
+
+describe("MultisigFactory", function () {
+  let multisigFactory: MultisigFactory;
+  let owner: SignerWithAddress;
+  let addr1: SignerWithAddress;
+  let addr2: SignerWithAddress;
+  let ecosystemMaster: SignerWithAddress;
+  let commonMaster: SignerWithAddress;
+
+  beforeEach(async function () {
+    [owner, addr1, addr2, ecosystemMaster, commonMaster] = await ethers.getSigners();
+    
+    const MultisigFactoryFactory = await ethers.getContractFactory("MultisigFactory");
+    multisigFactory = await upgrades.deployProxy(MultisigFactoryFactory, [
+      ecosystemMaster.address,
+      commonMaster.address
+    ]) as MultisigFactory;
+    await multisigFactory.deployed();
+  });
+
+  describe("initialization", function () {
+    it("should initialize with correct masters", async function () {
+      await expect(
+        upgrades.deployProxy(await ethers.getContractFactory("MultisigFactory"), [
+          ethers.constants.AddressZero,
+          commonMaster.address
+        ])
+      ).to.be.revertedWith("Invalid ecosystem master");
+
+      await expect(
+        upgrades.deployProxy(await ethers.getContractFactory("MultisigFactory"), [
+          ecosystemMaster.address,
+          ethers.constants.AddressZero
+        ])
+      ).to.be.revertedWith("Invalid common master");
+    });
+
+    it("should set correct roles", async function () {
+      expect(await multisigFactory.hasRole(await multisigFactory.DEFAULT_ADMIN_ROLE(), owner.address)).to.be.true;
+      expect(await multisigFactory.hasRole(await multisigFactory.CREATOR_ROLE(), owner.address)).to.be.true;
+    });
+  });
+
+  describe("createMultisig", function () {
+    it("should create new multisig with correct parameters", async function () {
+      const settings = {
+        signers: [addr1.address, addr2.address],
+        isInitiatorFlags: [true, false],
+        threshold: 100,
+        owner: owner.address
+      };
+
+      await expect(multisigFactory.createMultisig(settings))
+        .to.emit(multisigFactory, "MultisigCreated");
+
+      expect(await multisigFactory.getMultisigsCount()).to.equal(1);
+      
+      const multisigAddresses = await multisigFactory.getMultisigsAddresses();
+      expect(multisigAddresses).to.have.length(1);
+      
+      const multisig = await ethers.getContractAt("Multisig", multisigAddresses[0]);
+      const [signers, flags] = await multisig.getSigners();
+      expect(signers).to.deep.equal(settings.signers);
+      expect(flags).to.deep.equal(settings.isInitiatorFlags);
+      expect(await multisig.owner()).to.equal(settings.owner);
+    });
+
+    it("should fail if caller doesn't have CREATOR_ROLE", async function () {
+      const settings = {
+        signers: [addr1.address],
+        isInitiatorFlags: [true],
+        threshold: 100,
+        owner: owner.address
+      };
+
+      await expect(
+        multisigFactory.connect(addr1).createMultisig(settings)
+      ).to.be.revertedWith(
+        `AccessControl: account ${addr1.address.toLowerCase()} is missing role ${await multisigFactory.CREATOR_ROLE()}`
+      );
+    });
+  });
+
+  describe("registerMultisigs", function () {
+    let existingMultisig: Multisig;
+
+    beforeEach(async function () {
+      const MultisigFactory = await ethers.getContractFactory("Multisig");
+      existingMultisig = await MultisigFactory.deploy(
+        [addr1.address],
+        [true],
+        100,
+        owner.address
+      );
+    });
+
+    it("should register existing multisigs", async function () {
+      await expect(multisigFactory.registerMultisigs([existingMultisig.address]))
+        .to.emit(multisigFactory, "MultisigRegistered")
+        .withArgs(existingMultisig.address);
+
+      expect(await multisigFactory.isRegisteredMultisig(existingMultisig.address)).to.be.true;
+      expect(await multisigFactory.getMultisigsCount()).to.equal(1);
+    });
+
+    it("should fail to register zero address", async function () {
+      await expect(
+        multisigFactory.registerMultisigs([ethers.constants.AddressZero])
+      ).to.be.revertedWith("Invalid multisig address");
+    });
+
+    it("should fail to register same multisig twice", async function () {
+      await multisigFactory.registerMultisigs([existingMultisig.address]);
+      await expect(
+        multisigFactory.registerMultisigs([existingMultisig.address])
+      ).to.be.revertedWith("Already registered");
+    });
+
+    it("should fail if caller doesn't have CREATOR_ROLE", async function () {
+      await expect(
+        multisigFactory.connect(addr1).registerMultisigs([existingMultisig.address])
+      ).to.be.revertedWith(
+        `AccessControl: account ${addr1.address.toLowerCase()} is missing role ${await multisigFactory.CREATOR_ROLE()}`
+      );
+    });
+  });
+
+  describe("view functions", function () {
+    it("should return correct counts and addresses", async function () {
+      expect(await multisigFactory.getMultisigsCount()).to.equal(0);
+      expect(await multisigFactory.getMultisigsAddresses()).to.deep.equal([]);
+
+      // Create a multisig
+      const settings = {
+        signers: [addr1.address],
+        isInitiatorFlags: [true],
+        threshold: 100,
+        owner: owner.address
+      };
+      
+      await multisigFactory.createMultisig(settings);
+      
+      expect(await multisigFactory.getMultisigsCount()).to.equal(1);
+      const addresses = await multisigFactory.getMultisigsAddresses();
+      expect(addresses).to.have.length(1);
+      expect(await multisigFactory.isRegisteredMultisig(addresses[0])).to.be.true;
+    });
+  });
+
+  describe("upgrade control", function () {
+    it("should allow admin to upgrade", async function () {
+      const MultisigFactoryV2 = await ethers.getContractFactory("MultisigFactory");
+      await expect(
+        upgrades.upgradeProxy(multisigFactory.address, MultisigFactoryV2)
+      ).to.not.be.reverted;
+    });
+
+    it("should not allow non-admin to upgrade", async function () {
+      const MultisigFactoryV2 = await ethers.getContractFactory("MultisigFactory", addr1);
+      await expect(
+        upgrades.upgradeProxy(multisigFactory.address, MultisigFactoryV2)
+      ).to.be.reverted;
+    });
+  });
+});