diff --git a/src/configuration.py b/src/configuration.py
index 4548c4e5..41aadf1e 100644
--- a/src/configuration.py
+++ b/src/configuration.py
@@ -25,7 +25,10 @@ def load_configuration(self, filename: str) -> None:
         with open(filename, encoding="utf-8") as fin:
             config_dict = yaml.safe_load(fin)
             logger.info("Loaded configuration: %s", config_dict)
-            self._configuration = Configuration(**config_dict)
+            self.init_from_dict(config_dict)
+
+    def init_from_dict(self, config_dict: dict[Any, Any]):
+        self._configuration = Configuration(**config_dict)
 
     @property
     def configuration(self) -> Configuration:
diff --git a/tests/integration/test_configuration.py b/tests/integration/test_configuration.py
new file mode 100644
index 00000000..45def940
--- /dev/null
+++ b/tests/integration/test_configuration.py
@@ -0,0 +1,28 @@
+"""Integration tests for configuration loading and handling."""
+
+import pytest
+from src.configuration import configuration
+
+
+@pytest.fixture
+def configuration_filename():
+    return "tests/configuration/lightspeed-stack.yaml"
+
+
+def test_default_configuration():
+    cfg = configuration
+    assert cfg is not None
+    with pytest.raises(Exception, match="logic error: configuration is not loaded"):
+        configuration.configuration
+
+
+def test_loading_proper_configuration(configuration_filename):
+    cfg = configuration
+    cfg.load_configuration(configuration_filename)
+    assert cfg is not None
+    assert cfg.configuration is not None
+    assert cfg.llama_stack_configuration is not None
+    name = cfg.configuration.name
+    assert name == "foo bar baz"
+    ls_config = cfg.llama_stack_configuration
+    assert ls_config.url == "http://localhost:8321"
diff --git a/tests/unit/test_configuration.py b/tests/unit/test_configuration.py
index 9b80a9e5..4d01c596 100644
--- a/tests/unit/test_configuration.py
+++ b/tests/unit/test_configuration.py
@@ -1,8 +1,58 @@
 """Unit tests for functions defined in src/configuration.py."""
 
-from src.configuration import configuration
+import pytest
+from src.configuration import AppConfig
 
 
 def test_default_configuration():
-    cfg = configuration
+    cfg = AppConfig()
     assert cfg is not None
+
+    # configuration is not loaded
+    with pytest.raises(Exception, match="logic error: configuration is not loaded"):
+        # try to read property
+        cfg.configuration
+
+    with pytest.raises(Exception, match="logic error: configuration is not loaded"):
+        # try to read property
+        cfg.llama_stack_configuration
+
+
+def test_configuration_is_singleton():
+    cfg1 = AppConfig()
+    cfg2 = AppConfig()
+    assert cfg1 == cfg2
+
+
+def test_init_from_dict():
+    config_dict = {
+        "name": "foo",
+        "llama_stack": {
+            "api_key": "xyzzy",
+            "url": "http://x.y.com:1234",
+            "use_as_library_client": False,
+        },
+    }
+    cfg = AppConfig()
+    cfg.init_from_dict(config_dict)
+    assert cfg.configuration is not None
+    assert cfg.llama_stack_configuration is not None
+
+
+def test_load_proper_configuration(tmpdir):
+    cfg_filename = tmpdir / "config.yaml"
+    with open(cfg_filename, "w") as fout:
+        fout.write(
+            """
+name: foo bar baz
+llama_stack:
+  use_as_library_client: false
+  url: http://localhost:8321
+  api_key: xyzzy
+        """
+        )
+
+    cfg = AppConfig()
+    cfg.load_configuration(cfg_filename)
+    assert cfg.configuration is not None
+    assert cfg.llama_stack_configuration is not None