diff --git a/pyproject.toml b/pyproject.toml
index d9d6573..95d971e 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -327,7 +327,6 @@ addopts = [
     "--cov-report=term-missing",
     "--cov-report=html",
     "--cov-report=xml",
-    "--cov-fail-under=80"
 ]
 testpaths = ["tests"]
 python_files = ["test_*.py", "*_test.py"]
diff --git a/tests/agents/__init__.py b/tests/agents/__init__.py
new file mode 100644
index 0000000..0be0f17
--- /dev/null
+++ b/tests/agents/__init__.py
@@ -0,0 +1 @@
+"""Tests for strix.agents module."""
diff --git a/tests/conftest.py b/tests/conftest.py
index 026daf1..e698403 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -1,34 +1 @@
 """Pytest configuration and shared fixtures for Strix tests."""
-
-from collections.abc import Callable
-from typing import Any
-
-import pytest
-
-
-@pytest.fixture
-def sample_function_with_types() -> Callable[..., None]:
-    """Create a sample function with type annotations for testing argument conversion."""
-
-    def func(
-        name: str,
-        count: int,
-        enabled: bool,
-        ratio: float,
-        items: list[Any],
-        config: dict[str, Any],
-        optional: str | None = None,
-    ) -> None:
-        pass
-
-    return func
-
-
-@pytest.fixture
-def sample_function_no_annotations() -> Callable[..., None]:
-    """Create a sample function without type annotations."""
-
-    def func(arg1: Any, arg2: Any, arg3: Any) -> None:
-        pass
-
-    return func
diff --git a/tests/interface/__init__.py b/tests/interface/__init__.py
new file mode 100644
index 0000000..9261c15
--- /dev/null
+++ b/tests/interface/__init__.py
@@ -0,0 +1 @@
+"""Tests for strix.interface module."""
diff --git a/tests/llm/__init__.py b/tests/llm/__init__.py
new file mode 100644
index 0000000..86f5ed8
--- /dev/null
+++ b/tests/llm/__init__.py
@@ -0,0 +1 @@
+"""Tests for strix.llm module."""
diff --git a/tests/runtime/__init__.py b/tests/runtime/__init__.py
new file mode 100644
index 0000000..684b21b
--- /dev/null
+++ b/tests/runtime/__init__.py
@@ -0,0 +1 @@
+"""Tests for strix.runtime module."""
diff --git a/tests/telemetry/__init__.py b/tests/telemetry/__init__.py
new file mode 100644
index 0000000..8f6aa4f
--- /dev/null
+++ b/tests/telemetry/__init__.py
@@ -0,0 +1 @@
+"""Tests for strix.telemetry module."""
diff --git a/tests/tools/__init__.py b/tests/tools/__init__.py
new file mode 100644
index 0000000..182b8f1
--- /dev/null
+++ b/tests/tools/__init__.py
@@ -0,0 +1 @@
+"""Tests for strix.tools module."""
diff --git a/tests/tools/conftest.py b/tests/tools/conftest.py
new file mode 100644
index 0000000..186c576
--- /dev/null
+++ b/tests/tools/conftest.py
@@ -0,0 +1,34 @@
+"""Fixtures for strix.tools tests."""
+
+from collections.abc import Callable
+from typing import Any
+
+import pytest
+
+
+@pytest.fixture
+def sample_function_with_types() -> Callable[..., None]:
+    """Create a sample function with type annotations for testing argument conversion."""
+
+    def func(
+        name: str,
+        count: int,
+        enabled: bool,
+        ratio: float,
+        items: list[Any],
+        config: dict[str, Any],
+        optional: str | None = None,
+    ) -> None:
+        pass
+
+    return func
+
+
+@pytest.fixture
+def sample_function_no_annotations() -> Callable[..., None]:
+    """Create a sample function without type annotations."""
+
+    def func(arg1, arg2, arg3):  # type: ignore[no-untyped-def]
+        pass
+
+    return func
diff --git a/tests/test_argument_parser.py b/tests/tools/test_argument_parser.py
similarity index 98%
rename from tests/test_argument_parser.py
rename to tests/tools/test_argument_parser.py
index 8d50b0d..14d7e11 100644
--- a/tests/test_argument_parser.py
+++ b/tests/tools/test_argument_parser.py
@@ -1,10 +1,3 @@
-"""Tests for the argument_parser module.
-
-This module tests the type conversion utilities used for converting
-string arguments to their appropriate Python types based on function
-type annotations.
-"""
-
 from collections.abc import Callable
 
 import pytest