diff --git a/src/lib/db/index.ts b/src/lib/db/index.ts
index 784a37c..fa2fff7 100644
--- a/src/lib/db/index.ts
+++ b/src/lib/db/index.ts
@@ -4,61 +4,68 @@ import fs from "fs";
 import path from "path";
 import { migrate } from "drizzle-orm/bun-sqlite/migrator";
 
-// Define the database URL - for development we'll use a local SQLite file
-const dataDir = path.join(process.cwd(), "data");
-// Ensure data directory exists
-if (!fs.existsSync(dataDir)) {
-  fs.mkdirSync(dataDir, { recursive: true });
-}
+// Skip database initialization in test environment
+let db: ReturnType<typeof drizzle>;
 
-const dbPath = path.join(dataDir, "gitea-mirror.db");
+if (process.env.NODE_ENV !== "test") {
+  // Define the database URL - for development we'll use a local SQLite file
+  const dataDir = path.join(process.cwd(), "data");
+  // Ensure data directory exists
+  if (!fs.existsSync(dataDir)) {
+    fs.mkdirSync(dataDir, { recursive: true });
+  }
 
-// Create an empty database file if it doesn't exist
-if (!fs.existsSync(dbPath)) {
-  fs.writeFileSync(dbPath, "");
-}
+  const dbPath = path.join(dataDir, "gitea-mirror.db");
 
-// Create SQLite database instance using Bun's native driver
-let sqlite: Database;
-try {
-  sqlite = new Database(dbPath);
-  console.log("Successfully connected to SQLite database using Bun's native driver");
-} catch (error) {
-  console.error("Error opening database:", error);
-  throw error;
-}
+  // Create an empty database file if it doesn't exist
+  if (!fs.existsSync(dbPath)) {
+    fs.writeFileSync(dbPath, "");
+  }
 
-// Create drizzle instance with the SQLite client
-export const db = drizzle({ client: sqlite });
-
-/**
- * Run Drizzle migrations
- */
-function runDrizzleMigrations() {
+  // Create SQLite database instance using Bun's native driver
+  let sqlite: Database;
   try {
-    console.log("🔄 Checking for pending migrations...");
-    
-    // Check if migrations table exists
-    const migrationsTableExists = sqlite
-      .query("SELECT name FROM sqlite_master WHERE type='table' AND name='__drizzle_migrations'")
-      .get();
-
-    if (!migrationsTableExists) {
-      console.log("📦 First time setup - running initial migrations...");
-    }
-
-    // Run migrations using Drizzle migrate function
-    migrate(db, { migrationsFolder: "./drizzle" });
-    
-    console.log("✅ Database migrations completed successfully");
+    sqlite = new Database(dbPath);
+    console.log("Successfully connected to SQLite database using Bun's native driver");
   } catch (error) {
-    console.error("❌ Error running migrations:", error);
+    console.error("Error opening database:", error);
     throw error;
   }
+
+  // Create drizzle instance with the SQLite client
+  db = drizzle({ client: sqlite });
+
+  /**
+   * Run Drizzle migrations
+   */
+  function runDrizzleMigrations() {
+    try {
+      console.log("🔄 Checking for pending migrations...");
+      
+      // Check if migrations table exists
+      const migrationsTableExists = sqlite
+        .query("SELECT name FROM sqlite_master WHERE type='table' AND name='__drizzle_migrations'")
+        .get();
+
+      if (!migrationsTableExists) {
+        console.log("📦 First time setup - running initial migrations...");
+      }
+
+      // Run migrations using Drizzle migrate function
+      migrate(db, { migrationsFolder: "./drizzle" });
+      
+      console.log("✅ Database migrations completed successfully");
+    } catch (error) {
+      console.error("❌ Error running migrations:", error);
+      throw error;
+    }
+  }
+
+  // Run Drizzle migrations after db is initialized
+  runDrizzleMigrations();
 }
 
-// Run Drizzle migrations after db is initialized
-runDrizzleMigrations();
+export { db };
 
 // Export all table definitions from schema
 export { 
diff --git a/src/lib/gitea.ts b/src/lib/gitea.ts
index fb4aedf..d10a195 100644
--- a/src/lib/gitea.ts
+++ b/src/lib/gitea.ts
@@ -480,6 +480,9 @@ export async function getOrCreateGiteaOrg({
   try {
     console.log(`Attempting to get or create Gitea organization: ${orgName}`);
 
+    // Decrypt config tokens for API usage
+    const decryptedConfig = decryptConfigTokens(config as Config);
+
     const orgRes = await fetch(
       `${config.giteaConfig.url}/api/v1/orgs/${orgName}`,
       {
diff --git a/src/tests/setup.bun.ts b/src/tests/setup.bun.ts
index 1de560d..7050445 100644
--- a/src/tests/setup.bun.ts
+++ b/src/tests/setup.bun.ts
@@ -3,16 +3,71 @@
  * This file is automatically loaded before running tests
  */
 
-import { afterEach, beforeEach } from "bun:test";
+import { mock } from "bun:test";
 
-// Clean up after each test
-afterEach(() => {
-  // Add any cleanup logic here
+// Set NODE_ENV to test
+process.env.NODE_ENV = "test";
+
+// Mock the database module to prevent real database access during tests
+mock.module("@/lib/db", () => {
+  const mockDb = {
+    select: () => ({
+      from: () => ({
+        where: () => ({
+          limit: () => Promise.resolve([])
+        })
+      })
+    }),
+    insert: () => ({
+      values: () => Promise.resolve()
+    }),
+    update: () => ({
+      set: () => ({
+        where: () => Promise.resolve()
+      })
+    }),
+    delete: () => ({
+      where: () => Promise.resolve()
+    })
+  };
+
+  return {
+    db: mockDb,
+    users: {},
+    events: {},
+    configs: {},
+    repositories: {},
+    mirrorJobs: {},
+    organizations: {},
+    sessions: {},
+    accounts: {},
+    verificationTokens: {},
+    oauthApplications: {},
+    oauthAccessTokens: {},
+    oauthConsent: {},
+    ssoProviders: {}
+  };
 });
 
-// Setup before each test
-beforeEach(() => {
-  // Add any setup logic here
+// Mock drizzle-orm to prevent database migrations from running
+mock.module("drizzle-orm/bun-sqlite/migrator", () => {
+  return {
+    migrate: () => {}
+  };
+});
+
+// Mock config encryption utilities
+mock.module("@/lib/utils/config-encryption", () => {
+  return {
+    decryptConfigTokens: (config: any) => {
+      // Return the config as-is for tests
+      return config;
+    },
+    encryptConfigTokens: (config: any) => {
+      // Return the config as-is for tests
+      return config;
+    }
+  };
 });
 
 // Add DOM testing support if needed