diff --git a/test/directory.test.ts b/test/directory.test.ts
new file mode 100644
index 0000000..cc96560
--- /dev/null
+++ b/test/directory.test.ts
@@ -0,0 +1,243 @@
+import { describe, it, expect, beforeAll, afterAll } from 'vitest';
+import { buildApp } from '../src/app.js';
+import type { FastifyInstance } from 'fastify';
+import { loadConfig } from '../src/config.js';
+import { pool } from '../src/db/pool.js';
+import { sql } from 'drizzle-orm';
+import { drizzle } from 'drizzle-orm/node-postgres';
+import { agents, auditEvents } from '../src/db/schema.js';
+import { recordAuditEvent } from '../src/lib/audit.js';
+
+describe('Directory API', () => {
+  let app: FastifyInstance;
+  let testAgentId: string;
+  let testAgent2Id: string;
+  let testAgent3Id: string;
+
+  beforeAll(async () => {
+    const config = loadConfig();
+    app = await buildApp({ config });
+
+    const db = drizzle(pool);
+
+    // Clean up test data
+    await db.execute(sql`TRUNCATE agents CASCADE`);
+
+    // Create test agents with different roles
+    const [agent1] = await db
+      .insert(agents)
+      .values({
+        name: 'test-engineer',
+        displayName: 'Test Engineer',
+        role: 'agent',
+        urlKey: 'test-engineer',
+        description: 'A test engineer agent',
+        specialties: ['typescript', 'testing'],
+      })
+      .returning();
+
+    const [agent2] = await db
+      .insert(agents)
+      .values({
+        name: 'test-admin',
+        displayName: 'Test Admin',
+        role: 'admin',
+        urlKey: 'test-admin',
+        description: 'An admin agent',
+        specialties: ['management', 'operations'],
+      })
+      .returning();
+
+    const [agent3] = await db
+      .insert(agents)
+      .values({
+        name: 'test-agent-idle',
+        displayName: 'Idle Agent',
+        role: 'agent',
+        urlKey: 'idle-agent',
+        description: null,
+        specialties: null,
+      })
+      .returning();
+
+    testAgentId = agent1!.id;
+    testAgent2Id = agent2!.id;
+    testAgent3Id = agent3!.id;
+
+    // Create recent activity for agent1 (should be "active")
+    await recordAuditEvent(pool, 'agent-created', testAgentId, { test: true });
+
+    // Create old activity for agent3 (should be "offline")
+    await db
+      .insert(auditEvents)
+      .values({
+        type: 'agent-created',
+        agentId: testAgent3Id,
+        payloadHash: Buffer.from('test'),
+        ts: new Date(Date.now() - 2 * 60 * 60 * 1000), // 2 hours ago
+      });
+  });
+
+  afterAll(async () => {
+    await app.close();
+  });
+
+  it('should return empty list when no agents exist', async () => {
+    // Clean up
+    const db = drizzle(pool);
+    await db.execute(sql`TRUNCATE agents CASCADE`);
+
+    const response = await app.inject({
+      method: 'GET',
+      url: '/api/companies/test-company/agents/directory',
+      headers: {
+        'x-agent-id': 'dummy-agent-id',
+      },
+    });
+
+    expect(response.statusCode).toBe(200);
+    const body = JSON.parse(response.body);
+    expect(body.agents).toEqual([]);
+    expect(body.total).toBe(0);
+
+    // Recreate test data for other tests
+    await db.insert(agents).values({
+      name: 'test-engineer',
+      displayName: 'Test Engineer',
+      role: 'agent',
+      urlKey: 'test-engineer',
+      description: 'A test engineer agent',
+      specialties: ['typescript', 'testing'],
+    });
+  });
+
+  it('should return all agents with enriched data', async () => {
+    const response = await app.inject({
+      method: 'GET',
+      url: '/api/companies/test-company/agents/directory',
+      headers: {
+        'x-agent-id': testAgentId,
+      },
+    });
+
+    expect(response.statusCode).toBe(200);
+    const body = JSON.parse(response.body);
+
+    expect(body.agents).toBeDefined();
+    expect(body.agents.length).toBeGreaterThan(0);
+    expect(body.total).toBeGreaterThan(0);
+
+    // Check first agent structure
+    const firstAgent = body.agents[0];
+    expect(firstAgent).toHaveProperty('id');
+    expect(firstAgent).toHaveProperty('name');
+    expect(firstAgent).toHaveProperty('urlKey');
+    expect(firstAgent).toHaveProperty('role');
+    expect(firstAgent).toHaveProperty('description');
+    expect(firstAgent).toHaveProperty('specialties');
+    expect(firstAgent).toHaveProperty('lastActivityAt');
+    expect(firstAgent).toHaveProperty('status');
+    expect(firstAgent).toHaveProperty('chainOfCommand');
+    expect(firstAgent).toHaveProperty('socialChannels');
+    expect(firstAgent).toHaveProperty('profileUrl');
+
+    // Validate types
+    expect(['active', 'idle', 'offline']).toContain(firstAgent.status);
+    expect(Array.isArray(firstAgent.specialties)).toBe(true);
+    expect(Array.isArray(firstAgent.socialChannels)).toBe(true);
+    expect(firstAgent.profileUrl).toMatch(/^\/BARAAA\/agents\//);
+  });
+
+  it('should filter agents by role', async () => {
+    const response = await app.inject({
+      method: 'GET',
+      url: '/api/companies/test-company/agents/directory?role=admin',
+      headers: {
+        'x-agent-id': testAgentId,
+      },
+    });
+
+    expect(response.statusCode).toBe(200);
+    const body = JSON.parse(response.body);
+
+    expect(body.agents.length).toBeGreaterThan(0);
+    body.agents.forEach((agent: any) => {
+      expect(agent.role).toBe('admin');
+    });
+  });
+
+  it('should respect limit parameter', async () => {
+    const response = await app.inject({
+      method: 'GET',
+      url: '/api/companies/test-company/agents/directory?limit=1',
+      headers: {
+        'x-agent-id': testAgentId,
+      },
+    });
+
+    expect(response.statusCode).toBe(200);
+    const body = JSON.parse(response.body);
+
+    expect(body.agents.length).toBeLessThanOrEqual(1);
+    if (body.agents.length === 1) {
+      expect(body.hasMore).toBe(true);
+    }
+  });
+
+  it('should calculate status correctly based on lastActivityAt', async () => {
+    const response = await app.inject({
+      method: 'GET',
+      url: '/api/companies/test-company/agents/directory',
+      headers: {
+        'x-agent-id': testAgentId,
+      },
+    });
+
+    expect(response.statusCode).toBe(200);
+    const body = JSON.parse(response.body);
+
+    // Find agent1 (recent activity) and agent3 (old activity)
+    const activeAgent = body.agents.find((a: any) => a.id === testAgentId);
+    const offlineAgent = body.agents.find((a: any) => a.id === testAgent3Id);
+
+    // Agent with recent activity should be active or idle
+    if (activeAgent) {
+      expect(['active', 'idle']).toContain(activeAgent.status);
+    }
+
+    // Agent with 2-hour-old activity should be offline
+    if (offlineAgent) {
+      expect(offlineAgent.status).toBe('offline');
+    }
+  });
+
+  it('should return 401 without x-agent-id header', async () => {
+    const response = await app.inject({
+      method: 'GET',
+      url: '/api/companies/test-company/agents/directory',
+    });
+
+    expect(response.statusCode).toBe(401);
+    const body = JSON.parse(response.body);
+    expect(body.error).toBe('Missing x-agent-id header');
+  });
+
+  it('should handle null description and specialties gracefully', async () => {
+    const response = await app.inject({
+      method: 'GET',
+      url: '/api/companies/test-company/agents/directory',
+      headers: {
+        'x-agent-id': testAgentId,
+      },
+    });
+
+    expect(response.statusCode).toBe(200);
+    const body = JSON.parse(response.body);
+
+    const agentWithNulls = body.agents.find((a: any) => a.id === testAgent3Id);
+    if (agentWithNulls) {
+      expect(agentWithNulls.description).toBeNull();
+      expect(Array.isArray(agentWithNulls.specialties)).toBe(true);
+    }
+  });
+});