diff --git a/CONTRIBUTING.MD b/CONTRIBUTING.MD
new file mode 100644
index 00000000..62fd5711
--- /dev/null
+++ b/CONTRIBUTING.MD
@@ -0,0 +1,44 @@
+## Contributing to Active Agent
+
+Thanks for your interest in improving Active Agent! This guide covers the basics for setting up your environment, running tests, linting, and doing a quick local verification that things work.
+
+### Prerequisites
+- Ruby with Bundler installed
+- Google Chrome/Chromium (recommended for system tests via Cuprite)
+
+### Setup
+git clone https://github.com/activeagents/activeagent.git
+cd activeagent
+bundle install
+
+- Full suite:
+  bin/test
+  # or
+  bundle exec rake test
+  - Single file:
+ 
+  ruby -Itest test/generation_test.rb
+
+- Tests use Rails’ plugin test runner and a bundled dummy app under `test/dummy`.
+- External API calls are recorded with VCR, so you shouldn’t need API keys to run the suite.
+
+### Linting
+- bin/lint          # check
+- bin/lint --fix    # safe auto-correct
+- bin/lint -A       # auto-correct including unsafe### Quick local verification
+
+### Making changes
+1. Create a feature branch.
+2. Add tests for your change.
+3. Run `bin/test` and `bin/lint` until both pass cleanly.
+4. Open a pull request with a clear description of the change and motivation.
+
+### Recording or updating VCR cassettes (optional)
+If you need to re-record HTTP interactions for specific tests, set the necessary API keys in your environment and run only those tests. Please avoid committing sensitive data; VCR cassettes should only contain sanitized request/response data.
+
+### Community and support
+- Documentation: https://docs.activeagents.ai
+- Issues: https://github.com/activeagents/activeagent/issues
+- Discord: https://discord.com/invite/JRUxkkHKmh
+
+We appreciate your contributions—thank you!
\ No newline at end of file
diff --git a/lib/active_prompt.rb b/lib/active_prompt.rb
new file mode 100644
index 00000000..77166e20
--- /dev/null
+++ b/lib/active_prompt.rb
@@ -0,0 +1,7 @@
+# frozen_string_literal: true
+
+require "active_prompt/version"
+require "active_prompt/engine" if defined?(Rails)
+
+module ActivePrompt
+end
diff --git a/lib/active_prompt/engine.rb b/lib/active_prompt/engine.rb
new file mode 100644
index 00000000..82069e7a
--- /dev/null
+++ b/lib/active_prompt/engine.rb
@@ -0,0 +1,26 @@
+# frozen_string_literal: true
+
+require "rails"
+
+module ActivePrompt
+  class Engine < ::Rails::Engine
+    isolate_namespace ActivePrompt
+
+    initializer "active_prompt.assets.paths_and_precompile" do |app|
+      if app.config.respond_to?(:assets)
+        app.config.assets.paths << root.join("app", "assets")
+        app.config.assets.precompile += %w[
+          active_prompt/*
+        ]
+      end
+    end
+
+    initializer "active_prompt.append_migrations" do |app|
+      unless app.root.to_s.start_with?(root.to_s)
+        config.paths["db/migrate"].expanded.each do |expanded_path|
+          app.config.paths["db/migrate"] << expanded_path
+        end
+      end
+    end
+  end
+end
diff --git a/lib/active_prompt/version.rb b/lib/active_prompt/version.rb
new file mode 100644
index 00000000..2594fc06
--- /dev/null
+++ b/lib/active_prompt/version.rb
@@ -0,0 +1,5 @@
+# frozen_string_literal: true
+
+module ActivePrompt
+  VERSION = "0.1.0"
+end
diff --git a/lib/activeagent.rb b/lib/activeagent.rb
index 51714549..1b14364e 100644
--- a/lib/activeagent.rb
+++ b/lib/activeagent.rb
@@ -1 +1,2 @@
 require "active_agent"
+require "active_prompt"
diff --git a/test/active_prompt_engine_test.rb b/test/active_prompt_engine_test.rb
new file mode 100644
index 00000000..34dcbd7f
--- /dev/null
+++ b/test/active_prompt_engine_test.rb
@@ -0,0 +1,21 @@
+# frozen_string_literal: true
+
+require "test_helper"
+require "active_prompt"
+
+class ActivePromptEngineTest < ActiveSupport::TestCase
+  test "ActivePrompt module loads with version" do
+    assert defined?(ActivePrompt), "ActivePrompt should be defined"
+    assert_kind_of String, ActivePrompt::VERSION
+    refute_empty ActivePrompt::VERSION
+  end
+
+  test "engine is defined and inherits from Rails::Engine" do
+    assert defined?(ActivePrompt::Engine), "ActivePrompt::Engine should be defined"
+    assert ActivePrompt::Engine < Rails::Engine
+  end
+
+  test "engine namespace is isolated" do
+    assert_equal ActivePrompt, ActivePrompt::Engine.railtie_namespace
+  end
+end