diff --git a/scripts/setup-tools.ps1 b/scripts/setup-tools.ps1
index f9ac67e..0df4227 100644
--- a/scripts/setup-tools.ps1
+++ b/scripts/setup-tools.ps1
@@ -1,21 +1,17 @@
-function Initialize-PowerShellEnvironment {
-    Write-Host "Initializing PowerShell environment..." -ForegroundColor Yellow
-
-    # Add any environment setup logic here, such as importing modules, setting variables, etc.
-    # Example: Import-Module SomeModule
+function Import-PowerShellYamlModule {
     Import-Module powershell-yaml -ErrorAction SilentlyContinue
-
-    Write-Host "PowerShell environment initialized." -ForegroundColor Green
 }
 
 function Invoke-Main {
     Write-Host "Preparing environment..." -ForegroundColor Cyan
     Write-Host
 
-    Initialize-PowerShellEnvironment
+    Write-Host "Initializing PowerShell environment..." -ForegroundColor Yellow
+    Import-PowerShellYamlModule
+    Write-Host "PowerShell environment initialized." -ForegroundColor Green
     Write-Host
 
     Write-Host "Environment preparation complete!" -ForegroundColor Green
 }
 
-Invoke-Main
\ No newline at end of file
+Invoke-Main
diff --git a/tests/setup-tools.Tests.ps1 b/tests/setup-tools.Tests.ps1
new file mode 100644
index 0000000..f1e96a4
--- /dev/null
+++ b/tests/setup-tools.Tests.ps1
@@ -0,0 +1,48 @@
+$setupToolsScript = (Resolve-Path -LiteralPath (Join-Path $PSScriptRoot '..\scripts\setup-tools.ps1')).Path
+$expectedOutput = @(
+    'Preparing environment...'
+    ''
+    'Initializing PowerShell environment...'
+    'PowerShell environment initialized.'
+    ''
+    'Environment preparation complete!'
+) -join "`n"
+
+Describe 'setup-tools.ps1' {
+    It 'imports powershell-yaml and preserves the user-facing output' {
+        $originalModulePath = $env:PSModulePath
+        try {
+            $moduleRoot = Join-Path $TestDrive 'available-modules'
+            $moduleDirectory = Join-Path $moduleRoot 'powershell-yaml'
+            $null = New-Item -ItemType Directory -Path $moduleDirectory
+            Set-Content -LiteralPath (Join-Path $moduleDirectory 'powershell-yaml.psm1') -Value ''
+            $env:PSModulePath = $moduleRoot
+
+            $escapedScriptPath = $setupToolsScript.Replace("'", "''")
+            $command = "& '$escapedScriptPath'; if (-not (Get-Module -Name powershell-yaml)) { exit 42 }"
+
+            $output = @(& pwsh -NoProfile -Command $command 6>&1 | ForEach-Object { $_.ToString() })
+
+            $LASTEXITCODE | Should Be 0
+            ($output -join "`n") | Should Be $expectedOutput
+        }
+        finally {
+            $env:PSModulePath = $originalModulePath
+        }
+    }
+
+    It 'continues successfully when powershell-yaml is unavailable' {
+        $originalModulePath = $env:PSModulePath
+        try {
+            $env:PSModulePath = Join-Path $TestDrive 'missing-modules'
+
+            $output = @(& pwsh -NoProfile -File $setupToolsScript 6>&1 | ForEach-Object { $_.ToString() })
+
+            $LASTEXITCODE | Should Be 0
+            ($output -join "`n") | Should Be $expectedOutput
+        }
+        finally {
+            $env:PSModulePath = $originalModulePath
+        }
+    }
+}