diff --git a/browse/test/commands.test.ts b/browse/test/commands.test.ts
index 312b8cee..1f6ad2f2 100644
--- a/browse/test/commands.test.ts
+++ b/browse/test/commands.test.ts
@@ -457,14 +457,11 @@ describe('CLI lifecycle', () => {
     }));
 
     const cliPath = path.resolve(__dirname, '../src/cli.ts');
-    // Build env without CONDUCTOR_PORT/BROWSE_PORT so BROWSE_PORT_START takes effect
     const cliEnv: Record<string, string> = {};
     for (const [k, v] of Object.entries(process.env)) {
-      if (k !== 'CONDUCTOR_PORT' && k !== 'BROWSE_PORT' && v !== undefined) cliEnv[k] = v;
+      if (v !== undefined) cliEnv[k] = v;
     }
     cliEnv.BROWSE_STATE_FILE = stateFile;
-    // Use a random high port to avoid conflicts with running servers
-    cliEnv.BROWSE_PORT_START = String(9600 + Math.floor(Math.random() * 100));
     const result = await new Promise<{ code: number; stdout: string; stderr: string }>((resolve) => {
       const proc = spawn('bun', ['run', cliPath, 'status'], {
         timeout: 15000,
diff --git a/browse/test/config.test.ts b/browse/test/config.test.ts
new file mode 100644
index 00000000..780385f4
--- /dev/null
+++ b/browse/test/config.test.ts
@@ -0,0 +1,125 @@
+import { describe, test, expect } from 'bun:test';
+import { resolveConfig, ensureStateDir, readVersionHash, getGitRoot } from '../src/config';
+import * as fs from 'fs';
+import * as path from 'path';
+import * as os from 'os';
+
+describe('config', () => {
+  describe('getGitRoot', () => {
+    test('returns a path when in a git repo', () => {
+      const root = getGitRoot();
+      expect(root).not.toBeNull();
+      expect(fs.existsSync(path.join(root!, '.git'))).toBe(true);
+    });
+  });
+
+  describe('resolveConfig', () => {
+    test('uses git root by default', () => {
+      const config = resolveConfig({});
+      const gitRoot = getGitRoot();
+      expect(gitRoot).not.toBeNull();
+      expect(config.projectDir).toBe(gitRoot);
+      expect(config.stateDir).toBe(path.join(gitRoot!, '.gstack'));
+      expect(config.stateFile).toBe(path.join(gitRoot!, '.gstack', 'browse.json'));
+    });
+
+    test('derives paths from BROWSE_STATE_FILE when set', () => {
+      const stateFile = '/tmp/test-config/.gstack/browse.json';
+      const config = resolveConfig({ BROWSE_STATE_FILE: stateFile });
+      expect(config.stateFile).toBe(stateFile);
+      expect(config.stateDir).toBe('/tmp/test-config/.gstack');
+      expect(config.projectDir).toBe('/tmp/test-config');
+    });
+
+    test('log paths are in stateDir', () => {
+      const config = resolveConfig({});
+      expect(config.consoleLog).toBe(path.join(config.stateDir, 'browse-console.log'));
+      expect(config.networkLog).toBe(path.join(config.stateDir, 'browse-network.log'));
+      expect(config.dialogLog).toBe(path.join(config.stateDir, 'browse-dialog.log'));
+    });
+  });
+
+  describe('ensureStateDir', () => {
+    test('creates directory if it does not exist', () => {
+      const tmpDir = path.join(os.tmpdir(), `browse-config-test-${Date.now()}`);
+      const config = resolveConfig({ BROWSE_STATE_FILE: path.join(tmpDir, '.gstack', 'browse.json') });
+      expect(fs.existsSync(config.stateDir)).toBe(false);
+      ensureStateDir(config);
+      expect(fs.existsSync(config.stateDir)).toBe(true);
+      // Cleanup
+      fs.rmSync(tmpDir, { recursive: true, force: true });
+    });
+
+    test('is a no-op if directory already exists', () => {
+      const tmpDir = path.join(os.tmpdir(), `browse-config-test-${Date.now()}`);
+      const stateDir = path.join(tmpDir, '.gstack');
+      fs.mkdirSync(stateDir, { recursive: true });
+      const config = resolveConfig({ BROWSE_STATE_FILE: path.join(stateDir, 'browse.json') });
+      ensureStateDir(config); // should not throw
+      expect(fs.existsSync(config.stateDir)).toBe(true);
+      // Cleanup
+      fs.rmSync(tmpDir, { recursive: true, force: true });
+    });
+  });
+
+  describe('readVersionHash', () => {
+    test('returns null when .version file does not exist', () => {
+      const result = readVersionHash('/nonexistent/path/browse');
+      expect(result).toBeNull();
+    });
+
+    test('reads version from .version file adjacent to execPath', () => {
+      const tmpDir = path.join(os.tmpdir(), `browse-version-test-${Date.now()}`);
+      fs.mkdirSync(tmpDir, { recursive: true });
+      const versionFile = path.join(tmpDir, '.version');
+      fs.writeFileSync(versionFile, 'abc123def\n');
+      const result = readVersionHash(path.join(tmpDir, 'browse'));
+      expect(result).toBe('abc123def');
+      // Cleanup
+      fs.rmSync(tmpDir, { recursive: true, force: true });
+    });
+  });
+});
+
+describe('resolveServerScript', () => {
+  // Import the function from cli.ts
+  const { resolveServerScript } = require('../src/cli');
+
+  test('uses BROWSE_SERVER_SCRIPT env when set', () => {
+    const result = resolveServerScript({ BROWSE_SERVER_SCRIPT: '/custom/server.ts' }, '', '');
+    expect(result).toBe('/custom/server.ts');
+  });
+
+  test('finds server.ts adjacent to cli.ts in dev mode', () => {
+    const srcDir = path.resolve(__dirname, '../src');
+    const result = resolveServerScript({}, srcDir, '');
+    expect(result).toBe(path.join(srcDir, 'server.ts'));
+  });
+
+  test('throws when server.ts cannot be found', () => {
+    expect(() => resolveServerScript({}, '/nonexistent/$bunfs', '/nonexistent/browse'))
+      .toThrow('Cannot find server.ts');
+  });
+});
+
+describe('version mismatch detection', () => {
+  test('detects when versions differ', () => {
+    const stateVersion = 'abc123';
+    const currentVersion = 'def456';
+    expect(stateVersion !== currentVersion).toBe(true);
+  });
+
+  test('no mismatch when versions match', () => {
+    const stateVersion = 'abc123';
+    const currentVersion = 'abc123';
+    expect(stateVersion !== currentVersion).toBe(false);
+  });
+
+  test('no mismatch when either version is null', () => {
+    const currentVersion: string | null = null;
+    const stateVersion: string | undefined = 'abc123';
+    // Version mismatch only triggers when both are present
+    const shouldRestart = currentVersion !== null && stateVersion !== undefined && currentVersion !== stateVersion;
+    expect(shouldRestart).toBe(false);
+  });
+});