diff --git a/tests/unit_tests/test_threadpool.py b/tests/unit_tests/test_threadpool.py
new file mode 100644
index 0000000000..be1a91e18b
--- /dev/null
+++ b/tests/unit_tests/test_threadpool.py
@@ -0,0 +1,293 @@
+"""
+Unit tests for bittensor.core.threadpool module.
+
+Tests the PriorityThreadPoolExecutor and related components.
+"""
+
+import argparse
+import os
+import pytest
+import queue
+import threading
+import time
+from concurrent.futures import Future
+from unittest.mock import Mock, patch
+
+from bittensor.core.threadpool import (
+    PriorityThreadPoolExecutor,
+    _WorkItem,
+    BrokenThreadPool,
+)
+from bittensor.core.settings import BLOCKTIME
+from bittensor.core.config import Config
+
+
+class TestWorkItem:
+    """Tests for _WorkItem class functionality."""
+
+    def test_work_item_execution(self):
+        """Test _WorkItem creation and execution."""
+        result_value = 42
+        test_fn = Mock(return_value=result_value)
+        future = Future()
+        work_item = _WorkItem(future, test_fn, time.time(), (1, 2), {"key": "value"})
+        
+        work_item.run()
+        
+        test_fn.assert_called_once_with(1, 2, key="value")
+        assert future.result() == result_value
+
+    def test_work_item_exception_handling(self):
+        """Test _WorkItem handles exceptions correctly."""
+        test_fn = Mock(side_effect=ValueError("Test error"))
+        future = Future()
+        work_item = _WorkItem(future, test_fn, time.time(), (), {})
+        
+        work_item.run()
+        
+        with pytest.raises(ValueError, match="Test error"):
+            future.result()
+
+    def test_work_item_cancelled_future(self):
+        """Test _WorkItem skips execution if future is cancelled."""
+        test_fn = Mock(return_value=42)
+        future = Future()
+        future.cancel()
+        work_item = _WorkItem(future, test_fn, time.time(), (), {})
+        
+        work_item.run()
+        
+        test_fn.assert_not_called()
+
+    def test_stale_task_detection(self):
+        """Test _WorkItem skips execution if task is stale."""
+        test_fn = Mock(return_value=42)
+        future = Future()
+        start_time = time.time() - BLOCKTIME - 1
+        work_item = _WorkItem(future, test_fn, start_time, (), {})
+        
+        work_item.run()
+        
+        test_fn.assert_not_called()
+
+
+class TestExecutorInitialization:
+    """Tests for PriorityThreadPoolExecutor initialization."""
+
+    def test_default_initialization(self):
+        """Test executor creation with default parameters."""
+        executor = PriorityThreadPoolExecutor()
+        
+        try:
+            assert executor._max_workers == (os.cpu_count() or 1) * 5
+            assert isinstance(executor._work_queue, queue.PriorityQueue)
+            assert executor._broken is False
+            assert executor._shutdown is False
+        finally:
+            executor.shutdown(wait=True)
+
+    def test_custom_initialization(self):
+        """Test executor creation with custom parameters."""
+        executor = PriorityThreadPoolExecutor(
+            max_workers=3,
+            maxsize=5,
+            thread_name_prefix="TestPool"
+        )
+        
+        try:
+            assert executor._max_workers == 3
+            assert executor._thread_name_prefix == "TestPool"
+        finally:
+            executor.shutdown(wait=True)
+
+    def test_invalid_max_workers(self):
+        """Test that invalid max_workers raises ValueError."""
+        with pytest.raises(ValueError, match="max_workers must be greater than 0"):
+            PriorityThreadPoolExecutor(max_workers=0)
+
+    def test_invalid_initializer(self):
+        """Test that non-callable initializer raises TypeError."""
+        with pytest.raises(TypeError, match="initializer must be a callable"):
+            PriorityThreadPoolExecutor(initializer="not_callable")
+
+
+class TestTaskSubmission:
+    """Tests for task submission and execution."""
+
+    def test_submit_basic(self):
+        """Test basic task submission."""
+        executor = PriorityThreadPoolExecutor(max_workers=2)
+        
+        try:
+            future = executor.submit(lambda: 42)
+            assert future.result(timeout=2) == 42
+        finally:
+            executor.shutdown(wait=True)
+
+    def test_priority_ordering(self):
+        """Test that tasks execute in priority order."""
+        executor = PriorityThreadPoolExecutor(max_workers=1)
+        execution_order = []
+        lock = threading.Lock()
+        
+        def task(name):
+            with lock:
+                execution_order.append(name)
+            time.sleep(0.01)
+        
+        try:
+            # Submit low priority task first (will start immediately)
+            executor.submit(lambda: task("low"), priority=100)
+            time.sleep(0.01)
+            # Then submit higher priority tasks
+            executor.submit(lambda: task("high"), priority=1000)
+            executor.submit(lambda: task("medium"), priority=500)
+            
+            time.sleep(0.5)
+            
+            # Verify execution order
+            assert execution_order[0] == "low"
+            assert execution_order[1] == "high"
+            assert execution_order[2] == "medium"
+        finally:
+            executor.shutdown(wait=True)
+
+    def test_task_with_args_and_kwargs(self):
+        """Test task execution with args and kwargs."""
+        executor = PriorityThreadPoolExecutor(max_workers=1)
+        
+        def task(a, b, c=0, d=0):
+            return a + b + c + d
+        
+        try:
+            future = executor.submit(task, 1, 2, c=3, d=4)
+            assert future.result(timeout=2) == 10
+        finally:
+            executor.shutdown(wait=True)
+
+    def test_concurrent_submissions(self):
+        """Test thread safety of concurrent submit operations."""
+        executor = PriorityThreadPoolExecutor(max_workers=4)
+        
+        try:
+            futures = [executor.submit(lambda x=i: x * 2) for i in range(50)]
+            results = [f.result(timeout=5) for f in futures]
+            assert len(results) == 50
+        finally:
+            executor.shutdown(wait=True)
+
+
+class TestExecutorShutdown:
+    """Tests for executor shutdown behavior."""
+
+    def test_graceful_shutdown(self):
+        """Test graceful shutdown waits for tasks to complete."""
+        executor = PriorityThreadPoolExecutor(max_workers=2)
+        completed = []
+        
+        def task(value):
+            time.sleep(0.1)
+            completed.append(value)
+        
+        futures = [executor.submit(task, i) for i in range(3)]
+        executor.shutdown(wait=True)
+        
+        assert len(completed) == 3
+        assert executor._shutdown is True
+
+    def test_immediate_shutdown(self):
+        """Test immediate shutdown doesn't wait for tasks."""
+        executor = PriorityThreadPoolExecutor(max_workers=1)
+        
+        executor.submit(lambda: time.sleep(2))
+        
+        start_time = time.time()
+        executor.shutdown(wait=False)
+        shutdown_time = time.time() - start_time
+        
+        assert shutdown_time < 0.5
+        assert executor._shutdown is True
+
+    def test_submit_after_shutdown(self):
+        """Test that submitting after shutdown raises RuntimeError."""
+        executor = PriorityThreadPoolExecutor(max_workers=1)
+        executor.shutdown(wait=True)
+        
+        with pytest.raises(RuntimeError, match="cannot schedule new futures after shutdown"):
+            executor.submit(lambda: 42)
+
+    def test_context_manager(self):
+        """Test executor as context manager."""
+        with PriorityThreadPoolExecutor(max_workers=2) as executor:
+            future = executor.submit(lambda: 42)
+            assert future.result(timeout=2) == 42
+        
+        assert executor._shutdown is True
+
+
+class TestBrokenThreadPool:
+    """Tests for BrokenThreadPool exception handling."""
+
+    def test_broken_pool_exception(self):
+        """Test BrokenThreadPool exception."""
+        assert issubclass(BrokenThreadPool, Exception)
+        
+        with pytest.raises(BrokenThreadPool):
+            raise BrokenThreadPool("Test error")
+
+    def test_submit_to_broken_pool(self):
+        """Test submitting to broken pool raises BrokenThreadPool."""
+        executor = PriorityThreadPoolExecutor(max_workers=1)
+        executor._broken = "Pool is broken"
+        
+        with pytest.raises(BrokenThreadPool):
+            executor.submit(lambda: 42)
+        
+        executor.shutdown(wait=False)
+
+    def test_initializer_failure(self):
+        """Test handling of failed initializers."""
+        def failing_initializer():
+            raise RuntimeError("Initializer failed")
+        
+        executor = PriorityThreadPoolExecutor(
+            max_workers=1,
+            initializer=failing_initializer
+        )
+        
+        try:
+            executor.submit(lambda: 42)
+            time.sleep(0.5)
+            
+            assert executor._broken is not False
+            
+            with pytest.raises(BrokenThreadPool):
+                executor.submit(lambda: 99)
+        finally:
+            executor.shutdown(wait=False)
+
+
+class TestConfiguration:
+    """Tests for configuration."""
+
+    def test_config_from_environment(self):
+        """Test configuration from environment variables."""
+        with patch.dict(os.environ, {
+            'BT_PRIORITY_MAX_WORKERS': '7',
+            'BT_PRIORITY_MAXSIZE': '15'
+        }):
+            parser = argparse.ArgumentParser()
+            PriorityThreadPoolExecutor.add_args(parser)
+            args = parser.parse_args([])
+            
+            assert getattr(args, 'priority.max_workers') == 7
+            assert getattr(args, 'priority.maxsize') == 15
+
+    def test_config_method(self):
+        """Test config() class method."""
+        config = PriorityThreadPoolExecutor.config()
+        
+        assert isinstance(config, Config)
+        assert hasattr(config, 'priority')
+        assert hasattr(config.priority, 'max_workers')
+        assert hasattr(config.priority, 'maxsize')