diff --git a/.gitignore b/.gitignore
index cbdb50a2..c99ac340 100644
--- a/.gitignore
+++ b/.gitignore
@@ -5,6 +5,7 @@ __pycache__/
 *.pyo
 *.egg-info/
 .pytest_cache/
+.pytest-tmp/
 .ruff_cache/
 pytest-cache-files-*/
 .venv/
diff --git a/pyproject.toml b/pyproject.toml
index ab8532bd..c99eccd1 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -104,12 +104,14 @@ Issues = "https://github.com/sreerevanth/AgentWatch/issues"
 packages = ["agentwatch"]
 
 [tool.pytest.ini_options]
+cache_dir = ".pytest_cache"
 asyncio_mode = "auto"
 testpaths = ["tests"]
-addopts = "-v --tb=short"
+addopts = "-v --tb=short --basetemp=.pytest-tmp"
 pythonpath = ["."]
 
 [tool.ruff]
+cache-dir = ".ruff_cache"
 target-version = "py312"
 line-length = 100