diff --git a/.style.yapf b/.style.yapf
new file mode 100644
index 000000000..a185235cf
--- /dev/null
+++ b/.style.yapf
@@ -0,0 +1,13 @@
+[style]
+ALIGN_CLOSING_BRACKET_WITH_VISUAL_INDENT = True
+ALLOW_MULTILINE_LAMBDAS = True
+BLANK_LINE_BEFORE_NESTED_CLASS_OR_DEF = True
+COLUMN_LIMIT = 88
+COALESCE_BRACKETS = True
+SPACE_BETWEEN_ENDING_COMMA_AND_CLOSING_BRACKET = True
+SPACES_BEFORE_COMMENT = 2
+SPLIT_BEFORE_BITWISE_OPERATOR = True
+SPLIT_BEFORE_FIRST_ARGUMENT = True
+SPLIT_BEFORE_LOGICAL_OPERATOR = True
+SPLIT_BEFORE_NAMED_ASSIGNS = True
+SPLIT_COMPLEX_COMPREHENSION = True
\ No newline at end of file
diff --git a/environment.yml b/environment.yml
index 93f5b3857..02db0cdd1 100644
--- a/environment.yml
+++ b/environment.yml
@@ -1,15 +1,43 @@
-name: 8-bit
+name: bnb
 channels:
-  - conda-forge
   - pytorch
+  - nvidia
+  - conda-forge
+
 dependencies:
-  - python=3.9
-  - pytest
-  - pytorch
-  - torchaudio
-  - torchvision
-  - cudatoolkit=11.1
-  - typer
-  - ca-certificates
-  - certifi
-  - openssl
+  # Base
+  - conda-forge::python=3.8
+  - pytorch::pytorch=>2.1
+  - pytorch::pytorch-cuda=11.8
+  - nvidia::cuda=11.8
+  # Libraries
+  - conda-forge::accelerate
+  - conda-forge::einops
+  - conda-forge::scipy
+  - conda-forge::transformers
+  # Development
+  - conda-forge::pytest
+  - conda-forge::pytest-cases # more readable and composable parametrized tests
+  - conda-forge::ipython      # better interactive shell
+  - conda-forge::debugpy      # debugger-support for VSCode
+  - conda-forge::ruff         # linting
+  - conda-forge::yapf         # code formatting
+  - conda-forge::monkeytype   # infer type annotations
+  - conda-forge::rich         # better, colored tracebacks, etc
+  - conda-forge::pytest-sugar # better pytest output
+
+## ENV CREATION - steps to reproduce:
+# mamba env remove -n bnb
+# mamba create -y -n bnb python=3.8 # creating an empty env bypasses conda
+# # and leads to much faster env resolution in the next step https://github.com/mamba-org/mamba/issues/633#issuecomment-812272143
+# mamba env update -n bnb -f environment.yml
+# mamba activate bnb
+
+## PIP dependencies (install *after* ENV CREATION):
+# pip install --no-cache-dir --no-deps lion_pytorch triton peft
+## NOTE: conda peft is not up to date, so we install from pip
+# cd pip install -e .  ## installs bitsandbytes as editable development install from within repo root dir
+
+## ENV UPDATE:
+# # add new packages to environment.yml, then:
+# mamba env update -n bnb -f environment.yml
\ No newline at end of file
diff --git a/pyproject.toml b/pyproject.toml
index 374b58cbf..74d17dd90 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,3 +4,34 @@ requires = [
     "wheel"
 ]
 build-backend = "setuptools.build_meta"
+
+[tool.ruff]
+src = [
+    "bitsandbytes",
+    "tests",
+    "benchmarking"
+]
+fix = true
+select = [
+    "A",    # prevent using keywords that clobber python builtins
+    "B",    # bugbear: security warnings
+    "E",    # pycodestyle
+    "F",    # pyflakes
+    "I",    # isort
+    "ISC",  # implicit string concatenation
+    "UP",   # alert you when better syntax is available in your python version
+    "RUF",  # the ruff developer's own rules
+]
+target-version = "py38"
+ignore = [
+    "E712",  # Allow using if x == False, as it's not always equivalent to if x.
+    "E501",  # Supress line-too-long warnings: trust yapf's judgement on this one.
+    "F401", 
+]
+ignore-init-module-imports = true  # allow to expose in __init__.py via imports
+
+[tool.ruff.isort]
+combine-as-imports = true
+detect-same-package = true
+force-sort-within-sections = true
+known-first-party = ["bitsandbytes"]
\ No newline at end of file
diff --git a/pytest.ini b/pytest.ini
new file mode 100644
index 000000000..9902b98fa
--- /dev/null
+++ b/pytest.ini
@@ -0,0 +1,10 @@
+[pytest]
+addopts = -rP
+    ; --cov=bitsandbytes
+    ; # contexts: record which test ran which line; can be seen in html coverage report
+    ; --cov-context=test
+    ; --cov-report html
+
+log_cli = True
+log_cli_level = INFO
+log_file = logs/pytest.log
\ No newline at end of file
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 000000000..e69de29bb