diff --git a/playground/test/basic.test.ts b/playground/test/basic.test.ts
new file mode 100644
index 00000000..31a17bd9
--- /dev/null
+++ b/playground/test/basic.test.ts
@@ -0,0 +1,32 @@
+import { fileURLToPath } from 'node:url'
+import { describe, it, expect } from 'vitest'
+import { setup, $fetch } from '@nuxt/test-utils/e2e'
+
+describe('ssr', async () => {
+  await setup({
+    rootDir: fileURLToPath(new URL('..', import.meta.url)),
+    dev: true
+  })
+
+  it('Clear todos table', async () => {
+    await $fetch('/api/_hub/database/query', {
+      method: 'POST',
+      body: {
+        query: 'DELETE FROM todos'
+      }
+    })
+  })
+
+  it('List todos', async () => {
+    const todos = await $fetch('/api/todos')
+    expect(todos).toMatchObject([])
+  })
+
+  it('Create todo', async () => {
+    const todo = await $fetch('/api/todos', {
+      method: 'POST',
+      body: { title: 'Test todo' }
+    })
+    expect(todo).toMatchObject({ id: expect.any(Number), title: 'Test todo' })
+  })
+})
diff --git a/src/module.ts b/src/module.ts
index 9a5439bc..103a277c 100644
--- a/src/module.ts
+++ b/src/module.ts
@@ -35,8 +35,11 @@ export default defineNuxtModule<ModuleOptions>({
     const rootDir = nuxt.options.rootDir
     const { resolve } = createResolver(import.meta.url)
 
-    let remoteArg = parseArgs(argv, { remote: { type: 'string' } }).remote as string
-    remoteArg = (remoteArg === '' ? 'true' : remoteArg)
+    const cliArgs = parseArgs(argv, {
+      remote: { type: 'string' },
+      hubEnv: { type: 'string' }
+    })
+    const remoteArg = cliArgs.remote === '' ? 'true' : cliArgs.remote
     const runtimeConfig = nuxt.options.runtimeConfig
     const databaseMigrationsDirs = nuxt.options._layers?.map(layer => join(layer.config.serverDir!, 'database/migrations')).filter(Boolean)
     const hub = defu(runtimeConfig.hub || {}, options, {
@@ -66,7 +69,7 @@ export default defineNuxtModule<ModuleOptions>({
       databaseQueriesPaths: [],
       // Other options
       version,
-      env: process.env.NUXT_HUB_ENV || 'production',
+      env: process.env.NUXT_HUB_ENV || (cliArgs.hubEnv as string) || 'production',
       openapi: nuxt.options.nitro.experimental?.openAPI === true,
       // Extra bindings for the project
       bindings: {
@@ -79,6 +82,18 @@ export default defineNuxtModule<ModuleOptions>({
         clientSecret: process.env.NUXT_HUB_CLOUDFLARE_ACCESS_CLIENT_SECRET || null
       }
     })
+    if (!['test', 'preview', 'production'].includes(hub.env)) {
+      log.error('Invalid hub environment, should be `test`, `preview` or `production`')
+      process.exit(1)
+    }
+    // If testing environment detects, set the hub env to `test`
+    if (nuxt.options.test) {
+      hub.env = 'test'
+    }
+    if (hub.env === 'test') {
+      log.info('NuxtHub test environment detected, using `test` dataset for all storage & disabling remote storage.')
+      hub.remote = false
+    }
     runtimeConfig.hub = hub
     runtimeConfig.public.hub = {}
     // Make sure to tell Nitro to not generate the wrangler.toml file
diff --git a/src/utils/wrangler.ts b/src/utils/wrangler.ts
index a8fae422..f7ef8bd5 100644
--- a/src/utils/wrangler.ts
+++ b/src/utils/wrangler.ts
@@ -6,18 +6,19 @@ import type { HubConfig } from '../features'
 // Please update nuxt-hub/cli preview command as well
 export function generateWrangler(nuxt: Nuxt, hub: HubConfig) {
   const wrangler: { [key: string]: any } = {}
+  const name = hub.env === 'test' ? 'test' : 'default'
 
   if (hub.analytics && !hub.remote) {
     wrangler['analytics_engine_datasets'] = [{
       binding: 'ANALYTICS',
-      dataset: 'default'
+      dataset: name
     }]
   }
 
   if (hub.blob && !hub.remote) {
     wrangler['r2_buckets'] = [{
       binding: 'BLOB',
-      bucket_name: 'default'
+      bucket_name: name
     }]
   }
 
@@ -27,14 +28,14 @@ export function generateWrangler(nuxt: Nuxt, hub: HubConfig) {
     if (hub.kv && !hub.remote) {
       wrangler['kv_namespaces'].push({
         binding: 'KV',
-        id: 'kv_default'
+        id: `kv_${name}`
       })
     }
 
     if (hub.cache) {
       wrangler['kv_namespaces'].push({
         binding: 'CACHE',
-        id: 'cache_default'
+        id: `cache_${name}`
       })
     }
   }
@@ -42,8 +43,8 @@ export function generateWrangler(nuxt: Nuxt, hub: HubConfig) {
   if (hub.database && !hub.remote) {
     wrangler['d1_databases'] = [{
       binding: 'DB',
-      database_name: 'default',
-      database_id: 'default'
+      database_name: name,
+      database_id: name
     }]
   }