diff --git a/backend/pom.xml b/backend/pom.xml
index 52dc476..43bb405 100644
--- a/backend/pom.xml
+++ b/backend/pom.xml
@@ -81,6 +81,20 @@
             <scope>test</scope>
         </dependency>
 
+        <dependency>
+            <groupId>net.datafaker</groupId>
+            <artifactId>datafaker</artifactId>
+            <version>2.4.4</version>
+            <scope>test</scope>
+        </dependency>
+
+        <dependency>
+            <groupId>org.hamcrest</groupId>
+            <artifactId>hamcrest-core</artifactId>
+            <version>3.0</version>
+            <scope>test</scope>
+        </dependency>
+
         <!-- JSON Processing -->
         <dependency>
             <groupId>com.fasterxml.jackson.core</groupId>
diff --git a/backend/src/main/java/com/vibing/backend/model/Location.java b/backend/src/main/java/com/vibing/backend/model/Location.java
index c7b2b0c..046e1c8 100644
--- a/backend/src/main/java/com/vibing/backend/model/Location.java
+++ b/backend/src/main/java/com/vibing/backend/model/Location.java
@@ -4,6 +4,7 @@ import jakarta.persistence.*;
 import jakarta.validation.constraints.NotBlank;
 import lombok.Data;
 import lombok.NoArgsConstructor;
+import lombok.With;
 import lombok.AllArgsConstructor;
 import java.time.LocalDateTime;
 
@@ -15,6 +16,7 @@ import java.time.LocalDateTime;
 @Data
 @NoArgsConstructor
 @AllArgsConstructor
+@With
 public class Location {
 
     @Id
diff --git a/backend/src/test/java/com/vibing/backend/ActivityRepositoryTest.java b/backend/src/test/java/com/vibing/backend/ActivityRepositoryTest.java
new file mode 100644
index 0000000..31af90b
--- /dev/null
+++ b/backend/src/test/java/com/vibing/backend/ActivityRepositoryTest.java
@@ -0,0 +1,277 @@
+package com.vibing.backend;
+
+import com.vibing.backend.model.Activity;
+import com.vibing.backend.model.Location;
+import com.vibing.backend.repository.ActivityRepository;
+import org.junit.jupiter.api.BeforeEach;
+import org.junit.jupiter.api.Test;
+import org.springframework.beans.factory.annotation.Autowired;
+import org.springframework.boot.test.autoconfigure.orm.jpa.DataJpaTest;
+import org.springframework.boot.test.autoconfigure.orm.jpa.TestEntityManager;
+import org.springframework.test.context.ActiveProfiles;
+import org.springframework.test.context.TestPropertySource;
+
+import java.util.Arrays;
+import java.util.List;
+import java.util.Optional;
+
+import static org.assertj.core.api.Assertions.assertThat;
+
+/**
+ * Integration tests for Activity entity using H2 database.
+ * Tests repository operations and database interactions.
+ */
+@DataJpaTest
+@ActiveProfiles("test")
+@TestPropertySource(locations = "classpath:application-test.yml")
+public class ActivityRepositoryTest {
+
+    @Autowired
+    private TestEntityManager entityManager;
+
+    @Autowired
+    private ActivityRepository activityRepository;
+
+    private Location testLocation;
+    private Activity testActivity;
+
+    @BeforeEach
+    void setUp() {
+        // Create and persist test location
+        testLocation = new Location();
+        testLocation.setName("Test Location");
+        testLocation.setAddress("123 Test Street");
+        testLocation.setCity("Test City");
+        testLocation.setCountry("Test Country");
+        testLocation.setPostalCode("12345");
+        testLocation.setLatitude(40.7128);
+        testLocation.setLongitude(-74.0060);
+        testLocation = entityManager.persistAndFlush(testLocation);
+
+        // Create test activity
+        testActivity = new Activity();
+        testActivity.setName("Test Activity");
+        testActivity.setDescription("A test activity for integration testing");
+        testActivity.setLocation(testLocation);
+        testActivity.setPriceRange(3);
+        testActivity.setTags(Arrays.asList("test", "integration", "fun"));
+    }
+
+    @Test
+    void shouldSaveAndRetrieveActivity() {
+        // Given - activity is created in setUp()
+
+        // When
+        Activity savedActivity = activityRepository.save(testActivity);
+        entityManager.flush();
+        entityManager.clear();
+
+        Optional<Activity> retrievedActivity = activityRepository.findById(savedActivity.getId());
+
+        // Then
+        assertThat(retrievedActivity).isPresent();
+        assertThat(retrievedActivity.get().getName()).isEqualTo("Test Activity");
+        assertThat(retrievedActivity.get().getDescription()).isEqualTo("A test activity for integration testing");
+        assertThat(retrievedActivity.get().getPriceRange()).isEqualTo(3);
+        assertThat(retrievedActivity.get().getLocation().getName()).isEqualTo("Test Location");
+        assertThat(retrievedActivity.get().getTags()).containsExactlyInAnyOrder("test", "integration", "fun");
+        assertThat(retrievedActivity.get().getCreatedAt()).isNotNull();
+        assertThat(retrievedActivity.get().getUpdatedAt()).isNotNull();
+    }
+
+    @Test
+    void shouldFindActivitiesByNameContainingIgnoreCase() {
+        // Given
+        Activity activity1 = new Activity();
+        activity1.setName("Beach Volleyball");
+        activity1.setLocation(testLocation);
+        activity1.setPriceRange(2);
+        activity1.setTags(Arrays.asList("sport", "beach"));
+
+        Activity activity2 = new Activity();
+        activity2.setName("Mountain Hiking");
+        activity2.setLocation(testLocation);
+        activity2.setPriceRange(1);
+        activity2.setTags(Arrays.asList("outdoor", "hiking"));
+
+        activityRepository.saveAll(Arrays.asList(activity1, activity2));
+        entityManager.flush();
+
+        // When
+        List<Activity> beachActivities = activityRepository.findByNameContainingIgnoreCase("beach");
+        List<Activity> mountainActivities = activityRepository.findByNameContainingIgnoreCase("MOUNTAIN");
+
+        // Then
+        assertThat(beachActivities).hasSize(1);
+        assertThat(beachActivities.get(0).getName()).isEqualTo("Beach Volleyball");
+
+        assertThat(mountainActivities).hasSize(1);
+        assertThat(mountainActivities.get(0).getName()).isEqualTo("Mountain Hiking");
+    }
+
+    @Test
+    void shouldFindActivitiesByPriceRange() {
+        // Given
+        Activity cheapActivity = new Activity();
+        cheapActivity.setName("Free Walking Tour");
+        cheapActivity.setLocation(testLocation);
+        cheapActivity.setPriceRange(1);
+        cheapActivity.setTags(Arrays.asList("free", "walking"));
+
+        Activity expensiveActivity = new Activity();
+        expensiveActivity.setName("Luxury Spa Day");
+        expensiveActivity.setLocation(testLocation);
+        expensiveActivity.setPriceRange(5);
+        expensiveActivity.setTags(Arrays.asList("luxury", "spa"));
+
+        activityRepository.saveAll(Arrays.asList(cheapActivity, expensiveActivity));
+        entityManager.flush();
+
+        // When
+        List<Activity> cheapActivities = activityRepository.findByPriceRange(1);
+        List<Activity> expensiveActivities = activityRepository.findByPriceRange(5);
+
+        // Then
+        assertThat(cheapActivities).hasSize(1);
+        assertThat(cheapActivities.get(0).getName()).isEqualTo("Free Walking Tour");
+
+        assertThat(expensiveActivities).hasSize(1);
+        assertThat(expensiveActivities.get(0).getName()).isEqualTo("Luxury Spa Day");
+    }
+
+    @Test
+    void shouldFindActivitiesByLocationId() {
+        // Given
+        Location anotherLocation = new Location();
+        anotherLocation.setName("Another Location");
+        anotherLocation.setCity("Another City");
+        anotherLocation = entityManager.persistAndFlush(anotherLocation);
+
+        Activity activityAtTestLocation = new Activity();
+        activityAtTestLocation.setName("Activity at Test Location");
+        activityAtTestLocation.setLocation(testLocation);
+        activityAtTestLocation.setPriceRange(2);
+
+        Activity activityAtAnotherLocation = new Activity();
+        activityAtAnotherLocation.setName("Activity at Another Location");
+        activityAtAnotherLocation.setLocation(anotherLocation);
+        activityAtAnotherLocation.setPriceRange(3);
+
+        activityRepository.saveAll(Arrays.asList(activityAtTestLocation, activityAtAnotherLocation));
+        entityManager.flush();
+
+        // When
+        List<Activity> activitiesAtTestLocation = activityRepository.findByLocationId(testLocation.getId());
+        List<Activity> activitiesAtAnotherLocation = activityRepository.findByLocationId(anotherLocation.getId());
+
+        // Then
+        assertThat(activitiesAtTestLocation).hasSize(1);
+        assertThat(activitiesAtTestLocation.get(0).getName()).isEqualTo("Activity at Test Location");
+
+        assertThat(activitiesAtAnotherLocation).hasSize(1);
+        assertThat(activitiesAtAnotherLocation.get(0).getName()).isEqualTo("Activity at Another Location");
+    }
+
+    @Test
+    void shouldFindActivitiesByTagsContaining() {
+        // Given
+        Activity outdoorActivity = new Activity();
+        outdoorActivity.setName("Rock Climbing");
+        outdoorActivity.setLocation(testLocation);
+        outdoorActivity.setPriceRange(3);
+        outdoorActivity.setTags(Arrays.asList("outdoor", "adventure", "climbing"));
+
+        Activity indoorActivity = new Activity();
+        indoorActivity.setName("Museum Visit");
+        indoorActivity.setLocation(testLocation);
+        indoorActivity.setPriceRange(2);
+        indoorActivity.setTags(Arrays.asList("indoor", "culture", "educational"));
+
+        activityRepository.saveAll(Arrays.asList(outdoorActivity, indoorActivity));
+        entityManager.flush();
+
+        // When
+        List<Activity> outdoorActivities = activityRepository.findByTagsContaining("outdoor");
+        List<Activity> cultureActivities = activityRepository.findByTagsContaining("culture");
+
+        // Then
+        assertThat(outdoorActivities).hasSize(1);
+        assertThat(outdoorActivities.get(0).getName()).isEqualTo("Rock Climbing");
+
+        assertThat(cultureActivities).hasSize(1);
+        assertThat(cultureActivities.get(0).getName()).isEqualTo("Museum Visit");
+    }
+
+    @Test
+    void shouldFindActivitiesByPriceRangeLessThanEqual() {
+        // Given
+        Activity cheapActivity = new Activity();
+        cheapActivity.setName("Budget Activity");
+        cheapActivity.setLocation(testLocation);
+        cheapActivity.setPriceRange(1);
+
+        Activity moderateActivity = new Activity();
+        moderateActivity.setName("Moderate Activity");
+        moderateActivity.setLocation(testLocation);
+        moderateActivity.setPriceRange(3);
+
+        Activity expensiveActivity = new Activity();
+        expensiveActivity.setName("Expensive Activity");
+        expensiveActivity.setLocation(testLocation);
+        expensiveActivity.setPriceRange(5);
+
+        activityRepository.saveAll(Arrays.asList(cheapActivity, moderateActivity, expensiveActivity));
+        entityManager.flush();
+
+        // When
+        List<Activity> budgetActivities = activityRepository.findByPriceRangeLessThanEqual(2);
+        List<Activity> moderateBudgetActivities = activityRepository.findByPriceRangeLessThanEqual(3);
+
+        // Then
+        assertThat(budgetActivities).hasSize(1);
+        assertThat(budgetActivities.get(0).getName()).isEqualTo("Budget Activity");
+
+        assertThat(moderateBudgetActivities).hasSize(2);
+        assertThat(moderateBudgetActivities)
+                .extracting(Activity::getName)
+                .containsExactlyInAnyOrder("Budget Activity", "Moderate Activity");
+    }
+
+    @Test
+    void shouldUpdateActivityTimestamps() {
+        // Given
+        Activity savedActivity = activityRepository.save(testActivity);
+        entityManager.flush();
+        entityManager.clear();
+
+        // When
+        Optional<Activity> retrievedActivity = activityRepository.findById(savedActivity.getId());
+        assertThat(retrievedActivity).isPresent();
+
+        Activity activityToUpdate = retrievedActivity.get();
+        activityToUpdate.setName("Updated Activity Name");
+        Activity updatedActivity = activityRepository.save(activityToUpdate);
+        entityManager.flush();
+
+        // Then
+        assertThat(updatedActivity.getCreatedAt()).isNotNull();
+        assertThat(updatedActivity.getUpdatedAt()).isNotNull();
+        assertThat(updatedActivity.getUpdatedAt()).isAfterOrEqualTo(updatedActivity.getCreatedAt());
+    }
+
+    @Test
+    void shouldDeleteActivity() {
+        // Given
+        Activity savedActivity = activityRepository.save(testActivity);
+        entityManager.flush();
+        Long activityId = savedActivity.getId();
+
+        // When
+        activityRepository.deleteById(activityId);
+        entityManager.flush();
+
+        // Then
+        Optional<Activity> deletedActivity = activityRepository.findById(activityId);
+        assertThat(deletedActivity).isEmpty();
+    }
+}
diff --git a/backend/src/test/java/com/vibing/backend/ActivityTestIt.java b/backend/src/test/java/com/vibing/backend/ActivityTestIt.java
new file mode 100644
index 0000000..2ad9337
--- /dev/null
+++ b/backend/src/test/java/com/vibing/backend/ActivityTestIt.java
@@ -0,0 +1,46 @@
+package com.vibing.backend;
+
+import static org.hamcrest.MatcherAssert.assertThat;
+import static org.hamcrest.Matchers.containsInAnyOrder;
+
+import java.time.LocalDateTime;
+import java.util.Random;
+
+import org.junit.jupiter.api.Test;
+import org.springframework.beans.factory.annotation.Autowired;
+import org.springframework.boot.test.context.SpringBootTest;
+import org.springframework.test.context.ActiveProfiles;
+import org.springframework.test.context.TestPropertySource;
+
+import com.vibing.backend.model.Activity;
+import com.vibing.backend.model.Location;
+import com.vibing.backend.repository.ActivityRepository;
+import com.vibing.backend.service.ActivityService;
+
+import net.datafaker.Faker;
+
+@SpringBootTest
+@ActiveProfiles("test")
+@TestPropertySource(locations = "classpath:application-test.yml")
+public class ActivityTestIt {
+
+    private Faker faker = new Faker(new Random(123));
+    
+    @Autowired
+    private ActivityService activityService;
+
+    @Autowired
+    private ActivityRepository activityRepository;
+    
+    @Test
+    void shouldSaveActivity() {
+        Activity activity = new Activity();
+        activity.setName(faker.location().publicSpace());
+        activity.setPriceRange(faker.number().numberBetween(1, 5));
+        activity.setTags(faker.lorem().words(3));
+        activity.setLocation(new Location().withName(faker.location().publicSpace()));
+        activityRepository.save(activity);
+
+        assertThat(activityService.findAll(), containsInAnyOrder(activity));
+    }
+}
diff --git a/backend/src/test/resources/application-test.yml b/backend/src/test/resources/application-test.yml
index b056451..324e46e 100644
--- a/backend/src/test/resources/application-test.yml
+++ b/backend/src/test/resources/application-test.yml
@@ -1,6 +1,6 @@
 spring:
   datasource:
-    url: jdbc:h2:mem:testdb;DB_CLOSE_DELAY=-1;DB_CLOSE_ON_EXIT=FALSE;MODE=PostgreSQL
+    url: jdbc:h2:mem:testdb;DB_CLOSE_DELAY=-1;DB_CLOSE_ON_EXIT=FALSE;MODE=PostgreSQL;INIT=CREATE SCHEMA IF NOT EXISTS vibing
     username: sa
     password: 
     driver-class-name: org.h2.Driver
@@ -14,8 +14,12 @@ spring:
       ddl-auto: none  # Let Flyway handle schema creation
     show-sql: true
     database-platform: org.hibernate.dialect.H2Dialect
+    properties:
+      hibernate:
+        default_schema: vibing
   
   flyway:
     enabled: true
     clean-disabled: false  # Allow clean in tests
     locations: classpath:db/migration
+    default-schema: vibing