diff --git a/cmd/instance/instance_create_test.go b/cmd/instance/instance_create_test.go
new file mode 100644
index 0000000..f88fbb4
--- /dev/null
+++ b/cmd/instance/instance_create_test.go
@@ -0,0 +1,113 @@
+package instance_test
+
+import (
+	"encoding/json"
+	"os"
+	"os/exec"
+	"strings"
+	"testing"
+)
+
+func TestCreateInstanceBasic(t *testing.T) {
+	instanceName := "test-basic-instance"
+
+	defer func() { // Cleanup
+		deleteCmd := exec.Command("civo", "instance", "delete", instanceName, "--region=lon1", "--yes")
+		deleteCmd.CombinedOutput()
+	}()
+
+	// Create a basic instance
+	cmd := exec.Command("civo", "instance", "create", instanceName, "--size=g3.xsmall", "--region=lon1")
+	output, err := cmd.CombinedOutput()
+	if err != nil {
+		t.Fatalf("Failed to create instance: %v\nOutput: %s", err, string(output))
+	}
+
+	// Verify instance creation
+	if !strings.Contains(string(output), instanceName) {
+		t.Errorf("Expected instance name '%s' in output, got: %s", instanceName, string(output))
+	}
+
+	// Verify `civo instance list` shows the instance
+	listCmd := exec.Command("civo", "instance", "list", "--region=lon1")
+	listOutput, listErr := listCmd.CombinedOutput()
+	if listErr != nil {
+		t.Fatalf("Failed to list instances: %v\nOutput: %s", listErr, string(listOutput))
+	}
+	if !strings.Contains(string(listOutput), instanceName) {
+		t.Errorf("Instance '%s' not found in list output: %s", instanceName, string(listOutput))
+	}
+}
+
+func TestCreateInstanceInvalidSize(t *testing.T) {
+	instanceName := "test-invalid-size"
+
+	cmd := exec.Command("civo", "instance", "create", instanceName, "--size=invalid-size", "--region=lon1")
+	output, err := cmd.CombinedOutput()
+
+	// Ensure command fails
+	if err == nil {
+		t.Fatalf("Expected failure for invalid size, but command succeeded")
+	}
+
+	// Verify output mentions invalid size
+	if !strings.Contains(string(output), "The provided size is not valid") {
+		t.Errorf("Expected error message about invalid size, got: %s", string(output))
+	}
+}
+
+func TestCreateInstanceWithScript(t *testing.T) {
+	instanceName := "test-instance-script"
+	scriptFile := "./test_script.sh"
+
+	// Create a script file for testing
+	scriptContent := "#!/bin/bash\necho Hello, World!"
+	if err := os.WriteFile(scriptFile, []byte(scriptContent), 0644); err != nil {
+		t.Fatalf("Failed to create test script file: %v", err)
+	}
+	defer os.Remove(scriptFile) // Cleanup script file
+
+	defer func() { // Cleanup instance
+		deleteCmd := exec.Command("civo", "instance", "delete", instanceName, "--region=lon1", "--yes")
+		deleteCmd.CombinedOutput()
+	}()
+
+	// Create an instance with a script
+	cmd := exec.Command("civo", "instance", "create", instanceName, "--size=g3.xsmall", "--region=lon1", "--script="+scriptFile)
+	output, err := cmd.CombinedOutput()
+	if err != nil {
+		t.Fatalf("Failed to create instance with script: %v\nOutput: %s", err, string(output))
+	}
+
+	// Verify instance creation
+	if !strings.Contains(string(output), instanceName) {
+		t.Errorf("Expected instance name '%s' in output, got: %s", instanceName, string(output))
+	}
+}
+
+func TestCreateInstanceWithJSONOutput(t *testing.T) {
+	instanceName := "test-json-instance"
+
+	defer func() { // Cleanup
+		deleteCmd := exec.Command("civo", "instance", "delete", instanceName, "--region=lon1", "--yes")
+		deleteCmd.CombinedOutput()
+	}()
+
+	// Create an instance with JSON output
+	cmd := exec.Command("civo", "instance", "create", instanceName, "--size=g3.xsmall", "--region=lon1", "--output=json")
+	output, err := cmd.CombinedOutput()
+	if err != nil {
+		t.Fatalf("Failed to create instance with JSON output: %v\nOutput: %s", err, string(output))
+	}
+
+	// Parse and verify JSON output
+	var result map[string]interface{}
+	if err := json.Unmarshal(output, &result); err != nil {
+		t.Fatalf("Failed to parse JSON output: %v", err)
+	}
+
+	// Check the instance name in JSON
+	if result["hostname"] != instanceName {
+		t.Errorf("Expected hostname '%s' in JSON output, got: %s", instanceName, result["hostname"])
+	}
+}