diff --git a/tests/pico/compile/basic/.gitignore b/tests/pico/compile/basic/.gitignore
new file mode 100644
index 0000000..baa3726
--- /dev/null
+++ b/tests/pico/compile/basic/.gitignore
@@ -0,0 +1,2 @@
+**/target
+**/elf
\ No newline at end of file
diff --git a/tests/pico/compile/basic/Cargo.toml b/tests/pico/compile/basic/Cargo.toml
new file mode 100644
index 0000000..16ae2cb
--- /dev/null
+++ b/tests/pico/compile/basic/Cargo.toml
@@ -0,0 +1,11 @@
+[workspace]
+members = [ 
+    "lib",
+    "app", 
+    "prover",
+]
+resolver = "2"
+
+[workspace.dependencies]
+pico-sdk = { git = "https://github.com/brevis-network/pico" }
+serde = { version = "1.0.205", features = ["derive"] }
\ No newline at end of file
diff --git a/tests/pico/compile/basic/app/Cargo.toml b/tests/pico/compile/basic/app/Cargo.toml
new file mode 100644
index 0000000..e7fbd2e
--- /dev/null
+++ b/tests/pico/compile/basic/app/Cargo.toml
@@ -0,0 +1,8 @@
+[package]
+name = "app"
+version = "0.1.0"
+edition = "2024"
+
+[dependencies]
+pico-sdk = { workspace = true }
+fibonacci-lib ={ path = "../lib"}
\ No newline at end of file
diff --git a/tests/pico/compile/basic/app/src/main.rs b/tests/pico/compile/basic/app/src/main.rs
new file mode 100644
index 0000000..e3646e0
--- /dev/null
+++ b/tests/pico/compile/basic/app/src/main.rs
@@ -0,0 +1,26 @@
+#![no_main]
+
+pico_sdk::entrypoint!(main);
+use fibonacci_lib::{FibonacciData, fibonacci};
+use pico_sdk::io::{commit, read_as};
+
+pub fn main() {
+    // Read inputs `n` from the environment
+    let n: u32 = read_as();
+
+    let a: u32 = 0;
+    let b: u32 = 1;
+
+    // Compute Fibonacci values starting from `a` and `b`
+    let (a_result, b_result) = fibonacci(a, b, n);
+
+    // Commit the assembled Fibonacci data as the public values in the Pico proof.
+    // This allows the values to be verified by others.
+    let result = FibonacciData {
+        n,
+        a: a_result,
+        b: b_result,
+    };
+
+    commit(&result);
+}
diff --git a/tests/pico/compile/basic/lib/Cargo.toml b/tests/pico/compile/basic/lib/Cargo.toml
new file mode 100644
index 0000000..c3638f4
--- /dev/null
+++ b/tests/pico/compile/basic/lib/Cargo.toml
@@ -0,0 +1,7 @@
+[package]
+name = "fibonacci-lib"
+version = "0.1.0"
+edition = "2024"
+
+[dependencies]
+serde = { workspace = true }
\ No newline at end of file
diff --git a/tests/pico/compile/basic/lib/src/lib.rs b/tests/pico/compile/basic/lib/src/lib.rs
new file mode 100644
index 0000000..a4d0bee
--- /dev/null
+++ b/tests/pico/compile/basic/lib/src/lib.rs
@@ -0,0 +1,27 @@
+use serde::{Deserialize, Serialize};
+use std::fs;
+
+#[derive(Serialize, Deserialize)]
+pub struct FibonacciData {
+    pub a: u32,
+    pub b: u32,
+    pub n: u32,
+}
+
+/// Computes the Fibonacci sequence starting from `a` and `b` up to the `n`-th iteration.
+/// Returns the last two values in the sequence: (a, b).
+pub fn fibonacci(mut a: u32, mut b: u32, n: u32) -> (u32, u32) {
+    for _ in 0..n {
+        let next = a.wrapping_add(b);
+        a = b;
+        b = next;
+    }
+    (a, b)
+}
+
+/// Loads an ELF file from the specified path.
+pub fn load_elf(path: &str) -> Vec<u8> {
+    fs::read(path).unwrap_or_else(|err| {
+        panic!("Failed to load ELF file from {}: {}", path, err);
+    })
+}
diff --git a/tests/pico/compile/basic/prover/Cargo.toml b/tests/pico/compile/basic/prover/Cargo.toml
new file mode 100644
index 0000000..3352fc0
--- /dev/null
+++ b/tests/pico/compile/basic/prover/Cargo.toml
@@ -0,0 +1,10 @@
+[package]
+name = "prover"
+version = "0.1.0"
+edition = "2024"
+
+[dependencies]
+pico-sdk = { workspace = true }
+bincode = "1.3.3"
+fibonacci-lib ={ path = "../lib"}
+serde = { workspace = true }
\ No newline at end of file
diff --git a/tests/pico/compile/basic/prover/src/main.rs b/tests/pico/compile/basic/prover/src/main.rs
new file mode 100644
index 0000000..90eacbb
--- /dev/null
+++ b/tests/pico/compile/basic/prover/src/main.rs
@@ -0,0 +1,49 @@
+use fibonacci_lib::{FibonacciData, fibonacci, load_elf};
+use pico_sdk::{client::DefaultProverClient, init_logger};
+
+fn main() {
+    // Initialize logger
+    init_logger();
+
+    // Load the ELF file
+    let elf = load_elf("../elf/riscv32im-pico-zkvm-elf");
+
+    // Initialize the prover client
+    let client = DefaultProverClient::new(&elf);
+    // Initialize new stdin
+    let mut stdin_builder = client.new_stdin_builder();
+
+    // Set up input
+    let n = 100u32;
+    stdin_builder.write(&n);
+
+    // Generate proof
+    let proof = client
+        .prove_fast(stdin_builder)
+        .expect("Failed to generate proof");
+
+    // Decodes public values from the proof's public value stream.
+    let public_buffer = proof.pv_stream.unwrap();
+
+    // Deserialize public_buffer into FibonacciData
+    let public_values: FibonacciData =
+        bincode::deserialize(&public_buffer).expect("Failed to deserialize");
+
+    // Verify the public values
+    verify_public_values(n, &public_values);
+}
+
+/// Verifies that the computed Fibonacci values match the public values.
+fn verify_public_values(n: u32, public_values: &FibonacciData) {
+    println!(
+        "Public value n: {:?}, a: {:?}, b: {:?}",
+        public_values.n, public_values.a, public_values.b
+    );
+
+    // Compute Fibonacci values locally
+    let (result_a, result_b) = fibonacci(0, 1, n);
+
+    // Assert that the computed values match the public values
+    assert_eq!(result_a, public_values.a, "Mismatch in value 'a'");
+    assert_eq!(result_b, public_values.b, "Mismatch in value 'b'");
+}
diff --git a/tests/pico/compile/basic/rust-toolchain b/tests/pico/compile/basic/rust-toolchain
new file mode 100644
index 0000000..ca09122
--- /dev/null
+++ b/tests/pico/compile/basic/rust-toolchain
@@ -0,0 +1,2 @@
+[toolchain]
+channel = "nightly-2024-11-27"
\ No newline at end of file