diff --git a/package.json b/package.json
index a1f0223..233d142 100644
--- a/package.json
+++ b/package.json
@@ -210,6 +210,21 @@
           "type": "array",
           "default": [],
           "description": "Unix Remappings to resolve contracts to local Unix files / directories (Note this overrides the generic remapping settings if the OS is Unix based), i.e: [\"@openzeppelin/=/opt/lib/openzeppelin-contracts\",\"ds-test/=/opt/lib/ds-test/src/\"]"
+        },
+        "solidity.developmentEnvironment": {
+          "type": "string",
+          "description": "Sets the development environment for the project. This is used to perform environment specific commands (like testing) and to parse output from relevant tools.",
+          "enum": [
+            "",
+            "hardhat",
+            "forge"
+          ],
+          "default": ""
+        },
+        "solidity.test.command": {
+          "type": "string",
+          "default": "",
+          "description": "Command to run to invoke tests"
         }
       }
     },
@@ -330,6 +345,10 @@
       {
         "command": "solidity.changeDefaultCompilerType",
         "title": "Solidity: Change the default workspace compiler to Remote, Local, NodeModule, Embedded"
+      },
+      {
+        "command": "solidity.runTests",
+        "title": "Solidity: Run tests"
       }
     ],
     "menus": {
diff --git a/src/environments/env.ts b/src/environments/env.ts
new file mode 100644
index 0000000..7abfad1
--- /dev/null
+++ b/src/environments/env.ts
@@ -0,0 +1,21 @@
+export enum DevelopmentEnvironment {
+    Forge = 'forge',
+    Hardhat = 'hardhat',
+    None = 'none',
+    NotSet = '',
+}
+
+type ConfigDefaultAndTargetValue = {
+    default: any;
+    target: any;
+};
+
+export const defaultEnvironmentConfiguration: Partial<Record<DevelopmentEnvironment, Record<string, ConfigDefaultAndTargetValue>>> = {
+    [DevelopmentEnvironment.Forge]: {
+        'test.command': {
+            default: '',
+            target: 'forge test --silent --json',
+        },
+    },
+};
+
diff --git a/src/environments/forge.ts b/src/environments/forge.ts
new file mode 100644
index 0000000..f4e9575
--- /dev/null
+++ b/src/environments/forge.ts
@@ -0,0 +1,36 @@
+import { ContractTestResults, TestResults } from './tests';
+
+type forgeTestResult = {
+    success: boolean,
+    reason?: string,
+    counterexample?: null,
+    decoded_logs: string[],
+};
+
+export const parseForgeTestResults = (data: string): TestResults | null => {
+    try {
+        const parsed = JSON.parse(data);
+        const contractResults = Object.entries(parsed).map(([key, rest]: [string, any]) => {
+            const [file, contract] = key.split(':');
+            const results = Object.entries(rest.test_results).map(([name, res]: [string, forgeTestResult]) => {
+                return {
+                    name,
+                    pass: res.success,
+                    reason: res.reason,
+                    logs: res.decoded_logs,
+                };
+            });
+            const out: ContractTestResults = {
+                file,
+                contract,
+                results,
+            };
+            return out;
+        });
+        return {
+            contracts: contractResults,
+        };
+    } catch (err) {
+        return null;
+    }
+};
diff --git a/src/environments/tests.ts b/src/environments/tests.ts
new file mode 100644
index 0000000..d569cc9
--- /dev/null
+++ b/src/environments/tests.ts
@@ -0,0 +1,101 @@
+import { workspace } from 'vscode';
+import { DevelopmentEnvironment } from './env';
+import { parseForgeTestResults } from './forge';
+
+export type TestResults = {
+    contracts: ContractTestResults[];
+};
+
+export type ContractTestResults = {
+    file: string;
+    contract: string;
+    results: TestResult[];
+};
+
+export type TestResult = TestResultPass | TestResultFailure;
+
+export type TestResultPass = {
+    name: string;
+    pass: true;
+    logs: string[];
+};
+
+export type TestResultFailure = {
+    name: string;
+    pass: false;
+    reason: string;
+    logs: string[];
+};
+
+export const testResultIsFailure = (r: TestResult): r is TestResultFailure => {
+    return !r.pass;
+};
+
+/**
+ * parseTestResults parses raw test result data into a format which can be interpreted
+ * by the extension.
+ * It currently only supports output from 'forge'.
+ * @param data Raw data from test command
+ * @returns TestResults, or null if unable to interpret the data
+ */
+export const parseTestResults = (data: string): TestResults | null => {
+    const devEnv = workspace.getConfiguration('solidity').get<DevelopmentEnvironment>('developmentEnvironment');
+    if (devEnv === DevelopmentEnvironment.Forge) {
+        return parseForgeTestResults(data);
+    }
+    return null;
+};
+
+/**
+ * Construct output to be printed which summarizes test results.
+ * @param results Parsed test results
+ * @returns Array of lines which produce a test run summary.
+ */
+export const constructTestResultOutput = (results: TestResults): string[] =>  {
+    const lines = [];
+
+    const withFailures = results.contracts.filter(c => {
+        return c.results.filter(r => !r.pass).length > 0;
+    });
+    const hasFailures = withFailures.length > 0;
+
+    if (hasFailures) {
+        lines.push('Tests FAILED');
+        lines.push('------------');
+    }
+    results.contracts.forEach((c) => {
+        lines.push(`${c.contract} in ${c.file}:`);
+
+        const passes = c.results.filter(f => f.pass);
+        const failures = c.results.filter(f => !f.pass) as TestResultFailure[];
+
+        passes.forEach(r => {
+            lines.push(`\tPASS ${r.name}`);
+        });
+
+        failures.forEach((r) => {
+            lines.push(`\tFAIL ${r.name}`);
+            if (r.reason) {
+                lines.push(`\t REVERTED with reason: ${r.reason}`);
+            }
+
+            r.logs.forEach((log) => {
+                lines.push(`\t\t ${log}`);
+            });
+        });
+        // Add some spacing between contract results
+        lines.push('');
+    });
+
+    if (!hasFailures) {
+        lines.push('All tests passed.');
+        return lines;
+    }
+
+    lines.push('\nSummary:');
+    withFailures.forEach(f => {
+        const numFailures = f.results.filter(r => !r.pass).length;
+        lines.push(`\t${numFailures} failure(s) in ${f.contract} (${f.file})`);
+    });
+    return lines;
+};
diff --git a/src/extension.ts b/src/extension.ts
index 7df3cf5..b4e6fc2 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -1,6 +1,7 @@
 'use strict';
 import * as path from 'path';
 import * as vscode from 'vscode';
+import * as cp from 'child_process';
 import { compileAllContracts } from './client/compileAll';
 import { Compiler } from './client/compiler';
 import { compileActiveContract, initDiagnosticCollection } from './client/compileActive';
@@ -18,13 +19,16 @@ import {
 
 import { lintAndfixCurrentDocument } from './server/linter/soliumClientFixer';
 // tslint:disable-next-line:no-duplicate-imports
-import { workspace, WorkspaceFolder } from 'vscode';
+import { workspace } from 'vscode';
 import { formatDocument } from './client/formatter/formatter';
 import { compilerType } from './common/solcCompiler';
 import * as workspaceUtil from './client/workspaceUtil';
+import { defaultEnvironmentConfiguration, DevelopmentEnvironment } from './environments/env';
+import {  constructTestResultOutput, parseTestResults } from './environments/tests';
 
 let diagnosticCollection: vscode.DiagnosticCollection;
 let compiler: Compiler;
+let testOutputChannel: vscode.OutputChannel;
 
 export async function activate(context: vscode.ExtensionContext) {
     const ws = workspace.workspaceFolders;
@@ -48,6 +52,35 @@ export async function activate(context: vscode.ExtensionContext) {
     });
     */
 
+    // Attach a handler which sets the default configuration for environment related config.
+    // This triggers both when a user sets it or when we detect it automatically.
+    context.subscriptions.push(workspace.onDidChangeConfiguration(async (event) => {
+        if (!event.affectsConfiguration('solidity.developmentEnvironment')) {
+            return;
+        }
+        const newConfig = vscode.workspace.getConfiguration('solidity');
+        const newEnv = newConfig.get<DevelopmentEnvironment>('developmentEnvironment');
+        const vaulesToSet = defaultEnvironmentConfiguration[newEnv];
+        if (!vaulesToSet) {
+            return;
+        }
+        for (const [k, v] of Object.entries(vaulesToSet)) {
+            if (newConfig.get(k) === v.default) {
+                newConfig.update(k, v.target, null);
+            }
+        }
+    }));
+
+    // Detect development environment if the configuration is not already set.
+    const loadTimeConfig = vscode.workspace.getConfiguration('solidity');
+    const existingDevEnv = loadTimeConfig.get<DevelopmentEnvironment>('developmentEnvironment');
+    if (!existingDevEnv) {
+        const detectedEnv = await detectDevelopmentEnvironment();
+        if (detectedEnv) {
+            loadTimeConfig.update('developmentEnvironment', detectedEnv, null);
+        }
+    }
+
     context.subscriptions.push(diagnosticCollection);
 
     initDiagnosticCollection(diagnosticCollection);
@@ -185,6 +218,51 @@ export async function activate(context: vscode.ExtensionContext) {
             },
         }));
 
+    context.subscriptions.push(vscode.commands.registerCommand('solidity.runTests', async (params) => {
+        const testCommand = vscode.workspace.getConfiguration('solidity').get<string>('test.command');
+        if (!testCommand) {
+            return;
+        }
+        if (!testOutputChannel) {
+            testOutputChannel = vscode.window.createOutputChannel('Solidity Tests');
+        }
+
+        // If no URI supplied to task, use the current active editor.
+        let uri = params?.uri;
+        if (!uri) {
+            const editor = vscode.window.activeTextEditor;
+            if (editor && editor.document) {
+                uri = editor.document.uri;
+            }
+        }
+
+        const rootFolder = getFileRootPath(uri);
+        if (!rootFolder) {
+            console.error("Couldn't determine root folder for document", {uri});
+            return;
+        }
+
+        testOutputChannel.clear();
+        testOutputChannel.show();
+        testOutputChannel.appendLine(`Running '${testCommand}'...`);
+        testOutputChannel.appendLine('');
+        try {
+            const result = await executeTask(rootFolder, testCommand, false);
+            const parsed = parseTestResults(result);
+            // If we couldn't parse the output, just write it to the window.
+            if (!parsed) {
+                testOutputChannel.appendLine(result);
+                return;
+            }
+
+            const out = constructTestResultOutput(parsed);
+            out.forEach(testOutputChannel.appendLine);
+
+        } catch (err) {
+            console.log('Unexpected error running tests:', err);
+        }
+    }));
+
     const serverModule = path.join(__dirname, 'server.js');
     const serverOptions: ServerOptions = {
         debug: {
@@ -228,3 +306,46 @@ export async function activate(context: vscode.ExtensionContext) {
     // client can be deactivated on extension deactivation
     context.subscriptions.push(clientDisposable);
 }
+
+const detectDevelopmentEnvironment = async (): Promise<string> => {
+    const foundry = await workspace.findFiles('foundry.toml');
+    const hardhat = await workspace.findFiles('hardhat.config.js');
+
+    // If we found evidence of multiple workspaces, don't select a default.
+    if (foundry.length && hardhat.length) {
+        return DevelopmentEnvironment.None;
+    }
+
+    if (foundry.length) {
+        return DevelopmentEnvironment.Forge;
+    }
+
+    if (hardhat.length) {
+        return DevelopmentEnvironment.Hardhat;
+    }
+    return DevelopmentEnvironment.None;
+};
+
+const getFileRootPath = (uri: vscode.Uri): string | null => {
+    const folders = vscode.workspace.workspaceFolders;
+    for (const f of folders) {
+        if (uri.path.startsWith(f.uri.path)) {
+            return f.uri.path;
+        }
+    }
+    return null;
+};
+
+const executeTask = (dir: string, cmd: string, rejectOnFailure: boolean) => {
+    return new Promise<string>((resolve, reject) => {
+        cp.exec(cmd, {cwd: dir, maxBuffer: 1024 * 1024 * 10}, (err, out) => {
+            if (err) {
+                if (rejectOnFailure) {
+                    return reject({out, err});
+                }
+                return resolve(out);
+            }
+            return resolve(out);
+        });
+    });
+};