diff --git a/cli/test/README.md b/cli/test/README.md
new file mode 100644
index 00000000000..26b8934108e
--- /dev/null
+++ b/cli/test/README.md
@@ -0,0 +1,273 @@
+# Cypress CLI Test Suite
+
+This directory contains the test suite for the Cypress CLI package. The tests ensure that the command-line interface behaves correctly across different environments and scenarios.
+
+## Test Structure
+
+### Directory Layout
+
+```
+test/
+├── README.md                    # This file
+├── lib/                        
+│   ├── tasks/
+│   │   ├── verify.spec.ts      # Tests for binary verification
+│   │   ├── install.spec.ts     # Tests for installation process
+│   │   └── ...
+│   ├── util.spec.ts            # Utility function tests
+│   └── ...
+└── fixtures/                   # Test data and mock files
+```
+
+### Key Test Files
+
+#### `lib/tasks/verify.spec.ts`
+**Purpose**: Tests the binary verification process that ensures a downloaded Cypress binary is valid and executable.
+
+**What it covers**:
+- **Given**: A Cypress binary installation (various states: missing, corrupted, valid)
+- **When**: User runs `cypress verify` or verification happens automatically 
+- **Then**: Should correctly identify binary status and provide helpful error messages
+
+**Key scenarios tested**:
+- ✅ Binary exists and is valid → verification succeeds
+- ❌ Binary missing → shows installation instructions
+- ❌ Binary corrupted → provides troubleshooting steps
+- ❌ Binary not executable → suggests permission fixes
+- 🖥️ Platform-specific behavior (Windows, macOS, Linux)
+- 🔄 Retry logic and timeout handling
+
+**Mock Infrastructure**: Uses `createfs()` helper to simulate different file system states without requiring actual binary installations.
+
+## Running Tests
+
+### Prerequisites
+
+Ensure you have Node.js and Yarn installed:
+- Node.js: ^20.1.0 || ^22.0.0 || >=24.0.0
+- Yarn: Latest stable
+
+### Commands
+
+```bash
+# Run all CLI tests
+cd cli && yarn test
+
+# Run specific test file  
+cd cli && yarn test lib/tasks/verify.spec.ts
+
+# Run tests in watch mode (development)
+cd cli && yarn test --watch
+
+# Run tests with debug output
+cd cli && yarn test-debug
+
+# Run specific test by pattern
+cd cli && yarn test --grep "should verify successfully"
+```
+
+### Test Environment Setup
+
+The test suite uses several mocking strategies:
+
+1. **File System Mocking**: `mock-fs` to simulate binary installations
+2. **Process Mocking**: Mock system calls and process execution
+3. **Network Mocking**: Mock download and HTTP requests
+
+## Understanding Test Output
+
+### Successful Run
+```bash
+✓ lib/tasks/verify.spec.ts (45 tests passed)
+✓ lib/util.spec.ts (12 tests passed)
+
+Test Files: 2 passed
+Tests: 57 passed
+Time: 2.3s
+```
+
+### Failed Test Example
+```bash
+❯ should verify binary successfully
+  Expected: true
+  Received: false
+  
+  at verify.spec.ts:123:45
+    121 |   expect(result.success).toBe(true)
+    122 |   expect(result.code).toBe(0)
+  > 123 |   expect(result.verified).toBe(true)
+        |                          ^
+```
+
+### Common Test Patterns
+
+#### 1. Given/When/Then Structure
+```typescript
+it('should handle missing binary gracefully', () => {
+  // Given: No binary is installed
+  createfs({ 
+    alreadyVerified: false, 
+    executable: false, 
+    packageVersion: '13.0.0' 
+  })
+  
+  // When: User attempts verification
+  const result = await verify()
+  
+  // Then: Should show helpful error message
+  expect(result.success).toBe(false)
+  expect(result.message).toContain('Please reinstall Cypress')
+})
+```
+
+#### 2. Error Scenario Testing  
+```typescript
+it('should timeout gracefully', () => {
+  // Given: Slow binary that will timeout
+  mockSlowExecution()
+  
+  // When: Verification runs with timeout
+  const result = await verify({ timeout: 1000 })
+  
+  // Then: Should fail with timeout message
+  expect(result.error).toContain('verification timed out')
+})
+```
+
+## Debugging Failed Tests
+
+### 1. Check Mock Setup
+Ensure your test properly mocks all external dependencies:
+```typescript
+beforeEach(() => {
+  vi.clearAllMocks()
+  mockfs.restore() // Clean file system mocks
+})
+```
+
+### 2. Examine File System State
+The `createfs()` helper logs the file system structure:
+```typescript
+// Add debug logging
+console.log('Mock FS structure:', mockfs.getMockStructure())
+```
+
+### 3. Check Environment Variables
+Some tests depend on environment setup:
+```typescript
+// Common environment variables that affect tests
+process.env.CYPRESS_CACHE_FOLDER
+process.env.CYPRESS_RUN_BINARY  
+process.env.DEBUG = 'cypress:cli*' // Enable debug logs
+```
+
+## Writing New Tests
+
+### 1. File System Tests
+Use the `createfs()` helper for consistent mocking:
+
+```typescript
+it('should handle custom installation directory', () => {
+  createfs({
+    alreadyVerified: true,
+    executable: true, 
+    packageVersion: '13.0.0',
+    customDir: '/my/custom/cypress'
+  })
+  
+  // Test your scenario...
+})
+```
+
+### 2. Error Handling Tests
+Always test both success and failure paths:
+
+```typescript
+describe('error scenarios', () => {
+  it('should handle permission errors', () => {
+    // Setup scenario that triggers permission error
+    // Verify error message and suggested solution
+  })
+  
+  it('should handle network timeouts', () => {
+    // Mock network failure
+    // Verify retry logic and fallback behavior
+  })
+})
+```
+
+### 3. Platform-Specific Tests
+Use conditional testing for platform differences:
+
+```typescript
+describe('platform-specific behavior', () => {
+  beforeEach(() => {
+    vi.mocked(os.platform).mockReturnValue('darwin') // or 'win32', 'linux'
+  })
+  
+  it('should use correct executable path on macOS', () => {
+    // Test macOS-specific logic
+  })
+})
+```
+
+## Test Configuration
+
+The test suite is configured via:
+- `vitest.config.ts` - Main test configuration
+- `package.json` - Test scripts and timeouts
+- `tsconfig.json` - TypeScript configuration for tests
+
+## Coverage Reports
+
+Generate test coverage:
+```bash
+cd cli && yarn test --coverage
+```
+
+This creates a coverage report showing which parts of the CLI code are tested.
+
+## Contributing
+
+When adding new CLI features:
+
+1. **Write tests first** (TDD approach)
+2. **Cover error cases** - CLI tools especially need robust error handling
+3. **Test cross-platform** - Use mocks to simulate different operating systems
+4. **Document test purpose** - Add clear descriptions of what each test verifies
+5. **Use realistic scenarios** - Test cases should reflect real user workflows
+
+### Example PR Checklist
+
+- [ ] Added test for new feature/fix
+- [ ] Test covers error scenarios
+- [ ] Test works on all supported platforms
+- [ ] Updated documentation if needed
+- [ ] All existing tests still pass
+
+## Troubleshooting
+
+### "Cannot find module" errors
+Usually means missing mock setup:
+```bash
+# Install test dependencies
+yarn install
+```
+
+### "Mock not working" issues
+Check mock setup order:
+```typescript
+// Mocks should be set up before imports
+vi.mock('fs-extra')
+import fs from 'fs-extra' // This will use the mock
+```
+
+### Timeout issues in CI
+Increase timeouts for slow CI environments:
+```typescript  
+it('should handle slow operations', () => {
+  // Test implementation
+}, 10000) // 10 second timeout
+```
+
+For more help, see the [Cypress Contributing Guide](../../CONTRIBUTING.md).
\ No newline at end of file
diff --git a/cli/test/lib/tasks/verify.spec.ts b/cli/test/lib/tasks/verify.spec.ts
index 81dae8aca63..0ac455b2234 100644
--- a/cli/test/lib/tasks/verify.spec.ts
+++ b/cli/test/lib/tasks/verify.spec.ts
@@ -892,8 +892,68 @@ describe('lib/tasks/verify', () => {
   })
 })
 
-// TODO this needs documentation with examples badly.
-function createfs ({ alreadyVerified, executable, packageVersion, customDir }: any) {
+/**
+ * Creates a mock file system for testing Cypress binary verification
+ * 
+ * This utility function sets up a mock file system that mimics the structure
+ * of a Cypress installation, including the binary state file and package.json.
+ * It's used throughout the verify tests to simulate different installation states.
+ * 
+ * ## File System Structure Created:
+ * 
+ * ```
+ * /cache/Cypress/1.2.3/
+ * ├── binary_state.json          # Contains verification status
+ * └── Cypress.app/               # Application bundle
+ *     └── Contents/
+ *         ├── MacOS/
+ *         │   └── Cypress        # Executable binary (optional)
+ *         └── Resources/
+ *             └── app/
+ *                 └── package.json # Contains version info
+ * ```
+ * 
+ * @param options - Configuration for the mock file system
+ * @param options.alreadyVerified - Whether binary should be marked as already verified
+ * @param options.executable - Mock executable content (true for default, false/undefined for missing)
+ * @param options.packageVersion - Version string to put in package.json
+ * @param options.customDir - Custom installation directory (optional)
+ * 
+ * @returns Mock file system instance from mock-fs
+ * 
+ * @example
+ * // Test case: Binary exists and is already verified
+ * createfs({
+ *   alreadyVerified: true,
+ *   executable: true,
+ *   packageVersion: '13.0.0'
+ * })
+ * 
+ * @example
+ * // Test case: Binary missing (first install)
+ * createfs({
+ *   alreadyVerified: false,
+ *   executable: false,
+ *   packageVersion: '13.0.0'
+ * })
+ * 
+ * @example
+ * // Test case: Custom installation directory
+ * createfs({
+ *   alreadyVerified: false,
+ *   executable: true,
+ *   packageVersion: '13.0.0',
+ *   customDir: '/custom/cypress/location'
+ * })
+ */
+interface CreateFileSystemOptions {
+  alreadyVerified: boolean
+  executable?: boolean | string
+  packageVersion: string
+  customDir?: string
+}
+
+function createfs ({ alreadyVerified, executable, packageVersion, customDir }: CreateFileSystemOptions) {
   if (!customDir) {
     customDir = '/cache/Cypress/1.2.3/Cypress.app'
   }