diff --git a/tests/integration/test_app_password_provisioning.py b/tests/integration/test_app_password_provisioning.py
index 419cb16..0e6e427 100644
--- a/tests/integration/test_app_password_provisioning.py
+++ b/tests/integration/test_app_password_provisioning.py
@@ -1,18 +1,21 @@
-"""Integration tests for app password provisioning via Astrolabe.
+"""Integration tests for app password provisioning via management API.
 
 Tests the complete flow for multi-user BasicAuth mode:
-1. User stores app password via Astrolabe API
-2. MCP server retrieves it via OAuth client credentials
-3. Background sync uses it to access Nextcloud (NOT OAuth refresh tokens)
+1. User stores app password via management API endpoint
+2. MCP server stores it locally (encrypted)
+3. Background sync uses locally stored password to access Nextcloud
 
 These tests verify that BasicAuth and OAuth are completely separate concerns
 with no fallback between them.
 """
 
-import pytest
+import tempfile
+from pathlib import Path
 
-from nextcloud_mcp_server.auth.astrolabe_client import AstrolabeClient
-from nextcloud_mcp_server.config import get_settings
+import pytest
+from cryptography.fernet import Fernet
+
+from nextcloud_mcp_server.auth.storage import RefreshTokenStorage
 from nextcloud_mcp_server.vector.oauth_sync import (
     NotProvisionedError,
     get_user_client,
@@ -21,140 +24,60 @@ from nextcloud_mcp_server.vector.oauth_sync import (
 )
 
 
-@pytest.mark.integration
-async def test_astrolabe_client_initialization():
-    """Test AstrolabeClient can be instantiated."""
-    client = AstrolabeClient(
-        nextcloud_host="http://localhost:8080",
-        client_id="test-client",
-        client_secret="test-secret",
-    )
+@pytest.fixture
+def encryption_key():
+    """Generate a test encryption key."""
+    return Fernet.generate_key().decode()
 
-    assert client is not None
-    assert client.nextcloud_host == "http://localhost:8080"
-    assert client.client_id == "test-client"
-    assert client.client_secret == "test-secret"
-    assert client._token_cache is None
+
+@pytest.fixture
+async def temp_storage(encryption_key):
+    """Create temporary storage instance with encryption for testing."""
+    with tempfile.TemporaryDirectory() as tmpdir:
+        db_path = Path(tmpdir) / "test_provisioning.db"
+        storage = RefreshTokenStorage(
+            db_path=str(db_path), encryption_key=encryption_key
+        )
+        await storage.initialize()
+        yield storage
 
 
 @pytest.mark.integration
-async def test_astrolabe_client_get_access_token_requires_oidc():
-    """Test that getting access token requires OIDC discovery endpoint."""
-    client = AstrolabeClient(
-        nextcloud_host="http://localhost:8080",
-        client_id="test-client",
-        client_secret="test-secret",
-    )
+async def test_basic_auth_mode_uses_local_storage(temp_storage, mocker):
+    """Test that BasicAuth mode uses locally stored app passwords.
 
-    # This will fail without proper OIDC setup, which is expected
-    # The test verifies the client follows the OAuth client credentials flow
-    try:
-        token = await client.get_access_token()
-        # If we get here, OIDC is configured
-        assert token is not None
-    except Exception as e:
-        # Expected if OIDC not fully configured for test client
-        # 400/401/403/404 all indicate the flow is working but credentials are invalid
-        assert any(code in str(e) for code in ["400", "401", "403", "404"])
-
-
-@pytest.mark.integration
-async def test_get_user_app_password_returns_none_for_unconfigured_user():
-    """Test that get_user_app_password returns None for users without app passwords."""
-    # This requires valid OAuth client credentials
-    settings = get_settings()
-
-    if not settings.oidc_client_id or not settings.oidc_client_secret:
-        pytest.skip("OAuth client credentials not configured")
-
-    client = AstrolabeClient(
-        nextcloud_host=settings.nextcloud_host or "http://localhost:8080",
-        client_id=settings.oidc_client_id,
-        client_secret=settings.oidc_client_secret,
-    )
-
-    # Try to get app password for a user that hasn't provisioned one
-    try:
-        app_password = await client.get_user_app_password("nonexistent_user")
-        # Should return None for unconfigured user (404 response)
-        assert app_password is None
-    except Exception as e:
-        # May fail with auth error if OAuth not fully configured
-        assert any(code in str(e) for code in ["400", "401", "403", "404"])
-
-
-@pytest.mark.integration
-async def test_basic_auth_mode_uses_app_password_only(mocker):
-    """Test that BasicAuth mode uses ONLY app passwords, NOT OAuth tokens.
-
-    In multi-user BasicAuth mode, OAuth refresh tokens are NOT used.
-    This is a complete separation of concerns.
+    In multi-user BasicAuth mode, app passwords are stored locally
+    in the MCP server's database after being provisioned via the API.
     """
-    # Mock settings to have client credentials
-    mock_settings = mocker.MagicMock()
-    mock_settings.oidc_client_id = "test-client-id"
-    mock_settings.oidc_client_secret = "test-client-secret"
-    mocker.patch(
-        "nextcloud_mcp_server.vector.oauth_sync.get_settings",
-        return_value=mock_settings,
-    )
+    # Store an app password in local storage
+    await temp_storage.store_app_password("test_user", "JHWzB-ZYgLZ-3qBDj-ZQe5o-LdKpB")
 
-    # Mock AstrolabeClient to return an app password
-    mock_astrolabe = mocker.AsyncMock()
-    mock_astrolabe.get_user_app_password.return_value = "test-app-password-12345"
-
-    mocker.patch(
-        "nextcloud_mcp_server.vector.oauth_sync.AstrolabeClient",
-        return_value=mock_astrolabe,
-    )
-
-    # Call get_user_client in BasicAuth mode
-    _client = await get_user_client(
+    # Call get_user_client_basic_auth with local storage
+    client = await get_user_client_basic_auth(
         user_id="test_user",
-        token_broker=None,  # No token broker needed for BasicAuth mode
         nextcloud_host="http://localhost:8080",
-        use_basic_auth=True,
+        storage=temp_storage,
     )
 
-    # Verify app password was requested
-    mock_astrolabe.get_user_app_password.assert_called_once_with("test_user")
-
-    # Verify client was created successfully with correct username
-    assert _client is not None
-    assert _client.username == "test_user"
+    # Verify client was created with correct credentials
+    assert client is not None
+    assert client.username == "test_user"
 
 
 @pytest.mark.integration
-async def test_basic_auth_mode_raises_error_without_app_password(mocker):
+async def test_basic_auth_mode_raises_error_without_app_password(temp_storage):
     """Test that BasicAuth mode raises NotProvisionedError if no app password.
 
     There is NO fallback to OAuth - if no app password, user must provision one.
     """
-    # Mock settings to have client credentials
-    mock_settings = mocker.MagicMock()
-    mock_settings.oidc_client_id = "test-client-id"
-    mock_settings.oidc_client_secret = "test-client-secret"
-    mocker.patch(
-        "nextcloud_mcp_server.vector.oauth_sync.get_settings",
-        return_value=mock_settings,
-    )
+    # Don't store any app password
 
-    # Mock AstrolabeClient to return None (no app password)
-    mock_astrolabe = mocker.AsyncMock()
-    mock_astrolabe.get_user_app_password.return_value = None
-
-    mocker.patch(
-        "nextcloud_mcp_server.vector.oauth_sync.AstrolabeClient",
-        return_value=mock_astrolabe,
-    )
-
-    # Call get_user_client in BasicAuth mode - should raise NotProvisionedError
+    # Call get_user_client_basic_auth - should raise NotProvisionedError
     with pytest.raises(NotProvisionedError) as exc_info:
-        await get_user_client(
+        await get_user_client_basic_auth(
             user_id="test_user",
-            token_broker=None,
             nextcloud_host="http://localhost:8080",
-            use_basic_auth=True,
+            storage=temp_storage,
         )
 
     # Verify error message mentions app password provisioning
@@ -162,6 +85,33 @@ async def test_basic_auth_mode_raises_error_without_app_password(mocker):
     assert "test_user" in str(exc_info.value)
 
 
+@pytest.mark.integration
+async def test_get_user_client_dispatches_to_basic_auth(temp_storage, mocker):
+    """Test that get_user_client dispatches to BasicAuth mode correctly."""
+    # Store an app password
+    await temp_storage.store_app_password("alice", "aaaaa-bbbbb-ccccc-ddddd-eeeee")
+
+    # Mock RefreshTokenStorage.from_env at the source module
+    mocker.patch(
+        "nextcloud_mcp_server.auth.storage.RefreshTokenStorage.from_env",
+        return_value=temp_storage,
+    )
+    # Also mock initialize since from_env returns an uninitialized instance
+    mocker.patch.object(temp_storage, "initialize", return_value=None)
+
+    # Call get_user_client in BasicAuth mode
+    client = await get_user_client(
+        user_id="alice",
+        token_broker=None,  # No token broker needed for BasicAuth mode
+        nextcloud_host="http://localhost:8080",
+        use_basic_auth=True,
+    )
+
+    # Verify client was created successfully
+    assert client is not None
+    assert client.username == "alice"
+
+
 @pytest.mark.integration
 async def test_oauth_mode_uses_refresh_token_only(mocker):
     """Test that OAuth mode uses ONLY refresh tokens, NOT app passwords.
@@ -183,7 +133,7 @@ async def test_oauth_mode_uses_refresh_token_only(mocker):
         use_basic_auth=False,  # OAuth mode
     )
 
-    # Verify token broker was called (NOT Astrolabe)
+    # Verify token broker was called
     mock_token_broker.get_background_token.assert_called_once()
 
 
@@ -213,38 +163,6 @@ async def test_oauth_mode_raises_error_without_token(mocker):
     assert "test_user" in str(exc_info.value)
 
 
-@pytest.mark.integration
-async def test_get_user_client_basic_auth_function(mocker):
-    """Test the dedicated get_user_client_basic_auth function."""
-    # Mock settings to have client credentials
-    mock_settings = mocker.MagicMock()
-    mock_settings.oidc_client_id = "test-client-id"
-    mock_settings.oidc_client_secret = "test-client-secret"
-    mocker.patch(
-        "nextcloud_mcp_server.vector.oauth_sync.get_settings",
-        return_value=mock_settings,
-    )
-
-    # Mock AstrolabeClient
-    mock_astrolabe = mocker.AsyncMock()
-    mock_astrolabe.get_user_app_password.return_value = "xxxxx-xxxxx-xxxxx-xxxxx-xxxxx"
-
-    mocker.patch(
-        "nextcloud_mcp_server.vector.oauth_sync.AstrolabeClient",
-        return_value=mock_astrolabe,
-    )
-
-    # Call dedicated function
-    client = await get_user_client_basic_auth(
-        user_id="alice",
-        nextcloud_host="http://localhost:8080",
-    )
-
-    assert client is not None
-    assert client.username == "alice"
-    mock_astrolabe.get_user_app_password.assert_called_once_with("alice")
-
-
 @pytest.mark.integration
 async def test_get_user_client_oauth_function(mocker):
     """Test the dedicated get_user_client_oauth function."""
@@ -276,3 +194,69 @@ async def test_oauth_mode_requires_token_broker():
             nextcloud_host="http://localhost:8080",
             use_basic_auth=False,  # OAuth mode
         )
+
+
+@pytest.mark.integration
+async def test_multiple_users_basic_auth_mode(temp_storage, mocker):
+    """Test that multiple users can be provisioned independently."""
+    # Store app passwords for multiple users
+    users = {
+        "alice": "aaaaa-aaaaa-aaaaa-aaaaa-aaaaa",
+        "bob": "bbbbb-bbbbb-bbbbb-bbbbb-bbbbb",
+        "charlie": "ccccc-ccccc-ccccc-ccccc-ccccc",
+    }
+
+    for user_id, password in users.items():
+        await temp_storage.store_app_password(user_id, password)
+
+    # Verify each user can get a client
+    for user_id in users.keys():
+        client = await get_user_client_basic_auth(
+            user_id=user_id,
+            nextcloud_host="http://localhost:8080",
+            storage=temp_storage,
+        )
+        assert client is not None
+        assert client.username == user_id
+
+
+@pytest.mark.integration
+async def test_get_all_provisioned_users(temp_storage):
+    """Test that we can list all provisioned users for BasicAuth mode."""
+    # Store app passwords for multiple users
+    await temp_storage.store_app_password("alice", "aaaaa-aaaaa-aaaaa-aaaaa-aaaaa")
+    await temp_storage.store_app_password("bob", "bbbbb-bbbbb-bbbbb-bbbbb-bbbbb")
+
+    # Get all provisioned users
+    user_ids = await temp_storage.get_all_app_password_user_ids()
+
+    assert len(user_ids) == 2
+    assert "alice" in user_ids
+    assert "bob" in user_ids
+
+
+@pytest.mark.integration
+async def test_revoke_app_password(temp_storage):
+    """Test that deleting app password revokes background access."""
+    # Provision user
+    await temp_storage.store_app_password("alice", "aaaaa-aaaaa-aaaaa-aaaaa-aaaaa")
+
+    # Verify user is provisioned
+    user_ids = await temp_storage.get_all_app_password_user_ids()
+    assert "alice" in user_ids
+
+    # Revoke access
+    deleted = await temp_storage.delete_app_password("alice")
+    assert deleted is True
+
+    # Verify user is no longer provisioned
+    user_ids = await temp_storage.get_all_app_password_user_ids()
+    assert "alice" not in user_ids
+
+    # Verify get_user_client now raises NotProvisionedError
+    with pytest.raises(NotProvisionedError):
+        await get_user_client_basic_auth(
+            user_id="alice",
+            nextcloud_host="http://localhost:8080",
+            storage=temp_storage,
+        )
diff --git a/tests/unit/test_app_password_storage.py b/tests/unit/test_app_password_storage.py
new file mode 100644
index 0000000..3743197
--- /dev/null
+++ b/tests/unit/test_app_password_storage.py
@@ -0,0 +1,227 @@
+"""
+Unit tests for App Password Storage functionality.
+
+Tests the app password methods in RefreshTokenStorage for multi-user
+BasicAuth mode background sync.
+"""
+
+import tempfile
+from pathlib import Path
+
+import pytest
+from cryptography.fernet import Fernet
+
+from nextcloud_mcp_server.auth.storage import RefreshTokenStorage
+
+pytestmark = pytest.mark.unit
+
+
+@pytest.fixture
+def encryption_key():
+    """Generate a test encryption key."""
+    return Fernet.generate_key().decode()
+
+
+@pytest.fixture
+async def temp_storage(encryption_key):
+    """Create temporary storage instance with encryption for testing."""
+    with tempfile.TemporaryDirectory() as tmpdir:
+        db_path = Path(tmpdir) / "test_app_passwords.db"
+        storage = RefreshTokenStorage(
+            db_path=str(db_path), encryption_key=encryption_key
+        )
+        await storage.initialize()
+        yield storage
+
+
+async def test_store_app_password(temp_storage):
+    """Test storing an app password."""
+    await temp_storage.store_app_password(
+        user_id="testuser",
+        app_password="JHWzB-ZYgLZ-3qBDj-ZQe5o-LdKpB",
+    )
+
+    # Verify it can be retrieved
+    retrieved = await temp_storage.get_app_password("testuser")
+    assert retrieved == "JHWzB-ZYgLZ-3qBDj-ZQe5o-LdKpB"
+
+
+async def test_store_app_password_replaces_existing(temp_storage):
+    """Test that storing a new app password replaces the existing one."""
+    await temp_storage.store_app_password(
+        user_id="testuser",
+        app_password="aaaaa-bbbbb-ccccc-ddddd-eeeee",
+    )
+    await temp_storage.store_app_password(
+        user_id="testuser",
+        app_password="fffff-ggggg-hhhhh-iiiii-jjjjj",
+    )
+
+    retrieved = await temp_storage.get_app_password("testuser")
+    assert retrieved == "fffff-ggggg-hhhhh-iiiii-jjjjj"
+
+
+async def test_get_app_password_nonexistent(temp_storage):
+    """Test retrieving app password for non-existent user."""
+    retrieved = await temp_storage.get_app_password("nonexistent")
+    assert retrieved is None
+
+
+async def test_delete_app_password(temp_storage):
+    """Test deleting an app password."""
+    await temp_storage.store_app_password(
+        user_id="testuser",
+        app_password="JHWzB-ZYgLZ-3qBDj-ZQe5o-LdKpB",
+    )
+
+    deleted = await temp_storage.delete_app_password("testuser")
+    assert deleted is True
+
+    # Verify it's gone
+    retrieved = await temp_storage.get_app_password("testuser")
+    assert retrieved is None
+
+
+async def test_delete_app_password_nonexistent(temp_storage):
+    """Test deleting non-existent app password."""
+    deleted = await temp_storage.delete_app_password("nonexistent")
+    assert deleted is False
+
+
+async def test_get_all_app_password_user_ids(temp_storage):
+    """Test listing all users with app passwords."""
+    await temp_storage.store_app_password("alice", "aaaaa-aaaaa-aaaaa-aaaaa-aaaaa")
+    await temp_storage.store_app_password("bob", "bbbbb-bbbbb-bbbbb-bbbbb-bbbbb")
+    await temp_storage.store_app_password("charlie", "ccccc-ccccc-ccccc-ccccc-ccccc")
+
+    user_ids = await temp_storage.get_all_app_password_user_ids()
+    assert len(user_ids) == 3
+    assert "alice" in user_ids
+    assert "bob" in user_ids
+    assert "charlie" in user_ids
+
+
+async def test_get_all_app_password_user_ids_empty(temp_storage):
+    """Test listing users when none have app passwords."""
+    user_ids = await temp_storage.get_all_app_password_user_ids()
+    assert len(user_ids) == 0
+
+
+async def test_app_password_encryption(encryption_key):
+    """Test that app passwords are encrypted at rest."""
+    with tempfile.TemporaryDirectory() as tmpdir:
+        db_path = Path(tmpdir) / "test_encryption.db"
+        storage = RefreshTokenStorage(
+            db_path=str(db_path), encryption_key=encryption_key
+        )
+        await storage.initialize()
+
+        # Store a password
+        test_password = "JHWzB-ZYgLZ-3qBDj-ZQe5o-LdKpB"
+        await storage.store_app_password("testuser", test_password)
+
+        # Read directly from database to verify encryption
+        import aiosqlite
+
+        async with aiosqlite.connect(str(db_path)) as db:
+            async with db.execute(
+                "SELECT encrypted_password FROM app_passwords WHERE user_id = ?",
+                ("testuser",),
+            ) as cursor:
+                row = await cursor.fetchone()
+
+        # The stored value should be encrypted (not plain text)
+        encrypted_bytes = row[0]
+        assert encrypted_bytes != test_password.encode()
+        # Encrypted data should be longer due to Fernet overhead
+        assert len(encrypted_bytes) > len(test_password)
+
+
+async def test_app_password_requires_encryption_key():
+    """Test that app password operations require encryption key."""
+    with tempfile.TemporaryDirectory() as tmpdir:
+        db_path = Path(tmpdir) / "test_no_key.db"
+        storage = RefreshTokenStorage(db_path=str(db_path), encryption_key=None)
+        await storage.initialize()
+
+        # Storing should fail without encryption key
+        with pytest.raises(RuntimeError, match="Encryption key not configured"):
+            await storage.store_app_password(
+                "testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+
+        # Getting should also fail without encryption key
+        with pytest.raises(RuntimeError, match="Encryption key not configured"):
+            await storage.get_app_password("testuser")
+
+
+async def test_multiple_users_independence(temp_storage):
+    """Test that different users maintain independent app passwords."""
+    users = ["alice", "bob", "charlie", "diana"]
+
+    # Store unique passwords for each user
+    for i, user in enumerate(users):
+        password = (
+            f"{user[0]}{user[0]}{user[0]}{user[0]}{user[0]}-" * 4
+            + f"{user[0]}{user[0]}{user[0]}{user[0]}{user[0]}"
+        )
+        await temp_storage.store_app_password(user, password)
+
+    # Verify each user has their correct password
+    for user in users:
+        expected = (
+            f"{user[0]}{user[0]}{user[0]}{user[0]}{user[0]}-" * 4
+            + f"{user[0]}{user[0]}{user[0]}{user[0]}{user[0]}"
+        )
+        retrieved = await temp_storage.get_app_password(user)
+        assert retrieved == expected
+
+    # Delete one user's password
+    await temp_storage.delete_app_password("bob")
+
+    # Verify other users unchanged
+    for user in ["alice", "charlie", "diana"]:
+        retrieved = await temp_storage.get_app_password(user)
+        assert retrieved is not None
+
+    # Verify bob's password is gone
+    assert await temp_storage.get_app_password("bob") is None
+
+
+async def test_app_password_with_special_characters(temp_storage):
+    """Test storing passwords with various alphanumeric patterns."""
+    # Nextcloud app passwords use alphanumeric characters
+    passwords = [
+        "AAAAA-BBBBB-CCCCC-DDDDD-EEEEE",  # uppercase
+        "aaaaa-bbbbb-ccccc-ddddd-eeeee",  # lowercase
+        "12345-67890-12345-67890-12345",  # numbers
+        "aB1cD-eF2gH-iJ3kL-mN4oP-qR5sT",  # mixed
+    ]
+
+    for i, password in enumerate(passwords):
+        user = f"user{i}"
+        await temp_storage.store_app_password(user, password)
+        retrieved = await temp_storage.get_app_password(user)
+        assert retrieved == password
+
+
+async def test_decryption_with_wrong_key(encryption_key):
+    """Test that decryption fails with wrong key."""
+    with tempfile.TemporaryDirectory() as tmpdir:
+        db_path = Path(tmpdir) / "test_wrong_key.db"
+
+        # Store with original key
+        storage1 = RefreshTokenStorage(
+            db_path=str(db_path), encryption_key=encryption_key
+        )
+        await storage1.initialize()
+        await storage1.store_app_password("testuser", "JHWzB-ZYgLZ-3qBDj-ZQe5o-LdKpB")
+
+        # Try to read with different key
+        wrong_key = Fernet.generate_key().decode()
+        storage2 = RefreshTokenStorage(db_path=str(db_path), encryption_key=wrong_key)
+        await storage2.initialize()
+
+        # Decryption should fail and return None (graceful handling)
+        retrieved = await storage2.get_app_password("testuser")
+        assert retrieved is None
diff --git a/tests/unit/test_management_app_password_endpoints.py b/tests/unit/test_management_app_password_endpoints.py
new file mode 100644
index 0000000..e7d80a7
--- /dev/null
+++ b/tests/unit/test_management_app_password_endpoints.py
@@ -0,0 +1,489 @@
+"""
+Unit tests for Management API app password endpoints.
+
+Tests the REST API endpoints for multi-user BasicAuth mode app password management:
+- POST /api/v1/users/{user_id}/app-password - Provision app password
+- GET /api/v1/users/{user_id}/app-password - Check status
+- DELETE /api/v1/users/{user_id}/app-password - Delete app password
+"""
+
+import base64
+import tempfile
+from pathlib import Path
+from unittest.mock import AsyncMock, MagicMock
+
+import pytest
+from cryptography.fernet import Fernet
+from starlette.applications import Starlette
+from starlette.routing import Route
+from starlette.testclient import TestClient
+
+from nextcloud_mcp_server.api.management import (
+    delete_app_password,
+    get_app_password_status,
+    provision_app_password,
+)
+from nextcloud_mcp_server.auth.storage import RefreshTokenStorage
+
+pytestmark = pytest.mark.unit
+
+
+@pytest.fixture
+def encryption_key():
+    """Generate a test encryption key."""
+    return Fernet.generate_key().decode()
+
+
+@pytest.fixture
+async def temp_storage(encryption_key):
+    """Create temporary storage instance with encryption for testing."""
+    with tempfile.TemporaryDirectory() as tmpdir:
+        db_path = Path(tmpdir) / "test_management.db"
+        storage = RefreshTokenStorage(
+            db_path=str(db_path), encryption_key=encryption_key
+        )
+        await storage.initialize()
+        yield storage
+
+
+def create_basic_auth_header(username: str, password: str) -> str:
+    """Create BasicAuth header value."""
+    credentials = f"{username}:{password}"
+    encoded = base64.b64encode(credentials.encode()).decode()
+    return f"Basic {encoded}"
+
+
+def create_test_app(storage):
+    """Create a test Starlette app with the management endpoints."""
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                provision_app_password,
+                methods=["POST"],
+            ),
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                get_app_password_status,
+                methods=["GET"],
+            ),
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                delete_app_password,
+                methods=["DELETE"],
+            ),
+        ]
+    )
+    app.state.storage = storage
+    return app
+
+
+async def test_provision_app_password_missing_auth():
+    """Test that missing auth returns 401."""
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                provision_app_password,
+                methods=["POST"],
+            ),
+        ]
+    )
+
+    client = TestClient(app)
+    response = client.post("/api/v1/users/testuser/app-password")
+
+    assert response.status_code == 401
+    assert "Missing BasicAuth" in response.json()["error"]
+
+
+async def test_provision_app_password_invalid_auth_format():
+    """Test that invalid auth format returns 401."""
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                provision_app_password,
+                methods=["POST"],
+            ),
+        ]
+    )
+
+    client = TestClient(app)
+    response = client.post(
+        "/api/v1/users/testuser/app-password",
+        headers={"Authorization": "Basic invalid-not-base64!!!"},
+    )
+
+    assert response.status_code == 401
+    assert "Invalid BasicAuth" in response.json()["error"]
+
+
+async def test_provision_app_password_username_mismatch():
+    """Test that username mismatch returns 403."""
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                provision_app_password,
+                methods=["POST"],
+            ),
+        ]
+    )
+
+    client = TestClient(app)
+    # Try to provision for "testuser" but auth as "otheruser"
+    response = client.post(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "otheruser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 403
+    assert "does not match" in response.json()["error"]
+
+
+async def test_provision_app_password_invalid_format():
+    """Test that invalid app password format returns 400."""
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                provision_app_password,
+                methods=["POST"],
+            ),
+        ]
+    )
+
+    client = TestClient(app)
+    # Use invalid password format (not xxxxx-xxxxx-xxxxx-xxxxx-xxxxx)
+    response = client.post(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header("testuser", "invalid-password")
+        },
+    )
+
+    assert response.status_code == 400
+    assert "Invalid app password format" in response.json()["error"]
+
+
+async def test_provision_app_password_success(temp_storage, mocker):
+    """Test successful app password provisioning."""
+    # Mock settings (imported locally in the function)
+    mocker.patch(
+        "nextcloud_mcp_server.config.get_settings",
+        return_value=MagicMock(nextcloud_host="http://localhost:8080"),
+    )
+
+    # Mock httpx client for Nextcloud validation
+    mock_response = MagicMock()
+    mock_response.status_code = 200
+    mock_response.json.return_value = {"ocs": {"data": {"id": "testuser"}}}
+
+    mock_client = AsyncMock()
+    mock_client.get = AsyncMock(return_value=mock_response)
+    mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+    mock_client.__aexit__ = AsyncMock()
+
+    mocker.patch(
+        "nextcloud_mcp_server.api.management.httpx.AsyncClient",
+        return_value=mock_client,
+    )
+
+    # Create app with storage
+    app = create_test_app(temp_storage)
+
+    client = TestClient(app)
+    response = client.post(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 200
+    data = response.json()
+    assert data["success"] is True
+    assert "stored" in data["message"].lower()
+
+    # Verify password was stored
+    stored_password = await temp_storage.get_app_password("testuser")
+    assert stored_password == "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+
+
+async def test_provision_app_password_nextcloud_validation_fails(mocker):
+    """Test that failed Nextcloud validation returns 401."""
+    mocker.patch(
+        "nextcloud_mcp_server.config.get_settings",
+        return_value=MagicMock(nextcloud_host="http://localhost:8080"),
+    )
+
+    # Mock httpx client to return 401
+    mock_response = MagicMock()
+    mock_response.status_code = 401
+
+    mock_client = AsyncMock()
+    mock_client.get = AsyncMock(return_value=mock_response)
+    mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+    mock_client.__aexit__ = AsyncMock()
+
+    mocker.patch(
+        "nextcloud_mcp_server.api.management.httpx.AsyncClient",
+        return_value=mock_client,
+    )
+
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                provision_app_password,
+                methods=["POST"],
+            ),
+        ]
+    )
+
+    client = TestClient(app)
+    response = client.post(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 401
+    assert "Invalid app password" in response.json()["error"]
+
+
+async def test_get_app_password_status_provisioned(temp_storage, mocker):
+    """Test checking status when app password is provisioned."""
+    # Store an app password
+    await temp_storage.store_app_password("testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee")
+
+    app = create_test_app(temp_storage)
+
+    client = TestClient(app)
+    response = client.get(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 200
+    data = response.json()
+    assert data["success"] is True
+    assert data["user_id"] == "testuser"
+    assert data["has_app_password"] is True
+
+
+async def test_get_app_password_status_not_provisioned(temp_storage, mocker):
+    """Test checking status when app password is not provisioned."""
+    app = create_test_app(temp_storage)
+
+    client = TestClient(app)
+    response = client.get(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 200
+    data = response.json()
+    assert data["success"] is True
+    assert data["user_id"] == "testuser"
+    assert data["has_app_password"] is False
+
+
+async def test_get_app_password_status_username_mismatch():
+    """Test that username mismatch returns 403 for status check."""
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                get_app_password_status,
+                methods=["GET"],
+            ),
+        ]
+    )
+
+    client = TestClient(app)
+    response = client.get(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "otheruser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 403
+
+
+async def test_delete_app_password_success(temp_storage, mocker):
+    """Test successful app password deletion."""
+    # Store an app password
+    await temp_storage.store_app_password("testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee")
+
+    # Mock settings (imported locally in the function)
+    mocker.patch(
+        "nextcloud_mcp_server.config.get_settings",
+        return_value=MagicMock(nextcloud_host="http://localhost:8080"),
+    )
+
+    # Mock httpx client for Nextcloud validation
+    mock_response = MagicMock()
+    mock_response.status_code = 200
+
+    mock_client = AsyncMock()
+    mock_client.get = AsyncMock(return_value=mock_response)
+    mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+    mock_client.__aexit__ = AsyncMock()
+
+    mocker.patch(
+        "nextcloud_mcp_server.api.management.httpx.AsyncClient",
+        return_value=mock_client,
+    )
+
+    app = create_test_app(temp_storage)
+
+    client = TestClient(app)
+    response = client.delete(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 200
+    data = response.json()
+    assert data["success"] is True
+    assert "deleted" in data["message"].lower()
+
+    # Verify password was removed
+    stored_password = await temp_storage.get_app_password("testuser")
+    assert stored_password is None
+
+
+async def test_delete_app_password_not_found(temp_storage, mocker):
+    """Test deleting non-existent app password."""
+    # Mock settings (imported locally in the function)
+    mocker.patch(
+        "nextcloud_mcp_server.config.get_settings",
+        return_value=MagicMock(nextcloud_host="http://localhost:8080"),
+    )
+
+    # Mock httpx client for Nextcloud validation
+    mock_response = MagicMock()
+    mock_response.status_code = 200
+
+    mock_client = AsyncMock()
+    mock_client.get = AsyncMock(return_value=mock_response)
+    mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+    mock_client.__aexit__ = AsyncMock()
+
+    mocker.patch(
+        "nextcloud_mcp_server.api.management.httpx.AsyncClient",
+        return_value=mock_client,
+    )
+
+    app = create_test_app(temp_storage)
+
+    client = TestClient(app)
+    response = client.delete(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "testuser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 200
+    data = response.json()
+    assert data["success"] is True
+    assert "no app password found" in data["message"].lower()
+
+
+async def test_delete_app_password_invalid_credentials(mocker):
+    """Test that invalid credentials returns 401 for deletion."""
+    mocker.patch(
+        "nextcloud_mcp_server.config.get_settings",
+        return_value=MagicMock(nextcloud_host="http://localhost:8080"),
+    )
+
+    # Mock httpx client to return 401
+    mock_response = MagicMock()
+    mock_response.status_code = 401
+
+    mock_client = AsyncMock()
+    mock_client.get = AsyncMock(return_value=mock_response)
+    mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+    mock_client.__aexit__ = AsyncMock()
+
+    mocker.patch(
+        "nextcloud_mcp_server.api.management.httpx.AsyncClient",
+        return_value=mock_client,
+    )
+
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                delete_app_password,
+                methods=["DELETE"],
+            ),
+        ]
+    )
+
+    client = TestClient(app)
+    response = client.delete(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "testuser", "wrong-password-xxxxx"
+            )
+        },
+    )
+
+    assert response.status_code == 401
+    assert "Invalid credentials" in response.json()["error"]
+
+
+async def test_delete_app_password_username_mismatch():
+    """Test that username mismatch returns 403 for deletion."""
+    app = Starlette(
+        routes=[
+            Route(
+                "/api/v1/users/{user_id}/app-password",
+                delete_app_password,
+                methods=["DELETE"],
+            ),
+        ]
+    )
+
+    client = TestClient(app)
+    response = client.delete(
+        "/api/v1/users/testuser/app-password",
+        headers={
+            "Authorization": create_basic_auth_header(
+                "otheruser", "aaaaa-bbbbb-ccccc-ddddd-eeeee"
+            )
+        },
+    )
+
+    assert response.status_code == 403