diff --git a/tests/test_litellm/managed_agents/test_sandbox_local.py b/tests/test_litellm/managed_agents/test_sandbox_local.py
new file mode 100644
index 00000000000..275095d64bc
--- /dev/null
+++ b/tests/test_litellm/managed_agents/test_sandbox_local.py
@@ -0,0 +1,132 @@
+"""
+Unit tests for ``LocalSandbox``.
+
+Covers the tool surface (Bash / Read / Write / Edit / ls) plus the
+sandbox lifecycle (setup creates a tmpdir, teardown removes it).
+"""
+
+import os
+import tempfile
+from pathlib import Path
+
+import pytest
+
+from litellm.managed_agents.sandbox.base import ToolResult
+from litellm.managed_agents.sandbox.local import LocalSandbox
+
+
+@pytest.mark.asyncio
+async def test_setup_creates_tmpdir_and_teardown_removes_it():
+    sb = LocalSandbox()
+    await sb.setup()
+    assert sb.cwd is not None and os.path.isdir(sb.cwd)
+    cwd = sb.cwd
+    await sb.teardown()
+    assert not os.path.exists(cwd)
+    assert sb.cwd is None
+
+
+@pytest.mark.asyncio
+async def test_setup_respects_explicit_working_dir():
+    with tempfile.TemporaryDirectory() as tmp:
+        sb = LocalSandbox(working_dir=tmp)
+        await sb.setup()
+        assert sb.cwd == tmp
+        await sb.teardown()
+        # Explicit dir is left intact (we don't own it).
+        assert os.path.isdir(tmp)
+
+
+@pytest.mark.asyncio
+async def test_bash_runs_command_and_returns_stdout():
+    with tempfile.TemporaryDirectory() as tmp:
+        sb = LocalSandbox(working_dir=tmp)
+        result = await sb.execute_tool("Bash", {"command": "echo hello"})
+        assert isinstance(result, ToolResult)
+        assert not result.is_error
+        assert result.output.strip() == "hello"
+
+
+@pytest.mark.asyncio
+async def test_bash_nonzero_exit_marks_is_error():
+    with tempfile.TemporaryDirectory() as tmp:
+        sb = LocalSandbox(working_dir=tmp)
+        result = await sb.execute_tool("Bash", {"command": "exit 7"})
+        assert result.is_error
+        assert result.metadata.get("exit_code") == 7
+
+
+@pytest.mark.asyncio
+async def test_bash_empty_command_returns_error():
+    sb = LocalSandbox()
+    result = await sb.execute_tool("Bash", {})
+    assert result.is_error
+    assert "command" in result.output
+
+
+@pytest.mark.asyncio
+async def test_write_then_read_roundtrip():
+    with tempfile.TemporaryDirectory() as tmp:
+        sb = LocalSandbox(working_dir=tmp)
+        write = await sb.execute_tool("Write", {"path": "a.txt", "content": "hi"})
+        assert not write.is_error
+        assert (Path(tmp) / "a.txt").read_text() == "hi"
+
+        read = await sb.execute_tool("Read", {"path": "a.txt"})
+        assert not read.is_error
+        assert read.output == "hi"
+
+
+@pytest.mark.asyncio
+async def test_edit_replaces_substring():
+    with tempfile.TemporaryDirectory() as tmp:
+        sb = LocalSandbox(working_dir=tmp)
+        await sb.execute_tool("Write", {"path": "a.txt", "content": "hello world"})
+        edit = await sb.execute_tool(
+            "Edit",
+            {"path": "a.txt", "old_string": "world", "new_string": "moon"},
+        )
+        assert not edit.is_error
+        assert (Path(tmp) / "a.txt").read_text() == "hello moon"
+
+
+@pytest.mark.asyncio
+async def test_edit_missing_old_string_is_error():
+    with tempfile.TemporaryDirectory() as tmp:
+        sb = LocalSandbox(working_dir=tmp)
+        await sb.execute_tool("Write", {"path": "a.txt", "content": "hello"})
+        edit = await sb.execute_tool(
+            "Edit",
+            {"path": "a.txt", "old_string": "nope", "new_string": "_"},
+        )
+        assert edit.is_error
+        assert "not found" in edit.output
+
+
+@pytest.mark.asyncio
+async def test_ls_lists_dir_entries():
+    with tempfile.TemporaryDirectory() as tmp:
+        (Path(tmp) / "a.txt").write_text("")
+        (Path(tmp) / "b.txt").write_text("")
+        sb = LocalSandbox(working_dir=tmp)
+        result = await sb.execute_tool("ls", {"path": tmp})
+        assert not result.is_error
+        names = sorted(result.output.split("\n"))
+        assert names == ["a.txt", "b.txt"]
+
+
+@pytest.mark.asyncio
+async def test_unknown_tool_returns_error():
+    sb = LocalSandbox()
+    result = await sb.execute_tool("Magic", {})
+    assert result.is_error
+    assert "unknown tool" in result.output
+
+
+@pytest.mark.asyncio
+async def test_bash_timeout_kills_command():
+    with tempfile.TemporaryDirectory() as tmp:
+        sb = LocalSandbox(working_dir=tmp, shell_timeout_seconds=0.5)
+        result = await sb.execute_tool("Bash", {"command": "sleep 5"})
+        assert result.is_error
+        assert "timed out" in result.output