diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 72f3aaef..d7897bd7 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -6,7 +6,8 @@ on:
   pull_request:
 
 jobs:
-  rust:
+  quality:
+    name: Code Quality & Format Checks
     runs-on: ubuntu-latest
     steps:
       - uses: actions/checkout@v4
@@ -15,7 +16,7 @@ jobs:
         uses: dtolnay/rust-toolchain@stable
         with:
           components: rustfmt, clippy
-          targets: wasm32v1-none
+          targets: wasm32-unknown-unknown
 
       - name: Cache cargo
         uses: Swatinem/rust-cache@v2
@@ -26,8 +27,24 @@ jobs:
       - name: Run clippy linter
         run: cargo clippy --workspace --all-features -- -D warnings
 
+  build-and-test:
+    name: Build & Test
+    needs: quality
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
+
+      - name: Install Rust toolchain
+        uses: dtolnay/rust-toolchain@stable
+        with:
+          components: rustfmt, clippy
+          targets: wasm32-unknown-unknown
+
+      - name: Cache cargo
+        uses: Swatinem/rust-cache@v2
+
       - name: Build WASM (release)
-        run: cargo build --target wasm32v1-none --release
+        run: cargo build --target wasm32-unknown-unknown --release
 
       - name: Run unit tests
         run: cargo test --workspace --lib
diff --git a/.github/workflows/regression.yml b/.github/workflows/regression.yml
index f9e0c3a6..fa89deb8 100644
--- a/.github/workflows/regression.yml
+++ b/.github/workflows/regression.yml
@@ -15,7 +15,7 @@ jobs:
         uses: dtolnay/rust-toolchain@stable
         with:
           components: rustfmt, clippy
-          targets: wasm32v1-none
+          targets: wasm32-unknown-unknown
 
       - name: Cache cargo
         uses: Swatinem/rust-cache@v2
diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
new file mode 100644
index 00000000..4a40f669
--- /dev/null
+++ b/.pre-commit-config.yaml
@@ -0,0 +1,120 @@
+# Pre-commit hooks configuration for TeachLink contract
+# Install with: pre-commit install
+# Update hooks with: pre-commit autoupdate
+# Run manually with: pre-commit run --all-files
+
+repos:
+  # General file checks
+  - repo: https://github.com/pre-commit/pre-commit-hooks
+    rev: v4.5.0
+    hooks:
+      - id: trailing-whitespace
+        name: Trim trailing whitespace
+        stages: [commit]
+
+      - id: end-of-file-fixer
+        name: Fix end of file
+        stages: [commit]
+
+      - id: check-yaml
+        name: Check YAML syntax
+        args: [--unsafe]
+        stages: [commit]
+
+      - id: check-toml
+        name: Check TOML syntax
+        stages: [commit]
+
+      - id: check-json
+        name: Check JSON syntax
+        stages: [commit]
+
+      - id: check-merge-conflict
+        name: Check for merge conflicts
+        stages: [commit]
+
+      - id: check-case-conflict
+        name: Check for case conflicts
+        stages: [commit]
+
+      - id: detect-private-key
+        name: Detect private keys
+        stages: [commit]
+
+      - id: mixed-line-ending
+        name: Fix mixed line endings
+        args: [--fix=lf]
+        stages: [commit]
+
+  # Rust formatting with rustfmt
+  - repo: https://github.com/doublify/pre-commit-rust
+    rev: v1.0
+    hooks:
+      - id: fmt
+        name: Rustfmt
+        entry: bash -c 'cargo fmt --all -- --check || (cargo fmt --all && exit 1)'
+        language: system
+        types: [rust]
+        pass_filenames: false
+        stages: [commit]
+
+      # Rust linting with clippy
+      - id: clippy
+        name: Clippy
+        entry: bash -c 'cargo clippy --workspace --all-features -- -D warnings'
+        language: system
+        types: [rust]
+        pass_filenames: false
+        stages: [commit]
+
+  # Security checks
+  - repo: https://github.com/Yelp/detect-secrets
+    rev: v1.4.0
+    hooks:
+      - id: detect-secrets
+        name: Detect secrets
+        args: [--baseline, .secrets.baseline]
+        stages: [commit]
+
+  # Markdown linting
+  - repo: https://github.com/igorshubovych/markdownlint-cli
+    rev: v0.35.0
+    hooks:
+      - id: markdownlint
+        name: Markdown lint
+        stages: [commit]
+
+  # Spell checking for documentation
+  - repo: https://github.com/codespell-project/codespell
+    rev: v2.2.6
+    hooks:
+      - id: codespell
+        name: Codespell (spell checker)
+        args: [--ignore-words-list=crate, nd, sav]
+        stages: [commit]
+        exclude: |
+          (?x)^(
+            Cargo.lock|
+            gas_baseline.json|
+            gas_thresholds.json
+          )$
+
+# Configuration for all hooks
+default_language_version:
+  rust: stable
+
+# Files to exclude
+exclude: |
+  (?x)^(
+    \.git/|
+    target/|
+    Cargo.lock|
+    \.vscode/|
+    \.idea/|
+    node_modules/|
+    build/|
+    dist/
+  )$
+
+# Default stages
+default_stages: [commit]
diff --git a/PRE_COMMIT_QUICK_START.md b/PRE_COMMIT_QUICK_START.md
new file mode 100644
index 00000000..c1599bf0
--- /dev/null
+++ b/PRE_COMMIT_QUICK_START.md
@@ -0,0 +1,113 @@
+# Pre-commit Hooks Quick Reference
+
+## Installation
+
+```bash
+# One command to install everything
+./scripts/setup-hooks.sh
+```
+
+That's it! The hooks are now installed and will run automatically before each commit.
+
+## What Happens on `git commit`
+
+1. **Pre-commit hook runs** (`.git/hooks/pre-commit`):
+   - ✓ Code formatting check with rustfmt
+   - ✓ Clippy linter runs on all code
+   - ✓ Merge conflict detection
+   - ✓ Debug statement warnings
+   - ✓ Script permission checking
+   - ✓ Cargo validation
+
+2. **If all checks pass**: Commit proceeds
+3. **If any check fails**: Commit is blocked, error details shown
+
+## Commit Message Format
+
+```bash
+git commit -m "type(scope): description"
+```
+
+### Examples
+
+✅ Good commit messages:
+```
+feat(insurance): add policy renewal calculation
+fix(market): resolve order matching bug
+docs: update API reference
+refactor(tokenization): simplify token minting
+perf: optimize escrow lookups
+test(bridge): add cross-chain integration tests
+chore: update dependencies
+```
+
+❌ Bad commit messages:
+```
+fixed stuff
+update code
+WIP
+changed things
+```
+
+## Bypass Hooks (Not Recommended)
+
+```bash
+git commit --no-verify -m "Your message"
+```
+
+## Fix Common Issues
+
+### Formatting fails
+```bash
+cargo fmt --all
+git add .
+git commit -m "type: message"
+```
+
+### Clippy warnings
+```bash
+cargo clippy --workspace --all-features
+# Fix the issues shown
+git commit -m "type: message"
+```
+
+### Commit message rejected
+Reword to follow: `type(scope): description`
+
+Example: `feat(insurance): add renewal logic`
+
+## Files Included
+
+| File | Purpose |
+|------|---------|
+| `.pre-commit-config.yaml` | Optional framework config (run `pre-commit install`) |
+| `.git/hooks/pre-commit` | Main validation hook |
+| `.git/hooks/commit-msg` | Commit message validator |
+| `scripts/pre-commit` | Source script for pre-commit hook |
+| `scripts/commit-msg` | Source script for commit-msg hook |
+| `scripts/setup-hooks.sh` | Installation script |
+| `docs/PRE_COMMIT_HOOKS_GUIDE.md` | Detailed documentation |
+
+## Useful Commands
+
+```bash
+# Run pre-commit manually
+.git/hooks/pre-commit
+
+# Format all code
+cargo fmt --all
+
+# Run clippy
+cargo clippy --workspace --all-features -- -D warnings
+
+# Run tests
+cargo test --workspace
+
+# View hook files
+cat .git/hooks/pre-commit
+cat .git/hooks/commit-msg
+```
+
+## Need Help?
+
+See [docs/PRE_COMMIT_HOOKS_GUIDE.md](../../docs/PRE_COMMIT_HOOKS_GUIDE.md) for detailed documentation and troubleshooting.
diff --git a/docs/PRE_COMMIT_HOOKS_GUIDE.md b/docs/PRE_COMMIT_HOOKS_GUIDE.md
new file mode 100644
index 00000000..cd3808a8
--- /dev/null
+++ b/docs/PRE_COMMIT_HOOKS_GUIDE.md
@@ -0,0 +1,257 @@
+# Pre-commit Hooks Setup Guide
+
+## Overview
+
+Pre-commit hooks are automated checks that run before each commit, ensuring code quality and consistency. The TeachLink contract project includes both Git hooks and an optional pre-commit framework configuration.
+
+## Installation
+
+### Option 1: Using Git Hooks (Recommended for Rust projects)
+
+Install the local Git hooks:
+
+```bash
+./scripts/setup-hooks.sh
+```
+
+Or manually:
+
+```bash
+chmod +x scripts/pre-commit scripts/commit-msg
+cp scripts/pre-commit .git/hooks/pre-commit
+cp scripts/commit-msg .git/hooks/commit-msg
+```
+
+### Option 2: Using Pre-commit Framework (Language-agnostic)
+
+Install pre-commit:
+
+```bash
+pip install pre-commit
+```
+
+Install the hooks:
+
+```bash
+pre-commit install
+```
+
+Update hooks to latest versions:
+
+```bash
+pre-commit autoupdate
+```
+
+## What Gets Checked
+
+### Pre-commit Hook Checks
+
+1. **Rustfmt (Code Formatting)**
+   - Ensures all Rust code follows the project's formatting standards
+   - Automatically formatted with `cargo fmt --all`
+
+2. **Clippy (Linting)**
+   - Rust linter that catches common mistakes
+   - All warnings treated as errors (`-D warnings`)
+
+3. **Merge Conflict Detection**
+   - Prevents committing files with merge conflict markers
+
+4. **Debug Statement Detection**
+   - Warns about `println!`, `dbg!`, `eprintln!` left in code
+   - Non-blocking (allows commit with warning)
+
+5. **Script Permissions**
+   - Ensures shell scripts have execute permissions
+
+6. **Cargo Validation**
+   - Validates `Cargo.toml` files
+
+### Commit-msg Hook Checks
+
+Validates commit messages follow **Conventional Commits** format:
+
+```
+type(scope): description
+```
+
+**Valid types:**
+- `feat`: A new feature
+- `fix`: A bug fix
+- `docs`: Documentation only changes
+- `style`: Formatting or code style changes
+- `refactor`: Code restructuring without feature changes
+- `perf`: Performance improvements
+- `test`: Test additions or corrections
+- `chore`: Build system, dependency updates, tooling
+- `ci`: CI/CD configuration changes
+- `build`: Build system changes
+
+**Examples:**
+
+```
+feat(insurance): add policy renewal calculation
+fix(market): resolve order matching bug
+docs: update API reference
+refactor(tokenization): simplify token minting logic
+perf: optimize escrow lookups
+```
+
+### Optional: Pre-commit Framework
+
+The `.pre-commit-config.yaml` includes additional checks:
+
+- **File quality**: Trailing whitespace, EOF fixes, mixed line endings
+- **YAML/TOML/JSON validation**: Syntax checking
+- **Private key detection**: Prevents credential leaks
+- **Markdown linting**: Documentation quality
+- **Spell checking**: Catches typos in code and docs
+
+## Running Checks Manually
+
+### Git Hooks
+
+```bash
+# Run pre-commit checks
+.git/hooks/pre-commit
+
+# Test commit message validation
+.git/hooks/commit-msg <(echo "feat: test commit")
+```
+
+### Cargo-based Checks
+
+```bash
+# Check formatting
+cargo fmt --all -- --check
+
+# Run clippy
+cargo clippy --workspace --all-features -- -D warnings
+
+# Run tests
+cargo test --workspace
+```
+
+### Pre-commit Framework
+
+```bash
+# Run all hooks on staged files
+pre-commit run --hook-stage commit
+
+# Run all hooks on all files
+pre-commit run --all-files
+
+# Run specific hook
+pre-commit run rustfmt --all-files
+
+# Bypass hooks temporarily (not recommended)
+git commit --no-verify
+```
+
+## Fixing Common Issues
+
+### Formatting Issues
+
+```bash
+# Auto-fix formatting
+cargo fmt --all
+
+# Verify fix
+cargo fmt --all -- --check
+```
+
+### Clippy Warnings
+
+```bash
+# Run clippy to see all issues
+cargo clippy --workspace --all-features
+
+# Fix common issues
+cargo fix --allow-dirty
+```
+
+### Commit Message Format
+
+Ensure your commit message follows the pattern:
+
+```
+type(scope): description
+```
+
+For example:
+
+```bash
+git commit -m "feat(insurance): add policy renewal"
+```
+
+## Configuration
+
+### Rustfmt Configuration
+
+See [rustfmt.toml](../../rustfmt.toml) for formatting rules.
+
+### Pre-commit Configuration
+
+See [.pre-commit-config.yaml](../../.pre-commit-config.yaml) for framework hooks.
+
+### Git Hooks Scripts
+
+- [scripts/pre-commit](../pre-commit) - Main pre-commit validation
+- [scripts/commit-msg](../commit-msg) - Commit message validation
+- [scripts/setup-hooks.sh](../setup-hooks.sh) - Hook installation script
+
+## CI/CD Integration
+
+The project's GitHub Actions automatically run these checks:
+
+- `.github/workflows/ci.yml`: Full CI pipeline with formatting and linting
+- `.github/workflows/regression.yml`: Additional regression tests
+- Branch protection rules enforce passing checks before merge
+
+## Troubleshooting
+
+### Hooks not running
+
+```bash
+# Verify hooks are executable
+ls -la .git/hooks/pre-commit .git/hooks/commit-msg
+
+# Re-install hooks
+./scripts/setup-hooks.sh
+```
+
+### Bypass hooks (use sparingly)
+
+```bash
+# Skip pre-commit checks
+git commit --no-verify -m "chore: emergency fix"
+
+# Skip commit-msg validation
+git commit --no-verify -m "WIP"
+```
+
+### Update hooks
+
+```bash
+# With pre-commit framework
+pre-commit autoupdate
+
+# With git hooks
+git pull  # Get latest scripts
+./scripts/setup-hooks.sh  # Reinstall
+```
+
+## Best Practices
+
+1. **Always let hooks run** - They catch mistakes before they reach the repository
+2. **Fix issues locally** - Don't bypass hooks with `--no-verify`
+3. **Follow commit conventions** - Makes git history readable and searchable
+4. **Keep hooks updated** - Run `pre-commit autoupdate` regularly
+5. **Review hook output** - Understand what failed and why
+
+## Related Documentation
+
+- [Rustfmt Guide](../RUSTFMT_GUIDE.md)
+- [Contributing Guidelines](../../CONTRIBUTING.md)
+- [Conventional Commits](https://www.conventionalcommits.org/)
+- [Git Hooks Documentation](https://git-scm.com/docs/githooks)
diff --git a/docs/RUSTFMT_GUIDE.md b/docs/RUSTFMT_GUIDE.md
new file mode 100644
index 00000000..e8ccb414
--- /dev/null
+++ b/docs/RUSTFMT_GUIDE.md
@@ -0,0 +1,115 @@
+# Rustfmt Configuration Guide
+
+## Overview
+This document describes the rustfmt configuration for the TeachLink contract project.
+
+## Configuration File
+The project uses [rustfmt.toml](rustfmt.toml) located at the workspace root to define consistent code formatting standards.
+
+## Key Configuration Settings
+
+### Code Layout
+- **Max Width**: 100 columns - balances readability with modern screen sizes
+- **Edition**: 2021 - latest Rust edition
+- **Tab Spaces**: 4 - standard indentation
+- **Hard Tabs**: False - uses spaces for consistency
+
+### Imports and Modules
+- **Imports Granularity**: Crate level - groups imports logically
+- **Reorder Imports**: Enabled - maintains alphabetical order
+- **Reorder Modules**: Enabled - consistent module ordering
+
+### Code Formatting Rules
+- **Use Field Init Shorthand**: Enables shorthand syntax for struct initialization
+- **Use Try Shorthand**: Enables `?` operator use
+- **Trailing Comma**: Vertical - adds trailing commas in multiline collections
+- **Match Arm Blocks**: Forces consistent block formatting in match arms
+- **Force Explicit ABI**: Prevents implicit C ABI in extern blocks
+
+### Comments
+- **Normalize Doc Attributes**: Standardizes documentation comment formatting
+- **Comment Width**: 80 columns
+- **Wrap Comments**: Automatically wraps long comments
+- **Format Code in Doc Comments**: Applies formatting to code examples in docs
+- **Format Macro Bodies**: Formats code within macros
+
+### Function and Type Formatting
+- **Function Arguments Layout**: Tall - each argument on separate line when formatted
+- **Where Single Line**: False - places where clauses on new line if needed
+- **Chain Width**: 60 - method chains wrap after this width
+
+## Running Rustfmt
+
+### Check Formatting (Dry Run)
+```bash
+cargo fmt --all -- --check
+```
+
+### Apply Formatting
+```bash
+cargo fmt --all
+```
+
+### Format Specific File
+```bash
+cargo fmt --path path/to/file.rs
+```
+
+## CI/CD Integration
+
+The project has automatic formatting checks in GitHub Actions:
+
+- **CI Pipeline** ([.github/workflows/ci.yml](.github/workflows/ci.yml)): Runs `cargo fmt --all -- --check` to verify formatting
+- **Branch Protection**: Requires formatting to pass before PR merge
+- **Docker Compose**: Development container includes formatting checks
+
+### PR Requirements
+All pull requests must pass the formatting check:
+```bash
+cargo fmt --all -- --check
+```
+
+## Editor Integration
+
+### VS Code Setup
+1. Install Rust-analyzer extension
+2. Configure auto-format on save in settings.json:
+```json
+{
+  "[rust]": {
+    "editor.formatOnSave": true,
+    "editor.defaultFormatter": "rust-lang.rust-analyzer"
+  }
+}
+```
+
+### Pre-commit Hook (Optional)
+To run formatting before commits, add to `.git/hooks/pre-commit`:
+```bash
+#!/bin/bash
+cargo fmt --all -- --check
+if [ $? -ne 0 ]; then
+  echo "Code formatting failed. Run: cargo fmt --all"
+  exit 1
+fi
+```
+
+## Guidelines for Developers
+
+1. **Before Committing**: Run `cargo fmt --all` to ensure consistency
+2. **Editor Setup**: Enable auto-formatting for immediate feedback
+3. **Respect the Configuration**: Don't override rustfmt settings locally
+4. **Code Reviews**: Ensure formatting passes before merging PRs
+
+## Additional Resources
+
+- [Rustfmt Documentation](https://rust-lang.github.io/rustfmt/)
+- [Configurable Properties](https://rust-lang.github.io/rustfmt/?version=v1.7.0&search=max_width)
+- [Style Guide](https://doc.rust-lang.org/1.0.0/style/)
+
+## Configuration Status
+
+✅ **Configuration**: Fully configured in rustfmt.toml
+✅ **CI Integration**: Checks enabled in GitHub Actions
+✅ **Current State**: Codebase fully formatted and passing checks
+✅ **Toolchain**: Rust stable with rustfmt and clippy installed
diff --git a/rustfmt.toml b/rustfmt.toml
new file mode 100644
index 00000000..200cc485
--- /dev/null
+++ b/rustfmt.toml
@@ -0,0 +1,89 @@
+# Rust Code Formatting Configuration
+# This file configures rustfmt for consistent code formatting across the TeachLink contract project
+
+# Edition to use for formatting
+edition = "2021"
+
+# Column limit for code lines
+max_width = 100
+
+# Use small heuristics for indentation
+hard_tabs = false
+tab_spaces = 4
+
+# Normalize formatting for doc comments
+normalize_doc_attributes = true
+
+# Imports formatting
+imports_granularity = "Crate"
+reorder_imports = true
+reorder_modules = true
+
+# Function formatting
+fn_single_line = false
+where_single_line = false
+
+# Struct and enum formatting
+struct_literal_style = "Default"
+enum_discrim_align_threshold = 20
+
+# Match statement formatting
+match_arm_leading_pipes = "Never"
+match_block_trailing_comma = false
+
+# Formatting for closures
+closure_indent = "Block"
+
+# Arrow style for match arms
+match_arm_blocks = true
+
+# Force multiline formatting rules
+force_explicit_abi = true
+force_multiline_blocks = false
+
+# Comments formatting
+comment_width = 80
+normalize_comments = true
+wrap_comments = true
+
+# Chains formatting
+chain_width = 60
+
+# String formatting
+format_strings = true
+
+# Stability features
+unstable_features = true
+
+# Spaces around binops
+spaces_around_ranges = false
+
+# Newline formatting
+newline_style = "Unix"
+blank_lines_upper_bound = 1
+blank_lines_lower_bound = 0
+
+# Remove nested parentheses when possible
+remove_nested_parens = true
+
+# Space after colon in type annotations
+space_after_colon = true
+space_before_colon = false
+
+# Trailing comma in tuples, arrays, and function arguments
+trailing_comma = "Vertical"
+
+# Use field init shorthand
+use_field_init_shorthand = true
+use_try_shorthand = true
+
+# Fn args density
+fn_args_layout = "Tall"
+
+# Module resolution
+use_small_heuristics = "Default"
+
+# Other formatting options
+format_code_in_doc_comments = true
+format_macro_bodies = true
+format_macro_matchers = true
diff --git a/scripts/commit-msg b/scripts/commit-msg
new file mode 100755
index 00000000..7f07addc
--- /dev/null
+++ b/scripts/commit-msg
@@ -0,0 +1,55 @@
+#!/bin/bash
+# Commit message linter
+# Validates commit messages follow conventional commits format
+# Install: cp scripts/commit-msg .git/hooks/commit-msg && chmod +x .git/hooks/commit-msg
+
+COMMIT_MSG_FILE=$1
+COMMIT_SOURCE=$2
+
+# Skip for merge commits, squashes, etc.
+if [ "$COMMIT_SOURCE" != "" ]; then
+    exit 0
+fi
+
+# Read the commit message
+COMMIT_MSG=$(cat "$COMMIT_MSG_FILE")
+
+# Colors
+RED='\033[0;31m'
+YELLOW='\033[1;33m'
+GREEN='\033[0;32m'
+NC='\033[0m'
+
+# Conventional Commits pattern: type(scope): description
+# Types: feat, fix, docs, style, refactor, perf, test, chore, ci, build
+COMMIT_PATTERN="^(feat|fix|docs|style|refactor|perf|test|chore|ci|build)(\(.+\))?!?: .{1,50}$"
+
+if [[ $COMMIT_MSG =~ $COMMIT_PATTERN ]]; then
+    echo -e "${GREEN}✓ Commit message format is valid${NC}"
+    exit 0
+else
+    echo -e "${RED}✗ Commit message does not follow conventional commits format${NC}"
+    echo ""
+    echo "Expected format: type(scope): description"
+    echo ""
+    echo "Valid types:"
+    echo "  - feat:     A new feature"
+    echo "  - fix:      A bug fix"
+    echo "  - docs:     Documentation only changes"
+    echo "  - style:    Changes that do not affect code meaning (formatting)"
+    echo "  - refactor: Code change that neither fixes a bug nor adds a feature"
+    echo "  - perf:     Code change that improves performance"
+    echo "  - test:     Adding missing tests or correcting existing tests"
+    echo "  - chore:    Changes to build process, dependencies, or tools"
+    echo "  - ci:       Changes to CI/CD configuration"
+    echo "  - build:    Changes to build system or external dependencies"
+    echo ""
+    echo "Examples:"
+    echo "  - feat(insurance): add policy renewal calculation"
+    echo "  - fix(market): resolve order matching bug"
+    echo "  - docs: update API reference"
+    echo ""
+    echo -e "${YELLOW}Your message:${NC}"
+    echo "$COMMIT_MSG"
+    exit 1
+fi
diff --git a/scripts/pre-commit b/scripts/pre-commit
new file mode 100755
index 00000000..8e0457f1
--- /dev/null
+++ b/scripts/pre-commit
@@ -0,0 +1,98 @@
+#!/bin/bash
+# Pre-commit hook for TeachLink contract
+# Runs formatting and linting checks before allowing commits
+# Install: cp scripts/pre-commit .git/hooks/pre-commit && chmod +x .git/hooks/pre-commit
+
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+NC='\033[0m' # No Color
+
+echo -e "${YELLOW}Running pre-commit checks...${NC}\n"
+
+# Check if we're in the right directory
+if [ ! -f "Cargo.toml" ]; then
+    echo -e "${RED}Error: Cargo.toml not found. Run from workspace root.${NC}"
+    exit 1
+fi
+
+FAILED=0
+
+# 1. Check code formatting
+echo -e "${YELLOW}1. Checking code formatting with rustfmt...${NC}"
+if cargo fmt --all -- --check > /dev/null 2>&1; then
+    echo -e "${GREEN}✓ Code formatting check passed${NC}\n"
+else
+    echo -e "${RED}✗ Code formatting failed. Run: cargo fmt --all${NC}\n"
+    FAILED=1
+fi
+
+# 2. Run clippy linter
+echo -e "${YELLOW}2. Running clippy linter...${NC}"
+if cargo clippy --workspace --all-features -- -D warnings > /dev/null 2>&1; then
+    echo -e "${GREEN}✓ Clippy check passed${NC}\n"
+else
+    echo -e "${RED}✗ Clippy check failed. See errors above.${NC}\n"
+    FAILED=1
+fi
+
+# 3. Check for merge conflicts
+echo -e "${YELLOW}3. Checking for merge conflicts...${NC}"
+if ! git diff --cached | grep -q "^<<<<<<< HEAD"; then
+    echo -e "${GREEN}✓ No merge conflicts detected${NC}\n"
+else
+    echo -e "${RED}✗ Merge conflict markers found${NC}\n"
+    FAILED=1
+fi
+
+# 4. Check for debug prints (println!, dbg!, etc.)
+echo -e "${YELLOW}4. Checking for debug statements...${NC}"
+STAGED_FILES=$(git diff --cached --name-only --diff-filter=ACM | grep '\.rs$' || true)
+if [ -z "$STAGED_FILES" ]; then
+    echo -e "${GREEN}✓ No Rust files staged (skipping debug check)${NC}\n"
+else
+    if echo "$STAGED_FILES" | xargs grep -l "println!\|dbg!\|eprintln!" > /dev/null 2>&1; then
+        echo -e "${YELLOW}⚠ Debug statements found (consider removing before commit)${NC}\n"
+    else
+        echo -e "${GREEN}✓ No debug statements found${NC}\n"
+    fi
+fi
+
+# 5. Check file permissions on scripts
+echo -e "${YELLOW}5. Checking script permissions...${NC}"
+SCRIPT_FILES=$(git diff --cached --name-only --diff-filter=ACM | grep '\.sh$' || true)
+if [ -n "$SCRIPT_FILES" ]; then
+    for script in $SCRIPT_FILES; do
+        if [ ! -x "$script" ]; then
+            echo -e "${YELLOW}⚠ Warning: $script is not executable${NC}"
+            chmod +x "$script"
+        fi
+    done
+fi
+echo -e "${GREEN}✓ Script permissions checked${NC}\n"
+
+# 6. Validate Cargo.toml files
+echo -e "${YELLOW}6. Validating Cargo.toml files...${NC}"
+if cargo check --message-format=short > /dev/null 2>&1; then
+    echo -e "${GREEN}✓ Cargo.toml validation passed${NC}\n"
+else
+    echo -e "${RED}✗ Cargo.toml validation failed${NC}\n"
+    FAILED=1
+fi
+
+# Final result
+if [ $FAILED -eq 0 ]; then
+    echo -e "${GREEN}═══════════════════════════════════════${NC}"
+    echo -e "${GREEN}✓ All pre-commit checks passed!${NC}"
+    echo -e "${GREEN}═══════════════════════════════════════${NC}"
+    exit 0
+else
+    echo -e "${RED}═══════════════════════════════════════${NC}"
+    echo -e "${RED}✗ Pre-commit checks failed!${NC}"
+    echo -e "${RED}═══════════════════════════════════════${NC}"
+    echo -e "${RED}Fix the errors above and run: git commit${NC}"
+    exit 1
+fi
diff --git a/scripts/setup-hooks.sh b/scripts/setup-hooks.sh
new file mode 100755
index 00000000..e424ff68
--- /dev/null
+++ b/scripts/setup-hooks.sh
@@ -0,0 +1,48 @@
+#!/bin/bash
+# Setup script for pre-commit hooks
+# Usage: ./scripts/setup-hooks.sh
+
+set -e
+
+SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+PROJECT_ROOT="$(dirname "$SCRIPT_DIR")"
+GIT_HOOKS_DIR="$PROJECT_ROOT/.git/hooks"
+
+echo "Setting up pre-commit hooks..."
+echo ""
+
+# Check if git directory exists
+if [ ! -d "$PROJECT_ROOT/.git" ]; then
+    echo "Error: Not in a git repository"
+    exit 1
+fi
+
+# Make sure git hooks directory exists
+mkdir -p "$GIT_HOOKS_DIR"
+
+# Copy and make executable: pre-commit hook
+echo "Installing pre-commit hook..."
+cp "$SCRIPT_DIR/pre-commit" "$GIT_HOOKS_DIR/pre-commit"
+chmod +x "$GIT_HOOKS_DIR/pre-commit"
+echo "✓ Pre-commit hook installed"
+
+# Copy and make executable: commit-msg hook
+echo "Installing commit-msg hook..."
+cp "$SCRIPT_DIR/commit-msg" "$GIT_HOOKS_DIR/commit-msg"
+chmod +x "$GIT_HOOKS_DIR/commit-msg"
+echo "✓ Commit-msg hook installed"
+
+echo ""
+echo "Pre-commit hooks installed successfully!"
+echo ""
+echo "Available hooks:"
+echo "  • pre-commit:  Runs before committing (rustfmt, clippy, merge conflicts, etc.)"
+echo "  • commit-msg:  Validates commit message format"
+echo ""
+echo "To run hooks manually:"
+echo "  • Check specific hook: .git/hooks/pre-commit"
+echo "  • Check commit message: .git/hooks/commit-msg <commit-msg-file>"
+echo ""
+echo "To bypass hooks (not recommended):"
+echo "  • git commit --no-verify"
+echo ""