diff --git a/.buildkite/test-pipeline.yaml b/.buildkite/test-pipeline.yaml
index c65ab04b8ddda..15f971b66e3bd 100644
--- a/.buildkite/test-pipeline.yaml
+++ b/.buildkite/test-pipeline.yaml
@@ -13,6 +13,9 @@ steps:
 
 - label: Basic Correctness Test
   command: pytest -v -s --forked basic_correctness
+  
+- label: Core Test
+  command: pytest -v -s core
 
 - label: Distributed Comm Ops Test
   command: pytest -v -s --forked test_comm_ops.py
diff --git a/tests/core/__init__.py b/tests/core/__init__.py
new file mode 100644
index 0000000000000..e69de29bb2d1d
diff --git a/tests/core/test_block_manager.py b/tests/core/test_block_manager.py
new file mode 100644
index 0000000000000..ecdf3025cffdf
--- /dev/null
+++ b/tests/core/test_block_manager.py
@@ -0,0 +1,262 @@
+import pytest
+import time
+from typing import List
+
+from vllm import SamplingParams
+from vllm.block import PhysicalTokenBlock
+from vllm.core.block_manager import BlockAllocator, BlockSpaceManager, AllocStatus
+from vllm.utils import Device
+from vllm.sequence import Sequence, SequenceGroup, SequenceStatus
+
+from .utils import create_dummy_prompt
+
+
+def test_block_allocator_allocate():
+    block_size = 4
+    num_cpu_blocks = 4
+    cpu_allocator = BlockAllocator(Device.CPU, block_size, num_cpu_blocks)
+
+    # Allocate all available cpu blocks.
+    num_free = num_cpu_blocks
+    assert cpu_allocator.get_num_free_blocks() == num_free
+    for _ in range(num_cpu_blocks):
+        block = cpu_allocator.allocate()
+        num_free -= 1
+        assert block not in cpu_allocator.free_blocks
+        assert cpu_allocator.get_num_free_blocks() == num_free
+
+    with pytest.raises(ValueError):
+        cpu_allocator.allocate()
+
+
+def test_block_allocator_free():
+    block_size = 4
+    num_cpu_blocks = 4
+    cpu_allocator = BlockAllocator(Device.CPU, block_size, num_cpu_blocks)
+
+    # Allocate all available cpu blocks.
+    blocks: List[PhysicalTokenBlock] = []
+    for _ in range(num_cpu_blocks):
+        block = cpu_allocator.allocate()
+        blocks.append(block)
+        assert block not in cpu_allocator.free_blocks
+
+    # Free all allocated cpu blocks.
+    num_free = 0
+    assert cpu_allocator.get_num_free_blocks() == num_free
+    for block in blocks:
+        cpu_allocator.free(block)
+        num_free += 1
+        assert block in cpu_allocator.free_blocks
+        assert cpu_allocator.get_num_free_blocks() == num_free
+
+        with pytest.raises(ValueError):
+            cpu_allocator.free(block)
+
+
+def test_allocate():
+    block_size = 4
+    num_cpu_blocks = 4
+    num_gpu_blocks = 4
+    block_manager = BlockSpaceManager(block_size,
+                                      num_cpu_blocks,
+                                      num_gpu_blocks,
+                                      watermark=0)
+
+    # Allocate same sequence group to all available gpu blocks.
+    for i in range(num_gpu_blocks):
+        _, seq_group = create_dummy_prompt(str(i), block_size)
+        assert block_manager.can_allocate(seq_group)
+        block_manager.allocate(seq_group)
+    assert block_manager.can_allocate(seq_group) != AllocStatus.OK
+
+    # Allocate same sequence group to all available gpu blocks.
+    # Use watermark to reserve one gpu block.
+    block_manager = BlockSpaceManager(block_size,
+                                      num_cpu_blocks,
+                                      num_gpu_blocks,
+                                      watermark=1 / num_gpu_blocks)
+    for i in range(num_gpu_blocks - 1):
+        _, seq_group = create_dummy_prompt(str(i), block_size)
+        assert block_manager.can_allocate(seq_group)
+        block_manager.allocate(seq_group)
+    assert block_manager.can_allocate(seq_group) != AllocStatus.OK
+
+
+def test_append_slot_single_seq():
+    block_size = 4
+    num_cpu_blocks = 4
+    num_gpu_blocks = 4
+    block_manager = BlockSpaceManager(block_size,
+                                      num_cpu_blocks,
+                                      num_gpu_blocks,
+                                      watermark=0)
+
+    # Allocate single seq to gpu block.
+    prompt, seq_group = create_dummy_prompt("1", block_size)
+    block_manager.allocate(seq_group)
+
+    # Nothing to append. Sequence has no new logical blocks.
+    assert block_manager.can_append_slot(seq_group)
+    before_blocks = block_manager.get_num_free_gpu_blocks()
+    assert not block_manager.append_slot(prompt)
+    after_blocks = block_manager.get_num_free_gpu_blocks()
+    assert before_blocks == after_blocks
+
+    # Add block_size number of new tokens and append slot.
+    for i in range(block_size):
+        token_id = i + 5
+        prompt.append_token_id(token_id, {token_id: 0.0})
+
+    assert block_manager.can_append_slot(seq_group)
+    before_blocks = block_manager.get_num_free_gpu_blocks()
+    assert not block_manager.append_slot(prompt)
+    after_blocks = block_manager.get_num_free_gpu_blocks()
+    assert before_blocks - after_blocks == 1
+
+
+def test_append_slot_cow():
+    block_size = 4
+    num_cpu_blocks = 4
+    num_gpu_blocks = 4
+    block_manager = BlockSpaceManager(block_size,
+                                      num_cpu_blocks,
+                                      num_gpu_blocks,
+                                      watermark=0)
+
+    # Allocate prompt to gpu block.
+    prompt = Sequence(1, "one two three", [1, 2, 3], block_size)
+    child = prompt.fork(2)
+    token_id = 4
+    child.append_token_id(token_id, {token_id: 0.0})
+    seq_group = SequenceGroup("1", [prompt, child], SamplingParams(),
+                              time.time(), time.perf_counter)
+    block_manager.allocate(seq_group)
+
+    # Append slot for child token.
+    # Last block being modified is shared. Copy on write occurs.
+    assert block_manager.can_append_slot(seq_group)
+    before_blocks = block_manager.get_num_free_gpu_blocks()
+    src_block, dst_block = block_manager.append_slot(child)
+    assert src_block != dst_block
+
+    after_blocks = block_manager.get_num_free_gpu_blocks()
+    assert before_blocks - after_blocks == 1
+
+
+def test_fork():
+    block_size = 4
+    num_cpu_blocks = 4
+    num_gpu_blocks = 4
+    block_manager = BlockSpaceManager(block_size,
+                                      num_cpu_blocks,
+                                      num_gpu_blocks,
+                                      watermark=0)
+
+    prompt, seq_group = create_dummy_prompt("1",
+                                            block_size - 1,
+                                            block_size=block_size)
+    block_manager.allocate(seq_group)
+
+    # Fork prompt and copy block tables.
+    child = prompt.fork(2)
+    block_manager.fork(prompt, child)
+    assert block_manager.get_block_table(
+        prompt) == block_manager.get_block_table(child)
+    token_id = 4
+    # Append token to child. Block is shared so copy on write occurs.
+    child.append_token_id(token_id, {token_id: 0.0})
+    block_manager.append_slot(child)
+    assert block_manager.get_block_table(
+        prompt) != block_manager.get_block_table(child)
+
+
+def test_swap():
+    block_size = 4
+    num_cpu_blocks = 4
+    num_gpu_blocks = 4
+    block_manager = BlockSpaceManager(block_size,
+                                      num_cpu_blocks,
+                                      num_gpu_blocks,
+                                      watermark=0)
+
+    prompt, seq_group = create_dummy_prompt("1", prompt_length=block_size - 1)
+    prompt.status = SequenceStatus.WAITING
+    block_manager.allocate(seq_group)
+
+    # Emulate a forward pass by appending a single token.
+    # The block manager then knows how many unprocessed
+    # tokens will be written in the next forward pass.
+    token_id = 0
+    prompt.status = SequenceStatus.RUNNING
+    prompt.append_token_id(token_id, {token_id: 0.0})
+
+    # Swap seq group from GPU -> CPU.
+    gpu_blocks = block_manager.get_block_table(prompt)
+    assert block_manager.can_swap_out(seq_group)
+    before_cpu_blocks = block_manager.get_num_free_cpu_blocks()
+    before_gpu_blocks = block_manager.get_num_free_gpu_blocks()
+    mapping = block_manager.swap_out(seq_group)
+    assert list(mapping.keys()) == gpu_blocks
+    after_cpu_blocks = block_manager.get_num_free_cpu_blocks()
+    after_gpu_blocks = block_manager.get_num_free_gpu_blocks()
+    assert before_cpu_blocks == after_cpu_blocks + len(gpu_blocks)
+    assert before_gpu_blocks + len(gpu_blocks) == after_gpu_blocks
+    prompt.status = SequenceStatus.SWAPPED
+
+    # Swap seq group from CPU -> GPU.
+    cpu_blocks = block_manager.get_block_table(prompt)
+    assert block_manager.can_swap_in(seq_group)
+    before_cpu_blocks = block_manager.get_num_free_cpu_blocks()
+    before_gpu_blocks = block_manager.get_num_free_gpu_blocks()
+    mapping = block_manager.swap_in(seq_group)
+    assert list(mapping.keys()) == cpu_blocks
+    after_cpu_blocks = block_manager.get_num_free_cpu_blocks()
+    after_gpu_blocks = block_manager.get_num_free_gpu_blocks()
+    assert before_cpu_blocks + len(cpu_blocks) == after_cpu_blocks
+    assert before_gpu_blocks == after_gpu_blocks + len(cpu_blocks)
+
+
+def test_free():
+    block_size = 4
+    num_cpu_blocks = 4
+    num_gpu_blocks = 4
+    block_manager = BlockSpaceManager(block_size,
+                                      num_cpu_blocks,
+                                      num_gpu_blocks,
+                                      watermark=0)
+
+    prompt, seq_group = create_dummy_prompt("1", block_size)
+    block_manager.allocate(seq_group)
+
+    # Free allocated seq.
+    prompt_blocks = len(block_manager.get_block_table(prompt))
+    before_blocks = block_manager.get_num_free_gpu_blocks()
+    block_manager.free(prompt)
+    after_blocks = block_manager.get_num_free_gpu_blocks()
+    assert after_blocks == before_blocks + prompt_blocks
+
+    # Block table for freed seq is deleted.
+    with pytest.raises(KeyError):
+        block_manager.get_block_table(prompt)
+
+
+def test_reset():
+    block_size = 4
+    num_cpu_blocks = 4
+    num_gpu_blocks = 4
+    block_manager = BlockSpaceManager(block_size,
+                                      num_cpu_blocks,
+                                      num_gpu_blocks,
+                                      watermark=0)
+
+    # Allocate same seq group on all available gpu blocks.
+    original_blocks = block_manager.get_num_free_gpu_blocks()
+    for i in range(num_gpu_blocks):
+        _, seq_group = create_dummy_prompt(str(i), block_size)
+        block_manager.allocate(seq_group)
+    assert block_manager.get_num_free_gpu_blocks() == 0
+
+    # Resetting block manager frees all allocated blocks.
+    block_manager.reset()
+    assert block_manager.get_num_free_gpu_blocks() == original_blocks
diff --git a/tests/core/test_scheduler.py b/tests/core/test_scheduler.py
new file mode 100644
index 0000000000000..6322b2f2d5e9e
--- /dev/null
+++ b/tests/core/test_scheduler.py
@@ -0,0 +1,170 @@
+from typing import List
+import pytest  # noqa
+
+from vllm.config import CacheConfig, SchedulerConfig
+from vllm.core.scheduler import Scheduler
+from vllm.sequence import SequenceGroup
+
+from .utils import create_dummy_prompt
+
+
+def test_scheduler_add_seq_group():
+    block_size = 4
+    scheduler_config = SchedulerConfig(100, 64, 1, 256)
+    cache_config = CacheConfig(block_size, 1.0, 1, "auto")
+    cache_config.num_cpu_blocks = 4
+    cache_config.num_gpu_blocks = 4
+    scheduler = Scheduler(scheduler_config, cache_config, None)
+
+    # Add seq group to scheduler.
+    num_seq_group = 4
+    for i in range(num_seq_group):
+        _, seq_group = create_dummy_prompt(str(i), block_size)
+        scheduler.add_seq_group(seq_group)
+        assert scheduler.get_num_unfinished_seq_groups() == i + 1
+
+
+def test_scheduler_abort_seq_group():
+    block_size = 4
+    scheduler_config = SchedulerConfig(100, 64, 1, 256)
+    cache_config = CacheConfig(block_size, 1.0, 1, "auto")
+    cache_config.num_cpu_blocks = 4
+    cache_config.num_gpu_blocks = 4
+    scheduler = Scheduler(scheduler_config, cache_config, None)
+
+    # Add multiple seq groups to scheduler.
+    num_seq_group = 4
+    request_ids = set()
+    for i in range(num_seq_group):
+        _, seq_group = create_dummy_prompt(str(i), block_size)
+        scheduler.add_seq_group(seq_group)
+        request_ids.add(str(i))
+
+    # Abort all added seq groups.
+    assert scheduler.get_num_unfinished_seq_groups() == num_seq_group
+    scheduler.abort_seq_group(request_ids)
+    assert scheduler.get_num_unfinished_seq_groups() == 0
+
+
+def test_scheduler_schedule_simple():
+    block_size = 4
+    num_seq_group = 4
+    max_model_len = 16
+    scheduler_config = SchedulerConfig(64, num_seq_group, max_model_len, 256)
+    cache_config = CacheConfig(block_size, 1.0, 1, "auto")
+    cache_config.num_cpu_blocks = 8
+    cache_config.num_gpu_blocks = 8
+    scheduler = Scheduler(scheduler_config, cache_config, None)
+
+    # Add seq groups to scheduler.
+    running: List[SequenceGroup] = []
+    for i in range(num_seq_group):
+        _, seq_group = create_dummy_prompt(str(i), prompt_length=block_size)
+        scheduler.add_seq_group(seq_group)
+        running.append(seq_group)
+
+    # Schedule seq groups prompts.
+    seq_group_meta, out = scheduler.schedule()
+    assert set(out.scheduled_seq_groups) == set(running)
+    assert out.num_batched_tokens == num_seq_group * seq_group.get_seqs(
+    )[0].get_len()
+    assert (not out.blocks_to_copy and not out.blocks_to_swap_in
+            and not out.blocks_to_swap_out)
+    assert len(seq_group_meta) == num_seq_group
+
+    # Schedule seq groups generation.
+    seq_group_meta, out = scheduler.schedule()
+    assert set(out.scheduled_seq_groups) == set(running)
+    assert out.num_batched_tokens == num_seq_group
+    assert (not out.blocks_to_copy and not out.blocks_to_swap_in
+            and not out.blocks_to_swap_out)
+    assert len(seq_group_meta) == num_seq_group
+
+
+def test_scheduler_schedule_preempt_abort():
+    block_size = 4
+    max_model_len = 16
+    scheduler_config = SchedulerConfig(64, 2, max_model_len, 256)
+    cache_config = CacheConfig(block_size, 1.0, 1, "auto")
+    cache_config.num_cpu_blocks = 2
+    cache_config.num_gpu_blocks = 2
+    scheduler = Scheduler(scheduler_config, cache_config, None)
+
+    # Add seq groups to scheduler.
+    seq_a, seq_group_a = create_dummy_prompt("1", block_size)
+    seq_b, seq_group_b = create_dummy_prompt("2", block_size)
+    scheduler.add_seq_group(seq_group_a)
+    scheduler.add_seq_group(seq_group_b)
+
+    # Schedule seq groups prompts.
+    seq_group_meta, out = scheduler.schedule()
+    assert out.scheduled_seq_groups == [seq_group_a, seq_group_b]
+    assert out.num_batched_tokens == seq_group_a.get_seqs()[0].get_len() * 2
+    assert (not out.blocks_to_copy and not out.blocks_to_swap_in
+            and not out.blocks_to_swap_out)
+    assert len(seq_group_meta) == 2
+    assert scheduler.get_num_unfinished_seq_groups() == 2
+
+    # Append "generated" tokens, allowing the sequence to mark prompt tokens as
+    # processed.
+    token_id = 0
+    seq_a.append_token_id(token_id, {token_id: 0.0})
+    seq_b.append_token_id(token_id, {token_id: 0.0})
+
+    # Schedule seq groups generation and preempt seq group b.
+    seq_group_meta, out = scheduler.schedule()
+    assert out.scheduled_seq_groups == [seq_group_a]
+    assert out.num_batched_tokens == 1
+    assert (not out.blocks_to_copy and not out.blocks_to_swap_in
+            and not out.blocks_to_swap_out)
+    assert len(seq_group_meta) == 1
+    assert scheduler.get_num_unfinished_seq_groups() == 2
+
+    # Abort seq group a. Re-schedule seq group b prompt with recomputation.
+    scheduler.abort_seq_group("1")
+    seq_group_meta, out = scheduler.schedule()
+    assert out.scheduled_seq_groups == [seq_group_b]
+    assert out.num_batched_tokens == seq_group_b.get_seqs()[0].get_len()
+    assert (not out.blocks_to_copy and not out.blocks_to_swap_in
+            and not out.blocks_to_swap_out)
+    assert len(seq_group_meta) == 1
+    assert scheduler.get_num_unfinished_seq_groups() == 1
+
+
+def test_scheduler_max_seqs():
+    block_size = 4
+    num_seq_group = 4
+    max_seq_group = 2
+    max_model_len = 16
+    scheduler_config = SchedulerConfig(64, max_seq_group, max_model_len, 256)
+    cache_config = CacheConfig(block_size, 1.0, 1, "auto")
+    cache_config.num_cpu_blocks = 8
+    cache_config.num_gpu_blocks = 8
+    scheduler = Scheduler(scheduler_config, cache_config, None)
+
+    all_seq_groups: List[SequenceGroup] = []
+    # Add seq groups to scheduler.
+    for i in range(num_seq_group):
+        _, seq_group = create_dummy_prompt(str(i), prompt_length=block_size)
+        all_seq_groups.append(seq_group)
+
+    # Append 1 seq group
+    scheduler.add_seq_group(all_seq_groups[0])
+
+    # Schedule seq groups prompts.
+    _, out = scheduler.schedule()
+    assert set(out.scheduled_seq_groups) == set([all_seq_groups[0]])
+
+    # Schedule seq groups generation.
+    _, out = scheduler.schedule()
+    assert set(out.scheduled_seq_groups) == set([all_seq_groups[0]])
+
+    # Append 2 more seq group
+    scheduler.add_seq_group(all_seq_groups[1])
+    scheduler.add_seq_group(all_seq_groups[2])
+
+    # Schedule seq groups prompts.
+    # Only 1 seq group should be scheduled since max_seq_group is 2
+    # and one is prompting.
+    _, out = scheduler.schedule()
+    assert set(out.scheduled_seq_groups) == set([all_seq_groups[1]])
diff --git a/tests/core/utils.py b/tests/core/utils.py
new file mode 100644
index 0000000000000..9c0cfe1a7cf66
--- /dev/null
+++ b/tests/core/utils.py
@@ -0,0 +1,27 @@
+import time
+from typing import Tuple
+
+from vllm import SamplingParams
+from vllm.sequence import Sequence, SequenceGroup
+
+
+def create_dummy_prompt(
+        request_id: str,
+        prompt_length: int,
+        block_size: int = None) -> Tuple[Sequence, SequenceGroup]:
+    if not block_size:
+        block_size = prompt_length
+
+    # Create dummy prompt sequence with tokens 0...block_size-1
+    # and prompt "0 ... block_size".
+    prompt_tokens = list(range(prompt_length))
+    prompt_str = " ".join([str(t) for t in prompt_tokens])
+    prompt = Sequence(int(request_id), prompt_str, prompt_tokens, block_size)
+    seq_group = SequenceGroup(request_id, [prompt], SamplingParams(),
+                              time.time(), None, None)
+
+    return prompt, seq_group
+
+
+def round_up_to_next_block(seq_len: int, block_size: int) -> int:
+    return (seq_len + block_size - 1) // block_size