diff --git a/.env.example b/.env.example
index 54a4502..3bcd885 100644
--- a/.env.example
+++ b/.env.example
@@ -1,6 +1,9 @@
 # Secret key for JWT
 SECRET_KEY=
 
+# Base URL
+BASE_URL=http://localhost:8000
+
 # Database
 DB_USER=
 DB_PASSWORD=
diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 5b20293..af360f1 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -53,6 +53,7 @@ jobs:
           echo "DB_PORT=5432" >> $GITHUB_ENV
           echo "DB_NAME=test_db" >> $GITHUB_ENV
           echo "SECRET_KEY=$(openssl rand -base64 32)" >> $GITHUB_ENV
+          echo "BASE_URL=http://localhost:8000" >> $GITHUB_ENV
         
       - name: Verify environment variables
         run: |
diff --git a/tests/test_authentication.py b/tests/test_authentication.py
index a87cb60..eed349e 100644
--- a/tests/test_authentication.py
+++ b/tests/test_authentication.py
@@ -1,7 +1,11 @@
 import pytest
 from fastapi.testclient import TestClient
+from starlette.datastructures import URLPath
 from sqlmodel import Session, select
 from datetime import timedelta
+from unittest.mock import patch
+import resend
+from urllib.parse import urlparse, parse_qs
 
 from main import app
 from utils.models import User, PasswordResetToken
@@ -11,7 +15,8 @@
     create_refresh_token,
     verify_password,
     get_password_hash,
-    validate_token
+    validate_token,
+    generate_password_reset_url
 )
 
 
@@ -51,6 +56,24 @@ def test_user_fixture(session: Session):
     return user
 
 
+# Mock email response fixture
+@pytest.fixture
+def mock_email_response():
+    """
+    Returns a mock Email response object
+    """
+    return resend.Email(id="6229f547-f3f6-4eb8-b0dc-82c1b09121b6")
+
+
+@pytest.fixture
+def mock_resend_send(mock_email_response):
+    """
+    Patches resend.Emails.send to return a mock response
+    """
+    with patch('resend.Emails.send', return_value=mock_email_response) as mock:
+        yield mock
+
+
 # --- Authentication Helper Function Tests ---
 
 
@@ -166,40 +189,56 @@ def test_refresh_token_endpoint(client: TestClient, test_user: User):
     assert decoded["sub"] == test_user.email
 
 
-# # TODO: Mock email sending
-# def test_password_reset_flow(client: TestClient, session: Session, test_user: User):
-#     # Test forgot password request
-#     response = client.post(
-#         "/auth/forgot_password",
-#         data={"email": test_user.email},
-#         follow_redirects=False
-#     )
-#     assert response.status_code == 303
-
-#     # Verify reset token was created
-#     reset_token = session.exec(select(PasswordResetToken)
-#                                .where(PasswordResetToken.user_id == test_user.id)).first()
-#     assert reset_token is not None
-#     assert not reset_token.used
-
-#     # Test password reset
-#     response = client.post(
-#         "/auth/reset_password",
-#         data={
-#             "email": test_user.email,
-#             "token": reset_token.token,
-#             "new_password": "NewPass123!@#",
-#             "confirm_new_password": "NewPass123!@#"
-#         },
-#         follow_redirects=False
-#     )
-#     assert response.status_code == 303
-
-#     # Verify password was updated and token was marked as used
-#     session.refresh(test_user)
-#     session.refresh(reset_token)
-#     assert verify_password("NewPass123!@#", test_user.hashed_password)
-#     assert reset_token.used
+def test_password_reset_flow(client: TestClient, session: Session, test_user: User, mock_resend_send):
+    # Test forgot password request
+    response = client.post(
+        "/auth/forgot_password",
+        data={"email": test_user.email},
+        follow_redirects=False
+    )
+    assert response.status_code == 303
+
+    # Verify the email was "sent" with correct parameters
+    mock_resend_send.assert_called_once()
+    call_args = mock_resend_send.call_args[0][0]  # Get the SendParams argument
+
+    # Verify SendParams structure and required fields
+    assert isinstance(call_args, dict)
+    assert isinstance(call_args["from"], str)
+    assert isinstance(call_args["to"], list)
+    assert isinstance(call_args["subject"], str)
+    assert isinstance(call_args["html"], str)
+
+    # Verify content
+    assert call_args["to"] == [test_user.email]
+    assert call_args["from"] == "noreply@promptlytechnologies.com"
+    assert "Password Reset Request" in call_args["subject"]
+    assert "reset_password" in call_args["html"]
+
+    # Verify reset token was created
+    reset_token = session.exec(select(PasswordResetToken)
+                               .where(PasswordResetToken.user_id == test_user.id)).first()
+    assert reset_token is not None
+    assert not reset_token.used
+
+    # Test password reset
+    response = client.post(
+        "/auth/reset_password",
+        data={
+            "email": test_user.email,
+            "token": reset_token.token,
+            "new_password": "NewPass123!@#",
+            "confirm_new_password": "NewPass123!@#"
+        },
+        follow_redirects=False
+    )
+    assert response.status_code == 303
+
+    # Verify password was updated and token was marked as used
+    session.refresh(test_user)
+    session.refresh(reset_token)
+    assert verify_password("NewPass123!@#", test_user.hashed_password)
+    assert reset_token.used
 
 
 def test_logout_endpoint(client: TestClient):
@@ -256,3 +295,69 @@ def test_password_reset_with_invalid_token(client: TestClient, test_user: User):
         }
     )
     assert response.status_code == 400
+
+
+def test_password_reset_url_generation(client: TestClient):
+    """
+    Tests that the password reset URL is correctly formatted and contains
+    the required query parameters.
+    """
+    test_email = "test@example.com"
+    test_token = "abc123"
+
+    url = generate_password_reset_url(test_email, test_token)
+
+    # Parse the URL
+    parsed = urlparse(url)
+    query_params = parse_qs(parsed.query)
+
+    # Get the actual path from the FastAPI app
+    reset_password_path: URLPath = app.url_path_for("reset_password")
+
+    # Verify URL path
+    assert parsed.path == str(reset_password_path)
+
+    # Verify query parameters
+    assert "email" in query_params
+    assert "token" in query_params
+    assert query_params["email"][0] == test_email
+    assert query_params["token"][0] == test_token
+
+
+def test_password_reset_email_url(client: TestClient, session: Session, test_user: User, mock_resend_send):
+    """
+    Tests that the password reset email contains a properly formatted reset URL.
+    """
+    response = client.post(
+        "/auth/forgot_password",
+        data={"email": test_user.email},
+        follow_redirects=False
+    )
+    assert response.status_code == 303
+
+    # Get the reset token from the database
+    reset_token = session.exec(select(PasswordResetToken)
+                               .where(PasswordResetToken.user_id == test_user.id)).first()
+    assert reset_token is not None
+
+    # Get the actual path from the FastAPI app
+    reset_password_path: URLPath = app.url_path_for("reset_password")
+
+    # Verify the email HTML contains the correct URL
+    mock_resend_send.assert_called_once()
+    call_args = mock_resend_send.call_args[0][0]
+    html_content = call_args["html"]
+
+    # Extract URL from HTML
+    import re
+    url_match = re.search(r'href=[\'"]([^\'"]*)[\'"]', html_content)
+    assert url_match is not None
+    reset_url = url_match.group(1)
+
+    # Parse and verify the URL
+    parsed = urlparse(reset_url)
+    query_params = parse_qs(parsed.query)
+
+    assert parsed.path == str(reset_password_path)
+    assert query_params["email"][0] == test_user.email
+    assert query_params["token"][0] == reset_token.token
diff --git a/utils/auth.py b/utils/auth.py
index f73c989..3bf7dac 100644
--- a/utils/auth.py
+++ b/utils/auth.py
@@ -258,6 +258,21 @@ def __init__(self, user: User, access_token: str, refresh_token: str):
         self.refresh_token = refresh_token
 
 
+def generate_password_reset_url(email: str, token: str) -> str:
+    """
+    Generates the password reset URL with proper query parameters.
+
+    Args:
+        email: User's email address
+        token: Password reset token
+
+    Returns:
+        Complete password reset URL
+    """
+    base_url = os.getenv('BASE_URL')
+    return f"{base_url}/auth/reset_password?email={email}&token={token}"
+
+
 def send_reset_email(email: str, session: Session):
     # Check for an existing unexpired token
     user = session.exec(select(User).where(User.email == email)).first()
@@ -281,12 +296,12 @@ def send_reset_email(email: str, session: Session):
         session.add(reset_token)
 
         try:
-            # TODO: Use a templating engine
+            reset_url = generate_password_reset_url(email, token)
             params: resend.Emails.SendParams = {
                 "from": "noreply@promptlytechnologies.com",
                 "to": [email],
                 "subject": "Password Reset Request",
-                "html": f"<p>Click <a href='{os.getenv('BASE_URL')}/reset_password?email={email}&token={token}'>here</a> to reset your password.</p>",
+                "html": f"<p>Click <a href='{reset_url}'>here</a> to reset your password.</p>",
             }
 
             sent_email: resend.Email = resend.Emails.send(params)