diff --git a/mcp_python/client/session.py b/mcp_python/client/session.py
index 266e741c9..82ec0b2bd 100644
--- a/mcp_python/client/session.py
+++ b/mcp_python/client/session.py
@@ -1,3 +1,5 @@
+from datetime import timedelta
+
 from anyio.streams.memory import MemoryObjectReceiveStream, MemoryObjectSendStream
 from pydantic import AnyUrl
 
@@ -36,8 +38,15 @@ def __init__(
         self,
         read_stream: MemoryObjectReceiveStream[JSONRPCMessage | Exception],
         write_stream: MemoryObjectSendStream[JSONRPCMessage],
+        read_timeout_seconds: timedelta | None = None,
     ) -> None:
-        super().__init__(read_stream, write_stream, ServerRequest, ServerNotification)
+        super().__init__(
+            read_stream,
+            write_stream,
+            ServerRequest,
+            ServerNotification,
+            read_timeout_seconds=read_timeout_seconds,
+        )
 
     async def initialize(self) -> InitializeResult:
         from mcp_python.types import (
diff --git a/mcp_python/server/__init__.py b/mcp_python/server/__init__.py
index 71b373d63..ff8900fc7 100644
--- a/mcp_python/server/__init__.py
+++ b/mcp_python/server/__init__.py
@@ -18,6 +18,7 @@
     ClientNotification,
     ClientRequest,
     CompleteRequest,
+    EmptyResult,
     ErrorData,
     JSONRPCMessage,
     ListPromptsRequest,
@@ -27,6 +28,7 @@
     ListToolsRequest,
     ListToolsResult,
     LoggingLevel,
+    PingRequest,
     ProgressNotification,
     Prompt,
     PromptReference,
@@ -52,9 +54,11 @@
 class Server:
     def __init__(self, name: str):
         self.name = name
-        self.request_handlers: dict[type, Callable[..., Awaitable[ServerResult]]] = {}
+        self.request_handlers: dict[type, Callable[..., Awaitable[ServerResult]]] = {
+            PingRequest: _ping_handler,
+        }
         self.notification_handlers: dict[type, Callable[..., Awaitable[None]]] = {}
-        logger.info(f"Initializing server '{name}'")
+        logger.debug(f"Initializing server '{name}'")
 
     def create_initialization_options(self) -> types.InitializationOptions:
         """Create initialization options from this server instance."""
@@ -63,9 +67,13 @@ def pkg_version(package: str) -> str:
             try:
                 from importlib.metadata import version
 
-                return version(package)
+                v = version(package)
+                if v is not None:
+                    return v
             except Exception:
-                return "unknown"
+                pass
+
+            return "unknown"
 
         return types.InitializationOptions(
             server_name=self.name,
@@ -330,6 +338,11 @@ async def run(
         read_stream: MemoryObjectReceiveStream[JSONRPCMessage | Exception],
         write_stream: MemoryObjectSendStream[JSONRPCMessage],
         initialization_options: types.InitializationOptions,
+        # When True, exceptions are returned as messages to the client.
+        # When False, exceptions are raised, which will cause the server to shut down
+        # but also make tracing exceptions much easier during testing and when using
+        # in-process servers.
+        raise_exceptions: bool = False,
     ):
         with warnings.catch_warnings(record=True) as w:
             async with ServerSession(
@@ -349,6 +362,7 @@ async def run(
                                     f"Dispatching request of type {type(req).__name__}"
                                 )
 
+                                token = None
                                 try:
                                     # Set our global state that can be retrieved via
                                     # app.get_request_context()
@@ -360,12 +374,16 @@ async def run(
                                         )
                                     )
                                     response = await handler(req)
-                                    # Reset the global state after we are done
-                                    request_ctx.reset(token)
                                 except Exception as err:
+                                    if raise_exceptions:
+                                        raise err
                                     response = ErrorData(
                                         code=0, message=str(err), data=None
                                     )
+                                finally:
+                                    # Reset the global state after we are done
+                                    if token is not None:
+                                        request_ctx.reset(token)
 
                                 await message.respond(response)
                             else:
@@ -399,3 +417,7 @@ async def run(
                         logger.info(
                             f"Warning: {warning.category.__name__}: {warning.message}"
                         )
+
+
+async def _ping_handler(request: PingRequest) -> ServerResult:
+    return ServerResult(EmptyResult())
diff --git a/mcp_python/shared/memory.py b/mcp_python/shared/memory.py
new file mode 100644
index 000000000..a2917499a
--- /dev/null
+++ b/mcp_python/shared/memory.py
@@ -0,0 +1,87 @@
+"""
+In-memory transports
+"""
+
+from contextlib import asynccontextmanager
+from datetime import timedelta
+from typing import AsyncGenerator
+
+import anyio
+from anyio.streams.memory import MemoryObjectReceiveStream, MemoryObjectSendStream
+
+from mcp_python.client.session import ClientSession
+from mcp_python.server import Server
+from mcp_python.types import JSONRPCMessage
+
+MessageStream = tuple[
+    MemoryObjectReceiveStream[JSONRPCMessage | Exception],
+    MemoryObjectSendStream[JSONRPCMessage]
+]
+
+@asynccontextmanager
+async def create_client_server_memory_streams() -> AsyncGenerator[
+    tuple[MessageStream, MessageStream],
+    None
+]:
+    """
+    Creates a pair of bidirectional memory streams for client-server communication.
+
+    Returns:
+        A tuple of (client_streams, server_streams) where each is a tuple of
+        (read_stream, write_stream)
+    """
+    # Create streams for both directions
+    server_to_client_send, server_to_client_receive = anyio.create_memory_object_stream[
+        JSONRPCMessage | Exception
+    ](1)
+    client_to_server_send, client_to_server_receive = anyio.create_memory_object_stream[
+        JSONRPCMessage | Exception
+    ](1)
+
+    client_streams = (server_to_client_receive, client_to_server_send)
+    server_streams = (client_to_server_receive, server_to_client_send)
+
+    async with (
+        server_to_client_receive,
+        client_to_server_send,
+        client_to_server_receive,
+        server_to_client_send,
+    ):
+        yield client_streams, server_streams
+
+
+@asynccontextmanager
+async def create_connected_server_and_client_session(
+    server: Server,
+    read_timeout_seconds: timedelta | None = None,
+    raise_exceptions: bool = False,
+) -> AsyncGenerator[ClientSession, None]:
+    """Creates a ClientSession that is connected to a running MCP server."""
+    async with create_client_server_memory_streams() as (
+        client_streams,
+        server_streams,
+    ):
+        client_read, client_write = client_streams
+        server_read, server_write = server_streams
+
+        # Create a cancel scope for the server task
+        async with anyio.create_task_group() as tg:
+            tg.start_soon(
+                lambda: server.run(
+                    server_read,
+                    server_write,
+                    server.create_initialization_options(),
+                    raise_exceptions=raise_exceptions,
+                )
+            )
+
+            try:
+                async with ClientSession(
+                    read_stream=client_read,
+                    write_stream=client_write,
+                    read_timeout_seconds=read_timeout_seconds,
+                ) as client_session:
+                    await client_session.initialize()
+                    yield client_session
+            finally:
+                tg.cancel_scope.cancel()
diff --git a/mcp_python/shared/session.py b/mcp_python/shared/session.py
index 3bc66fcd0..f063a33bd 100644
--- a/mcp_python/shared/session.py
+++ b/mcp_python/shared/session.py
@@ -1,8 +1,10 @@
 from contextlib import AbstractAsyncContextManager
+from datetime import timedelta
 from typing import Generic, TypeVar
 
 import anyio
 import anyio.lowlevel
+import httpx
 from anyio.streams.memory import MemoryObjectReceiveStream, MemoryObjectSendStream
 from pydantic import BaseModel
 
@@ -87,6 +89,8 @@ def __init__(
         write_stream: MemoryObjectSendStream[JSONRPCMessage],
         receive_request_type: type[ReceiveRequestT],
         receive_notification_type: type[ReceiveNotificationT],
+        # If none, reading will never time out
+        read_timeout_seconds: timedelta | None = None,
     ) -> None:
         self._read_stream = read_stream
         self._write_stream = write_stream
@@ -94,6 +98,7 @@ def __init__(
         self._request_id = 0
         self._receive_request_type = receive_request_type
         self._receive_notification_type = receive_notification_type
+        self._read_timeout_seconds = read_timeout_seconds
 
         self._incoming_message_stream_writer, self._incoming_message_stream_reader = (
             anyio.create_memory_object_stream[
@@ -147,7 +152,25 @@ async def send_request(
 
         await self._write_stream.send(JSONRPCMessage(jsonrpc_request))
 
-        response_or_error = await response_stream_reader.receive()
+        try:
+            with anyio.fail_after(
+                None if self._read_timeout_seconds is None
+                else self._read_timeout_seconds.total_seconds()
+            ):
+                response_or_error = await response_stream_reader.receive()
+        except TimeoutError:
+            raise McpError(
+                ErrorData(
+                    code=httpx.codes.REQUEST_TIMEOUT,
+                    message=(
+                        f"Timed out while waiting for response to "
+                        f"{request.__class__.__name__}. Waited "
+                        f"{self._read_timeout_seconds} seconds."
+                    ),
+                )
+
+            )
+
         if isinstance(response_or_error, JSONRPCError):
             raise McpError(response_or_error.error)
         else:
diff --git a/mcp_python/types.py b/mcp_python/types.py
index 012122ed7..b3ab4dd98 100644
--- a/mcp_python/types.py
+++ b/mcp_python/types.py
@@ -141,16 +141,19 @@ class ErrorData(BaseModel):
 
     code: int
     """The error type that occurred."""
+
     message: str
     """
     A short description of the error. The message SHOULD be limited to a concise single
     sentence.
     """
+
     data: Any | None = None
     """
     Additional information about the error. The value of this member is defined by the
     sender (e.g. detailed error information, nested errors etc.).
     """
+
     model_config = ConfigDict(extra="allow")
 
 
diff --git a/pyproject.toml b/pyproject.toml
index bebdd827b..96f24bbf9 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "hatchling.build"
 
 [project]
 name = "mcp-python"
-version = "0.4.0.dev"
+version = "0.5.0dev"
 description = "Model Context Protocol implementation for Python"
 readme = "README.md"
 requires-python = ">=3.10"
diff --git a/tests/conftest.py b/tests/conftest.py
new file mode 100644
index 000000000..37ff5a4ec
--- /dev/null
+++ b/tests/conftest.py
@@ -0,0 +1,28 @@
+import pytest
+from pydantic import AnyUrl
+
+from mcp_python.server import Server
+from mcp_python.server.types import InitializationOptions
+from mcp_python.types import Resource, ServerCapabilities
+
+TEST_INITIALIZATION_OPTIONS = InitializationOptions(
+    server_name="my_mcp_server",
+    server_version="0.1.0",
+    capabilities=ServerCapabilities(),
+)
+
+@pytest.fixture
+def mcp_server() -> Server:
+    server = Server(name="test_server")
+
+    @server.list_resources()
+    async def handle_list_resources():
+        return [
+            Resource(
+                uri=AnyUrl("memory://test"),
+                name="Test Resource",
+                description="A test resource"
+            )
+        ]
+
+    return server
diff --git a/tests/shared/test_memory.py b/tests/shared/test_memory.py
new file mode 100644
index 000000000..60a90de3d
--- /dev/null
+++ b/tests/shared/test_memory.py
@@ -0,0 +1,28 @@
+import pytest
+from typing_extensions import AsyncGenerator
+
+from mcp_python.client.session import ClientSession
+from mcp_python.server import Server
+from mcp_python.shared.memory import (
+    create_connected_server_and_client_session,
+)
+from mcp_python.types import (
+    EmptyResult,
+)
+
+
+@pytest.fixture
+async def client_connected_to_server(
+    mcp_server: Server,
+) -> AsyncGenerator[ClientSession, None]:
+    async with create_connected_server_and_client_session(mcp_server) as client_session:
+        yield client_session
+
+
+@pytest.mark.anyio
+async def test_memory_server_and_client_connection(
+    client_connected_to_server: ClientSession,
+):
+    """Shows how a client and server can communicate over memory streams."""
+    response = await client_connected_to_server.send_ping()
+    assert isinstance(response, EmptyResult)
diff --git a/uv.lock b/uv.lock
index e085cced4..f0fac56f8 100644
--- a/uv.lock
+++ b/uv.lock
@@ -163,7 +163,7 @@ wheels = [
 
 [[package]]
 name = "mcp-python"
-version = "0.3.0.dev0"
+version = "0.5.0.dev0"
 source = { editable = "." }
 dependencies = [
     { name = "anyio" },