diff --git a/src/cmd-backup.mjs b/src/cmd-backup.mjs
index ee053b2..806ce7d 100644
--- a/src/cmd-backup.mjs
+++ b/src/cmd-backup.mjs
@@ -2,8 +2,6 @@ import fs from 'node:fs/promises';
 import path from 'node:path';
 import { execSync } from 'node:child_process';
 
-const BACKUP_ROOT = path.resolve(process.cwd(), '.torch/backups');
-
 // Paths to snapshot on each backup run
 const STATE_SOURCES = [
   '.scheduler-memory/memory-store.json',
@@ -22,19 +20,21 @@ const STATE_SOURCES = [
  *
  * @param {Object} [opts]
  * @param {string|null} [opts.output] - Override destination directory (default: .torch/backups/<ts>)
+ * @param {string} [opts.cwd] - Working directory (default: process.cwd())
  * @returns {Promise<{backupDir: string, manifest: Object}>}
  */
-export async function cmdBackup({ output = null } = {}) {
+export async function cmdBackup({ output = null, cwd = process.cwd() } = {}) {
+  const BACKUP_ROOT = path.resolve(cwd, '.torch/backups');
   const ts = new Date().toISOString().replace(/[:.]/g, '-');
   const backupDir = output
-    ? path.resolve(process.cwd(), output)
+    ? path.resolve(cwd, output)
     : path.join(BACKUP_ROOT, ts);
 
   await fs.mkdir(backupDir, { recursive: true });
 
   let gitCommit = null;
   try {
-    gitCommit = execSync('git rev-parse HEAD', { stdio: 'pipe' }).toString().trim();
+    gitCommit = execSync('git rev-parse HEAD', { stdio: 'pipe', cwd }).toString().trim();
   } catch {
     // Not in a git repo or git unavailable
   }
@@ -43,7 +43,7 @@ export async function cmdBackup({ output = null } = {}) {
   const skipped = [];
 
   for (const relPath of STATE_SOURCES) {
-    const src = path.resolve(process.cwd(), relPath);
+    const src = path.resolve(cwd, relPath);
     const dest = path.join(backupDir, relPath.replace(/\//g, '__'));
     try {
       await fs.copyFile(src, dest);
@@ -77,9 +77,12 @@ export async function cmdBackup({ output = null } = {}) {
 /**
  * Lists all available backups under .torch/backups/, newest first.
  *
+ * @param {Object} [opts]
+ * @param {string} [opts.cwd] - Working directory (default: process.cwd())
  * @returns {Promise<Array<{id: string, createdAt: string|null, backupDir: string}>>}
  */
-export async function listBackups() {
+export async function listBackups({ cwd = process.cwd() } = {}) {
+  const BACKUP_ROOT = path.resolve(cwd, '.torch/backups');
   try {
     const entries = await fs.readdir(BACKUP_ROOT, { withFileTypes: true });
     const backups = [];
diff --git a/test/cmd-backup.test.mjs b/test/cmd-backup.test.mjs
new file mode 100644
index 0000000..131bdb7
--- /dev/null
+++ b/test/cmd-backup.test.mjs
@@ -0,0 +1,99 @@
+import { test, after } from 'node:test';
+import assert from 'node:assert';
+import fs from 'node:fs';
+import path from 'node:path';
+import { cmdBackup, listBackups } from '../src/cmd-backup.mjs';
+
+const tempBase = fs.mkdtempSync(path.join(process.cwd(), 'test-backup-'));
+
+// Helper to setup dummy state files
+function setupStateFiles(cwd) {
+  const memoryDir = path.join(cwd, '.scheduler-memory');
+  const logsDir = path.join(cwd, 'task-logs', 'daily');
+
+  fs.mkdirSync(memoryDir, { recursive: true });
+  fs.mkdirSync(logsDir, { recursive: true });
+
+  fs.writeFileSync(path.join(memoryDir, 'memory-store.json'), '{"dummy": "memory"}');
+  fs.writeFileSync(path.join(logsDir, '.scheduler-run-state.json'), '{"dummy": "state"}');
+}
+
+after(() => {
+  fs.rmSync(tempBase, { recursive: true, force: true });
+});
+
+test('cmdBackup creates backup directory and manifest', async () => {
+  const cwd = path.join(tempBase, 'scenario-1');
+  fs.mkdirSync(cwd, { recursive: true });
+  setupStateFiles(cwd);
+
+  const { backupDir } = await cmdBackup({ cwd });
+
+  assert.ok(fs.existsSync(backupDir), 'Backup directory created');
+  assert.ok(fs.existsSync(path.join(backupDir, 'backup-manifest.json')), 'Manifest created');
+
+  const manifestContent = JSON.parse(fs.readFileSync(path.join(backupDir, 'backup-manifest.json'), 'utf8'));
+  assert.strictEqual(manifestContent.backupDir, backupDir);
+  assert.ok(manifestContent.createdAt);
+
+  // Verify files are copied
+  const backupMemory = path.join(backupDir, '.scheduler-memory__memory-store.json');
+  assert.ok(fs.existsSync(backupMemory), 'Memory file copied');
+
+  // captured should contain the 2 files
+  assert.strictEqual(manifestContent.captured.length, 2);
+});
+
+test('cmdBackup handles missing files gracefully', async () => {
+  const cwd = path.join(tempBase, 'scenario-2');
+  fs.mkdirSync(cwd, { recursive: true });
+  // Do NOT setup files
+
+  const { manifest } = await cmdBackup({ cwd });
+
+  assert.strictEqual(manifest.captured.length, 0);
+  assert.strictEqual(manifest.skipped.length, 2);
+  assert.strictEqual(manifest.skipped[0].reason, 'not found');
+});
+
+test('cmdBackup respects output override', async () => {
+  const cwd = path.join(tempBase, 'scenario-3');
+  fs.mkdirSync(cwd, { recursive: true });
+  setupStateFiles(cwd);
+
+  const outputDir = 'custom-backup-location';
+  const { backupDir } = await cmdBackup({ cwd, output: outputDir });
+
+  const expectedPath = path.resolve(cwd, outputDir);
+  assert.strictEqual(backupDir, expectedPath);
+  assert.ok(fs.existsSync(expectedPath));
+  assert.ok(fs.existsSync(path.join(expectedPath, 'backup-manifest.json')), 'Manifest in custom output');
+});
+
+test('listBackups lists created backups', async () => {
+  const cwd = path.join(tempBase, 'scenario-4');
+  fs.mkdirSync(cwd, { recursive: true });
+  setupStateFiles(cwd);
+
+  // Create two backups
+  await cmdBackup({ cwd });
+
+  // Ensure we have a slight delay or just rely on execution time for timestamp diff
+  // Windows/Filesystem might have low resolution, but listBackups sorts by ISO string in manifest
+  await new Promise(r => setTimeout(r, 100));
+
+  await cmdBackup({ cwd });
+
+  const backups = await listBackups({ cwd });
+  assert.strictEqual(backups.length, 2);
+
+  // Verify sorting (newest first)
+  const t0 = new Date(backups[0].createdAt).getTime();
+  const t1 = new Date(backups[1].createdAt).getTime();
+  assert.ok(t0 >= t1, 'Backups sorted newest first');
+
+  // Verify properties
+  assert.ok(backups[0].id);
+  assert.ok(backups[0].backupDir);
+  assert.ok(Array.isArray(backups[0].captured));
+});