diff --git a/src/web/tests/hooks/transactions.test.ts b/src/web/tests/hooks/transactions.test.ts
new file mode 100644
index 0000000..8aae7e0
--- /dev/null
+++ b/src/web/tests/hooks/transactions.test.ts
@@ -0,0 +1,354 @@
+// @version jest ^29.0.0
+// @version @testing-library/react-hooks ^8.0.0
+// @version @testing-library/react ^14.0.0
+
+import { renderHook, act } from '@testing-library/react-hooks';
+import { waitFor } from '@testing-library/react';
+import { useTransactions } from '../../src/hooks/useTransactions';
+import { 
+  getTransactions, 
+  updateTransaction, 
+  categorizeTransaction, 
+  searchTransactions 
+} from '../../src/services/api/transactions.api';
+import { Transaction } from '../../src/types/models.types';
+
+// Mock the WebSocket
+class MockWebSocket {
+  onmessage: ((event: any) => void) | null = null;
+  close = jest.fn();
+  send = jest.fn();
+  
+  constructor() {
+    setTimeout(() => {
+      if (this.onmessage) {
+        this.onmessage({ data: JSON.stringify({
+          type: 'TRANSACTION_UPDATE',
+          data: mockTransactions[0]
+        })});
+      }
+    }, 100);
+  }
+}
+
+// Mock the API modules
+jest.mock('../../src/services/api/transactions.api');
+jest.mock('ws', () => MockWebSocket);
+
+// Mock transaction data
+const mockTransactions: Transaction[] = [
+  {
+    id: '1',
+    accountId: 'acc1',
+    categoryId: 'cat1',
+    amount: 100,
+    date: new Date('2023-01-01'),
+    description: 'Test Transaction 1',
+    pending: false,
+    metadata: {}
+  },
+  {
+    id: '2',
+    accountId: 'acc1',
+    categoryId: 'cat2',
+    amount: 200,
+    date: new Date('2023-01-02'),
+    description: 'Test Transaction 2',
+    pending: false,
+    metadata: {}
+  }
+];
+
+describe('useTransactions', () => {
+  // Reset all mocks before each test
+  beforeEach(() => {
+    jest.clearAllMocks();
+    (global as any).WebSocket = MockWebSocket;
+  });
+
+  /**
+   * Tests successful transaction fetching with pagination
+   * Requirement: Transaction Management (Technical Specification/1.2 Scope/Core Features)
+   */
+  it('should fetch transactions successfully', async () => {
+    // Mock successful API response
+    (getTransactions as jest.Mock).mockResolvedValueOnce({
+      data: mockTransactions,
+      total: 2,
+      page: 1,
+      limit: 20
+    });
+
+    // Render hook with test filters
+    const { result } = renderHook(() => useTransactions({
+      accountId: 'acc1',
+      startDate: new Date('2023-01-01'),
+      endDate: new Date('2023-01-31')
+    }));
+
+    // Verify initial loading state
+    expect(result.current.loading).toBe(true);
+    expect(result.current.transactions).toEqual([]);
+
+    // Wait for data to be loaded
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    // Verify fetched data
+    expect(result.current.transactions).toEqual(mockTransactions);
+    expect(result.current.totalCount).toBe(2);
+    expect(result.current.hasMore).toBe(false);
+    expect(getTransactions).toHaveBeenCalledWith({
+      page: 1,
+      limit: 20,
+      accountId: 'acc1',
+      startDate: expect.any(Date),
+      endDate: expect.any(Date)
+    });
+  });
+
+  /**
+   * Tests error handling in transaction fetching
+   * Requirement: Transaction Management (Technical Specification/1.2 Scope/Core Features)
+   */
+  it('should handle API errors', async () => {
+    // Mock API error
+    const errorMessage = 'Failed to fetch transactions';
+    (getTransactions as jest.Mock).mockRejectedValueOnce(new Error(errorMessage));
+
+    // Render hook
+    const { result } = renderHook(() => useTransactions());
+
+    // Wait for error state
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    // Verify error handling
+    expect(result.current.error).toBe(errorMessage);
+    expect(result.current.transactions).toEqual([]);
+  });
+
+  /**
+   * Tests transaction categorization functionality
+   * Requirement: Transaction Management (Technical Specification/1.2 Scope/Core Features)
+   */
+  it('should update transaction category', async () => {
+    // Mock initial transactions fetch
+    (getTransactions as jest.Mock).mockResolvedValueOnce({
+      data: mockTransactions,
+      total: 2,
+      page: 1,
+      limit: 20
+    });
+
+    // Mock category update
+    const updatedTransaction = {
+      ...mockTransactions[0],
+      categoryId: 'newCategory'
+    };
+    (categorizeTransaction as jest.Mock).mockResolvedValueOnce({
+      data: updatedTransaction
+    });
+
+    // Render hook
+    const { result } = renderHook(() => useTransactions());
+
+    // Wait for initial data load
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    // Perform category update
+    await act(async () => {
+      await result.current.categorizeTransaction('1', 'newCategory');
+    });
+
+    // Verify optimistic update
+    expect(result.current.transactions[0].categoryId).toBe('newCategory');
+    expect(categorizeTransaction).toHaveBeenCalledWith('1', 'newCategory');
+  });
+
+  /**
+   * Tests transaction pagination functionality
+   * Requirement: Transaction Management (Technical Specification/1.2 Scope/Core Features)
+   */
+  it('should handle pagination', async () => {
+    // Mock first page response
+    (getTransactions as jest.Mock).mockResolvedValueOnce({
+      data: [mockTransactions[0]],
+      total: 2,
+      page: 1,
+      limit: 1
+    });
+
+    // Render hook
+    const { result } = renderHook(() => useTransactions());
+
+    // Wait for initial data load
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    // Verify first page
+    expect(result.current.transactions).toHaveLength(1);
+    expect(result.current.hasMore).toBe(true);
+
+    // Mock second page response
+    (getTransactions as jest.Mock).mockResolvedValueOnce({
+      data: [mockTransactions[1]],
+      total: 2,
+      page: 2,
+      limit: 1
+    });
+
+    // Load next page
+    await act(async () => {
+      await result.current.fetchMoreTransactions();
+    });
+
+    // Verify pagination results
+    expect(result.current.transactions).toHaveLength(2);
+    expect(result.current.hasMore).toBe(false);
+    expect(result.current.currentPage).toBe(2);
+  });
+
+  /**
+   * Tests real-time update functionality
+   * Requirement: Real-time Data Synchronization (Technical Specification/5.1 High-Level Architecture Overview)
+   */
+  it('should handle real-time updates', async () => {
+    // Mock initial fetch
+    (getTransactions as jest.Mock).mockResolvedValueOnce({
+      data: mockTransactions,
+      total: 2,
+      page: 1,
+      limit: 20
+    });
+
+    // Render hook
+    const { result } = renderHook(() => useTransactions());
+
+    // Wait for initial data and WebSocket update
+    await waitFor(() => {
+      expect(result.current.transactions[0]).toEqual(mockTransactions[0]);
+    });
+
+    // Verify WebSocket connection cleanup
+    const { unmount } = renderHook(() => useTransactions());
+    unmount();
+    expect(MockWebSocket.prototype.close).toHaveBeenCalled();
+  });
+
+  /**
+   * Tests transaction search functionality
+   * Requirement: Transaction Management (Technical Specification/1.2 Scope/Core Features)
+   */
+  it('should search transactions', async () => {
+    // Mock search response
+    const searchResults = [mockTransactions[0]];
+    (searchTransactions as jest.Mock).mockResolvedValueOnce({
+      data: searchResults,
+      total: 1,
+      page: 1,
+      limit: 20
+    });
+
+    // Render hook
+    const { result } = renderHook(() => useTransactions());
+
+    // Perform search
+    await act(async () => {
+      await result.current.searchTransactions('Test');
+    });
+
+    // Verify search results
+    expect(result.current.transactions).toEqual(searchResults);
+    expect(searchTransactions).toHaveBeenCalledWith({
+      query: 'Test',
+      page: 1,
+      limit: 20,
+      sortBy: 'date',
+      sortDirection: 'desc'
+    });
+  });
+
+  /**
+   * Tests transaction update functionality
+   * Requirement: Transaction Management (Technical Specification/1.2 Scope/Core Features)
+   */
+  it('should update transaction details', async () => {
+    // Mock initial fetch
+    (getTransactions as jest.Mock).mockResolvedValueOnce({
+      data: mockTransactions,
+      total: 2,
+      page: 1,
+      limit: 20
+    });
+
+    // Mock update response
+    const updatedTransaction = {
+      ...mockTransactions[0],
+      amount: 150
+    };
+    (updateTransaction as jest.Mock).mockResolvedValueOnce({
+      data: updatedTransaction
+    });
+
+    // Render hook
+    const { result } = renderHook(() => useTransactions());
+
+    // Wait for initial data load
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    // Perform update
+    await act(async () => {
+      await result.current.updateTransaction('1', { amount: 150 });
+    });
+
+    // Verify update
+    expect(result.current.transactions[0].amount).toBe(150);
+    expect(updateTransaction).toHaveBeenCalledWith('1', { amount: 150 });
+  });
+
+  /**
+   * Tests filter change handling
+   * Requirement: Transaction Management (Technical Specification/1.2 Scope/Core Features)
+   */
+  it('should handle filter changes', async () => {
+    // Mock initial fetch
+    (getTransactions as jest.Mock).mockResolvedValueOnce({
+      data: mockTransactions,
+      total: 2,
+      page: 1,
+      limit: 20
+    });
+
+    // Render hook with initial filters
+    const { rerender } = renderHook(
+      (filters) => useTransactions(filters),
+      { initialProps: { accountId: 'acc1' } }
+    );
+
+    // Mock fetch with new filters
+    (getTransactions as jest.Mock).mockResolvedValueOnce({
+      data: [mockTransactions[1]],
+      total: 1,
+      page: 1,
+      limit: 20
+    });
+
+    // Change filters
+    rerender({ accountId: 'acc2' });
+
+    // Verify new fetch with updated filters
+    expect(getTransactions).toHaveBeenCalledWith(
+      expect.objectContaining({
+        accountId: 'acc2'
+      })
+    );
+  });
+});
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