diff --git a/tests/shared/test_sse.py b/tests/shared/test_sse.py
new file mode 100644
index 00000000..9d32fff3
--- /dev/null
+++ b/tests/shared/test_sse.py
@@ -0,0 +1,254 @@
+import multiprocessing
+import socket
+import time
+from typing import AsyncGenerator, Generator
+
+import anyio
+import httpx
+import pytest
+import uvicorn
+from pydantic import AnyUrl
+from starlette.applications import Starlette
+from starlette.requests import Request
+from starlette.routing import Mount, Route
+
+from mcp.client.session import ClientSession
+from mcp.client.sse import sse_client
+from mcp.server import Server
+from mcp.server.sse import SseServerTransport
+from mcp.shared.exceptions import McpError
+from mcp.types import (
+    EmptyResult,
+    ErrorData,
+    InitializeResult,
+    ReadResourceResult,
+    TextContent,
+    TextResourceContents,
+    Tool,
+)
+
+SERVER_NAME = "test_server_for_SSE"
+
+
+@pytest.fixture
+def server_port() -> int:
+    with socket.socket() as s:
+        s.bind(("127.0.0.1", 0))
+        return s.getsockname()[1]
+
+
+@pytest.fixture
+def server_url(server_port: int) -> str:
+    return f"http://127.0.0.1:{server_port}"
+
+
+# Test server implementation
+class TestServer(Server):
+    def __init__(self):
+        super().__init__(SERVER_NAME)
+
+        @self.read_resource()
+        async def handle_read_resource(uri: AnyUrl) -> str | bytes:
+            if uri.scheme == "foobar":
+                return f"Read {uri.host}"
+            elif uri.scheme == "slow":
+                # Simulate a slow resource
+                await anyio.sleep(2.0)
+                return f"Slow response from {uri.host}"
+
+            raise McpError(
+                error=ErrorData(
+                    code=404, message="OOPS! no resource with that URI was found"
+                )
+            )
+
+        @self.list_tools()
+        async def handle_list_tools() -> list[Tool]:
+            return [
+                Tool(
+                    name="test_tool",
+                    description="A test tool",
+                    inputSchema={"type": "object", "properties": {}},
+                )
+            ]
+
+        @self.call_tool()
+        async def handle_call_tool(name: str, args: dict) -> list[TextContent]:
+            return [TextContent(type="text", text=f"Called {name}")]
+
+
+# Test fixtures
+def make_server_app() -> Starlette:
+    """Create test Starlette app with SSE transport"""
+    sse = SseServerTransport("/messages/")
+    server = TestServer()
+
+    async def handle_sse(request: Request) -> None:
+        async with sse.connect_sse(
+            request.scope, request.receive, request._send
+        ) as streams:
+            await server.run(
+                streams[0], streams[1], server.create_initialization_options()
+            )
+
+    app = Starlette(
+        routes=[
+            Route("/sse", endpoint=handle_sse),
+            Mount("/messages/", app=sse.handle_post_message),
+        ]
+    )
+
+    return app
+
+
+def run_server(server_port: int) -> None:
+    app = make_server_app()
+    server = uvicorn.Server(
+        config=uvicorn.Config(
+            app=app, host="127.0.0.1", port=server_port, log_level="error"
+        )
+    )
+    print(f"starting server on {server_port}")
+    server.run()
+
+    # Give server time to start
+    while not server.started:
+        print("waiting for server to start")
+        time.sleep(0.5)
+
+
+@pytest.fixture()
+def server(server_port: int) -> Generator[None, None, None]:
+    proc = multiprocessing.Process(
+        target=run_server, kwargs={"server_port": server_port}, daemon=True
+    )
+    print("starting process")
+    proc.start()
+
+    # Wait for server to be running
+    max_attempts = 20
+    attempt = 0
+    print("waiting for server to start")
+    while attempt < max_attempts:
+        try:
+            with socket.socket(socket.AF_INET, socket.SOCK_STREAM) as s:
+                s.connect(("127.0.0.1", server_port))
+                break
+        except ConnectionRefusedError:
+            time.sleep(0.1)
+            attempt += 1
+    else:
+        raise RuntimeError(
+            "Server failed to start after {} attempts".format(max_attempts)
+        )
+
+    yield
+
+    print("killing server")
+    # Signal the server to stop
+    proc.kill()
+    proc.join(timeout=2)
+    if proc.is_alive():
+        print("server process failed to terminate")
+
+
+@pytest.fixture()
+async def http_client(server, server_url) -> AsyncGenerator[httpx.AsyncClient, None]:
+    """Create test client"""
+    async with httpx.AsyncClient(base_url=server_url) as client:
+        yield client
+
+
+# Tests
+@pytest.mark.anyio
+async def test_raw_sse_connection(http_client: httpx.AsyncClient) -> None:
+    """Test the SSE connection establishment simply with an HTTP client."""
+    async with anyio.create_task_group():
+        async def connection_test() -> None:
+            async with http_client.stream("GET", "/sse") as response:
+                assert response.status_code == 200
+                assert (
+                    response.headers["content-type"]
+                    == "text/event-stream; charset=utf-8"
+                )
+
+                line_number = 0
+                async for line in response.aiter_lines():
+                    if line_number == 0:
+                        assert line == "event: endpoint"
+                    elif line_number == 1:
+                        assert line.startswith("data: /messages/?session_id=")
+                    else:
+                        return
+                    line_number += 1
+
+        # Add timeout to prevent test from hanging if it fails
+        with anyio.fail_after(3):
+            await connection_test()
+
+
+@pytest.mark.anyio
+async def test_sse_client_basic_connection(server: None, server_url: str) -> None:
+    async with sse_client(server_url + "/sse") as streams:
+        async with ClientSession(*streams) as session:
+            # Test initialization
+            result = await session.initialize()
+            assert isinstance(result, InitializeResult)
+            assert result.serverInfo.name == SERVER_NAME
+
+            # Test ping
+            ping_result = await session.send_ping()
+            assert isinstance(ping_result, EmptyResult)
+
+
+@pytest.fixture
+async def initialized_sse_client_session(
+    server, server_url: str
+) -> AsyncGenerator[ClientSession, None]:
+    async with sse_client(server_url + "/sse", sse_read_timeout=0.5) as streams:
+        async with ClientSession(*streams) as session:
+            await session.initialize()
+            yield session
+
+
+
+@pytest.mark.anyio
+async def test_sse_client_happy_request_and_response(
+    initialized_sse_client_session: ClientSession,
+) -> None:
+    session = initialized_sse_client_session
+    response = await session.read_resource(uri=AnyUrl("foobar://should-work"))
+    assert len(response.contents) == 1
+    assert isinstance(response.contents[0], TextResourceContents)
+    assert response.contents[0].text == "Read should-work"
+
+
+@pytest.mark.anyio
+async def test_sse_client_exception_handling(
+    initialized_sse_client_session: ClientSession,
+) -> None:
+    session = initialized_sse_client_session
+    with pytest.raises(McpError, match="OOPS! no resource with that URI was found"):
+        await session.read_resource(uri=AnyUrl("xxx://will-not-work"))
+
+
+@pytest.mark.anyio
+@pytest.mark.skip(
+    "this test highlights a possible bug in SSE read timeout exception handling"
+)
+async def test_sse_client_timeout(
+    initialized_sse_client_session: ClientSession,
+) -> None:
+    session = initialized_sse_client_session
+
+    # sanity check that normal, fast responses are working
+    response = await session.read_resource(uri=AnyUrl("foobar://1"))
+    assert isinstance(response, ReadResourceResult)
+
+    with anyio.move_on_after(3):
+        with pytest.raises(McpError, match="Read timed out"):
+            response = await session.read_resource(uri=AnyUrl("slow://2"))
+            # we should receive an error here
+        return
+
+    pytest.fail("the client should have timed out and returned an error already")