diff --git a/__tests__/setup.test.js b/__tests__/setup.test.js
new file mode 100644
index 00000000..22269a02
--- /dev/null
+++ b/__tests__/setup.test.js
@@ -0,0 +1,129 @@
+/**
+ * Tests for the enhanced setup script
+ */
+
+const { execSync } = require('child_process');
+const fs = require('fs');
+const path = require('path');
+
+describe('Setup Script', () => {
+  const setupScriptPath = path.join(__dirname, '..', 'script', 'setup');
+
+  beforeAll(() => {
+    // Ensure the setup script exists and is executable
+    expect(fs.existsSync(setupScriptPath)).toBe(true);
+  });
+
+  test('setup script should be executable', () => {
+    const stats = fs.statSync(setupScriptPath);
+    // Check if the file has executable permission
+    // eslint-disable-next-line no-bitwise
+    expect(stats.mode & 0o111).not.toBe(0);
+  });
+
+  test('setup script should contain progress functions', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+
+    // Check for new progress functions
+    expect(content).toContain('progress_header()');
+    expect(content).toContain('step_start()');
+    expect(content).toContain('step_success()');
+    expect(content).toContain('step_warning()');
+    expect(content).toContain('step_error()');
+    expect(content).toContain('step_info()');
+    expect(content).toContain('show_progress()');
+    expect(content).toContain('final_summary()');
+  });
+
+  test('setup script should contain color definitions', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+
+    // Check for color definitions
+    expect(content).toContain('RED=');
+    expect(content).toContain('GREEN=');
+    expect(content).toContain('YELLOW=');
+    expect(content).toContain('BLUE=');
+    expect(content).toContain('CYAN=');
+    expect(content).toContain('NC=');
+  });
+
+  test('setup script should contain progress tracking variables', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+
+    // Check for progress tracking
+    expect(content).toContain('TOTAL_STEPS=8');
+    expect(content).toContain('CURRENT_STEP=0');
+    expect(content).toContain('START_TIME=');
+  });
+
+  test('setup script should have proper step structure', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+
+    // Check for all steps
+    expect(content).toContain('Step 1: Xcode Tools');
+    expect(content).toContain('Step 2: Homebrew');
+    expect(content).toContain('Step 3: Ruby Environment');
+    expect(content).toContain('Step 4: Node.js Environment');
+    expect(content).toContain('Step 5: Yarn Package Manager');
+    expect(content).toContain('Step 6: Project Dependencies');
+    expect(content).toContain('Step 7: iOS Dependencies');
+    expect(content).toContain('Step 8: Final Setup');
+  });
+
+  test('setup script should have enhanced user feedback', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+
+    // Check for enhanced feedback
+    expect(content).toContain('✅'); // Success checkmarks
+    expect(content).toContain('⚠️'); // Warnings
+    expect(content).toContain('❌'); // Errors
+    expect(content).toContain('ℹ️'); // Info
+    expect(content).toContain('🎉'); // Celebration
+    expect(content).toContain('⏱️'); // Timer
+  });
+
+  test('setup script should contain progress bar functionality', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+
+    // Check for progress bar elements
+    expect(content).toContain('Progress: [');
+    expect(content).toContain('█'); // Filled progress
+    expect(content).toContain('░'); // Empty progress
+    expect(content).toContain('percentage');
+  });
+
+  test('setup script should have timing functionality', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+
+    // Check for timing
+    expect(content).toContain('START_TIME=$(date +%s)');
+    expect(content).toContain('end_time=$(date +%s)');
+    expect(content).toContain('duration=');
+    expect(content).toContain('Total setup time:');
+  });
+
+  test('setup script should maintain all original functionality', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+
+    // Check that all original functionality is preserved
+    expect(content).toContain('xcode-select');
+    expect(content).toContain('brew');
+    expect(content).toContain('rbenv');
+    expect(content).toContain('nvm');
+    expect(content).toContain('yarn');
+    expect(content).toContain('pod install');
+  });
+
+  test('setup script should start with proper shebang', () => {
+    const content = fs.readFileSync(setupScriptPath, 'utf8');
+    expect(content.startsWith('#!/bin/sh')).toBe(true);
+  });
+
+  test('setup script dry run should not fail on syntax', () => {
+    // Test that the script doesn't have syntax errors
+    // Note: This uses bash -n to check syntax without executing
+    expect(() => {
+      execSync(`bash -n "${setupScriptPath}"`, { stdio: 'pipe' });
+    }).not.toThrow();
+  });
+});
diff --git a/package.json b/package.json
index 600569ad..57085aab 100644
--- a/package.json
+++ b/package.json
@@ -23,7 +23,7 @@
     "!**/__mocks__"
   ],
   "scripts": {
-    "test": "echo test",
+    "test": "jest",
     "typescript": "tsc --noEmit",
     "lint": "eslint \"**/*.{js,ts,tsx}\"",
     "prepare": "bob build",
diff --git a/script/setup b/script/setup
index 565a5c92..aada7798 100755
--- a/script/setup
+++ b/script/setup
@@ -1,84 +1,189 @@
 #!/bin/sh
 
+#
+# Enhanced Setup Script with Progress Indicators
+#
+
+# Colors for better output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+CYAN='\033[0;36m'
+NC='\033[0m' # No Color
+
+# Progress tracking
+TOTAL_STEPS=8
+CURRENT_STEP=0
+START_TIME=$(date +%s)
+
 #
 # Functions
 #
-function log() {
-  echo "\n"
-  echo "======================================="
-  echo "$1"
-  echo "======================================="
+function progress_header() {
+  echo "\n${CYAN}┌─────────────────────────────────────────────────────────────┐${NC}"
+  echo "${CYAN}│  🏎️  Intercom React Native Setup Script  🏎️               │${NC}"
+  echo "${CYAN}└─────────────────────────────────────────────────────────────┘${NC}"
+  echo "${BLUE}Setting up your development environment...${NC}\n"
 }
 
-log "🏎️  Running React native setup script 🏎️"
+function step_start() {
+  CURRENT_STEP=$((CURRENT_STEP + 1))
+  local step_name="$1"
+  local icon="$2"
+  
+  echo "${CYAN}┌─ Step ${CURRENT_STEP}/${TOTAL_STEPS} ────────────────────────────────────────────────┐${NC}"
+  echo "${CYAN}│${NC} ${icon} ${step_name}"
+  echo "${CYAN}└─────────────────────────────────────────────────────────────┘${NC}"
+}
 
-log "📱 Installing xcode tools 📱"
+function step_success() {
+  local message="$1"
+  echo "${GREEN}✅ ${message}${NC}"
+  echo ""
+}
+
+function step_warning() {
+  local message="$1"
+  echo "${YELLOW}⚠️  ${message}${NC}"
+}
+
+function step_error() {
+  local message="$1"
+  echo "${RED}❌ ${message}${NC}"
+}
 
+function step_info() {
+  local message="$1"
+  echo "${BLUE}ℹ️  ${message}${NC}"
+}
+
+function show_progress() {
+  local percentage=$((CURRENT_STEP * 100 / TOTAL_STEPS))
+  local filled=$((CURRENT_STEP * 50 / TOTAL_STEPS))
+  local empty=$((50 - filled))
+  
+  printf "${CYAN}Progress: [${NC}"
+  printf "%${filled}s" | tr ' ' '█'
+  printf "%${empty}s" | tr ' ' '░'
+  printf "${CYAN}] ${percentage}%%${NC}\n"
+}
+
+function final_summary() {
+  local end_time=$(date +%s)
+  local duration=$((end_time - START_TIME))
+  local minutes=$((duration / 60))
+  local seconds=$((duration % 60))
+  
+  echo "\n${GREEN}┌─────────────────────────────────────────────────────────────┐${NC}"
+  echo "${GREEN}│  🎉 Setup Complete! 🎉                                     │${NC}"
+  echo "${GREEN}└─────────────────────────────────────────────────────────────┘${NC}"
+  echo "${GREEN}✅ All dependencies installed successfully${NC}"
+  printf "${BLUE}⏱️  Total setup time: %dm %ds${NC}\n" "$minutes" "$seconds"
+  echo "\n${CYAN}Next steps:${NC}"
+  echo "${GREEN}📱 Run example app on iOS:     ${YELLOW}yarn example ios${NC}"
+  echo "${GREEN}📱 Run example app on Android: ${YELLOW}yarn example android${NC}"
+}
+
+progress_header
+
+# Step 1: Xcode Tools
+step_start "Checking Xcode Command Line Tools" "🛠️"
 if [ ! -f /Library/Developer/CommandLineTools/usr/lib/libxcrun.dylib ]; then
-  echo "⚠️ Xcode CommandLineTools not found installing. Please install and rerun this script ⚠️"
+  step_warning "Xcode CommandLineTools not found. Installing..."
+  step_info "Please complete the Xcode installation and rerun this script"
   xcode-select --install
   exit 1
 fi
-echo "Xcode CommandLineTools installed 👍"
 
 if ! [ -x "$(command -v xcode-select)" ]; then
-  echo "⚠️ You need Xcode to setup this project. Please install and rerun this script ⚠️"
+  step_error "Xcode is required to setup this project. Please install and rerun this script"
   exit 1
 fi
 
-log "👀 Looking for Homebrew 👀"
+step_success "Xcode Command Line Tools are installed"
+show_progress
+
+# Step 2: Homebrew
+step_start "Setting up Homebrew package manager" "🍺"
 if ! [ -x "$(command -v brew)" ]; then
-  echo "🍺 Installing Homebrew 🍺"
+  step_info "Installing Homebrew..."
   /bin/bash -c "$(curl -fsSL https://raw.githubusercontent.com/Homebrew/install/HEAD/install.sh)"
   echo 'export PATH=/opt/homebrew/bin:$PATH' >> ~/.bash_profile
   echo 'export PATH=/opt/homebrew/bin:$PATH' >> ~/.zshrc
+  step_success "Homebrew installed successfully"
 else
-  echo "Homebrew already installed 👍"
+  step_success "Homebrew is already installed"
 fi
+show_progress
 
-log "👀 Looking for rbenv 👀"
+# Step 3: Ruby Environment (rbenv)
+step_start "Setting up Ruby environment with rbenv" "💎"
 if ! [ -x "$(command -v rbenv)" ]; then
-  echo "🍺 Installing rbenv with brew 🍺"
+  step_info "Installing rbenv and ruby-build..."
   brew install rbenv ruby-build
   echo 'eval "$(rbenv init -)"' >> ~/.bash_profile
   echo 'eval "$(rbenv init -)"' >> ~/.zshrc
   eval "$(rbenv init -)"
+  step_success "rbenv installed successfully"
 else
-  echo "rbenv already installed 👍"
+  step_success "rbenv is already installed"
 fi
 
+step_info "Setting up Ruby version..."
 rbenv install --skip-existing
-echo "Ruby setup complete 👍"
+step_success "Ruby environment configured"
+show_progress
 
-log "👀 Looking for nvm 👀"
+# Step 4: Node.js Environment (nvm)
+step_start "Setting up Node.js environment with nvm" "📗"
 if ! [ -x "$(command -v nvm)" ]; then
-  echo "🍺 Installing nvm with brew 🍺"
+  step_info "Installing nvm..."
   brew install nvm
+  step_success "nvm installed successfully"
+else
+  step_success "nvm is already installed"
 fi
 
 # Source nvm
 export NVM_DIR="$HOME/.nvm"
 [ -s "/opt/homebrew/opt/nvm/nvm.sh" ] && \. "/opt/homebrew/opt/nvm/nvm.sh"
 
+step_info "Installing Node.js version from .nvmrc..."
 nvm install
-echo "Node.js setup complete 👍"
+step_success "Node.js environment configured"
+show_progress
 
-log "👀 Looking for yarn 👀"
+# Step 5: Yarn Package Manager
+step_start "Setting up Yarn package manager" "🧶"
 if ! [ -x "$(command -v yarn)" ]; then
-  echo "🍺 Installing yarn 🍺"
+  step_info "Installing Yarn..."
   brew install yarn
+  step_success "Yarn installed successfully"
 else
-  echo "yarn already installed 👍"
+  step_success "Yarn is already installed"
 fi
+show_progress
 
-log "📟 installing dependencies 📟"
+# Step 6: Project Dependencies
+step_start "Installing project dependencies" "📦"
+step_info "Running yarn install..."
 yarn
+step_success "Project dependencies installed"
+show_progress
 
-log "📟 installing dependencies for our example app 📟"
+# Step 7: iOS Dependencies
+step_start "Installing iOS dependencies" "📱"
+step_info "Installing CocoaPods dependencies..."
 cd example/ios
 pod install
 cd -
+step_success "iOS dependencies installed"
+show_progress
+
+# Step 8: Final Setup
+step_start "Finalizing setup" "🏁"
+step_success "Setup completed successfully"
+show_progress
 
-echo "You're all set up 👍"
-echo "📱 Run example app on iOS using -> yarn example ios"
-echo "📱 Run example app on android using -> yarn example android"
+final_summary