diff --git a/machine/asyncio/core.py b/machine/asyncio/core.py
index eb2dbbb8..a72ccad7 100644
--- a/machine/asyncio/core.py
+++ b/machine/asyncio/core.py
@@ -3,6 +3,7 @@
 import asyncio
 import inspect
 import logging
+import os
 import re
 import sys
 from typing import Callable, cast, Awaitable
@@ -43,6 +44,37 @@ def __init__(self, settings: CaseInsensitiveDict | None = None):
         self._registered_actions = RegisteredActions()
         self._client = None
 
+    async def _setup(self) -> None:
+        announce("Initializing Slack Machine:")
+
+        with indent(4):
+            found_local_settings = self._load_settings()
+            assert self._settings is not None
+            self._setup_logging()
+            if not found_local_settings:
+                warn("No local_settings found! Are you sure this is what you want?")
+            else:
+                logger.debug("Found local settings %s", self._settings)
+
+            # Check if Slack token are present
+            if "SLACK_APP_TOKEN" not in self._settings:
+                error("No SLACK_APP_TOKEN found in settings! I need that to work...")
+                sys.exit(1)
+            if "SLACK_BOT_TOKEN" not in self._settings:
+                error("No SLACK_BOT_TOKEN found in settings! I need that to work...")
+                sys.exit(1)
+
+            # Setup storage
+            self._setup_storage()
+
+            # Setup Slack clients
+            await self._setup_slack_clients()
+
+            # Load plugins
+            await self._load_plugins()
+            logger.debug("Registered plugin actions: %s", self._registered_actions)
+            logger.debug("Plugin help: %s", self._help)
+
     def _setup_logging(self) -> None:
         assert self._settings is not None
         fmt = "[%(asctime)s][%(levelname)s] %(name)s %(filename)s:%(funcName)s:%(lineno)d | %(message)s"
@@ -61,7 +93,8 @@ def _load_settings(self) -> bool:
         if self._settings is not None:
             found_local_settings = True
         else:
-            self._settings, found_local_settings = import_settings()
+            settings_module = os.environ.get("SM_SETTINGS_MODULE", "local_settings")
+            self._settings, found_local_settings = import_settings(settings_module=settings_module)
         puts("Settings loaded!")
         return found_local_settings
 
@@ -85,37 +118,6 @@ async def _setup_slack_clients(self) -> None:
         self._client = SlackClient(self._socket_mode_client)
         await self._client.setup()
 
-    async def _setup(self) -> None:
-        announce("Initializing Slack Machine:")
-
-        with indent(4):
-            found_local_settings = self._load_settings()
-            assert self._settings is not None
-            self._setup_logging()
-            if not found_local_settings:
-                warn("No local_settings found! Are you sure this is what you want?")
-            else:
-                logger.debug("Found local settings %s", self._settings)
-
-            # Check if Slack token are present
-            if "SLACK_APP_TOKEN" not in self._settings:
-                error("No SLACK_APP_TOKEN found in settings! I need that to work...")
-                sys.exit(1)
-            if "SLACK_BOT_TOKEN" not in self._settings:
-                error("No SLACK_BOT_TOKEN found in settings! I need that to work...")
-                sys.exit(1)
-
-            # Setup storage
-            self._setup_storage()
-
-            # Setup Slack clients
-            await self._setup_slack_clients()
-
-            # Load plugins
-            await self._load_plugins()
-            logger.debug("Registered plugin actions: %s", self._registered_actions)
-            logger.debug("Plugin help: %s", self._help)
-
     # TODO: factor out plugin registration in separate class / set of functions
     async def _load_plugins(self) -> None:
         assert self._settings is not None
diff --git a/tests/asyncio/local_test_settings.py b/tests/asyncio/local_test_settings.py
new file mode 100644
index 00000000..c15810f1
--- /dev/null
+++ b/tests/asyncio/local_test_settings.py
@@ -0,0 +1,4 @@
+PLUGINS = ["tests.asyncio.fake_plugins"]
+SLACK_BOT_TOKEN = "xoxb-abc123"
+SLACK_APP_TOKEN = "xapp-abc123"
+STORAGE_BACKEND = "machine.asyncio.storage.backends.memory.MemoryStorage"
diff --git a/tests/asyncio/test_setup.py b/tests/asyncio/test_setup.py
new file mode 100644
index 00000000..ec85b9c0
--- /dev/null
+++ b/tests/asyncio/test_setup.py
@@ -0,0 +1,40 @@
+import pytest
+
+from machine.asyncio import Machine
+from machine.asyncio.storage.backends.memory import MemoryStorage
+
+
+@pytest.fixture
+def socket_mode_client(mocker):
+    socket_mode_client = mocker.patch("machine.asyncio.core.SocketModeClient", autospec=True)
+    socket_mode_client.return_value.socket_mode_request_listeners = []
+    return socket_mode_client
+
+
+@pytest.fixture
+def slack_client(mocker):
+    socket_mode_client = mocker.patch("machine.asyncio.core.SlackClient", autospec=True)
+    socket_mode_client.return_value.socket_mode_request_listeners = []
+    return slack_client
+
+
+@pytest.fixture
+def os_environ(mocker):
+    os_environ = mocker.patch(
+        "machine.asyncio.core.os.environ", new={"SM_SETTINGS_MODULE": "tests.asyncio.local_test_settings"}
+    )
+    return os_environ
+
+
+@pytest.mark.asyncio
+async def test_setup(os_environ, socket_mode_client, slack_client):
+    m = Machine()
+    assert m._settings is None
+    await m._setup()
+    assert m._settings is not None
+    assert m._settings["PLUGINS"] == ["tests.asyncio.fake_plugins"]
+    assert m._settings["SLACK_BOT_TOKEN"] == "xoxb-abc123"
+    assert m._settings["SLACK_APP_TOKEN"] == "xapp-abc123"
+    assert m._settings["STORAGE_BACKEND"] == "machine.asyncio.storage.backends.memory.MemoryStorage"
+    assert isinstance(m._storage_backend, MemoryStorage)
+    assert "manual" in m._storage_backend._storage