diff --git a/.gitignore b/.gitignore
index a641a4b3..3391be3e 100644
--- a/.gitignore
+++ b/.gitignore
@@ -14,4 +14,5 @@ experiments
 .log
 coverage
 test-results.xml
-.history
\ No newline at end of file
+.history
+/test/test-homedir
\ No newline at end of file
diff --git a/src/commands/shell.mjs b/src/commands/shell.mjs
index a08f7333..67c7a61e 100644
--- a/src/commands/shell.mjs
+++ b/src/commands/shell.mjs
@@ -1,5 +1,6 @@
 //@ts-check
 
+import path from "node:path";
 import repl from "node:repl";
 
 import { container } from "../cli.mjs";
@@ -7,15 +8,28 @@ import {
   // ensureDbScopeClient,
   commonConfigurableQueryOptions,
 } from "../lib/command-helpers.mjs";
+import { dirExists, fileExists } from "../lib/file-util.mjs";
 import { performQuery } from "./eval.mjs";
 
 async function doShell(argv) {
+  const fs = container.resolve("fs");
   const logger = container.resolve("logger");
   let completionPromise;
 
   if (argv.dbPath) logger.stdout(`Starting shell for database ${argv.dbPath}`);
   logger.stdout("Type Ctrl+D or .exit to exit the shell");
 
+  // Setup history file
+  const homedir = container.resolve("homedir");
+  const historyDir = path.join(homedir.toString(), ".fauna");
+  if (!dirExists(historyDir)) {
+    fs.mkdirSync(historyDir, { recursive: true });
+  }
+  const historyFile = path.join(historyDir, "history");
+  if (!fileExists(historyFile)) {
+    fs.writeFileSync(historyFile, "{}");
+  }
+
   /** @type {import('node:repl').ReplOptions} */
   const replArgs = {
     prompt: `${argv.db_path || ""}> `,
@@ -27,9 +41,18 @@ async function doShell(argv) {
     input: container.resolve("stdinStream"),
     eval: await buildCustomEval(argv),
     terminal: true,
+    historySize: 1000
   };
 
   const shell = repl.start(replArgs);
+
+  // Setup history
+  shell.setupHistory(historyFile, (err) => {
+    if (err) {
+      logger.stderr(`Error setting up history: ${err.message}`);
+    }
+  });
+
   // eslint-disable-next-line no-console
   shell.on("error", console.error);
 
@@ -55,6 +78,25 @@ async function doShell(argv) {
         shell.prompt();
       },
     },
+    {
+      cmd: "clearhistory",
+      help: "Clear command history",
+      action: async () => {
+        try {
+          await fs.writeFileSync(historyFile, '');
+          logger.stdout('History cleared');
+          // Reinitialize history
+          shell.setupHistory(historyFile, (err) => {
+            if (err) {
+              logger.stderr(`Error reinitializing history: ${err.message}`);
+            }
+          });
+        } catch (err) {
+          logger.stderr(`Error clearing history: ${err.message}`);
+        }
+        shell.prompt();
+      },
+    }
   ].forEach(({ cmd, ...cmdOptions }) => shell.defineCommand(cmd, cmdOptions));
 
   return completionPromise;
diff --git a/src/config/setup-test-container.mjs b/src/config/setup-test-container.mjs
index 1bb8d247..af1e1e29 100644
--- a/src/config/setup-test-container.mjs
+++ b/src/config/setup-test-container.mjs
@@ -51,7 +51,10 @@ export function setupTestContainer() {
     // wrap it in a spy so we can record calls, but use the
     // real implementation
     parseYargs: awilix.asValue(spy(parseYargs)),
-    fs: awilix.asValue(stub(fs)),
+    // Stubbing node:fs globally breaks tests where we want fs to work normally.
+    // Let tests decide how fs should be stubbed out if they don't want the real
+    // implementation.
+    fs: awilix.asValue(fs),
     fsp: awilix.asValue({
       unlink: stub(),
       writeFile: stub(),
diff --git a/src/lib/file-util.mjs b/src/lib/file-util.mjs
index b1ecd300..ba07692c 100644
--- a/src/lib/file-util.mjs
+++ b/src/lib/file-util.mjs
@@ -1,6 +1,4 @@
 //@ts-check
-
-import fs from "node:fs";
 import path from "node:path";
 
 import { container } from "../cli.mjs";
@@ -22,15 +20,8 @@ export function fixPath(path) {
  * @returns {boolean}
  */
 export function dirExists(path) {
-  const stat = fs.statSync(fixPath(path), {
-    // returns undefined instead of throwing if the file doesn't exist
-    throwIfNoEntry: false,
-  });
-  if (stat === undefined || !stat.isDirectory()) {
-    return false;
-  } else {
-    return true;
-  }
+  const fs = container.resolve("fs");
+  return fs.existsSync(fixPath(path));
 }
 
 /**
@@ -39,6 +30,7 @@ export function dirExists(path) {
  * @returns {boolean}
  */
 export function dirIsWriteable(path) {
+  const fs = container.resolve("fs");
   try {
     fs.accessSync(fixPath(path), fs.constants.W_OK);
   } catch (e) {
@@ -54,7 +46,8 @@ export function dirIsWriteable(path) {
  * @param {string} path - The path to the file.
  * @returns {boolean} - Returns true if the file exists, otherwise false.
  */
-function fileExists(path) {
+export function fileExists(path) {
+  const fs = container.resolve("fs");
   try {
     fs.readFileSync(fixPath(path));
     return true;
@@ -69,6 +62,7 @@ function fileExists(path) {
  * @returns {Object.<string, any>} - The parsed JSON content of the file.
  */
 function getJSONFileContents(path) {
+  const fs = container.resolve("fs");
   // Open file for reading and writing without truncating
   const fileContent = fs.readFileSync(path, { flag: "r+" }).toString();
   if (!fileContent) {
@@ -103,11 +97,13 @@ export class Credentials {
    * @param {string} [filename=""] - The name of the credentials file.
    */
   constructor(filename = "") {
+    const fs = container.resolve("fs");
+
     this.logger = container.resolve("logger");
     this.filename = filename;
 
     const homedir = container.resolve("homedir");
-    this.credsDir = path.join(homedir.toString(),".fauna/credentials");
+    this.credsDir = path.join(homedir.toString(), ".fauna/credentials");
 
     if (!dirExists(this.credsDir)) {
       fs.mkdirSync(this.credsDir, { recursive: true });
@@ -146,6 +142,8 @@ export class Credentials {
    * @param {string} params.key - The key to index the creds under
    */
   save({ creds, overwrite = false, key }) {
+    const fs = container.resolve("fs");
+
     try {
       const existingContent = overwrite ? {} : this.get();
       const newContent = {
@@ -159,6 +157,8 @@ export class Credentials {
   }
 
   delete(key) {
+    const fs = container.resolve("fs");
+
     try {
       const existingContent = this.get();
       delete existingContent[key];
@@ -193,6 +193,8 @@ export class SecretKey extends Credentials {
      * @param {string} opts.creds.role - The role to save the secret
     */
     this.save = ({ creds, overwrite = false, key }) => {
+      const fs = container.resolve("fs");
+
       try {
         const existingContent = overwrite ? {} : this.get();
         const existingAccountSecrets = existingContent[key] || {};
diff --git a/test/login.mjs b/test/login.mjs
index 1eb16094..72b3c609 100644
--- a/test/login.mjs
+++ b/test/login.mjs
@@ -1,4 +1,5 @@
 //@ts-check
+import node_fs from "node:fs";
 import path from "node:path";
 
 import * as awilix from "awilix";
@@ -72,6 +73,7 @@ describe("login", function () {
       accountClient: awilix.asFunction(mockAccountClient).scoped(),
       accountCreds: awilix.asClass(AccountKey).scoped(),
       homedir: awilix.asFunction(() => homedir).scoped(),
+      fs: awilix.asValue(stub(node_fs)),
     });
     fs = container.resolve("fs");
   });
diff --git a/test/schema/pull.mjs b/test/schema/pull.mjs
index d356d309..cacb6938 100644
--- a/test/schema/pull.mjs
+++ b/test/schema/pull.mjs
@@ -1,4 +1,5 @@
 //@ts-check
+import node_fs from "node:fs";
 
 import * as awilix from "awilix";
 import { expect } from "chai";
@@ -30,6 +31,7 @@ describe("schema pull", function () {
       deleteUnusedSchemaFiles: awilix.asValue(
         sinon.spy(deleteUnusedSchemaFiles),
       ),
+      fs: awilix.asValue(sinon.stub(node_fs)),
     });
     logger = container.resolve("logger");
     fetch = container.resolve("fetch");
diff --git a/test/shell.mjs b/test/shell.mjs
index 9e9c15ab..4dd54ad6 100644
--- a/test/shell.mjs
+++ b/test/shell.mjs
@@ -1,7 +1,8 @@
 //@ts-check
-
 import { EOL } from "node:os";
+import path from "node:path";
 
+import * as awilix from "awilix";
 import { expect } from "chai";
 import sinon from "sinon";
 
@@ -45,10 +46,19 @@ const v4Object2 = `{
 
 describe("shell", function () {
   let container, stdin, stdout, logger;
-  let prompt = `${EOL}\x1B[1G\x1B[0J> \x1B[3G`;
+
+  const promptReset = "\x1B[1G\x1B[0J> ";
+  const prompt = `${EOL}${promptReset}\x1B[3G`;
+  const getHistoryPrompt = (text) => `${promptReset}${text}\u001b[${3 + text.length}G`
 
   beforeEach(() => {
+    const __dirname = import.meta.dirname;
+    const homedir = path.join(__dirname, "../test/test-homedir");
+
     container = setupContainer();
+    container.register({
+      homedir: awilix.asFunction(() => homedir).scoped(),
+    });
     stdin = container.resolve("stdinStream");
     stdout = container.resolve("stdoutStream");
     logger = container.resolve("logger");
@@ -89,6 +99,50 @@ describe("shell", function () {
     it.skip("can read input from a file", async function () {});
 
     it.skip("can set a connection timeout", async function () {});
+
+    const upArrow = "\x1b[A";
+    const downArrow = "\x1b[B";
+
+    it("can keep track of history", async function () {
+      // start the shell
+      const runPromise = run(`shell --secret "secret" --typecheck`, container);
+
+      // send our first command
+      stdin.push(`1\n2\n3\n`);
+      await stdout.waitForWritten();
+
+      // navigate up through history
+      stdout.clear();
+      stdin.push(upArrow);
+      await stdout.waitForWritten();
+      expect(stdout.getWritten()).to.equal(getHistoryPrompt("3"));
+      stdout.clear();
+      stdin.push(upArrow);
+      await stdout.waitForWritten();
+      expect(stdout.getWritten()).to.equal(getHistoryPrompt("2"));
+      stdout.clear();
+      stdin.push(upArrow);
+      await stdout.waitForWritten();
+      expect(stdout.getWritten()).to.equal(getHistoryPrompt("1"));
+      stdout.clear();
+      stdin.push(downArrow);
+      await stdout.waitForWritten();
+      expect(stdout.getWritten()).to.equal(getHistoryPrompt("2"));
+      stdout.clear();
+      stdin.push(downArrow);
+      await stdout.waitForWritten();
+      expect(stdout.getWritten()).to.equal(getHistoryPrompt("3"));
+
+      expect(container.resolve("stderrStream").getWritten()).to.equal("");
+
+      stdin.push(null);
+
+      return runPromise;
+    });
+
+    it.skip("can clear history", async function () {});
+
+    it.skip("can save history between sessions", async function () {});
   });
 
   describe("v10", function () {