diff --git a/.example.env b/.example.env
index e7a8e23..6fb6e68 100644
--- a/.example.env
+++ b/.example.env
@@ -18,5 +18,9 @@ DEEPGRAM_API_KEY=your-deepgram-api-key
 BLUESKY_CLIENT_ID=http://localhost:3000/client-metadata.json
 BLUESKY_REDIRECT_URI=http://localhost:3000/api/auth/callback
 
+# Test Account Credentials (for E2E tests)
+TEST_BLUESKY_HANDLE=your-test-bluesky-handle
+TEST_BLUESKY_PASSWORD=your-test-bluesky-password
+
 # Anthropic API Key (for Magnitude testing)
 ANTHROPIC_API_KEY=your-anthropic-api-key
diff --git a/tests/magnitude/03-auth.mag.ts b/tests/magnitude/03-auth.mag.ts
index 037d8e7..8daf73e 100644
--- a/tests/magnitude/03-auth.mag.ts
+++ b/tests/magnitude/03-auth.mag.ts
@@ -1,5 +1,12 @@
 import { test } from 'magnitude-test';
 
+const TEST_HANDLE = process.env.TEST_BLUESKY_HANDLE;
+const TEST_PASSWORD = process.env.TEST_BLUESKY_PASSWORD;
+
+if (!TEST_HANDLE || !TEST_PASSWORD) {
+  throw new Error('TEST_BLUESKY_HANDLE and TEST_BLUESKY_PASSWORD must be set in .env');
+}
+
 test('Login page renders correctly', async (agent) => {
   await agent.act('Navigate to /login');
   await agent.check('The text "Log in to Ponderants" is visible on the screen');
@@ -12,12 +19,17 @@ test('[Unhappy Path] Login page shows error message from query param', async (ag
   await agent.check('The text "Login Failed: Invalid handle or PDS" is visible on the screen');
 });
 
-test('[Happy Path] Entering handle starts OAuth flow', async (agent) => {
+test('[Happy Path] User initiates OAuth flow', async (agent) => {
   await agent.act('Navigate to /login');
-  await agent.act('Type "testuser.bsky.social" into the "Your Handle" input field');
+  await agent.act(`Type "${TEST_HANDLE}" into the "Your Handle" input field`);
   await agent.act('Click the "Log in with Bluesky" button');
-  // The user will be redirected to /api/auth/login which will then redirect to the OAuth provider
-  // We can't test the full OAuth flow in magnitude without mocking, but we can verify
-  // that the form submission triggers navigation
-  await agent.check('The page has navigated away from /login');
+
+  // The page should redirect to our API route which then redirects to Bluesky OAuth
+  // We verify that we've been redirected to Bluesky's OAuth server
+  await agent.check('The page URL contains "bsky.social/oauth"');
+
+  // Note: In development with localhost, Bluesky OAuth will show an error because
+  // it doesn't accept localhost URLs. This is expected. For full E2E testing,
+  // we would need to use a public URL via ngrok or deploy to a staging environment.
+  // The fact that we reached Bluesky's OAuth page proves our implementation is correct.
 });