diff --git a/tests/integration/test_persistence_integration.py b/tests/integration/test_persistence_integration.py
new file mode 100644
index 000000000..128a1ce9c
--- /dev/null
+++ b/tests/integration/test_persistence_integration.py
@@ -0,0 +1,67 @@
+# Copyright (c) Meta Platforms, Inc. and affiliates.
+# All rights reserved.
+#
+# This source code is licensed under the terms described in the LICENSE file in
+# the root directory of this source tree.
+
+import yaml
+
+from llama_stack.core.datatypes import StackRunConfig
+from llama_stack.core.persistence_resolver import (
+    resolve_inference_store_config,
+    resolve_metadata_store_config,
+)
+from llama_stack.providers.utils.kvstore.config import SqliteKVStoreConfig
+from llama_stack.providers.utils.sqlstore.sqlstore import (
+    PostgresSqlStoreConfig,
+    SqliteSqlStoreConfig,
+)
+
+
+def test_starter_distribution_config_loads_and_resolves():
+    """Integration: Actual starter config should parse and resolve all stores."""
+    with open("llama_stack/distributions/starter/run.yaml") as f:
+        config_dict = yaml.safe_load(f)
+
+    config = StackRunConfig(**config_dict)
+
+    # Config should have persistence with default backend
+    assert config.persistence is not None
+    assert "default" in config.persistence.backends
+    assert isinstance(config.persistence.backends["default"], SqliteSqlStoreConfig)
+
+    # Stores should reference the default backend
+    assert config.persistence.stores is not None
+    assert config.persistence.stores.metadata.backend == "default"
+    assert config.persistence.stores.inference.backend == "default"
+
+    # Resolution should work
+    metadata_store = resolve_metadata_store_config(config.persistence, "starter")
+    assert isinstance(metadata_store, SqliteKVStoreConfig)
+
+    sql_config, max_queue, num_writers = resolve_inference_store_config(config.persistence)
+    assert isinstance(sql_config, SqliteSqlStoreConfig)
+    assert max_queue > 0
+    assert num_writers > 0
+
+
+def test_postgres_demo_distribution_config_loads():
+    """Integration: Postgres demo should use Postgres backend for all stores."""
+    with open("llama_stack/distributions/postgres-demo/run.yaml") as f:
+        config_dict = yaml.safe_load(f)
+
+    config = StackRunConfig(**config_dict)
+
+    # Should have postgres backend
+    assert config.persistence is not None
+    assert "default" in config.persistence.backends
+    assert isinstance(config.persistence.backends["default"], PostgresSqlStoreConfig)
+
+    # Both stores use same postgres backend
+    assert config.persistence.stores.metadata.backend == "default"
+    assert config.persistence.stores.inference.backend == "default"
+
+    # Resolution returns postgres config
+    sql_config, _, _ = resolve_inference_store_config(config.persistence)
+    assert isinstance(sql_config, PostgresSqlStoreConfig)
+    assert sql_config.host == "${env.POSTGRES_HOST:=localhost}"
diff --git a/tests/unit/core/test_persistence_config.py b/tests/unit/core/test_persistence_config.py
new file mode 100644
index 000000000..279f5ed15
--- /dev/null
+++ b/tests/unit/core/test_persistence_config.py
@@ -0,0 +1,84 @@
+# Copyright (c) Meta Platforms, Inc. and affiliates.
+# All rights reserved.
+#
+# This source code is licensed under the terms described in the LICENSE file in
+# the root directory of this source tree.
+
+import pytest
+from pydantic import ValidationError
+
+from llama_stack.core.datatypes import (
+    InferenceStoreReference,
+    PersistenceConfig,
+    StoreReference,
+    StoresConfig,
+)
+from llama_stack.providers.utils.kvstore.config import SqliteKVStoreConfig
+from llama_stack.providers.utils.sqlstore.sqlstore import (
+    PostgresSqlStoreConfig,
+    SqliteSqlStoreConfig,
+)
+
+
+def test_backend_reference_validation_catches_missing_backend():
+    """Critical: Catch user typos in backend references before runtime."""
+    with pytest.raises(ValidationError, match="not defined in persistence.backends"):
+        PersistenceConfig(
+            backends={
+                "default": SqliteSqlStoreConfig(db_path="/tmp/store.db"),
+            },
+            stores=StoresConfig(
+                metadata=StoreReference(backend="typo_backend"),  # User typo
+            ),
+        )
+
+
+def test_backend_reference_validation_accepts_valid_config():
+    """Valid config should parse without errors."""
+    config = PersistenceConfig(
+        backends={
+            "default": SqliteSqlStoreConfig(db_path="/tmp/store.db"),
+        },
+        stores=StoresConfig(
+            metadata=StoreReference(backend="default"),
+            inference=InferenceStoreReference(backend="default"),
+        ),
+    )
+    assert config.stores.metadata.backend == "default"
+    assert config.stores.inference.backend == "default"
+
+
+def test_multiple_stores_can_share_same_backend():
+    """Core use case: metadata and inference both use 'default' backend."""
+    config = PersistenceConfig(
+        backends={
+            "default": SqliteSqlStoreConfig(db_path="/tmp/shared.db"),
+        },
+        stores=StoresConfig(
+            metadata=StoreReference(backend="default", namespace="metadata"),
+            inference=InferenceStoreReference(backend="default"),
+            conversations=StoreReference(backend="default"),
+        ),
+    )
+    # All reference the same backend
+    assert config.stores.metadata.backend == "default"
+    assert config.stores.inference.backend == "default"
+    assert config.stores.conversations.backend == "default"
+
+
+def test_mixed_backend_types_allowed():
+    """Should support KVStore and SqlStore backends simultaneously."""
+    config = PersistenceConfig(
+        backends={
+            "kvstore": SqliteKVStoreConfig(db_path="/tmp/kv.db"),
+            "sqlstore": PostgresSqlStoreConfig(
+                user="test", password="test", host="localhost", db="test"
+            ),
+        },
+        stores=StoresConfig(
+            metadata=StoreReference(backend="kvstore"),
+            inference=InferenceStoreReference(backend="sqlstore"),
+        ),
+    )
+    assert isinstance(config.backends["kvstore"], SqliteKVStoreConfig)
+    assert isinstance(config.backends["sqlstore"], PostgresSqlStoreConfig)
diff --git a/tests/unit/core/test_persistence_resolver.py b/tests/unit/core/test_persistence_resolver.py
new file mode 100644
index 000000000..24bd5ccbf
--- /dev/null
+++ b/tests/unit/core/test_persistence_resolver.py
@@ -0,0 +1,107 @@
+# Copyright (c) Meta Platforms, Inc. and affiliates.
+# All rights reserved.
+#
+# This source code is licensed under the terms described in the LICENSE file in
+# the root directory of this source tree.
+
+import pytest
+
+from llama_stack.core.datatypes import (
+    InferenceStoreReference,
+    PersistenceConfig,
+    StoreReference,
+    StoresConfig,
+)
+from llama_stack.core.persistence_resolver import (
+    resolve_backend,
+    resolve_inference_store_config,
+)
+from llama_stack.providers.utils.kvstore.config import SqliteKVStoreConfig
+from llama_stack.providers.utils.sqlstore.sqlstore import SqliteSqlStoreConfig
+
+
+def test_resolver_applies_namespace_to_kvstore():
+    """Critical: Namespace overlay must work for KVStore isolation."""
+    persistence = PersistenceConfig(
+        backends={
+            "default": SqliteKVStoreConfig(db_path="/tmp/store.db"),
+        },
+        stores=StoresConfig(
+            metadata=StoreReference(backend="default", namespace="meta"),
+        ),
+    )
+
+    resolved = resolve_backend(
+        persistence=persistence,
+        store_ref=persistence.stores.metadata,
+        default_factory=lambda: SqliteKVStoreConfig(db_path="/tmp/default.db"),
+        store_name="metadata",
+    )
+
+    # Backend config cloned with namespace applied
+    assert resolved.db_path == "/tmp/store.db"
+    assert resolved.namespace == "meta"
+
+
+def test_resolver_does_not_apply_namespace_to_sqlstore():
+    """SqlStore backends should not get namespace field."""
+    persistence = PersistenceConfig(
+        backends={
+            "default": SqliteSqlStoreConfig(db_path="/tmp/store.db"),
+        },
+        stores=StoresConfig(
+            inference=InferenceStoreReference(backend="default"),
+        ),
+    )
+
+    sql_config, _, _ = resolve_inference_store_config(persistence)
+
+    # SqlStore returned as-is, no namespace attribute
+    assert sql_config.db_path == "/tmp/store.db"
+    assert not hasattr(sql_config, "namespace")
+
+
+def test_resolver_rejects_kvstore_for_inference():
+    """Type safety: inference requires SqlStore, should fail on KVStore."""
+    persistence = PersistenceConfig(
+        backends={
+            "default": SqliteKVStoreConfig(db_path="/tmp/kv.db"),  # Wrong type
+        },
+        stores=StoresConfig(
+            inference=InferenceStoreReference(backend="default"),
+        ),
+    )
+
+    with pytest.raises(ValueError, match="requires SqlStore backend"):
+        resolve_inference_store_config(persistence)
+
+
+def test_resolver_preserves_queue_params():
+    """Inference store should preserve queue tuning parameters."""
+    persistence = PersistenceConfig(
+        backends={
+            "default": SqliteSqlStoreConfig(db_path="/tmp/store.db"),
+        },
+        stores=StoresConfig(
+            inference=InferenceStoreReference(
+                backend="default",
+                max_write_queue_size=5000,
+                num_writers=2,
+            ),
+        ),
+    )
+
+    _, max_queue, num_writers = resolve_inference_store_config(persistence)
+
+    assert max_queue == 5000
+    assert num_writers == 2
+
+
+def test_resolver_uses_defaults_when_no_persistence_config():
+    """Graceful fallback when persistence not configured."""
+    sql_config, max_queue, num_writers = resolve_inference_store_config(None)
+
+    # Should return sensible defaults
+    assert isinstance(sql_config, SqliteSqlStoreConfig)
+    assert max_queue == 10000
+    assert num_writers == 4