diff --git a/package-lock.json b/package-lock.json
index 00c3be98..6e12abdf 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -25652,29 +25652,27 @@
       }
     },
     "packages/@apphosting/build": {
-      "version": "0.1.0",
+      "version": "0.1.1",
       "license": "Apache-2.0",
       "dependencies": {
         "@apphosting/discover": "*",
         "colorette": "^2.0.20",
         "commander": "^11.1.0",
         "npm-pick-manifest": "^9.0.0",
-        "ts-node": "^10.9.1"
+        "ts-node": "*"
       },
       "bin": {
         "apphosting-local-build": "dist/bin/localbuild.js",
         "build": "dist/bin/build.js"
       },
       "devDependencies": {
-        "@types/commander": "*",
         "@types/fs-extra": "*",
         "@types/mocha": "*",
         "@types/tmp": "*",
         "mocha": "*",
-        "next": "~14.0.0",
         "semver": "*",
         "tmp": "*",
-        "ts-mocha": "*",
+        "ts-mocha": "^11.1.0",
         "ts-node": "*",
         "typescript": "*",
         "verdaccio": "^5.30.3"
@@ -25735,6 +25733,29 @@
         "node": "^16.14.0 || >=18.0.0"
       }
     },
+    "packages/@apphosting/build/node_modules/ts-mocha": {
+      "version": "11.1.0",
+      "resolved": "https://registry.npmjs.org/ts-mocha/-/ts-mocha-11.1.0.tgz",
+      "integrity": "sha512-yT7FfzNRCu8ZKkYvAOiH01xNma/vLq6Vit7yINKYFNVP8e5UyrYXSOMIipERTpzVKJQ4Qcos5bQo1tNERNZevQ==",
+      "dev": true,
+      "license": "MIT",
+      "bin": {
+        "ts-mocha": "bin/ts-mocha"
+      },
+      "engines": {
+        "node": ">= 6.X.X"
+      },
+      "peerDependencies": {
+        "mocha": "^3.X.X || ^4.X.X || ^5.X.X || ^6.X.X || ^7.X.X || ^8.X.X || ^9.X.X || ^10.X.X || ^11.X.X",
+        "ts-node": "^7.X.X || ^8.X.X || ^9.X.X || ^10.X.X",
+        "tsconfig-paths": "^4.X.X"
+      },
+      "peerDependenciesMeta": {
+        "tsconfig-paths": {
+          "optional": true
+        }
+      }
+    },
     "packages/@apphosting/common": {
       "version": "0.0.7",
       "license": "Apache-2.0"
diff --git a/packages/@apphosting/adapter-angular/src/interface.ts b/packages/@apphosting/adapter-angular/src/interface.ts
index 201b7257..355a6797 100644
--- a/packages/@apphosting/adapter-angular/src/interface.ts
+++ b/packages/@apphosting/adapter-angular/src/interface.ts
@@ -9,27 +9,6 @@ export interface OutputBundleOptions {
   needsServerGenerated: boolean;
 }
 
-// Environment variable schema for bundle.yaml outputted by angular adapter
-export interface EnvironmentVariable {
-  variable: string;
-  value: string;
-  availability: Availability.Runtime; // currently support RUNTIME only
-}
-
-// defines whether the environment variable is buildtime, runtime or both
-export enum Availability {
-  Buildtime = "BUILD",
-  Runtime = "RUNTIME",
-}
-
-// Metadata schema for bundle.yaml outputted by angular adapter
-export interface Metadata {
-  adapterPackageName: string;
-  adapterVersion: string;
-  framework: string;
-  frameworkVersion: string;
-}
-
 // valid manifest schema
 export interface ValidManifest {
   errors: string[];
diff --git a/packages/@apphosting/build/.gitignore b/packages/@apphosting/build/.gitignore
deleted file mode 100644
index 66e7f6a2..00000000
--- a/packages/@apphosting/build/.gitignore
+++ /dev/null
@@ -1 +0,0 @@
-/e2e
\ No newline at end of file
diff --git a/packages/@apphosting/build/e2e/.gitignore b/packages/@apphosting/build/e2e/.gitignore
new file mode 100644
index 00000000..cb1d07bf
--- /dev/null
+++ b/packages/@apphosting/build/e2e/.gitignore
@@ -0,0 +1 @@
+runs
\ No newline at end of file
diff --git a/packages/@apphosting/build/e2e/adapter-builds.spec.ts b/packages/@apphosting/build/e2e/adapter-builds.spec.ts
new file mode 100644
index 00000000..832190b0
--- /dev/null
+++ b/packages/@apphosting/build/e2e/adapter-builds.spec.ts
@@ -0,0 +1,32 @@
+import * as assert from "assert";
+import { posix } from "path";
+import pkg from "@apphosting/common";
+import { scenarios } from "./scenarios.ts";
+import fsExtra from "fs-extra";
+import { parse as parseYaml } from "yaml";
+
+const { readFileSync, mkdirp, rmdir, readJSONSync } = fsExtra;
+const { OutputBundleConfig } = pkg;
+
+const scenario = process.env.SCENARIO;
+if (!scenario) {
+  throw new Error("SCENARIO environment variable expected");
+}
+
+const runId = process.env.RUN_ID;
+if (!runId) {
+  throw new Error("RUN_ID environment variable expected");
+}
+
+const bundleYaml = posix.join(process.cwd(), "e2e", "runs", runId, ".apphosting", "bundle.yaml");
+describe("supported framework apps", () => {
+  it("apps have bundle.yaml correctly generated", async () => {
+    const bundle = parseYaml(readFileSync(bundleYaml, "utf8")) as OutputBundleConfig;
+
+    assert.deepStrictEqual(scenarios.get(scenario).expectedBundleYaml.runConfig, bundle.runConfig);
+    assert.deepStrictEqual(
+      scenarios.get(scenario).expectedBundleYaml.metadata.adapterPackageName,
+      bundle.metadata.adapterPackageName,
+    );
+  });
+});
diff --git a/packages/@apphosting/build/e2e/run-local-build.ts b/packages/@apphosting/build/e2e/run-local-build.ts
new file mode 100644
index 00000000..a09bad2d
--- /dev/null
+++ b/packages/@apphosting/build/e2e/run-local-build.ts
@@ -0,0 +1,104 @@
+import { cp } from "fs/promises";
+import promiseSpawn from "@npmcli/promise-spawn";
+import { dirname, join, relative } from "path";
+import { fileURLToPath } from "url";
+import { parse as parseYaml } from "yaml";
+import { spawn } from "child_process";
+import fsExtra from "fs-extra";
+import { scenarios } from "./scenarios.ts";
+
+const { readFileSync, mkdirp, rmdir } = fsExtra;
+
+const __dirname = dirname(fileURLToPath(import.meta.url));
+
+const errors: any[] = [];
+
+await rmdir(join(__dirname, "runs"), { recursive: true }).catch(() => undefined);
+
+// Run each scenario
+for (const [scenarioName, scenario] of scenarios) {
+  console.log(
+    `\n\n${"=".repeat(80)}\n${" ".repeat(
+      5,
+    )}RUNNING SCENARIO: ${scenarioName.toUpperCase()}${" ".repeat(5)}\n${"=".repeat(80)}`,
+  );
+
+  const runId = `${scenarioName}-${Math.random().toString().split(".")[1]}`;
+  const cwd = join(__dirname, "runs", runId);
+  await mkdirp(cwd);
+
+  const starterTemplateDir = scenarioName.includes("nextjs")
+    ? "../../../starters/nextjs/basic"
+    : "../../../starters/angular/basic";
+  console.log(`[${runId}] Copying ${starterTemplateDir} to working directory`);
+  await cp(starterTemplateDir, cwd, { recursive: true });
+
+  // Run scenario-specific setup if provided
+  if (scenario.setup) {
+    console.log(`[${runId}] Running setup for ${scenarioName}`);
+    await scenario.setup(cwd);
+  }
+
+  console.log(`[${runId}] > npm ci --silent --no-progress`);
+  await promiseSpawn("npm", ["ci", "--silent", "--no-progress"], {
+    cwd,
+    stdio: "inherit",
+    shell: true,
+  });
+
+  const buildScript = relative(cwd, join(__dirname, "../dist/bin/localbuild.js"));
+  const buildLogPath = join(cwd, "build.log");
+  console.log(`[${runId}] > node ${buildScript} (output written to ${buildLogPath})`);
+
+  const packageJson = JSON.parse(readFileSync(join(cwd, "package.json"), "utf-8"));
+  const frameworkVersion = scenarioName.includes("nextjs")
+    ? packageJson.dependencies.next.replace("^", "")
+    : JSON.parse(
+        readFileSync(join(cwd, "node_modules", "@angular", "core", "package.json"), "utf-8"),
+      ).version;
+
+  try {
+    await promiseSpawn("node", [buildScript, ...scenario.inputs], {
+      cwd,
+      stdioString: true,
+      stdio: "pipe",
+      shell: true,
+      env: {
+        ...process.env,
+        FRAMEWORK_VERSION: frameworkVersion,
+      },
+    }).then((result) => {
+      // Write stdout and stderr to the log file
+      fsExtra.writeFileSync(buildLogPath, result.stdout + result.stderr);
+    });
+
+    try {
+      // Determine which test files to run
+      const testPattern = scenario.tests
+        ? scenario.tests.map((test) => `e2e/${test}`).join(" ")
+        : "e2e/*.spec.ts";
+
+      console.log(`> SCENARIO=${scenarioName} ts-mocha -p tsconfig.json ${testPattern}`);
+
+      await promiseSpawn("ts-mocha", ["-p", "tsconfig.json", ...testPattern.split(" ")], {
+        shell: true,
+        stdio: "inherit",
+        env: {
+          ...process.env,
+          SCENARIO: scenarioName,
+          RUN_ID: runId,
+        },
+      });
+    } catch (e) {
+      errors.push(e);
+    }
+  } catch (e) {
+    console.error(`Error in scenario ${scenarioName}:`, e);
+    errors.push(e);
+  }
+
+  if (errors.length) {
+    console.error(errors);
+    process.exit(1);
+  }
+}
diff --git a/packages/@apphosting/build/e2e/scenarios.ts b/packages/@apphosting/build/e2e/scenarios.ts
new file mode 100644
index 00000000..0275e8d8
--- /dev/null
+++ b/packages/@apphosting/build/e2e/scenarios.ts
@@ -0,0 +1,45 @@
+import pkg from "@apphosting/common";
+const { OutputBundleConfig } = pkg;
+
+interface Scenario {
+  name: string; // Name of the scenario
+  inputs: string[];
+  expectedBundleYaml: OutputBundleConfig;
+  tests?: string[]; // List of test files to run
+}
+
+export const scenarios = new Map([
+  [
+    "nextjs-app",
+    {
+      inputs: ["./", "--framework", "nextjs"],
+      expectedBundleYaml: {
+        version: "v1",
+        runConfig: {
+          runCommand: "node .next/standalone/server.js",
+        },
+        metadata: {
+          adapterPackageName: "@apphosting/adapter-nextjs",
+        },
+      },
+      tests: ["adapter-builds.spec.ts"],
+    },
+  ],
+  [
+    "angular-app",
+    {
+      inputs: ["./", "--framework", "angular"],
+      expectedBundleYaml: {
+        version: "v1",
+        runConfig: {
+          runCommand: "node dist/firebase-app-hosting-angular/server/server.mjs",
+          environmentVariables: [],
+        },
+        metadata: {
+          adapterPackageName: "@apphosting/adapter-angular",
+        },
+      },
+      tests: ["adapter-builds.spec.ts"],
+    },
+  ],
+]);
diff --git a/packages/@apphosting/build/package.json b/packages/@apphosting/build/package.json
index babd8c4a..a9f4050d 100644
--- a/packages/@apphosting/build/package.json
+++ b/packages/@apphosting/build/package.json
@@ -21,7 +21,9 @@
     "type": "module",
     "sideEffects": false,
     "scripts": {
-      "build": "rm -rf dist && tsc && chmod +x ./dist/bin/*"
+      "build": "rm -rf dist && tsc && chmod +x ./dist/bin/*",
+      "test": "npm run test:functional",
+      "test:functional": "node --loader ts-node/esm ./e2e/run-local-build.ts"
     },
     "exports": {
         ".": {
diff --git a/packages/@apphosting/build/src/adapter-builds.ts b/packages/@apphosting/build/src/adapter-builds.ts
new file mode 100644
index 00000000..e4525f57
--- /dev/null
+++ b/packages/@apphosting/build/src/adapter-builds.ts
@@ -0,0 +1,39 @@
+import { spawn } from "child_process";
+import { yellow, bgRed, bold } from "colorette";
+
+export async function adapterBuild(projectRoot: string, framework: string) {
+  // TODO(#382): We are using the latest framework adapter versions, but in the future
+  // we should parse the framework version and use the matching adapter version.
+  const adapterName = `@apphosting/adapter-${framework}`;
+  const packumentResponse = await fetch(`https://registry.npmjs.org/${adapterName}`);
+  if (!packumentResponse.ok)
+    throw new Error(
+      `Failed to fetch ${adapterName}: ${packumentResponse.status} ${packumentResponse.statusText}`,
+    );
+  const packument = await packumentResponse.json();
+  const adapterVersion = packument?.["dist-tags"]?.["latest"];
+  if (!adapterVersion) {
+    throw new Error(`Could not find 'latest' dist-tag for ${adapterName}`);
+  }
+  // TODO(#382): should check for existence of adapter in app's package.json and use that version instead.
+
+  console.log(" 🔥", bgRed(` ${adapterName}@${yellow(bold(adapterVersion))} `), "\n");
+
+  const buildCommand = `apphosting-adapter-${framework}-build`;
+  await new Promise<void>((resolve, reject) => {
+    const child = spawn("npx", ["-y", "-p", `${adapterName}@${adapterVersion}`, buildCommand], {
+      cwd: projectRoot,
+      shell: true,
+      stdio: "inherit",
+    });
+
+    child.on("error", reject);
+
+    child.on("exit", (code) => {
+      if (code !== 0) {
+        reject(new Error(`framework adapter build failed with error code ${code}.`));
+      }
+      resolve();
+    });
+  });
+}
diff --git a/packages/@apphosting/build/src/bin/localbuild.ts b/packages/@apphosting/build/src/bin/localbuild.ts
index ed284df9..d8629197 100644
--- a/packages/@apphosting/build/src/bin/localbuild.ts
+++ b/packages/@apphosting/build/src/bin/localbuild.ts
@@ -1,46 +1,28 @@
 #! /usr/bin/env node
-import { spawn } from "child_process";
+import { SupportedFrameworks, ApphostingConfig } from "@apphosting/common";
+import { adapterBuild } from "../adapter-builds.js";
+import { parse as parseYaml } from "yaml";
+import fsExtra from "fs-extra";
+import { join } from "path";
 import { program } from "commander";
-import { yellow, bgRed, bold } from "colorette";
 
-// TODO(#382): add framework option later or incorporate micro-discovery.
-// TODO(#382): parse apphosting.yaml for environment variables / secrets.
-// TODO(#382): parse apphosting.yaml for runConfig and include in buildSchema
-// TODO(#382): Support custom build and run commands (parse and pass run command to build schema).
+export const { readFileSync } = fsExtra;
+
 program
   .argument("<projectRoot>", "path to the project's root directory")
-  .action(async (projectRoot: string) => {
-    const framework = "nextjs";
-    // TODO(#382): We are using the latest framework adapter versions, but in the future
-    // we should parse the framework version and use the matching adapter version.
-    const adapterName = `@apphosting/adapter-nextjs`;
-    const packumentResponse = await fetch(`https://registry.npmjs.org/${adapterName}`);
-    if (!packumentResponse.ok) throw new Error(`Something went wrong fetching ${adapterName}`);
-    const packument = await packumentResponse.json();
-    const adapterVersion = packument?.["dist-tags"]?.["latest"];
-    if (!adapterVersion) {
-      throw new Error(`Could not find 'latest' dist-tag for ${adapterName}`);
-    }
-    // TODO(#382): should check for existence of adapter in app's package.json and use that version instead.
+  .option("--framework <framework>")
+  .action(async (projectRoot, opts) => {
+    // TODO(#382): support other apphosting.*.yaml files.
 
-    console.log(" 🔥", bgRed(` ${adapterName}@${yellow(bold(adapterVersion))} `), "\n");
-
-    const buildCommand = `apphosting-adapter-${framework}-build`;
-    await new Promise<void>((resolve, reject) => {
-      const child = spawn("npx", ["-y", "-p", `${adapterName}@${adapterVersion}`, buildCommand], {
-        cwd: projectRoot,
-        shell: true,
-        stdio: "inherit",
-      });
+    // TODO(#382): parse apphosting.yaml for environment variables / secrets needed during build time.
+    if (opts.framework && SupportedFrameworks.includes(opts.framework)) {
+      // TODO(#382): Skip this if there's a custom build command in apphosting.yaml.
+      adapterBuild(projectRoot, opts.framework);
+    }
 
-      child.on("exit", (code) => {
-        if (code !== 0) {
-          reject(new Error(`framework adapter build failed with error code ${code}.`));
-        }
-        resolve();
-      });
-    });
-    //  TODO(#382): parse bundle.yaml and apphosting.yaml and output a buildschema somewhere.
+    // TODO(#382): Parse apphosting.yaml to set custom run command in bundle.yaml
+    // TODO(#382): parse apphosting.yaml for environment variables / secrets needed during runtime to include in the bunde.yaml
+    // TODO(#382): parse apphosting.yaml for runConfig to include in bundle.yaml
   });
 
 program.parse();
diff --git a/packages/@apphosting/build/tsconfig.json b/packages/@apphosting/build/tsconfig.json
index 3041a86e..96a70af3 100644
--- a/packages/@apphosting/build/tsconfig.json
+++ b/packages/@apphosting/build/tsconfig.json
@@ -8,7 +8,7 @@
   },
   "include": [
     "src/index.ts",
-    "src/bin/*.ts",
+    "src/bin/*.ts"
   ],
   "exclude": [
     "src/*.spec.ts"
diff --git a/packages/@apphosting/common/src/index.ts b/packages/@apphosting/common/src/index.ts
index 7ad051de..f888baa7 100644
--- a/packages/@apphosting/common/src/index.ts
+++ b/packages/@apphosting/common/src/index.ts
@@ -2,6 +2,11 @@ import { spawn } from "child_process";
 import * as fs from "node:fs";
 import * as path from "node:path";
 
+// List of apphosting supported frameworks.
+export const SupportedFrameworks = ["nextjs", "angular"];
+
+// **** OutputBundleConfig interfaces ****
+
 // Output bundle metadata specifications to be written to bundle.yaml
 export interface OutputBundleConfig {
   version: "v1";
@@ -41,9 +46,31 @@ export interface Metadata {
   frameworkVersion?: string;
 }
 
+// **** Apphosting Config interfaces ****
+
+export interface ApphostingConfig {
+  runconfig?: ApphostingRunConfig;
+  env?: EnvVarConfig[];
+  scripts?: Script;
+  outputFiles?: OutputFiles;
+}
+
+export interface ApphostingRunConfig {
+  minInstances?: number;
+  maxInstances?: number;
+  concurrency?: number;
+}
+
+export interface Script {
+  buildCommand?: string;
+  runCommand?: string;
+}
+
+// **** Shared interfaces ****
+
 // Optional outputFiles to configure outputFiles and optimize server files + static assets.
 // If this is not set then all of the source code will be uploaded
-interface OutputFiles {
+export interface OutputFiles {
   serverApp: ServerApp;
 }
 
@@ -59,14 +86,15 @@ export interface EnvVarConfig {
   variable: string;
   // Value associated with the variable
   value: string;
-  // Where the variable will be available, for now only RUNTIME is supported
-  availability: Availability.Runtime[];
+  // Where the variable will be available
+  availability: Availability[];
 }
 
 // Represents where environment variables are made available
 export enum Availability {
   // Runtime environment variables are available on the server when the app is run
   Runtime = "RUNTIME",
+  Build = "BUILD",
 }
 
 // Options to configure the build of a framework application