diff --git a/src/game/typing.test.ts b/src/game/typing.test.ts
new file mode 100644
index 0000000..f3680e4
--- /dev/null
+++ b/src/game/typing.test.ts
@@ -0,0 +1,174 @@
+import { describe, it, expect } from "vitest";
+import {
+	generateLetters,
+	createExerciseState,
+	handleKeyPress,
+	getCurrentLetter,
+	isExerciseComplete,
+} from "./typing";
+import { getKeysUpToLevel } from "./levels";
+
+describe("generateLetters", () => {
+	it("returns 8-12 letters for level 1", () => {
+		for (let i = 0; i < 20; i++) {
+			const letters = generateLetters(1);
+			expect(letters.length).toBeGreaterThanOrEqual(8);
+			expect(letters.length).toBeLessThanOrEqual(12);
+		}
+	});
+
+	it("only uses keys from level 1 key set (f, j, space)", () => {
+		const validKeys = ["f", "j", " "];
+		for (let i = 0; i < 20; i++) {
+			const letters = generateLetters(1);
+			for (const letter of letters) {
+				expect(validKeys).toContain(letter);
+			}
+		}
+	});
+
+	it("only uses keys from levels 1-3 key set for level 3", () => {
+		const validKeys = getKeysUpToLevel(3);
+		for (let i = 0; i < 20; i++) {
+			const letters = generateLetters(3);
+			for (const letter of letters) {
+				expect(validKeys).toContain(letter);
+			}
+		}
+	});
+});
+
+describe("createExerciseState", () => {
+	it("sets initial interval to 3000ms", () => {
+		const state = createExerciseState(1);
+		expect(state.intervalMs).toBe(3000);
+	});
+
+	it("starts at letter index 0 with 0 correct, 0 errors, 0 streak", () => {
+		const state = createExerciseState(1);
+		expect(state.currentLetterIndex).toBe(0);
+		expect(state.totalCorrect).toBe(0);
+		expect(state.totalErrors).toBe(0);
+		expect(state.correctStreak).toBe(0);
+	});
+});
+
+describe("handleKeyPress", () => {
+	it("increments currentLetterIndex and totalCorrect on correct key", () => {
+		const state = createExerciseState(1);
+		const expected = state.letters[0]!;
+		const result = handleKeyPress(state, expected);
+		expect(result.correct).toBe(true);
+		expect(state.currentLetterIndex).toBe(1);
+		expect(state.totalCorrect).toBe(1);
+	});
+
+	it("does NOT increment currentLetterIndex on wrong key, increments totalErrors", () => {
+		const state = createExerciseState(1);
+		// Pick a key that is definitely wrong
+		const expected = state.letters[0]!;
+		const wrongKey = expected === "f" ? "j" : "f";
+		const result = handleKeyPress(state, wrongKey);
+		expect(result.correct).toBe(false);
+		expect(state.currentLetterIndex).toBe(0);
+		expect(state.totalErrors).toBe(1);
+	});
+
+	it("increments correctStreak on correct key", () => {
+		const state = createExerciseState(1);
+		const expected = state.letters[0]!;
+		handleKeyPress(state, expected);
+		expect(state.correctStreak).toBe(1);
+	});
+
+	it("resets correctStreak to 0 on error", () => {
+		const state = createExerciseState(1);
+		// Get one correct to build streak
+		handleKeyPress(state, state.letters[0]!);
+		expect(state.correctStreak).toBe(1);
+		// Now wrong key
+		const expected = state.letters[1]!;
+		const wrongKey = expected === "f" ? "j" : "f";
+		handleKeyPress(state, wrongKey);
+		expect(state.correctStreak).toBe(0);
+	});
+
+	it("decreases interval by 200ms after 2 correct in sequence", () => {
+		const state = createExerciseState(1);
+		expect(state.intervalMs).toBe(3000);
+		handleKeyPress(state, state.letters[0]!);
+		handleKeyPress(state, state.letters[1]!);
+		expect(state.intervalMs).toBe(2800);
+	});
+
+	it("increases interval by 500ms after 1 error", () => {
+		const state = createExerciseState(1);
+		// Force an error
+		const expected = state.letters[0]!;
+		const wrongKey = expected === "f" ? "j" : "f";
+		handleKeyPress(state, wrongKey);
+		expect(state.intervalMs).toBe(3500);
+	});
+
+	it("interval never goes below 1500ms", () => {
+		const state = createExerciseState(1);
+		// Force interval down to minimum
+		state.intervalMs = 1600;
+		state.correctStreak = 1;
+		handleKeyPress(state, state.letters[0]!);
+		// After 2 correct streak, -200ms: 1600 -> 1500 (clamped)
+		expect(state.intervalMs).toBe(1500);
+		// Try again: force streak
+		state.correctStreak = 1;
+		handleKeyPress(state, state.letters[1]!);
+		// Should stay at 1500
+		expect(state.intervalMs).toBe(1500);
+	});
+
+	it("interval never goes above 4000ms", () => {
+		const state = createExerciseState(1);
+		state.intervalMs = 3800;
+		const expected = state.letters[0]!;
+		const wrongKey = expected === "f" ? "j" : "f";
+		handleKeyPress(state, wrongKey);
+		// 3800 + 500 = 4300, clamped to 4000
+		expect(state.intervalMs).toBe(4000);
+	});
+
+	it("exercise is complete when currentLetterIndex equals letters.length", () => {
+		const state = createExerciseState(1);
+		// Type all letters correctly
+		let lastResult = { correct: false, exerciseComplete: false, newInterval: 0 };
+		for (let i = 0; i < state.letters.length; i++) {
+			lastResult = handleKeyPress(state, state.letters[i]!);
+		}
+		expect(lastResult.exerciseComplete).toBe(true);
+		expect(isExerciseComplete(state)).toBe(true);
+	});
+});
+
+describe("getCurrentLetter", () => {
+	it("returns the current letter", () => {
+		const state = createExerciseState(1);
+		expect(getCurrentLetter(state)).toBe(state.letters[0]);
+	});
+
+	it("returns null when exercise is complete", () => {
+		const state = createExerciseState(1);
+		state.currentLetterIndex = state.letters.length;
+		expect(getCurrentLetter(state)).toBeNull();
+	});
+});
+
+describe("isExerciseComplete", () => {
+	it("returns false when exercise is in progress", () => {
+		const state = createExerciseState(1);
+		expect(isExerciseComplete(state)).toBe(false);
+	});
+
+	it("returns true when all letters are typed", () => {
+		const state = createExerciseState(1);
+		state.currentLetterIndex = state.letters.length;
+		expect(isExerciseComplete(state)).toBe(true);
+	});
+});
diff --git a/src/game/typing.ts b/src/game/typing.ts
new file mode 100644
index 0000000..adf9ed0
--- /dev/null
+++ b/src/game/typing.ts
@@ -0,0 +1,88 @@
+import type { TypingExerciseState } from "../types";
+import { getKeysUpToLevel } from "./levels";
+
+const MIN_LETTERS = 8;
+const MAX_LETTERS = 12;
+const INITIAL_INTERVAL = 3000;
+const INTERVAL_DECREASE = 200;
+const INTERVAL_INCREASE = 500;
+const MIN_INTERVAL = 1500;
+const MAX_INTERVAL = 4000;
+const STREAK_THRESHOLD = 2;
+
+export interface KeyPressResult {
+	correct: boolean;
+	exerciseComplete: boolean;
+	newInterval: number;
+}
+
+export function generateLetters(level: number): string[] {
+	const keys = getKeysUpToLevel(level);
+	const letterKeys = keys.filter((k) => k !== " ");
+	const count =
+		MIN_LETTERS + Math.floor(Math.random() * (MAX_LETTERS - MIN_LETTERS + 1));
+	const letters: string[] = [];
+	for (let i = 0; i < count; i++) {
+		if (keys.includes(" ") && Math.random() < 0.2) {
+			letters.push(" ");
+		} else {
+			letters.push(letterKeys[Math.floor(Math.random() * letterKeys.length)]!);
+		}
+	}
+	return letters;
+}
+
+export function createExerciseState(level: number): TypingExerciseState {
+	return {
+		currentLetterIndex: 0,
+		letters: generateLetters(level),
+		intervalMs: INITIAL_INTERVAL,
+		correctStreak: 0,
+		totalCorrect: 0,
+		totalErrors: 0,
+	};
+}
+
+export function handleKeyPress(
+	state: TypingExerciseState,
+	pressedKey: string,
+): KeyPressResult {
+	const expectedKey = state.letters[state.currentLetterIndex]!;
+	const correct = pressedKey.toLowerCase() === expectedKey.toLowerCase();
+
+	if (correct) {
+		state.currentLetterIndex++;
+		state.totalCorrect++;
+		state.correctStreak++;
+
+		if (state.correctStreak >= STREAK_THRESHOLD) {
+			state.intervalMs = Math.max(
+				MIN_INTERVAL,
+				state.intervalMs - INTERVAL_DECREASE,
+			);
+			state.correctStreak = 0;
+		}
+	} else {
+		state.totalErrors++;
+		state.correctStreak = 0;
+		state.intervalMs = Math.min(
+			MAX_INTERVAL,
+			state.intervalMs + INTERVAL_INCREASE,
+		);
+	}
+
+	return {
+		correct,
+		exerciseComplete: state.currentLetterIndex >= state.letters.length,
+		newInterval: state.intervalMs,
+	};
+}
+
+export function getCurrentLetter(state: TypingExerciseState): string | null {
+	if (state.currentLetterIndex >= state.letters.length) return null;
+	return state.letters[state.currentLetterIndex]!;
+}
+
+export function isExerciseComplete(state: TypingExerciseState): boolean {
+	return state.currentLetterIndex >= state.letters.length;
+}