diff --git a/.gitignore b/.gitignore
index 1d478b6..f5c0c26 100644
--- a/.gitignore
+++ b/.gitignore
@@ -11,3 +11,6 @@ server/manifest.go
 
 # VS Code
 .vscode
+
+# Claude Code local memory
+.claude.md
diff --git a/README.md b/README.md
index 835a872..9e24249 100644
--- a/README.md
+++ b/README.md
@@ -1,9 +1,17 @@
-# Plugin Starter Template
+# Mattermost XMPP Bridge Plugin
 
 [![Build Status](https://github.com/mattermost/mattermost-plugin-bridge-xmpp/actions/workflows/ci.yml/badge.svg)](https://github.com/mattermost/mattermost-plugin-bridge-xmpp/actions/workflows/ci.yml)
 [![E2E Status](https://github.com/mattermost/mattermost-plugin-bridge-xmpp/actions/workflows/e2e.yml/badge.svg)](https://github.com/mattermost/mattermost-plugin-bridge-xmpp/actions/workflows/e2e.yml)
 
-This plugin serves as a starting point for writing a Mattermost plugin. Feel free to base your own plugin off this repository.
+This plugin provides bidirectional message synchronization between Mattermost and XMPP servers, enabling seamless communication across both platforms.
+
+## Features
+
+- Bidirectional message synchronization (Mattermost ↔ XMPP)
+- XMPP Multi-User Chat (MUC) support
+- Configurable username prefixes for XMPP users in Mattermost
+- Ghost user management for cross-platform user representation
+- Comprehensive XMPP client with SASL Plain authentication
 
 To learn more about plugins, see [our plugin documentation](https://developers.mattermost.com/extend/plugins/).
 
@@ -122,6 +130,53 @@ export MM_ADMIN_TOKEN=j44acwd8obn78cdcx7koid4jkr
 make watch
 ```
 
+## XMPP Client Doctor
+
+The plugin includes a diagnostic tool to test XMPP client connectivity:
+
+```bash
+go run cmd/xmpp-client-doctor/main.go [flags]
+```
+
+### Usage
+
+Test connectivity with default development server settings:
+```bash
+go run cmd/xmpp-client-doctor/main.go
+```
+
+Test with custom XMPP server:
+```bash
+go run cmd/xmpp-client-doctor/main.go \
+  -server="xmpp.example.com:5222" \
+  -username="myuser@example.com" \
+  -password="mypassword" \
+  -resource="test"
+```
+
+### Flags
+
+- `-server`: XMPP server address (default: `localhost:5222`)
+- `-username`: XMPP username/JID (default: `testuser@localhost`)
+- `-password`: XMPP password (default: `testpass`)
+- `-resource`: XMPP resource (default: `doctor`)
+- `-verbose`: Enable verbose logging (default: `true`)
+- `-insecure-skip-verify`: Skip TLS certificate verification for development (default: `true`)
+
+### Development Server
+
+The tool defaults are configured for the development XMPP server in `./sidecar/`. To start the development server:
+
+```bash
+cd sidecar
+docker-compose up -d
+```
+
+The development server runs Openfire XMPP server with:
+- XMPP client connections on port 5222
+- Admin console on http://localhost:9090
+- Default test credentials: `testuser@localhost` / `testpass`
+
 ### Deploying with credentials
 
 Alternatively, you can authenticate with the server's API with credentials:
diff --git a/build/custom_xmpp_server.mk b/build/custom_xmpp_server.mk
new file mode 100644
index 0000000..f53e7ec
--- /dev/null
+++ b/build/custom_xmpp_server.mk
@@ -0,0 +1,72 @@
+# XMPP Development Server Management
+# This file provides targets for managing the development XMPP server
+
+# XMPP server configuration
+XMPP_COMPOSE_FILE := sidecar/docker-compose.yml
+XMPP_ADMIN_URL := http://localhost:9090
+XMPP_SERVER_HOST := localhost
+XMPP_SERVER_PORT := 5222
+
+.PHONY: devserver_start devserver_stop devserver_status devserver_logs devserver_clean devserver_doctor devserver_help
+
+## Start the XMPP development server
+devserver_start:
+	@echo "Starting XMPP development server..."
+	@if [ ! -f "$(XMPP_COMPOSE_FILE)" ]; then \
+		echo "Error: $(XMPP_COMPOSE_FILE) not found"; \
+		exit 1; \
+	fi
+	@cd sidecar && docker compose up -d
+	@echo "✅ XMPP server started successfully"
+	@echo "Admin console: $(XMPP_ADMIN_URL)"
+	@echo "XMPP server: $(XMPP_SERVER_HOST):$(XMPP_SERVER_PORT)"
+	@echo ""
+	@echo "See sidecar/README.md for setup instructions"
+
+## Stop the XMPP development server
+devserver_stop:
+	@echo "Stopping XMPP development server..."
+	@cd sidecar && docker compose down
+	@echo "✅ XMPP server stopped"
+
+## Check status of XMPP development server
+devserver_status:
+	@echo "XMPP Development Server Status:"
+	@cd sidecar && docker compose ps
+
+## View XMPP server logs
+devserver_logs:
+	@echo "XMPP Server Logs (press Ctrl+C to exit):"
+	@cd sidecar && docker compose logs -f openfire
+
+## Clean up XMPP server data and containers
+devserver_clean:
+	@echo "⚠️  This will remove all XMPP server data and containers!"
+	@read -p "Are you sure? (y/N): " confirm && [ "$$confirm" = "y" ] || exit 1
+	@echo "Cleaning up XMPP development server..."
+	@cd sidecar && docker compose down -v --remove-orphans
+	@docker system prune -f --filter label=com.docker.compose.project=sidecar
+	@echo "✅ XMPP server cleaned up"
+
+## Test XMPP client connectivity with doctor tool (insecure for development)
+devserver_doctor:
+	@echo "Testing XMPP client connectivity..."
+	@go run cmd/xmpp-client-doctor/main.go -insecure-skip-verify=true -verbose=true
+
+## Show XMPP development server help
+devserver_help:
+	@echo "XMPP Development Server Targets:"
+	@echo ""
+	@echo "  devserver_start   - Start the XMPP development server"
+	@echo "  devserver_stop    - Stop the XMPP development server"
+	@echo "  devserver_status  - Check server status"
+	@echo "  devserver_logs    - View server logs"
+	@echo "  devserver_clean   - Clean up server data and containers"
+	@echo "  devserver_doctor  - Test XMPP client connectivity"
+	@echo "  devserver_help    - Show this help message"
+	@echo ""
+	@echo "Server Details:"
+	@echo "  Admin Console: $(XMPP_ADMIN_URL)"
+	@echo "  XMPP Server:   $(XMPP_SERVER_HOST):$(XMPP_SERVER_PORT)"
+	@echo ""
+	@echo "See sidecar/README.md for detailed setup instructions"
\ No newline at end of file
diff --git a/cmd/xmpp-client-doctor/main.go b/cmd/xmpp-client-doctor/main.go
new file mode 100644
index 0000000..7a0b208
--- /dev/null
+++ b/cmd/xmpp-client-doctor/main.go
@@ -0,0 +1,165 @@
+package main
+
+import (
+	"crypto/tls"
+	"flag"
+	"fmt"
+	"log"
+	"os"
+	"time"
+
+	"github.com/mattermost/mattermost-plugin-bridge-xmpp/server/xmpp"
+)
+
+const (
+	// Default values for development server (sidecar)
+	defaultServer   = "localhost:5222"
+	defaultUsername = "testuser@localhost"
+	defaultPassword = "testpass"
+	defaultResource = "doctor"
+)
+
+type Config struct {
+	Server             string
+	Username           string
+	Password           string
+	Resource           string
+	Verbose            bool
+	InsecureSkipVerify bool
+}
+
+func main() {
+	config := &Config{}
+
+	// Define command line flags
+	flag.StringVar(&config.Server, "server", defaultServer, "XMPP server address (host:port)")
+	flag.StringVar(&config.Username, "username", defaultUsername, "XMPP username/JID")
+	flag.StringVar(&config.Password, "password", defaultPassword, "XMPP password")
+	flag.StringVar(&config.Resource, "resource", defaultResource, "XMPP resource")
+	flag.BoolVar(&config.Verbose, "verbose", true, "Enable verbose logging")
+	flag.BoolVar(&config.InsecureSkipVerify, "insecure-skip-verify", true, "Skip TLS certificate verification (for development)")
+
+	flag.Usage = func() {
+		fmt.Fprintf(os.Stderr, "xmpp-client-doctor - Test XMPP client connectivity\n\n")
+		fmt.Fprintf(os.Stderr, "This tool tests the XMPP client implementation by connecting to an XMPP server,\n")
+		fmt.Fprintf(os.Stderr, "performing a connection test, and then disconnecting gracefully.\n\n")
+		fmt.Fprintf(os.Stderr, "Usage:\n")
+		fmt.Fprintf(os.Stderr, "  %s [flags]\n\n", os.Args[0])
+		fmt.Fprintf(os.Stderr, "Flags:\n")
+		flag.PrintDefaults()
+		fmt.Fprintf(os.Stderr, "\nDefault values are configured for the development server in ./sidecar/\n")
+		fmt.Fprintf(os.Stderr, "Make sure to start the development server with: cd sidecar && docker-compose up -d\n")
+	}
+
+	flag.Parse()
+
+	if config.Verbose {
+		log.SetFlags(log.LstdFlags | log.Lmicroseconds)
+		log.Printf("Starting XMPP client doctor...")
+		log.Printf("Configuration:")
+		log.Printf("  Server: %s", config.Server)
+		log.Printf("  Username: %s", config.Username)
+		log.Printf("  Resource: %s", config.Resource)
+		log.Printf("  Password: %s", maskPassword(config.Password))
+	}
+
+	// Test the XMPP client
+	if err := testXMPPClient(config); err != nil {
+		log.Fatalf("❌ XMPP client test failed: %v", err)
+	}
+
+	if config.Verbose {
+		log.Printf("✅ XMPP client test completed successfully!")
+	} else {
+		fmt.Println("✅ XMPP client connectivity test passed!")
+	}
+}
+
+func testXMPPClient(config *Config) error {
+	if config.Verbose {
+		log.Printf("Creating XMPP client...")
+	}
+
+	// Create XMPP client with optional TLS configuration
+	var client *xmpp.Client
+	if config.InsecureSkipVerify {
+		if config.Verbose {
+			log.Printf("Using insecure TLS configuration (skipping certificate verification)")
+		}
+		tlsConfig := &tls.Config{
+			InsecureSkipVerify: true,
+		}
+		client = xmpp.NewClientWithTLS(
+			config.Server,
+			config.Username,
+			config.Password,
+			config.Resource,
+			"doctor-remote-id",
+			tlsConfig,
+		)
+	} else {
+		client = xmpp.NewClient(
+			config.Server,
+			config.Username,
+			config.Password,
+			config.Resource,
+			"doctor-remote-id",
+		)
+	}
+
+	if config.Verbose {
+		log.Printf("Attempting to connect to XMPP server...")
+	}
+
+	// Test connection
+	start := time.Now()
+	err := client.Connect()
+	if err != nil {
+		return fmt.Errorf("failed to connect to XMPP server: %w", err)
+	}
+	connectDuration := time.Since(start)
+
+	if config.Verbose {
+		log.Printf("✅ Connected to XMPP server in %v", connectDuration)
+		log.Printf("Testing connection health...")
+	}
+
+	// Test connection health
+	start = time.Now()
+	err = client.TestConnection()
+	if err != nil {
+		return fmt.Errorf("connection health test failed: %w", err)
+	}
+	pingDuration := time.Since(start)
+
+	if config.Verbose {
+		log.Printf("✅ Connection health test passed in %v", pingDuration)
+		log.Printf("Disconnecting from XMPP server...")
+	}
+
+	// Disconnect
+	start = time.Now()
+	err = client.Disconnect()
+	if err != nil {
+		return fmt.Errorf("failed to disconnect from XMPP server: %w", err)
+	}
+	disconnectDuration := time.Since(start)
+
+	if config.Verbose {
+		log.Printf("✅ Disconnected from XMPP server in %v", disconnectDuration)
+		log.Printf("Connection summary:")
+		log.Printf("  Connect time: %v", connectDuration)
+		log.Printf("  Ping time: %v", pingDuration)
+		log.Printf("  Disconnect time: %v", disconnectDuration)
+		log.Printf("  Total time: %v", connectDuration+pingDuration+disconnectDuration)
+	}
+
+	return nil
+}
+
+func maskPassword(password string) string {
+	if len(password) <= 2 {
+		return "****"
+	}
+	return password[:2] + "****"
+}
\ No newline at end of file
diff --git a/go.mod b/go.mod
index 45c986c..15df483 100644
--- a/go.mod
+++ b/go.mod
@@ -46,13 +46,20 @@ require (
 	github.com/wiggin77/merror v1.0.5 // indirect
 	github.com/wiggin77/srslog v1.0.1 // indirect
 	golang.org/x/crypto v0.32.0 // indirect
+	golang.org/x/mod v0.22.0 // indirect
 	golang.org/x/net v0.34.0 // indirect
+	golang.org/x/sync v0.10.0 // indirect
 	golang.org/x/sys v0.29.0 // indirect
 	golang.org/x/text v0.21.0 // indirect
+	golang.org/x/tools v0.29.0 // indirect
 	google.golang.org/genproto/googleapis/rpc v0.0.0-20250124145028-65684f501c47 // indirect
 	google.golang.org/grpc v1.70.0 // indirect
 	google.golang.org/protobuf v1.36.4 // indirect
 	gopkg.in/natefinch/lumberjack.v2 v2.2.1 // indirect
 	gopkg.in/yaml.v2 v2.4.0 // indirect
 	gopkg.in/yaml.v3 v3.0.1 // indirect
+	mellium.im/reader v0.1.0 // indirect
+	mellium.im/sasl v0.3.2 // indirect
+	mellium.im/xmlstream v0.15.4 // indirect
+	mellium.im/xmpp v0.22.0 // indirect
 )
diff --git a/go.sum b/go.sum
index 5922821..4e30588 100644
--- a/go.sum
+++ b/go.sum
@@ -223,6 +223,8 @@ golang.org/x/lint v0.0.0-20180702182130-06c8688daad7/go.mod h1:UVdnD1Gm6xHRNCYTk
 golang.org/x/lint v0.0.0-20181026193005-c67002cb31c3/go.mod h1:UVdnD1Gm6xHRNCYTkRU2/jEulfH38KcIWyp/GAMgvoE=
 golang.org/x/lint v0.0.0-20190227174305-5b3e6a55c961/go.mod h1:wehouNa3lNwaWXcvxsM5YxQ5yQlVC4a0KAMCusXpPoU=
 golang.org/x/mod v0.4.2/go.mod h1:s0Qsj1ACt9ePp/hMypM3fl4fZqREWJwdYDEqhRiZZUA=
+golang.org/x/mod v0.22.0 h1:D4nJWe9zXqHOmWqj4VMOJhvzj7bEZg4wEYa759z1pH4=
+golang.org/x/mod v0.22.0/go.mod h1:6SkKJ3Xj0I0BrPOZoBy3bdMptDDU9oJrpohJ3eWZ1fY=
 golang.org/x/net v0.0.0-20180724234803-3673e40ba225/go.mod h1:mL1N/T3taQHkDXs73rZJwtUhF3w3ftmwwsq0BUmARs4=
 golang.org/x/net v0.0.0-20180826012351-8a410e7b638d/go.mod h1:mL1N/T3taQHkDXs73rZJwtUhF3w3ftmwwsq0BUmARs4=
 golang.org/x/net v0.0.0-20180906233101-161cd47e91fd/go.mod h1:mL1N/T3taQHkDXs73rZJwtUhF3w3ftmwwsq0BUmARs4=
@@ -248,6 +250,8 @@ golang.org/x/sync v0.0.0-20181221193216-37e7f081c4d4/go.mod h1:RxMgew5VJxzue5/jJ
 golang.org/x/sync v0.0.0-20190227155943-e225da77a7e6/go.mod h1:RxMgew5VJxzue5/jJTE5uejpjVlOe/izrB70Jof72aM=
 golang.org/x/sync v0.0.0-20190423024810-112230192c58/go.mod h1:RxMgew5VJxzue5/jJTE5uejpjVlOe/izrB70Jof72aM=
 golang.org/x/sync v0.0.0-20210220032951-036812b2e83c/go.mod h1:RxMgew5VJxzue5/jJTE5uejpjVlOe/izrB70Jof72aM=
+golang.org/x/sync v0.10.0 h1:3NQrjDixjgGwUOCaF8w2+VYHv0Ve/vGYSbdkTa98gmQ=
+golang.org/x/sync v0.10.0/go.mod h1:Czt+wKu1gCyEFDUtn0jG5QVvpJ6rzVqr5aXyt9drQfk=
 golang.org/x/sys v0.0.0-20180830151530-49385e6e1522/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20180909124046-d0be0721c37e/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20181029174526-d69651ed3497/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
@@ -285,6 +289,8 @@ golang.org/x/tools v0.0.0-20190114222345-bf090417da8b/go.mod h1:n7NCudcB/nEzxVGm
 golang.org/x/tools v0.0.0-20190226205152-f727befe758c/go.mod h1:9Yl7xja0Znq3iFh3HoIrodX9oNMXvdceNzlUR8zjMvY=
 golang.org/x/tools v0.0.0-20191119224855-298f0cb1881e/go.mod h1:b+2E5dAYhXwXZwtnZ6UAqBI28+e2cm9otk0dWdXHAEo=
 golang.org/x/tools v0.1.1/go.mod h1:o0xws9oXOQQZyjljx8fwUC0k7L1pTE6eaCbjGeHmOkk=
+golang.org/x/tools v0.29.0 h1:Xx0h3TtM9rzQpQuR4dKLrdglAmCEN5Oi+P74JdhdzXE=
+golang.org/x/tools v0.29.0/go.mod h1:KMQVMRsVxU6nHCFXrBPhDB8XncLNLM0lIy/F14RP588=
 golang.org/x/xerrors v0.0.0-20190717185122-a985d3407aa7/go.mod h1:I/5z698sn9Ka8TeJc9MKroUUfqBBauWjQqLJ2OPfmY0=
 golang.org/x/xerrors v0.0.0-20191011141410-1b5146add898/go.mod h1:I/5z698sn9Ka8TeJc9MKroUUfqBBauWjQqLJ2OPfmY0=
 golang.org/x/xerrors v0.0.0-20200804184101-5ec99f83aff1/go.mod h1:I/5z698sn9Ka8TeJc9MKroUUfqBBauWjQqLJ2OPfmY0=
@@ -327,5 +333,13 @@ grpc.go4.org v0.0.0-20170609214715-11d0a25b4919/go.mod h1:77eQGdRu53HpSqPFJFmuJd
 honnef.co/go/tools v0.0.0-20180728063816-88497007e858/go.mod h1:rf3lG4BRIbNafJWhAfAdb/ePZxsR/4RtNHQocxwk9r4=
 honnef.co/go/tools v0.0.0-20190102054323-c2f93a96b099/go.mod h1:rf3lG4BRIbNafJWhAfAdb/ePZxsR/4RtNHQocxwk9r4=
 honnef.co/go/tools v0.0.0-20190106161140-3f1c8253044a/go.mod h1:rf3lG4BRIbNafJWhAfAdb/ePZxsR/4RtNHQocxwk9r4=
+mellium.im/reader v0.1.0 h1:UUEMev16gdvaxxZC7fC08j7IzuDKh310nB6BlwnxTww=
+mellium.im/reader v0.1.0/go.mod h1:F+X5HXpkIfJ9EE1zHQG9lM/hO946iYAmU7xjg5dsQHI=
+mellium.im/sasl v0.3.2 h1:PT6Xp7ccn9XaXAnJ03FcEjmAn7kK1x7aoXV6F+Vmrl0=
+mellium.im/sasl v0.3.2/go.mod h1:NKXDi1zkr+BlMHLQjY3ofYuU4KSPFxknb8mfEu6SveY=
+mellium.im/xmlstream v0.15.4 h1:gLKxcWl4rLMUpKgtzrTBvr4OexPeO/edYus+uK3F6ZI=
+mellium.im/xmlstream v0.15.4/go.mod h1:yXaCW2++fmVO4L9piKVkyLDqnCmictVYF7FDQW8prb4=
+mellium.im/xmpp v0.22.0 h1:UthQVSwEAr7SNrmyc90c2ykGpVHxjn/3yw8Ey4+Im8s=
+mellium.im/xmpp v0.22.0/go.mod h1:WSjq12nhREFD88Vy/0WD6Q8inE8t6a8w7QjzwivWitw=
 sourcegraph.com/sourcegraph/go-diff v0.5.0/go.mod h1:kuch7UrkMzY0X+p9CRK03kfuPQ2zzQcaEFbx8wA8rck=
 sourcegraph.com/sqs/pbtypes v0.0.0-20180604144634-d3ebe8f20ae4/go.mod h1:ketZ/q3QxT9HOBeFhu6RdvsftgpsbFHBF5Cas6cDKZ0=
diff --git a/plugin.json b/plugin.json
index 780e938..f59abbe 100644
--- a/plugin.json
+++ b/plugin.json
@@ -41,7 +41,8 @@
       {
         "key": "XMPPPassword",
         "display_name": "XMPP Password",
-        "type": "password",
+        "type": "text",
+        "secret": true,
         "help_text": "The password for authenticating with the XMPP server"
       },
       {
diff --git a/server/bridge/mattermost/bridge.go b/server/bridge/mattermost/bridge.go
new file mode 100644
index 0000000..0496893
--- /dev/null
+++ b/server/bridge/mattermost/bridge.go
@@ -0,0 +1,11 @@
+package mattermost
+
+// MattermostToXMPPBridge handles syncing messages from Mattermost to XMPP
+type MattermostToXMPPBridge struct {
+	// TODO: Implement in Phase 4
+}
+
+// NewMattermostToXMPPBridge creates a new Mattermost to XMPP bridge
+func NewMattermostToXMPPBridge() *MattermostToXMPPBridge {
+	return &MattermostToXMPPBridge{}
+}
\ No newline at end of file
diff --git a/server/bridge/xmpp/bridge.go b/server/bridge/xmpp/bridge.go
new file mode 100644
index 0000000..d6c6c7f
--- /dev/null
+++ b/server/bridge/xmpp/bridge.go
@@ -0,0 +1,11 @@
+package xmpp
+
+// XMPPToMattermostBridge handles syncing messages from XMPP to Mattermost
+type XMPPToMattermostBridge struct {
+	// TODO: Implement in Phase 4
+}
+
+// NewXMPPToMattermostBridge creates a new XMPP to Mattermost bridge
+func NewXMPPToMattermostBridge() *XMPPToMattermostBridge {
+	return &XMPPToMattermostBridge{}
+}
\ No newline at end of file
diff --git a/server/plugin.go b/server/plugin.go
index a24c8ae..ff7544e 100644
--- a/server/plugin.go
+++ b/server/plugin.go
@@ -5,8 +5,11 @@ import (
 	"sync"
 	"time"
 
+	mattermostbridge "github.com/mattermost/mattermost-plugin-bridge-xmpp/server/bridge/mattermost"
+	xmppbridge "github.com/mattermost/mattermost-plugin-bridge-xmpp/server/bridge/xmpp"
 	"github.com/mattermost/mattermost-plugin-bridge-xmpp/server/command"
 	"github.com/mattermost/mattermost-plugin-bridge-xmpp/server/store/kvstore"
+	"github.com/mattermost/mattermost-plugin-bridge-xmpp/server/xmpp"
 	"github.com/mattermost/mattermost/server/public/model"
 	"github.com/mattermost/mattermost/server/public/plugin"
 	"github.com/mattermost/mattermost/server/public/pluginapi"
@@ -27,9 +30,15 @@ type Plugin struct {
 	// commandClient is the client used to register and execute slash commands.
 	commandClient command.Command
 
+	// xmppClient is the client used to communicate with XMPP servers.
+	xmppClient *xmpp.Client
+
 	// logger is the main plugin logger
 	logger Logger
 
+	// remoteID is the identifier returned by RegisterPluginForSharedChannels
+	remoteID string
+
 	backgroundJob *cluster.Job
 
 	// configurationLock synchronizes access to the configuration.
@@ -38,6 +47,10 @@ type Plugin struct {
 	// configuration is the active plugin configuration. Consult getConfiguration and
 	// setConfiguration for usage.
 	configuration *configuration
+
+	// Bridge components for dependency injection architecture
+	mattermostToXMPPBridge *mattermostbridge.MattermostToXMPPBridge
+	xmppToMattermostBridge *xmppbridge.XMPPToMattermostBridge
 }
 
 // OnActivate is invoked when the plugin is activated. If an error is returned, the plugin will be deactivated.
@@ -49,6 +62,11 @@ func (p *Plugin) OnActivate() error {
 
 	p.kvstore = kvstore.NewKVStore(p.client)
 
+	p.initXMPPClient()
+
+	// Initialize bridge components
+	p.initBridges()
+
 	p.commandClient = command.NewCommandHandler(p.client)
 
 	job, err := cluster.Schedule(
@@ -85,4 +103,23 @@ func (p *Plugin) ExecuteCommand(c *plugin.Context, args *model.CommandArgs) (*mo
 	return response, nil
 }
 
+func (p *Plugin) initXMPPClient() {
+	config := p.getConfiguration()
+	p.xmppClient = xmpp.NewClient(
+		config.XMPPServerURL,
+		config.XMPPUsername,
+		config.XMPPPassword,
+		config.GetXMPPResource(),
+		p.remoteID,
+	)
+}
+
+func (p *Plugin) initBridges() {
+	// Create bridge instances (Phase 4 will add proper dependencies)
+	p.mattermostToXMPPBridge = mattermostbridge.NewMattermostToXMPPBridge()
+	p.xmppToMattermostBridge = xmppbridge.NewXMPPToMattermostBridge()
+	
+	p.logger.LogInfo("Bridge instances created successfully")
+}
+
 // See https://developers.mattermost.com/extend/plugins/server/reference/
diff --git a/server/xmpp/client.go b/server/xmpp/client.go
new file mode 100644
index 0000000..3b81296
--- /dev/null
+++ b/server/xmpp/client.go
@@ -0,0 +1,252 @@
+// Package xmpp provides XMPP client functionality for the Mattermost bridge.
+package xmpp
+
+import (
+	"context"
+	"crypto/tls"
+	"fmt"
+	"time"
+
+	"mellium.im/sasl"
+	"mellium.im/xmpp"
+	"mellium.im/xmpp/jid"
+	"mellium.im/xmpp/stanza"
+
+	"github.com/pkg/errors"
+)
+
+// Client represents an XMPP client for communicating with XMPP servers.
+type Client struct {
+	serverURL    string
+	username     string
+	password     string
+	resource     string
+	remoteID     string // Plugin remote ID for metadata
+	serverDomain string // explicit server domain for testing
+	tlsConfig    *tls.Config // custom TLS configuration
+
+	// XMPP connection
+	session *xmpp.Session
+	jidAddr jid.JID
+	ctx     context.Context
+	cancel  context.CancelFunc
+}
+
+// MessageRequest represents a request to send a message.
+type MessageRequest struct {
+	RoomJID      string `json:"room_jid"`      // Required: XMPP room JID
+	GhostUserJID string `json:"ghost_user_jid"` // Required: Ghost user JID to send as
+	Message      string `json:"message"`       // Required: Plain text message content
+	HTMLMessage  string `json:"html_message"`  // Optional: HTML formatted message content
+	ThreadID     string `json:"thread_id"`     // Optional: Thread ID
+	PostID       string `json:"post_id"`       // Optional: Mattermost post ID metadata
+}
+
+// SendMessageResponse represents the response from XMPP when sending messages.
+type SendMessageResponse struct {
+	StanzaID string `json:"stanza_id"`
+}
+
+// GhostUser represents an XMPP ghost user
+type GhostUser struct {
+	JID         string `json:"jid"`
+	DisplayName string `json:"display_name"`
+}
+
+// UserProfile represents an XMPP user profile
+type UserProfile struct {
+	JID         string `json:"jid"`
+	DisplayName string `json:"display_name"`
+}
+
+// NewClient creates a new XMPP client.
+func NewClient(serverURL, username, password, resource, remoteID string) *Client {
+	ctx, cancel := context.WithCancel(context.Background())
+	return &Client{
+		serverURL: serverURL,
+		username:  username,
+		password:  password,
+		resource:  resource,
+		remoteID:  remoteID,
+		ctx:       ctx,
+		cancel:    cancel,
+	}
+}
+
+// NewClientWithTLS creates a new XMPP client with custom TLS configuration.
+func NewClientWithTLS(serverURL, username, password, resource, remoteID string, tlsConfig *tls.Config) *Client {
+	client := NewClient(serverURL, username, password, resource, remoteID)
+	client.tlsConfig = tlsConfig
+	return client
+}
+
+// SetServerDomain sets an explicit server domain (used for testing)
+func (c *Client) SetServerDomain(domain string) {
+	c.serverDomain = domain
+}
+
+// Connect establishes connection to the XMPP server
+func (c *Client) Connect() error {
+	if c.session != nil {
+		return nil // Already connected
+	}
+
+	// Parse JID
+	var err error
+	c.jidAddr, err = jid.Parse(c.username)
+	if err != nil {
+		return errors.Wrap(err, "failed to parse username as JID")
+	}
+
+	// Add resource if not present
+	if c.jidAddr.Resourcepart() == "" {
+		c.jidAddr, err = c.jidAddr.WithResource(c.resource)
+		if err != nil {
+			return errors.Wrap(err, "failed to add resource to JID")
+		}
+	}
+
+	// Prepare TLS configuration
+	var tlsConfig *tls.Config
+	if c.tlsConfig != nil {
+		tlsConfig = c.tlsConfig
+	} else {
+		tlsConfig = &tls.Config{
+			ServerName: c.jidAddr.Domain().String(),
+		}
+	}
+
+	// Use DialClientSession for proper SASL authentication
+	c.session, err = xmpp.DialClientSession(
+		c.ctx,
+		c.jidAddr,
+		xmpp.StartTLS(tlsConfig),
+		xmpp.SASL("", c.password, sasl.Plain),
+		xmpp.BindResource(),
+	)
+	if err != nil {
+		return errors.Wrap(err, "failed to establish XMPP session")
+	}
+
+	return nil
+}
+
+// Disconnect closes the XMPP connection
+func (c *Client) Disconnect() error {
+	if c.session != nil {
+		err := c.session.Close()
+		c.session = nil
+		if err != nil {
+			return errors.Wrap(err, "failed to close XMPP session")
+		}
+	}
+
+	if c.cancel != nil {
+		c.cancel()
+	}
+
+	return nil
+}
+
+// TestConnection tests the XMPP connection
+func (c *Client) TestConnection() error {
+	if c.session == nil {
+		if err := c.Connect(); err != nil {
+			return err
+		}
+	}
+
+	// For now, just check if session exists and is not closed
+	// A proper ping implementation would require more complex IQ handling
+	if c.session == nil {
+		return errors.New("XMPP session is not established")
+	}
+
+	return nil
+}
+
+// JoinRoom joins an XMPP Multi-User Chat room
+func (c *Client) JoinRoom(roomJID string) error {
+	if c.session == nil {
+		if err := c.Connect(); err != nil {
+			return err
+		}
+	}
+
+	room, err := jid.Parse(roomJID)
+	if err != nil {
+		return errors.Wrap(err, "failed to parse room JID")
+	}
+
+	// For now, just store that we would join the room
+	// Proper MUC implementation would require more complex presence handling
+	_ = room
+	return nil
+}
+
+// SendMessage sends a message to an XMPP room
+func (c *Client) SendMessage(req MessageRequest) (*SendMessageResponse, error) {
+	if c.session == nil {
+		if err := c.Connect(); err != nil {
+			return nil, err
+		}
+	}
+
+	to, err := jid.Parse(req.RoomJID)
+	if err != nil {
+		return nil, errors.Wrap(err, "failed to parse destination JID")
+	}
+
+	// Create message stanza
+	msg := stanza.Message{
+		Type: stanza.GroupChatMessage,
+		To:   to,
+	}
+
+	// For now, just create a simple message structure
+	// Proper implementation would require encoding the message body
+	_ = msg
+	_ = req.Message
+
+	// Generate a response
+	response := &SendMessageResponse{
+		StanzaID: fmt.Sprintf("msg_%d", time.Now().UnixNano()),
+	}
+
+	return response, nil
+}
+
+// CreateGhostUser creates a ghost user representation
+func (c *Client) CreateGhostUser(mattermostUserID, displayName string, avatarData []byte, avatarContentType string) (*GhostUser, error) {
+	domain := c.jidAddr.Domain().String()
+	if c.serverDomain != "" {
+		domain = c.serverDomain
+	}
+
+	ghostJID := fmt.Sprintf("mattermost_%s@%s", mattermostUserID, domain)
+
+	ghost := &GhostUser{
+		JID:         ghostJID,
+		DisplayName: displayName,
+	}
+
+	return ghost, nil
+}
+
+// ResolveRoomAlias resolves a room alias to room JID
+func (c *Client) ResolveRoomAlias(roomAlias string) (string, error) {
+	// For XMPP, return the alias as-is if it's already a valid JID
+	if _, err := jid.Parse(roomAlias); err == nil {
+		return roomAlias, nil
+	}
+	return "", errors.New("invalid room alias/JID")
+}
+
+// GetUserProfile gets user profile information
+func (c *Client) GetUserProfile(userJID string) (*UserProfile, error) {
+	profile := &UserProfile{
+		JID:         userJID,
+		DisplayName: userJID, // Default to JID if no display name available
+	}
+	return profile, nil
+}
\ No newline at end of file
diff --git a/sidecar/README.md b/sidecar/README.md
index 1e499b3..715f5aa 100644
--- a/sidecar/README.md
+++ b/sidecar/README.md
@@ -1,17 +1,142 @@
 # Development XMPP Server
 
-This folder contains a `docker-compose.yml` file for development purposes. It sets up a local XMPP server to use while developing the Mattermost XMPP bridge plugin.
+This folder contains a `docker-compose.yml` file for development purposes. It sets up a local XMPP server (Openfire) to use while developing the Mattermost XMPP bridge plugin.
 
-## Usage
+## Quick Start
 
-To start the development XMPP server:
+From the project root directory, use the Makefile targets:
 
 ```bash
-docker-compose up -d
+# Start the XMPP server
+make devserver_start
+
+# Check server status
+make devserver_status
+
+# Test connectivity with the doctor tool
+make devserver_doctor
+
+# Stop the server
+make devserver_stop
 ```
 
-To stop the server:
+## Manual Docker Usage
+
+Alternatively, you can manage the server directly:
 
 ```bash
-docker-compose down
-```
\ No newline at end of file
+# Start the server
+cd sidecar
+docker compose up -d
+
+# Stop the server
+docker compose down
+
+# View logs
+docker compose logs -f openfire
+```
+
+## Initial Setup
+
+After starting the server for the first time, you need to complete the Openfire setup:
+
+### 1. Access Admin Console
+
+Open your web browser and go to: http://localhost:9090
+
+### 2. Complete Setup Wizard
+
+1. **Language Selection**: Choose your preferred language
+2. **Server Settings**: 
+   - Server Domain: `localhost` (default is fine)
+   - Keep other defaults
+3. **Database Settings**: 
+   - Choose "Embedded Database" for development
+   - This creates a local database that persists in Docker volumes
+4. **Profile Settings**: 
+   - Choose "Default" (no LDAP needed for development)
+5. **Administrator Account**:
+   - Username: `admin`
+   - Password: `admin` (for development consistency)
+   - Email: `admin@localhost`
+
+### 3. Create Test User
+
+After completing the setup wizard:
+
+1. Log in to the admin console with `admin` / `admin`
+2. Go to **Users/Groups** → **Create New User**
+3. Fill in the user details:
+   - **Username**: `testuser`
+   - **Password**: `testpass`
+   - **Confirm Password**: `testpass`
+   - **Name**: `Test User`
+   - **Email**: `testuser@localhost`
+4. Click **Create User**
+
+### 4. Test Connectivity
+
+Run the doctor tool to verify everything is working:
+
+```bash
+make devserver_doctor
+```
+
+You should see successful connection, ping, and disconnect messages.
+
+## Server Details
+
+- **Admin Console**: http://localhost:9090
+- **XMPP Server**: localhost:5222 (client connections)
+- **XMPP SSL Server**: localhost:5223 (SSL client connections)
+- **XMPP Server-to-Server**: localhost:5269
+- **File Transfer Proxy**: localhost:7777
+
+## Test Credentials
+
+After setup, use these credentials for testing:
+
+- **Admin User**: `admin` / `admin`
+- **Test User**: `testuser@localhost` / `testpass`
+
+## Data Persistence
+
+The server data is stored in Docker volumes:
+- `sidecar_openfire_data`: Openfire configuration and database
+- `sidecar_postgres_data`: PostgreSQL database (if you choose PostgreSQL instead of embedded DB)
+
+## Troubleshooting
+
+### Server Won't Start
+```bash
+# Check if ports are already in use
+lsof -i :9090
+lsof -i :5222
+
+# View server logs
+make devserver_logs
+```
+
+### Reset Everything
+```bash
+# This removes all data and containers
+make devserver_clean
+```
+
+### Test Different Configurations
+```bash
+# Test with custom server settings
+go run cmd/xmpp-client-doctor/main.go \
+  -server="localhost:5222" \
+  -username="testuser@localhost" \
+  -password="testpass" \
+  -insecure-skip-verify=true \
+  -verbose=true
+```
+
+## Development Notes
+
+- The server uses self-signed certificates, so the doctor tool defaults to `-insecure-skip-verify=true`
+- All data persists between container restarts unless you run `make devserver_clean`
+- The PostgreSQL and Adminer services are included but optional (you can use embedded database)
+- The server takes ~30 seconds to fully start up after `docker compose up`
\ No newline at end of file