diff --git a/docs/INTEGRATION_TESTS.md b/docs/INTEGRATION_TESTS.md
index a5ca3c77..3fb9294d 100644
--- a/docs/INTEGRATION_TESTS.md
+++ b/docs/INTEGRATION_TESTS.md
@@ -96,6 +96,18 @@ CLOUD_SDK_CFG_DATA_ANONYMIZATION_DEFAULT_DESTINATION_NAME=your-client-certificat
 
 The destination must be configured with `ClientCertificateAuthentication` and reference a certificate bundle containing the client certificate and private key.
 
+### DMS Integration Tests
+
+For DMS (Document Management Service) integration tests, configure the following variables in `.env_integration_tests`:
+
+```bash
+# DMS Configuration
+CLOUD_SDK_CFG_SDM_DEFAULT_URI=https://your-sdm-api-uri-here
+CLOUD_SDK_CFG_SDM_DEFAULT_UAA='{"url":"https://your-auth-url","clientid":"your-client-id","clientsecret":"your-client-secret","identityzone":"your-identity-zone"}'
+```
+
+**Note**: The test fixture automatically onboards test repositories (standard and version-enabled) at session start and cleans them up on teardown. No pre-existing repositories are required.
+
 ### ADMS Integration Tests
 
 For ADMS (Advanced Document Management Service) integration tests, configure the following variables in `.env_integration_tests`:
@@ -145,6 +157,7 @@ uv run pytest tests/core/integration/auditlog -v
 uv run pytest tests/core/integration/data_anonymization -v
 uv run pytest tests/objectstore/integration/ -v
 uv run pytest tests/destination/integration/ -v
+uv run pytest tests/dms/integration/ -v
 uv run pytest tests/agent_memory/integration/ -v
 uv run pytest tests/adms/integration/ -v
 uv run pytest tests/agentgateway/integration/ -v
diff --git a/pyproject.toml b/pyproject.toml
index a0c575f1..33eb66a8 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "sap-cloud-sdk"
-version = "0.26.0"
+version = "0.26.1"
 description = "SAP Cloud SDK for Python"
 readme = "README.md"
 license = "Apache-2.0"
diff --git a/src/sap_cloud_sdk/dms/client.py b/src/sap_cloud_sdk/dms/client.py
index 0f1c4abd..61f7b3ec 100644
--- a/src/sap_cloud_sdk/dms/client.py
+++ b/src/sap_cloud_sdk/dms/client.py
@@ -110,9 +110,7 @@ def __init__(
             read_timeout=read_timeout,
         )
         self._telemetry_source: Optional[Module] = None
-        logger.debug(
-            "DMSClient initialized for instance '%s'", credentials.instance_name
-        )
+        logger.debug("DMSClient initialized")
 
     @record_metrics(Module.DMS, Operation.DMS_ONBOARD_REPOSITORY)
     def onboard_repository(
diff --git a/src/sap_cloud_sdk/dms/config.py b/src/sap_cloud_sdk/dms/config.py
index f7ad14cc..8a396e16 100644
--- a/src/sap_cloud_sdk/dms/config.py
+++ b/src/sap_cloud_sdk/dms/config.py
@@ -19,7 +19,6 @@ class BindingData:
         uaa: JSON string containing XSUAA authentication credentials
     """
 
-    instance_name: str
     uri: str
     uaa: str
 
@@ -91,7 +90,6 @@ def to_credentials(self) -> DMSCredentials:
         token_url = uaa_data["url"].rstrip("/") + "/oauth/token"
 
         return DMSCredentials(
-            instance_name=self.instance_name,
             uri=self.uri,
             client_id=uaa_data["clientid"],
             client_secret=uaa_data["clientsecret"],
@@ -114,7 +112,7 @@ def load_sdm_config_from_env_or_mount(instance: Optional[str] = None) -> DMSCred
     """
     inst = instance or "default"
     binding = BindingData(
-        uri="", uaa="", instance_name=""
+        uri="", uaa=""
     )  # Initialize with empty values; will be populated by resolver
 
     try:
diff --git a/src/sap_cloud_sdk/dms/model.py b/src/sap_cloud_sdk/dms/model.py
index f84a7a50..b08f1d0f 100644
--- a/src/sap_cloud_sdk/dms/model.py
+++ b/src/sap_cloud_sdk/dms/model.py
@@ -30,7 +30,6 @@ def _to_dict_drop_none(obj: Any) -> dict[str, Any]:
 class DMSCredentials:
     """Credentials for authenticating with the DMS service."""
 
-    instance_name: str
     uri: str
     client_id: str
     client_secret: str
diff --git a/tests/dms/integration/conftest.py b/tests/dms/integration/conftest.py
index e26d4dec..632d5afe 100644
--- a/tests/dms/integration/conftest.py
+++ b/tests/dms/integration/conftest.py
@@ -1,8 +1,14 @@
 from sap_cloud_sdk.dms import create_client
+from sap_cloud_sdk.dms.model import InternalRepoRequest
 import pytest
+import logging
 from pathlib import Path
 from dotenv import load_dotenv
 
+logger = logging.getLogger(__name__)
+
+_SDK_TEST_REPO_PREFIX = "sdk-integration-test-"
+
 
 @pytest.fixture(scope="session")
 def dms_client():
@@ -17,6 +23,44 @@ def dms_client():
         pytest.skip(f"DMS integration tests require credentials: {e}")
 
 
+@pytest.fixture(scope="session", autouse=True)
+def _setup_test_repositories(dms_client):
+    """Create test repositories for integration tests and clean up after.
+
+    Always onboards a standard and a version-enabled repository for the test
+    session, then deletes them on teardown.
+    """
+    created_repos = []
+
+    logger.info("Onboarding test repositories")
+    repo = dms_client.onboard_repository(
+        InternalRepoRequest(
+            displayName=f"{_SDK_TEST_REPO_PREFIX}standard",
+            description="Auto-created by SDK integration tests",
+        )
+    )
+    created_repos.append(repo.id)
+
+    repo = dms_client.onboard_repository(
+        InternalRepoRequest(
+            displayName=f"{_SDK_TEST_REPO_PREFIX}versioned",
+            description="Auto-created by SDK integration tests (versioning)",
+            isVersionEnabled=True,
+        )
+    )
+    created_repos.append(repo.id)
+
+    yield
+
+    # Cleanup: delete repositories we created
+    for repo_id in created_repos:
+        try:
+            dms_client.delete_repository(repo_id)
+            logger.info("Cleaned up test repository %s", repo_id)
+        except Exception as e:
+            logger.warning("Failed to clean up test repository %s: %s", repo_id, e)
+
+
 def _setup_cloud_mode():
     """Common setup for cloud mode integration tests."""
     env_file = Path(__file__).parents[3] / ".env_integration_tests"
diff --git a/tests/dms/unit/test_client_admin.py b/tests/dms/unit/test_client_admin.py
index 5b783c21..fcdb8009 100644
--- a/tests/dms/unit/test_client_admin.py
+++ b/tests/dms/unit/test_client_admin.py
@@ -72,7 +72,6 @@ def client():
             mock_http = Mock()
             MockHttp.return_value = mock_http
             creds = DMSCredentials(
-                instance_name="test-instance",
                 uri="https://api.example.com",
                 client_id="test-client",
                 client_secret="test-secret",
diff --git a/tests/dms/unit/test_client_cmis.py b/tests/dms/unit/test_client_cmis.py
index 1d9c59cc..80a08931 100644
--- a/tests/dms/unit/test_client_cmis.py
+++ b/tests/dms/unit/test_client_cmis.py
@@ -100,7 +100,6 @@ def _mock_response(data):
 def client():
     """Create a DMSClient with a mocked HttpInvoker."""
     creds = DMSCredentials(
-        instance_name="test-instance",
         uri="https://api.example.com",
         client_id="test-client",
         client_secret="test-secret",