MUnit is a testing framework for Mulesoft that allows automated testing of mule integrations and APIs. It is well integrated with Anypoint Studio. MUnit allows testing message processors, mocking endpoints and processors, debugging tests, and viewing coverage reports. Tests are created by writing Mule or Java code. To set up MUnit, it must be installed in Anypoint Studio through the install wizard, then tests can be generated for flows by right clicking and selecting "Create new MUnit". Running the tests will display results including errors, coverage, and test status.