diff --git a/README.md b/README.md
index 876e4c3..c628c56 100644
--- a/README.md
+++ b/README.md
@@ -525,6 +525,8 @@ async with AsyncOilPriceAPI() as client:
 
 **[Complete SDK Documentation →](docs/index.md)** | **[Online Docs →](https://docs.oilpriceapi.com/sdk/python)**
 
+**[⚡ Performance Guide →](docs/PERFORMANCE_GUIDE.md)** — expected response times, recommended timeouts, optimization best practices, and troubleshooting for slow queries.
+
 ### Authentication
 
 ```python
diff --git a/mkdocs.yml b/mkdocs.yml
index bb677d2..ce45a12 100644
--- a/mkdocs.yml
+++ b/mkdocs.yml
@@ -15,6 +15,7 @@ theme:
 
 nav:
   - Home: index.md
+  - Performance Guide: PERFORMANCE_GUIDE.md
   - API Reference:
       - Client: reference/client.md
       - Async Client: reference/async_client.md
diff --git a/tests/unit/test_performance_docs.py b/tests/unit/test_performance_docs.py
new file mode 100644
index 0000000..1691262
--- /dev/null
+++ b/tests/unit/test_performance_docs.py
@@ -0,0 +1,111 @@
+"""Documentation contract tests for the SDK Performance Guide (issue #26).
+
+Issue #26 ("[Q2-P2] Document SDK performance characteristics and best
+practices") defines five acceptance criteria:
+
+    - [ ] Performance guide added to docs
+    - [ ] Best practices documented
+    - [ ] Troubleshooting guide added
+    - [ ] Examples updated with performance notes
+    - [ ] README links to performance guide
+
+These tests encode each criterion as an executable assertion so the
+documentation cannot silently regress. They are pure filesystem checks
+(no network, no API key) and therefore run in the default `unit` gate.
+"""
+
+from __future__ import annotations
+
+from pathlib import Path
+
+import pytest
+
+# Repo root is two levels up from this file: tests/unit/ -> repo root.
+REPO_ROOT = Path(__file__).resolve().parents[2]
+PERF_GUIDE = REPO_ROOT / "docs" / "PERFORMANCE_GUIDE.md"
+README = REPO_ROOT / "README.md"
+MKDOCS = REPO_ROOT / "mkdocs.yml"
+
+
+@pytest.fixture(scope="module")
+def perf_guide_text() -> str:
+    assert PERF_GUIDE.exists(), f"Performance guide missing at {PERF_GUIDE}"
+    return PERF_GUIDE.read_text(encoding="utf-8")
+
+
+# --- Criterion 1: Performance guide added to docs --------------------------
+
+
+def test_performance_guide_exists() -> None:
+    """A dedicated performance guide must live under docs/."""
+    assert PERF_GUIDE.exists(), f"Expected performance guide at {PERF_GUIDE}"
+    assert PERF_GUIDE.stat().st_size > 0, "Performance guide must not be empty"
+
+
+def test_performance_guide_documents_expected_response_times(
+    perf_guide_text: str,
+) -> None:
+    """The guide must set expectations for query latency and timeouts."""
+    lowered = perf_guide_text.lower()
+    assert "expected performance" in lowered or "expected response" in lowered
+    assert "timeout" in lowered
+    # Concrete latency baselines users can compare against.
+    assert "ms" in perf_guide_text
+    assert "<500ms" in perf_guide_text or "500ms" in perf_guide_text
+
+
+# --- Criterion 2: Best practices documented --------------------------------
+
+
+def test_best_practices_documented(perf_guide_text: str) -> None:
+    lowered = perf_guide_text.lower()
+    assert "optimization" in lowered or "best practice" in lowered
+    # Core best-practice levers called out in the issue.
+    assert "per_page" in perf_guide_text, "Pagination guidance missing"
+    assert "async" in lowered, "Async/parallel guidance missing"
+    assert "context manager" in lowered or "with OilPriceAPI" in perf_guide_text
+
+
+# --- Criterion 3: Troubleshooting guide added ------------------------------
+
+
+def test_troubleshooting_section_present(perf_guide_text: str) -> None:
+    lowered = perf_guide_text.lower()
+    assert "troubleshooting" in lowered, "Troubleshooting section missing"
+    assert "timeout" in lowered
+
+
+# --- Criterion 4: Examples updated with performance notes ------------------
+
+
+def test_guide_contains_runnable_examples(perf_guide_text: str) -> None:
+    """Guidance must include concrete, copy-pasteable code examples."""
+    assert "```python" in perf_guide_text, "Guide must include python examples"
+    # Both a slow anti-pattern and a fast recommended pattern.
+    assert "historical.get(" in perf_guide_text
+
+
+# --- Criterion 5: README links to performance guide ------------------------
+
+
+def test_readme_links_to_performance_guide() -> None:
+    """README must link to docs/PERFORMANCE_GUIDE.md so users can find it."""
+    assert README.exists(), f"README missing at {README}"
+    text = README.read_text(encoding="utf-8")
+    assert "docs/PERFORMANCE_GUIDE.md" in text, (
+        "README must link to docs/PERFORMANCE_GUIDE.md "
+        "(acceptance criterion: 'README links to performance guide')"
+    )
+
+
+# --- Discoverability: guide wired into the docs site nav -------------------
+
+
+def test_performance_guide_in_mkdocs_nav() -> None:
+    """The guide must be reachable from the published docs site navigation."""
+    assert MKDOCS.exists(), f"mkdocs.yml missing at {MKDOCS}"
+    text = MKDOCS.read_text(encoding="utf-8")
+    assert "PERFORMANCE_GUIDE.md" in text, (
+        "mkdocs.yml nav must include PERFORMANCE_GUIDE.md so the guide is "
+        "discoverable on the docs site"
+    )