diff --git a/packages/ds-react-core/src/ui/Chip/Chip.test.tsx b/packages/ds-react-core/src/ui/Chip/Chip.test.tsx
new file mode 100644
index 00000000..2504b382
--- /dev/null
+++ b/packages/ds-react-core/src/ui/Chip/Chip.test.tsx
@@ -0,0 +1,61 @@
+import { render, screen } from "@testing-library/react";
+import { describe, expect, it, vi } from "vitest";
+import Component from "./Chip.js";
+
+describe("Chip component", () => {
+  it("renders", () => {
+    render(<Component lead={"Cloud"} value={"AWS"} />);
+    expect(screen.getByText("AWS")).toBeDefined();
+  });
+
+  it("applies className", () => {
+    render(
+      <Component
+        id={"chip"}
+        lead={"Cloud"}
+        value={"AWS"}
+        className={"test-class"}
+      />,
+    );
+    const chip = screen.getByText("Cloud").parentElement;
+    expect(chip?.classList).toContain("chip");
+    expect(chip?.classList).toContain("test-class");
+  });
+
+  it("applies lead", () => {
+    render(<Component lead={"Cloud"} value={"AWS"} />);
+    expect(screen.getByText("Cloud")).toBeDefined();
+  });
+
+  it("applies value", () => {
+    render(<Component lead={"Cloud"} value={"AWS"} />);
+    expect(screen.getByText("AWS")).toBeDefined();
+  });
+
+  it("applies lead & value", () => {
+    render(<Component lead={"Cloud"} value={"AWS"} />);
+    expect(screen.getByText("AWS")).toBeDefined();
+    expect(screen.getByText("Cloud")).toBeDefined();
+  });
+
+  it("applies appearance", () => {
+    render(<Component lead={"Cloud"} value={"AWS"} appearance={"positive"} />);
+    expect(screen.getByText("Cloud").parentElement?.classList).toContain(
+      "positive",
+    );
+  });
+
+  it("calls onClick", () => {
+    const onClick = vi.fn();
+    render(<Component lead={"Cloud"} value={"AWS"} onClick={onClick} />);
+    screen.getByText("AWS").click();
+    expect(onClick).toHaveBeenCalled();
+  });
+
+  it("calls onDismiss", () => {
+    const onDismiss = vi.fn();
+    render(<Component lead={"Cloud"} value={"AWS"} onDismiss={onDismiss} />);
+    screen.getByLabelText("Dismiss").click();
+    expect(onDismiss).toHaveBeenCalled();
+  });
+});