diff --git a/packages/lib/src/components/internal/PhoneInputNew/PhoneInput.test.tsx b/packages/lib/src/components/internal/PhoneInputNew/PhoneInput.test.tsx
new file mode 100644
index 0000000000..fce227c591
--- /dev/null
+++ b/packages/lib/src/components/internal/PhoneInputNew/PhoneInput.test.tsx
@@ -0,0 +1,69 @@
+import { h } from 'preact';
+import { fireEvent, render, screen } from '@testing-library/preact';
+import PhoneInput from './PhoneInput';
+import CoreProvider from '../../../core/Context/CoreProvider';
+import { Resources } from '../../../core/Context/Resources';
+import { PhoneInputProps } from './types';
+import userEvent from '@testing-library/user-event';
+import { resolveCDNEnvironment } from '../../../core/Environment';
+
+const items = [{ id: '+44', name: 'United Kingdom', code: 'GB', selectedOptionName: 'United Kingdom' }];
+
+describe('PhoneInput', () => {
+    const defaultProps: PhoneInputProps = {
+        items,
+        data: { phonePrefix: items[0].id },
+        onChange: jest.fn(),
+        phoneNumberErrorKey: 'mobileNumber.invalid',
+        placeholders: {}
+    };
+
+    const renderPhoneInput = (props: PhoneInputProps = defaultProps) => {
+        return render(
+            // @ts-ignore ignore
+            <CoreProvider i18n={global.i18n} loadingContext="test" resources={new Resources(resolveCDNEnvironment('test'))}>
+                <PhoneInput {...props} />
+            </CoreProvider>
+        );
+    };
+
+    test('should show phone prefix and phone number', async () => {
+        renderPhoneInput();
+        expect(await screen.findByRole('combobox')).toBeTruthy();
+        expect(await screen.findByRole('textbox')).toBeTruthy();
+    });
+
+    test('should show an error message for the invalid input', async () => {
+        const user = userEvent.setup({ delay: 100 });
+        renderPhoneInput();
+        const phoneNumberEle = await screen.findByRole('textbox');
+        await user.type(phoneNumberEle, '1');
+        fireEvent.blur(phoneNumberEle);
+        expect(await screen.findByText(/invalid mobile number/i)).toBeInTheDocument();
+    });
+
+    test('should show a success icon for the valid input', async () => {
+        const user = userEvent.setup({ delay: 100 });
+        renderPhoneInput();
+        const phoneNumberEle = await screen.findByRole('textbox');
+        await user.type(phoneNumberEle, '123456');
+        fireEvent.blur(phoneNumberEle);
+        const successIcons = await screen.findAllByRole('img');
+        expect(successIcons.length).toBe(2);
+    });
+
+    test('should call onChange when the data has been changed', async () => {
+        const user = userEvent.setup({ delay: 100 });
+        renderPhoneInput();
+        const phoneNumberEle = await screen.findByRole('textbox');
+        await user.type(phoneNumberEle, '123456');
+        expect(defaultProps.onChange).toHaveBeenCalledWith(
+            expect.objectContaining({
+                data: { phoneNumber: '123456', phonePrefix: '+44' },
+                errors: expect.any(Object),
+                valid: expect.any(Object),
+                isValid: expect.any(Boolean)
+            })
+        );
+    });
+});
diff --git a/packages/lib/src/components/internal/PhoneInputNew/usePhonePrefixes.test.tsx b/packages/lib/src/components/internal/PhoneInputNew/usePhonePrefixes.test.tsx
new file mode 100644
index 0000000000..d6fe785ce9
--- /dev/null
+++ b/packages/lib/src/components/internal/PhoneInputNew/usePhonePrefixes.test.tsx
@@ -0,0 +1,63 @@
+import usePhonePrefixes from './usePhonePrefixes';
+import getDataset from '../../../core/Services/get-dataset';
+import { renderHook } from '@testing-library/preact-hooks';
+import { waitFor } from '@testing-library/preact';
+import AdyenCheckoutError from '../../../core/Errors/AdyenCheckoutError';
+
+jest.mock('../../../core/Services/get-dataset');
+
+const getFlagEmoji = ({ id }) => {
+    const codePoints: number[] = id
+        .toUpperCase()
+        .split('')
+        .map(char => 127397 + char.charCodeAt(0));
+
+    return String.fromCodePoint ? String.fromCodePoint(...codePoints) + '\u00A0\u00A0' : '';
+};
+
+describe('usePhonePrefixes', () => {
+    const props = { allowedCountries: [], loadingContext: 'test', handleError: jest.fn() };
+
+    afterEach(() => {
+        jest.restoreAllMocks();
+    });
+
+    test('should return a list of phone prefixes', async () => {
+        const datasetMock = [{ id: 'AF', prefix: '+93' }];
+        (getDataset as jest.Mock).mockResolvedValue(datasetMock);
+
+        const { result } = renderHook(() => usePhonePrefixes(props));
+        const expectedPrefixes = datasetMock.map(item => ({
+            id: item.prefix,
+            name: `${getFlagEmoji(item)} ${item.prefix} (${item.id})`,
+            selectedOptionName: `${getFlagEmoji(item)} ${item.prefix}`
+        }));
+        await waitFor(() => expect(result.current).toEqual({ loadingStatus: 'ready', phonePrefixes: expectedPrefixes }));
+    });
+
+    test('should return a list of phone prefixes for allowedCountries', async () => {
+        const datasetMock = [
+            { id: 'AF', prefix: '+93' },
+            { id: 'TEST', prefix: '+00' }
+        ];
+        (getDataset as jest.Mock).mockResolvedValue(datasetMock);
+
+        const { result } = renderHook(() => usePhonePrefixes({ ...props, allowedCountries: ['AF'] }));
+        const expectedPrefixes = [
+            {
+                id: datasetMock[0].prefix,
+                name: `${getFlagEmoji(datasetMock[0])} ${datasetMock[0].prefix} (${datasetMock[0].id})`,
+                selectedOptionName: `${getFlagEmoji(datasetMock[0])} ${datasetMock[0].prefix}`
+            }
+        ];
+        await waitFor(() => expect(result.current).toEqual({ loadingStatus: 'ready', phonePrefixes: expectedPrefixes }));
+    });
+
+    test('should return an empty array when getDataset failed', async () => {
+        (getDataset as jest.Mock).mockRejectedValue([]);
+
+        const { result } = renderHook(() => usePhonePrefixes(props));
+        await waitFor(() => expect(result.current).toEqual({ loadingStatus: 'ready', phonePrefixes: [] }));
+        expect(props.handleError).toHaveBeenCalledWith(new AdyenCheckoutError('ERROR'));
+    });
+});