diff --git a/ui-v2/src/hooks/variables.test.tsx b/ui-v2/src/hooks/variables.test.tsx
new file mode 100644
index 000000000000..ba104cbfc430
--- /dev/null
+++ b/ui-v2/src/hooks/variables.test.tsx
@@ -0,0 +1,253 @@
+import { QueryClient, QueryClientProvider } from "@tanstack/react-query";
+import { act, renderHook, waitFor } from "@testing-library/react";
+import { http, HttpResponse } from "msw";
+import { describe, expect, it } from "vitest";
+
+import { components } from "@/api/prefect";
+
+import {
+	buildCountQuery,
+	buildVariablesQuery,
+	useCreateVariable,
+	useDeleteVariable,
+	useUpdateVariable,
+	useVariables,
+} from "./variables";
+
+import { server } from "../../tests/mocks/node";
+
+describe("variable hooks", () => {
+	const seedVariables = () => [
+		{
+			id: "1",
+			name: "my-variable",
+			value: 123,
+			created: "2021-01-01T00:00:00Z",
+			updated: "2021-01-01T00:00:00Z",
+			tags: ["tag1"],
+		},
+	];
+
+	const mockFetchVariablesAPIs = (
+		variables: Array<components["schemas"]["Variable"]>,
+	) => {
+		server.use(
+			http.post("http://localhost:4200/api/variables/filter", () => {
+				return HttpResponse.json(variables);
+			}),
+			http.post("http://localhost:4200/api/variables/count", () => {
+				return HttpResponse.json(variables.length);
+			}),
+		);
+	};
+
+	const createQueryWrapper = ({ queryClient = new QueryClient() }) => {
+		const QueryWrapper = ({ children }: { children: React.ReactNode }) => (
+			<QueryClientProvider client={queryClient}>{children}</QueryClientProvider>
+		);
+		return QueryWrapper;
+	};
+
+	const variableFilter = {
+		offset: 0,
+		sort: "CREATED_DESC" as const,
+	};
+
+	/**
+	 * Data Management:
+	 * - Asserts variable data and count is fetched based on the APIs invoked for the hook
+	 */
+	it("useVariables() is able to fetch from initial cache", async () => {
+		const queryClient = new QueryClient();
+
+		// ------------ Mock API requests when cache is empty
+		const mockVariablesData = seedVariables();
+		mockFetchVariablesAPIs(mockVariablesData);
+
+		// ------------ Initialize hooks to test
+		const { result } = renderHook(() => useVariables(variableFilter), {
+			wrapper: createQueryWrapper({ queryClient }),
+		});
+
+		// ------------ Assert
+		await waitFor(() => expect(result.current.isLoading).toBe(false));
+		expect(result.current.isError).toBe(false);
+		expect(result.current.totalCount).toEqual(1);
+	});
+
+	/**
+	 * Data Management:
+	 * - Asserts delete mutation API is called.
+	 * - Upon delete mutation API being called, cache is invalidated and asserts cache invalidation APIS are called
+	 */
+	it("useDeleteVariable() invalidates cache and fetches updated value", async () => {
+		const VARIABLE_ID_TO_DELETE = "1";
+		const queryClient = new QueryClient();
+
+		// ------------ Mock API requests after queries are invalidated
+		const mockVariablesData = seedVariables().filter(
+			(variable) => variable.id !== VARIABLE_ID_TO_DELETE,
+		);
+		mockFetchVariablesAPIs(mockVariablesData);
+
+		// ------------ Initialize cache
+		queryClient.setQueryData(
+			buildVariablesQuery(variableFilter).queryKey,
+			seedVariables(),
+		);
+		queryClient.setQueryData(
+			buildCountQuery(variableFilter).queryKey,
+			seedVariables().length,
+		);
+
+		// ------------ Initialize hooks to test
+		const { result: useVariablesResult } = renderHook(
+			() => useVariables(variableFilter),
+			{ wrapper: createQueryWrapper({ queryClient }) },
+		);
+
+		const { result: useDeleteVariableResult } = renderHook(useDeleteVariable, {
+			wrapper: createQueryWrapper({ queryClient }),
+		});
+
+		// ------------ Invoke mutation
+		act(() =>
+			useDeleteVariableResult.current.deleteVariable(VARIABLE_ID_TO_DELETE),
+		);
+
+		// ------------ Assert
+		await waitFor(() =>
+			expect(useDeleteVariableResult.current.isSuccess).toBe(true),
+		);
+		expect(useVariablesResult.current.variables.length).toEqual(0);
+		expect(useVariablesResult.current.totalCount).toEqual(0);
+		const deletedVariable = useVariablesResult.current.variables.find(
+			(variable) => variable.id === VARIABLE_ID_TO_DELETE,
+		);
+		expect(deletedVariable).toBeUndefined();
+	});
+
+	/**
+	 * Data Management:
+	 * - Asserts create mutation API is called.
+	 * - Upon create mutation API being called, cache is invalidated and asserts cache invalidation APIS are called
+	 */
+	it("useCreateVariable() invalidates cache and fetches updated value", async () => {
+		const queryClient = new QueryClient();
+		const MOCK_NEW_VARIABLE_ID = "2";
+		const MOCK_NEW_VARIABLE = {
+			name: "my-new-variable",
+			value: 123,
+			created: "2021-01-01T00:00:00Z",
+			updated: "2021-01-01T00:00:00Z",
+			tags: ["tag1"],
+		};
+
+		// ------------ Mock API requests after queries are invalidated
+		const mockVariablesData = [
+			...seedVariables(),
+			{
+				...MOCK_NEW_VARIABLE,
+				id: MOCK_NEW_VARIABLE_ID,
+			},
+		];
+		mockFetchVariablesAPIs(mockVariablesData);
+
+		// ------------ Initialize cache
+		queryClient.setQueryData(
+			buildVariablesQuery(variableFilter).queryKey,
+			seedVariables(),
+		);
+		queryClient.setQueryData(
+			buildCountQuery(variableFilter).queryKey,
+			seedVariables().length,
+		);
+
+		// ------------ Initialize hooks to test
+		const { result: useVariablesResult } = renderHook(
+			() => useVariables(variableFilter),
+			{ wrapper: createQueryWrapper({ queryClient }) },
+		);
+		const { result: useCreateVariableResult } = renderHook(useCreateVariable, {
+			wrapper: createQueryWrapper({ queryClient }),
+		});
+
+		// ------------ Invoke mutation
+		act(() =>
+			useCreateVariableResult.current.createVariable(MOCK_NEW_VARIABLE),
+		);
+
+		// ------------ Assert
+		await waitFor(() =>
+			expect(useCreateVariableResult.current.isSuccess).toBe(true),
+		);
+		expect(useVariablesResult.current.variables.length).toEqual(2);
+		expect(useVariablesResult.current.totalCount).toEqual(2);
+		const newVariable = useVariablesResult.current.variables.find(
+			(variable) => variable.id === MOCK_NEW_VARIABLE_ID,
+		);
+		expect(newVariable).toMatchObject({
+			...MOCK_NEW_VARIABLE,
+			id: MOCK_NEW_VARIABLE_ID,
+		});
+	});
+
+	/**
+	 * Data Management:
+	 * - Asserts update mutation API is called.
+	 * - Upon update mutation API being called, cache is invalidated and asserts cache invalidation APIS are called
+	 */
+	it("useUpdateVariable() invalidates cache and fetches updated value", async () => {
+		const queryClient = new QueryClient();
+		const MOCK_UPDATE_VARIABLE_ID = "1";
+		const MOCK_UPDATE_VARIABLE = {
+			id: MOCK_UPDATE_VARIABLE_ID,
+			name: "my-variable-updated",
+			value: 1234,
+			created: "2021-01-01T00:00:00Z",
+			updated: "2021-01-01T00:00:00Z",
+			tags: ["tag1"],
+		};
+
+		// ------------ Mock API requests after queries are invalidated
+		const mockVariablesData = seedVariables().map((variable) =>
+			variable.id === MOCK_UPDATE_VARIABLE_ID ? MOCK_UPDATE_VARIABLE : variable,
+		);
+		mockFetchVariablesAPIs(mockVariablesData);
+
+		// ------------ Initialize cache
+		queryClient.setQueryData(
+			buildVariablesQuery(variableFilter).queryKey,
+			seedVariables(),
+		);
+		queryClient.setQueryData(
+			buildCountQuery(variableFilter).queryKey,
+			seedVariables().length,
+		);
+
+		// ------------ Initialize hooks to test
+		const { result: useVariablesResult } = renderHook(
+			() => useVariables(variableFilter),
+			{ wrapper: createQueryWrapper({ queryClient }) },
+		);
+		const { result: useUpdateVariableResult } = renderHook(useUpdateVariable, {
+			wrapper: createQueryWrapper({ queryClient }),
+		});
+
+		// ------------ Invoke mutation
+		act(() =>
+			useUpdateVariableResult.current.updateVariable(MOCK_UPDATE_VARIABLE),
+		);
+
+		// ------------ Assert
+		await waitFor(() =>
+			expect(useUpdateVariableResult.current.isSuccess).toBe(true),
+		);
+		expect(useVariablesResult.current.variables.length).toEqual(1);
+		expect(useVariablesResult.current.totalCount).toEqual(1);
+		const updatedVariable = useVariablesResult.current.variables.find(
+			(variable) => variable.id === MOCK_UPDATE_VARIABLE_ID,
+		);
+		expect(updatedVariable).toMatchObject(MOCK_UPDATE_VARIABLE);
+	});
+});
diff --git a/ui-v2/src/hooks/variables.ts b/ui-v2/src/hooks/variables.ts
index ca72480c4af3..c92654ff97db 100644
--- a/ui-v2/src/hooks/variables.ts
+++ b/ui-v2/src/hooks/variables.ts
@@ -1,12 +1,12 @@
 import type { components } from "@/api/prefect";
 import { getQueryService } from "@/api/service";
 import {
+	type QueryClient,
+	keepPreviousData,
 	queryOptions,
 	useMutation,
-	useQueryClient,
 	useQueries,
-	keepPreviousData,
-	type QueryClient,
+	useQueryClient,
 } from "@tanstack/react-query";
 
 type UseVariablesOptions =
@@ -52,7 +52,7 @@ const variableKeys: VariableKeys = {
  *  - staleTime: How long the data should be considered fresh (1 second)
  *  - placeholderData: Uses previous data while loading new data
  */
-const buildVariablesQuery = (options: UseVariablesOptions) =>
+export const buildVariablesQuery = (options: UseVariablesOptions) =>
 	queryOptions({
 		queryKey: variableKeys.filtered(options),
 		queryFn: async () => {
@@ -74,7 +74,7 @@ const buildVariablesQuery = (options: UseVariablesOptions) =>
  *  - staleTime: How long the data should be considered fresh (1 second)
  *  - placeholderData: Uses previous data while loading new data
  */
-const buildCountQuery = (options?: UseVariablesOptions) =>
+export const buildCountQuery = (options?: UseVariablesOptions) =>
 	queryOptions({
 		queryKey: variableKeys.filteredCount(options),
 		queryFn: async () => {