diff --git a/tests/App.test.svelte b/tests/App.test.svelte
index 4a7e47c7..0e1066e5 100644
--- a/tests/App.test.svelte
+++ b/tests/App.test.svelte
@@ -8,6 +8,7 @@
   import TreeViewHierarchy from "./TreeView/TreeView.hierarchy.test.svelte";
   import RecursiveList from "./RecursiveList/RecursiveList.test.svelte";
   import RecursiveListHierarchy from "./RecursiveList/RecursiveList.hierarchy.test.svelte";
+  import Tag from "./Tag/Tag.test.svelte";
   import { onMount } from "svelte";
 
   const routes = [
@@ -51,6 +52,11 @@
       name: "TreeViewHierarchy",
       component: TreeViewHierarchy,
     },
+    {
+      path: "/tag",
+      name: "Tag",
+      component: Tag,
+    },
   ] as const;
 
   let currentPath = window.location.pathname;
diff --git a/tests/Tag.test.svelte b/tests/Tag/Tag.test.svelte
similarity index 75%
rename from tests/Tag.test.svelte
rename to tests/Tag/Tag.test.svelte
index 4812f5f3..2a5710e1 100644
--- a/tests/Tag.test.svelte
+++ b/tests/Tag/Tag.test.svelte
@@ -29,10 +29,23 @@
 
 <Tag type="outline">outline</Tag>
 
-<Tag filter on:click on:close>Filterable</Tag>
+<Tag
+  filter
+  on:click={() => {
+    console.log("click");
+  }}
+  on:close={() => {
+    console.log("close");
+  }}>Filterable</Tag
+>
 
 <Tag icon={Add}>Custom icon</Tag>
 
-<Tag interactive>Text</Tag>
+<Tag
+  interactive
+  on:click={() => {
+    console.log("click");
+  }}>Text</Tag
+>
 
 <Tag skeleton />
diff --git a/tests/Tag/Tag.test.ts b/tests/Tag/Tag.test.ts
new file mode 100644
index 00000000..6a2dcce1
--- /dev/null
+++ b/tests/Tag/Tag.test.ts
@@ -0,0 +1,85 @@
+import { render, screen } from "@testing-library/svelte";
+import { user } from "../setup-tests";
+import Tag from "./Tag.test.svelte";
+
+describe("Tag", () => {
+  afterEach(() => {
+    vi.clearAllMocks();
+  });
+
+  it("renders all tag variants with correct styles", () => {
+    render(Tag);
+
+    const basicTag = screen.getByText("IBM Cloud");
+    expect(basicTag.parentElement).toHaveClass("my-class");
+    expect(basicTag.parentElement).toHaveStyle({ margin: "1rem" });
+
+    [
+      "red",
+      "magenta",
+      "purple",
+      "blue",
+      "cyan",
+      "teal",
+      "green",
+      "gray",
+      "cool-gray",
+      "warm-gray",
+      "high-contrast",
+      "outline",
+    ].forEach((color) => {
+      const tag = screen.getByText(color);
+      expect(tag.parentElement).toHaveClass(`bx--tag--${color}`);
+    });
+  });
+
+  it("renders and handles filterable tag correctly", async () => {
+    const consoleLog = vi.spyOn(console, "log");
+
+    render(Tag);
+
+    const filterableTag = screen.getByText("Filterable");
+    expect(filterableTag).toHaveClass("bx--tag--filter");
+
+    const closeButton = filterableTag.querySelector("button")!;
+    expect(closeButton).toHaveClass("bx--tag__close-icon");
+    expect(closeButton).toHaveAttribute("title", "Clear filter");
+
+    await user.click(closeButton);
+    expect(consoleLog).toHaveBeenCalledWith("close");
+    expect(consoleLog).toHaveBeenCalledWith("click");
+  });
+
+  it("renders custom icon tag correctly", () => {
+    render(Tag);
+
+    const iconTag = screen.getByText("Custom icon");
+    const iconContainer = iconTag.parentElement?.querySelector(
+      ".bx--tag__custom-icon",
+    );
+    expect(iconContainer).toBeInTheDocument();
+  });
+
+  it("renders interactive tag as a button", () => {
+    render(Tag);
+
+    const interactiveTag = screen.getByRole("button", { name: "Text" });
+    expect(interactiveTag).toHaveClass("bx--tag--interactive");
+  });
+
+  it("renders skeleton state", () => {
+    render(Tag);
+
+    const skeleton = document.querySelector(".bx--skeleton");
+    expect(skeleton).toBeInTheDocument();
+  });
+
+  it("handles click events on interactive tag", async () => {
+    const consoleLog = vi.spyOn(console, "log");
+    render(Tag);
+
+    const interactiveTag = screen.getByRole("button", { name: "Text" });
+    await user.click(interactiveTag);
+    expect(consoleLog).toHaveBeenCalledWith("click");
+  });
+});