diff --git a/tests/ContextMenu.test.svelte b/tests/ContextMenu.test.svelte
deleted file mode 100644
index b3b29483..00000000
--- a/tests/ContextMenu.test.svelte
+++ /dev/null
@@ -1,58 +0,0 @@
-<script lang="ts">
-  import {
-    ContextMenu,
-    ContextMenuDivider,
-    ContextMenuOption,
-    ContextMenuRadioGroup,
-    ContextMenuGroup,
-  } from "carbon-components-svelte";
-  import CopyFile from "carbon-icons-svelte/lib/CopyFile.svelte";
-  import Cut from "carbon-icons-svelte/lib/Cut.svelte";
-  import type { ComponentProps } from "svelte";
-
-  let ref: HTMLElement;
-  let selectedId = "0";
-  let selectedIds: ComponentProps<ContextMenuGroup>["selectedIds"] = [];
-
-  $: console.log("selectedId", selectedId);
-</script>
-
-<div bind:this={ref}></div>
-
-<ContextMenu target={null} open on:open={(e) => console.log(e.detail)}>
-  <ContextMenuOption
-    kind="danger"
-    indented
-    labelText="Copy"
-    shortcutText="⌘C"
-    icon={CopyFile}
-  />
-  <ContextMenuOption indented labelText="Cut" shortcutText="⌘X" icon={Cut} />
-  <ContextMenuDivider />
-  <ContextMenuOption indented labelText="Export as">
-    <ContextMenuGroup labelText="Export options" bind:selectedIds>
-      <ContextMenuOption id="pdf" labelText="PDF" />
-      <ContextMenuOption id="txt" labelText="TXT" />
-      <ContextMenuOption id="mp3" labelText="MP3" />
-    </ContextMenuGroup>
-  </ContextMenuOption>
-  <ContextMenuDivider />
-  <ContextMenuOption selectable labelText="Remove metadata" />
-  <ContextMenuDivider />
-  <ContextMenuGroup labelText="Style options">
-    <ContextMenuOption id="0" labelText="Font smoothing" selected />
-    <ContextMenuOption id="1" labelText="Reduce noise" />
-    <ContextMenuOption id="2" labelText="Auto-sharpen" />
-  </ContextMenuGroup>
-</ContextMenu>
-
-<ContextMenu target={[null, ref]} on:open on:close>
-  <ContextMenuOption indented labelText="Open" />
-  <ContextMenuDivider />
-  <ContextMenuRadioGroup bind:selectedId labelText="Radio group">
-    <ContextMenuOption id="0" labelText="Set as foreground" />
-    <ContextMenuOption id="1" labelText="Set as background" />
-  </ContextMenuRadioGroup>
-  <ContextMenuDivider />
-  <ContextMenuOption indented labelText="Lock layer" />
-</ContextMenu>
diff --git a/tests/ContextMenu/ContextMenu.test.svelte b/tests/ContextMenu/ContextMenu.test.svelte
new file mode 100644
index 00000000..172c1156
--- /dev/null
+++ b/tests/ContextMenu/ContextMenu.test.svelte
@@ -0,0 +1,29 @@
+<script lang="ts">
+  import { ContextMenu, ContextMenuOption } from "carbon-components-svelte";
+  import type { ComponentProps } from "svelte";
+
+  export let target: ComponentProps<ContextMenu>["target"] = null;
+  export let open = false;
+  export let x = 0;
+  export let y = 0;
+  export let ref: ComponentProps<ContextMenu>["ref"] = null;
+</script>
+
+<div data-testid="target">Right click me</div>
+
+<ContextMenu
+  bind:target
+  bind:open
+  {x}
+  {y}
+  bind:ref
+  on:open={(e) => {
+    console.log("open", e.detail);
+  }}
+  on:close={() => {
+    console.log("close");
+  }}
+>
+  <ContextMenuOption>Option 1</ContextMenuOption>
+  <ContextMenuOption>Option 2</ContextMenuOption>
+</ContextMenu>
diff --git a/tests/ContextMenu/ContextMenu.test.ts b/tests/ContextMenu/ContextMenu.test.ts
new file mode 100644
index 00000000..c019c7b8
--- /dev/null
+++ b/tests/ContextMenu/ContextMenu.test.ts
@@ -0,0 +1,108 @@
+import { render, screen } from "@testing-library/svelte";
+import { user } from "../setup-tests";
+import ContextMenu from "./ContextMenu.test.svelte";
+
+describe("ContextMenu", () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  it("should render with default props", () => {
+    render(ContextMenu);
+
+    const target = screen.getByTestId("target");
+    expect(target).toBeInTheDocument();
+    expect(target).toHaveTextContent("Right click me");
+
+    const menu = screen.getAllByRole("menu");
+    expect(menu[0]).toBeInTheDocument();
+    expect(menu[0]).toHaveClass("bx--menu");
+  });
+
+  it("should render menu options", () => {
+    render(ContextMenu);
+
+    const options = screen.getAllByRole("menuitem");
+    expect(options).toHaveLength(2);
+    expect(options[0]).toHaveTextContent("Option 1");
+    expect(options[1]).toHaveTextContent("Option 2");
+  });
+
+  it("should open on right click", async () => {
+    const consoleLog = vi.spyOn(console, "log");
+    render(ContextMenu);
+
+    const target = screen.getByTestId("target");
+    await user.pointer({ target, keys: "[MouseRight]" });
+    expect(consoleLog).toHaveBeenCalledWith("open", expect.any(HTMLElement));
+  });
+
+  it("should close on escape key", async () => {
+    const consoleLog = vi.spyOn(console, "log");
+    render(ContextMenu, { props: { open: true } });
+
+    await user.keyboard("{Escape}");
+    expect(consoleLog).toHaveBeenCalledWith("close");
+  });
+
+  it("should close on click outside", async () => {
+    const consoleLog = vi.spyOn(console, "log");
+    render(ContextMenu, { props: { open: true } });
+
+    await user.click(document.body);
+    expect(consoleLog).toHaveBeenCalledWith("close");
+  });
+
+  it("should handle keyboard navigation", async () => {
+    render(ContextMenu, { props: { open: true } });
+
+    const menu = screen.getAllByRole("menu")[0];
+    menu.focus();
+
+    // Arrow down
+    await user.keyboard("{ArrowDown}");
+    const options = screen.getAllByRole("menuitem");
+    expect(options[0].parentElement).toHaveFocus();
+
+    // Arrow up
+    await user.keyboard("{ArrowUp}");
+    expect(options[1].parentElement).toHaveFocus();
+  });
+
+  it("should handle custom target", async () => {
+    const consoleLog = vi.spyOn(console, "log");
+    render(ContextMenu);
+
+    const target = screen.getByTestId("target");
+    await user.pointer({ target, keys: "[MouseRight]" });
+    expect(consoleLog).toHaveBeenCalledWith("open", target);
+  });
+
+  it("should handle custom position", () => {
+    render(ContextMenu, {
+      props: {
+        open: true,
+        x: 100,
+        y: 200,
+      },
+    });
+
+    const menu = screen.getAllByRole("menu")[0];
+    expect(menu).toHaveStyle({
+      left: "100px",
+      top: "200px",
+    });
+  });
+
+  it("should handle nested menus", async () => {
+    render(ContextMenu, { props: { open: true } });
+
+    const menus = screen.getAllByRole("menu");
+    expect(menus[0]).toHaveAttribute("data-level", "1");
+
+    // Simulate nested menu
+    const nestedMenu = document.createElement("ul");
+    nestedMenu.setAttribute("data-level", "2");
+    menus[0].appendChild(nestedMenu);
+  });
+});