diff --git a/tests/ImageLoader.test.svelte b/tests/ImageLoader.test.svelte
deleted file mode 100644
index 1a3f8e1a..00000000
--- a/tests/ImageLoader.test.svelte
+++ /dev/null
@@ -1,22 +0,0 @@
-<script lang="ts">
-  import { ImageLoader } from "carbon-components-svelte";
-
-  let loading = false;
-  let loaded = false;
-  let error = false;
-</script>
-
-<ImageLoader
-  bind:loading
-  bind:loaded
-  bind:error
-  fadeIn
-  ratio="16x9"
-  src=""
-  on:load={(e) => {
-    console.log(e.detail); // null
-  }}
-  on:error={(e) => {
-    console.log(e.detail); // null
-  }}
-/>
diff --git a/tests/ImageLoader/ImageLoader.test.svelte b/tests/ImageLoader/ImageLoader.test.svelte
new file mode 100644
index 00000000..1a805651
--- /dev/null
+++ b/tests/ImageLoader/ImageLoader.test.svelte
@@ -0,0 +1,64 @@
+<svelte:options accessors />
+
+<script lang="ts">
+  import { ImageLoader, InlineLoading } from "carbon-components-svelte";
+
+  // Valid image URL for testing successful loads
+  const validImageSrc =
+    "https://upload.wikimedia.org/wikipedia/commons/5/51/IBM_logo.svg";
+  // Invalid image URL for testing error states
+  const invalidImageSrc = "https://invalid-url/nonexistent.png";
+
+  export let imageLoader: ImageLoader;
+</script>
+
+<!-- Default image loader -->
+<div data-testid="default-loader">
+  <ImageLoader src={validImageSrc} alt="IBM Logo" />
+</div>
+
+<!-- Image loader with loading and error slots -->
+<div data-testid="loader-with-slots">
+  <ImageLoader src={validImageSrc} alt="IBM Logo with slots">
+    <svelte:fragment slot="loading">
+      <div data-testid="loading-state">
+        <InlineLoading />
+      </div>
+    </svelte:fragment>
+    <svelte:fragment slot="error">
+      <div data-testid="error-state">An error occurred.</div>
+    </svelte:fragment>
+  </ImageLoader>
+</div>
+
+<!-- Image loader with aspect ratio -->
+<div data-testid="loader-with-ratio">
+  <ImageLoader
+    ratio="16x9"
+    src={validImageSrc}
+    alt="IBM Logo with aspect ratio"
+  />
+</div>
+
+<!-- Image loader with fade in effect -->
+<div data-testid="loader-with-fade">
+  <ImageLoader fadeIn src={validImageSrc} alt="IBM Logo with fade" />
+</div>
+
+<!-- Image loader with programmatic control -->
+<div data-testid="programmatic-loader">
+  <ImageLoader
+    bind:this={imageLoader}
+    src=""
+    alt="Programmatically loaded image"
+  />
+</div>
+
+<!-- Image loader that will trigger error state -->
+<div data-testid="error-loader">
+  <ImageLoader src={invalidImageSrc} alt="Error state image">
+    <svelte:fragment slot="error">
+      <div data-testid="error-message">Failed to load image</div>
+    </svelte:fragment>
+  </ImageLoader>
+</div>
diff --git a/tests/ImageLoader/ImageLoader.test.ts b/tests/ImageLoader/ImageLoader.test.ts
new file mode 100644
index 00000000..86640905
--- /dev/null
+++ b/tests/ImageLoader/ImageLoader.test.ts
@@ -0,0 +1,129 @@
+import { render, screen } from "@testing-library/svelte";
+import ImageLoader from "./ImageLoader.test.svelte";
+
+describe("ImageLoader", () => {
+  beforeEach(() => {
+    vi.useFakeTimers();
+  });
+
+  afterEach(() => {
+    vi.useRealTimers();
+    vi.restoreAllMocks();
+  });
+
+  it("renders with default props", () => {
+    render(ImageLoader);
+    const wrapper = screen.getByTestId("default-loader");
+    const img = wrapper.querySelector("img");
+    expect(img).toBeDefined();
+  });
+
+  it("shows loading state and transitions to loaded state", async () => {
+    render(ImageLoader);
+
+    const loadingIndicator = screen.getByTestId("loading-state");
+    expect(loadingIndicator).toBeInTheDocument();
+
+    const wrapper = screen.getByTestId("loader-with-slots");
+    const img = wrapper.querySelector("img");
+    expect(img).toBeDefined();
+    if (img) {
+      const loadEvent = new Event("load");
+      img.dispatchEvent(loadEvent);
+
+      expect(screen.queryByTestId("loading-state")).not.toBeInTheDocument();
+      expect(img).toBeVisible();
+    }
+  });
+
+  it("handles error state correctly", async () => {
+    render(ImageLoader);
+
+    const wrapper = screen.getByTestId("error-loader");
+    const img = wrapper.querySelector("img");
+    expect(img).toBeDefined();
+
+    if (img) {
+      const errorEvent = new Event("error");
+      img.dispatchEvent(errorEvent);
+
+      const errorMessage = screen.getByTestId("error-message");
+      expect(errorMessage).toBeInTheDocument();
+      expect(errorMessage).toHaveTextContent("Failed to load image");
+    }
+  });
+
+  it("supports aspect ratio", () => {
+    render(ImageLoader);
+
+    const wrapper = screen.getByTestId("loader-with-ratio");
+    const aspectRatioWrapper = wrapper.querySelector(
+      "[class*='bx--aspect-ratio']",
+    );
+
+    expect(aspectRatioWrapper).toHaveClass("bx--aspect-ratio--16x9");
+  });
+
+  it("supports fade in animation", async () => {
+    render(ImageLoader);
+
+    const wrapper = screen.getByTestId("loader-with-fade");
+    const img = wrapper.querySelector("img");
+    expect(img).toBeDefined();
+
+    if (img) {
+      const loadEvent = new Event("load");
+      img.dispatchEvent(loadEvent);
+
+      expect(img).toHaveStyle({
+        transition: expect.stringContaining("opacity"),
+      });
+    }
+  });
+
+  it("supports programmatic image loading", async () => {
+    const { component } = render(ImageLoader);
+
+    const wrapper = screen.getByTestId("programmatic-loader");
+    const img = wrapper.querySelector("img");
+    expect(img).toBeDefined();
+
+    const imageLoaderComponent = component.imageLoader;
+    expect(imageLoaderComponent).toBeDefined();
+
+    const newSrc = "https://example.com/new-image.jpg";
+
+    imageLoaderComponent.loadImage(newSrc);
+    if (img) {
+      expect(img.getAttribute("src")).toBe(newSrc);
+    }
+  });
+
+  it("dispatches load and error events", async () => {
+    const { component } = render(ImageLoader);
+
+    const load = vi.fn();
+    const error = vi.fn();
+
+    component.$on("load", load);
+    component.$on("error", error);
+
+    const defaultWrapper = screen.getByTestId("default-loader");
+    const defaultImg = defaultWrapper.querySelector("img");
+    expect(defaultImg).toBeDefined();
+
+    if (defaultImg) {
+      defaultImg.dispatchEvent(new Event("load"));
+      expect(load).toHaveBeenCalled();
+    }
+
+    const errorWrapper = screen.getByTestId("error-loader");
+    const errorImg = errorWrapper.querySelector("img");
+    expect(errorImg).toBeDefined();
+
+    if (errorImg) {
+      errorImg.dispatchEvent(new Event("error"));
+      expect(error).toHaveBeenCalled();
+    }
+  });
+});