diff --git a/tests/LocalStorage.test.svelte b/tests/LocalStorage.test.svelte
deleted file mode 100644
index b67e50e3..00000000
--- a/tests/LocalStorage.test.svelte
+++ /dev/null
@@ -1,22 +0,0 @@
-<script lang="ts">
-  import { LocalStorage } from "carbon-components-svelte";
-
-  let storage: LocalStorage;
-  let toggled = false;
-  let events: { event: string; detail?: any }[] = [];
-
-  $: if (storage) storage.clearItem();
-  $: if (storage) storage.clearAll();
-</script>
-
-<LocalStorage
-  bind:this={storage}
-  key="dark-mode"
-  bind:value={toggled}
-  on:save={() => {
-    events = [...events, { event: "on:save" }];
-  }}
-  on:update={({ detail }) => {
-    events = [...events, { event: "on:update", detail }];
-  }}
-/>
diff --git a/tests/LocalStorage/LocalStorage.test.svelte b/tests/LocalStorage/LocalStorage.test.svelte
new file mode 100644
index 00000000..432f136f
--- /dev/null
+++ b/tests/LocalStorage/LocalStorage.test.svelte
@@ -0,0 +1,19 @@
+<svelte:options accessors />
+
+<script lang="ts">
+  import { LocalStorage } from "carbon-components-svelte";
+
+  // Example values for testing
+  const primitiveValue = "test-value";
+  const objectValue = { theme: "dark", fontSize: 16 };
+</script>
+
+<!-- Default local storage -->
+<div data-testid="default-storage">
+  <LocalStorage value={primitiveValue} />
+</div>
+
+<!-- Local storage with object value -->
+<div data-testid="storage-object">
+  <LocalStorage key="theme-settings" value={objectValue} />
+</div>
diff --git a/tests/LocalStorage/LocalStorage.test.ts b/tests/LocalStorage/LocalStorage.test.ts
new file mode 100644
index 00000000..679b1142
--- /dev/null
+++ b/tests/LocalStorage/LocalStorage.test.ts
@@ -0,0 +1,103 @@
+import { render } from "@testing-library/svelte";
+import LocalStorage from "./LocalStorage.test.svelte";
+
+describe("LocalStorage", () => {
+  let localStorageMock: { [key: string]: string };
+  let originalLocalStorage: Storage;
+
+  beforeEach(() => {
+    originalLocalStorage = global.localStorage;
+    localStorageMock = {};
+    global.localStorage = {
+      getItem: vi.fn((key) => localStorageMock[key] || null),
+      setItem: vi.fn((key, value) => {
+        localStorageMock[key] = value;
+      }),
+      removeItem: vi.fn((key) => {
+        delete localStorageMock[key];
+      }),
+      clear: vi.fn(() => {
+        localStorageMock = {};
+      }),
+      length: 0,
+      key: vi.fn(),
+    };
+  });
+
+  afterEach(() => {
+    global.localStorage = originalLocalStorage;
+    localStorage.clear();
+    vi.restoreAllMocks();
+    localStorageMock = {};
+  });
+
+  it("saves primitive value to localStorage on mount", () => {
+    render(LocalStorage);
+
+    expect(localStorage.setItem).toHaveBeenCalledWith(
+      "local-storage-key",
+      "test-value",
+    );
+  });
+
+  it("saves object value as JSON string", () => {
+    render(LocalStorage);
+
+    expect(localStorage.setItem).toHaveBeenCalledWith(
+      "theme-settings",
+      JSON.stringify({ theme: "dark", fontSize: 16 }),
+    );
+  });
+
+  it("loads existing primitive value from localStorage", () => {
+    localStorageMock["local-storage-key"] = "existing-value";
+
+    render(LocalStorage);
+    expect(localStorage.getItem).toHaveBeenCalledWith("local-storage-key");
+  });
+
+  it("loads existing object value from localStorage", () => {
+    // Set up existing value
+    const existingSettings = { theme: "light", fontSize: 14 };
+    localStorageMock["theme-settings"] = JSON.stringify(existingSettings);
+
+    render(LocalStorage);
+    expect(localStorage.getItem).toHaveBeenCalledWith("theme-settings");
+  });
+
+  it("clears specific item from localStorage", () => {
+    const { component } = render(LocalStorage);
+    const storage = component.storage;
+
+    if (storage) {
+      storage.clearItem();
+      expect(localStorage.removeItem).toHaveBeenCalledWith("programmatic-key");
+    }
+  });
+
+  it("clears all items from localStorage", () => {
+    const { component } = render(LocalStorage);
+    const storage = component.storage;
+
+    if (storage) {
+      storage.clearAll();
+      expect(localStorage.clear).toHaveBeenCalled();
+    }
+  });
+
+  it("handles JSON parse errors gracefully", () => {
+    // Set up invalid JSON
+    localStorageMock["local-storage-key"] = "{invalid-json}";
+
+    render(LocalStorage);
+    expect(localStorage.getItem).toHaveBeenCalledWith("local-storage-key");
+  });
+
+  it("uses default key if none provided", () => {
+    render(LocalStorage);
+
+    expect(localStorage.getItem).toHaveBeenCalledWith(
+      expect.stringContaining("local-storage-key"),
+    );
+  });
+});
diff --git a/tests/LocalStorage/LocalStorageObject.test.svelte b/tests/LocalStorage/LocalStorageObject.test.svelte
new file mode 100644
index 00000000..23a78c17
--- /dev/null
+++ b/tests/LocalStorage/LocalStorageObject.test.svelte
@@ -0,0 +1,15 @@
+<script lang="ts">
+  import { LocalStorage } from "carbon-components-svelte";
+
+  const objectValue = { theme: "dark", fontSize: 16 };
+</script>
+
+<div data-testid="object-storage">
+  <LocalStorage
+    key="theme-settings"
+    value={objectValue}
+    on:update={({ detail }) => {
+      console.log("update event", detail);
+    }}
+  />
+</div>
diff --git a/tests/LocalStorage/LocalStorageObject.test.ts b/tests/LocalStorage/LocalStorageObject.test.ts
new file mode 100644
index 00000000..d7228aac
--- /dev/null
+++ b/tests/LocalStorage/LocalStorageObject.test.ts
@@ -0,0 +1,58 @@
+import { render } from "@testing-library/svelte";
+import LocalStorageObject from "./LocalStorageObject.test.svelte";
+
+describe("LocalStorage - Object Values", () => {
+  let localStorageMock: { [key: string]: string };
+  let originalLocalStorage: Storage;
+
+  beforeEach(() => {
+    originalLocalStorage = global.localStorage;
+    localStorageMock = {};
+
+    global.localStorage = {
+      getItem: vi.fn((key) => localStorageMock[key] || null),
+      setItem: vi.fn((key, value) => {
+        localStorageMock[key] = value;
+      }),
+      removeItem: vi.fn((key) => {
+        delete localStorageMock[key];
+      }),
+      clear: vi.fn(() => {
+        localStorageMock = {};
+      }),
+      length: 0,
+      key: vi.fn(),
+    };
+  });
+
+  afterEach(() => {
+    global.localStorage = originalLocalStorage;
+    localStorage.clear();
+    vi.restoreAllMocks();
+    localStorageMock = {};
+  });
+
+  it("saves object value as JSON string", () => {
+    render(LocalStorageObject);
+
+    expect(localStorage.setItem).toHaveBeenCalledWith(
+      "theme-settings",
+      JSON.stringify({ theme: "dark", fontSize: 16 }),
+    );
+  });
+
+  it("loads existing object value from localStorage", () => {
+    const existingSettings = { theme: "light", fontSize: 14 };
+    localStorageMock["theme-settings"] = JSON.stringify(existingSettings);
+
+    render(LocalStorageObject);
+    expect(localStorage.getItem).toHaveBeenCalledWith("theme-settings");
+  });
+
+  it("handles malformed JSON gracefully", () => {
+    localStorageMock["theme-settings"] = "{malformed-json}";
+
+    render(LocalStorageObject);
+    expect(localStorage.getItem).toHaveBeenCalledWith("theme-settings");
+  });
+});
diff --git a/tests/LocalStorage/LocalStoragePrimitive.test.svelte b/tests/LocalStorage/LocalStoragePrimitive.test.svelte
new file mode 100644
index 00000000..60d6a598
--- /dev/null
+++ b/tests/LocalStorage/LocalStoragePrimitive.test.svelte
@@ -0,0 +1,18 @@
+<script lang="ts">
+  import { LocalStorage } from "carbon-components-svelte";
+
+  const primitiveValue = "test-value";
+</script>
+
+<div data-testid="primitive-storage">
+  <LocalStorage
+    key="test-key"
+    value={primitiveValue}
+    on:save={() => {
+      console.log("save event");
+    }}
+    on:update={({ detail }) => {
+      console.log("update event", detail);
+    }}
+  />
+</div>
diff --git a/tests/LocalStorage/LocalStoragePrimitive.test.ts b/tests/LocalStorage/LocalStoragePrimitive.test.ts
new file mode 100644
index 00000000..6a80e626
--- /dev/null
+++ b/tests/LocalStorage/LocalStoragePrimitive.test.ts
@@ -0,0 +1,61 @@
+import { render } from "@testing-library/svelte";
+import LocalStoragePrimitive from "./LocalStoragePrimitive.test.svelte";
+
+describe("LocalStorage - Primitive Values", () => {
+  let localStorageMock: { [key: string]: string };
+  let originalLocalStorage: Storage;
+  let consoleSpy: any;
+
+  beforeEach(() => {
+    originalLocalStorage = global.localStorage;
+    localStorageMock = {};
+    consoleSpy = vi.spyOn(console, "log");
+
+    global.localStorage = {
+      getItem: vi.fn((key) => localStorageMock[key] || null),
+      setItem: vi.fn((key, value) => {
+        localStorageMock[key] = value;
+      }),
+      removeItem: vi.fn((key) => {
+        delete localStorageMock[key];
+      }),
+      clear: vi.fn(() => {
+        localStorageMock = {};
+      }),
+      length: 0,
+      key: vi.fn(),
+    };
+  });
+
+  afterEach(() => {
+    global.localStorage = originalLocalStorage;
+    localStorage.clear();
+    vi.restoreAllMocks();
+    localStorageMock = {};
+  });
+
+  it("saves primitive value to localStorage on mount", () => {
+    render(LocalStoragePrimitive);
+
+    expect(localStorage.setItem).toHaveBeenCalledWith("test-key", "test-value");
+  });
+
+  it("loads existing primitive value from localStorage", () => {
+    localStorageMock["test-key"] = "existing-value";
+
+    render(LocalStoragePrimitive);
+    expect(localStorage.getItem).toHaveBeenCalledWith("test-key");
+  });
+
+  it("dispatches save event when setting initial value", () => {
+    render(LocalStoragePrimitive);
+    expect(consoleSpy).toHaveBeenCalledWith("save event");
+  });
+
+  it("handles invalid values gracefully", () => {
+    localStorageMock["test-key"] = "{invalid-value}";
+
+    render(LocalStoragePrimitive);
+    expect(localStorage.getItem).toHaveBeenCalledWith("test-key");
+  });
+});