diff --git a/src/tests/unit/status-badge.test.tsx b/src/tests/unit/status-badge.test.tsx
new file mode 100644
index 0000000000..cbfd7d3dfb
--- /dev/null
+++ b/src/tests/unit/status-badge.test.tsx
@@ -0,0 +1,170 @@
+import { configureStore, combineReducers } from "@reduxjs/toolkit";
+import React, { ReactNode } from "react";
+import { Provider } from "react-redux";
+import { afterEach, beforeEach, describe, expect, test, vi } from "vitest";
+import { cleanup, render } from "@testing-library/react";
+import configReducer from "../../core/config.slice";
+import StatusBadge from "../../apps/loan-list/materials/utils/status-badge";
+
+const store = configureStore({
+  reducer: combineReducers({
+    config: configReducer
+  }),
+  preloadedState: {
+    config: {
+      data: {
+        expirationWarningDaysBeforeConfig: "6"
+      }
+    }
+  }
+});
+
+const Wrapper = ({ children }: { children: ReactNode }) => (
+  <Provider store={store}> {children} </Provider>
+);
+describe("Status Badge tests", () => {
+  afterEach(() => {
+    cleanup();
+    vi.useRealTimers();
+  });
+
+  beforeEach(() => {
+    vi.useFakeTimers();
+    const date = new Date("2023-11-09T12:00:00+0100");
+    vi.setSystemTime(date);
+  });
+
+  test("Should not render anything if no props are given", () => {
+    const { getByTestId } = render(
+      <Wrapper>
+        <div data-testid="badge-wrapper">
+          <StatusBadge />
+        </div>
+      </Wrapper>
+    );
+
+    const html = getByTestId("badge-wrapper");
+
+    expect(html).toMatchInlineSnapshot(`
+    <div
+      data-testid="badge-wrapper"
+    />
+  `);
+  });
+
+  test("Expiring soon warning if within threshold", () => {
+    const { getByTestId } = render(
+      <Wrapper>
+        <div data-testid="badge-wrapper">
+          <StatusBadge
+            showBadgeWithDueDate
+            // Since the due date is tomorrow and the warning threshold is set to within 6 days
+            // we should get a warning.
+            badgeDate="2023-11-10 12:00:00+0100"
+            dangerText="Expired"
+            warningText="Expiring soon"
+          />
+        </div>
+      </Wrapper>
+    );
+
+    const html = getByTestId("badge-wrapper");
+
+    expect(html).toMatchInlineSnapshot(`
+      <div
+        data-testid="badge-wrapper"
+      >
+        <div
+          class="status-label status-label--warning"
+        >
+          Expiring soon
+        </div>
+      </div>
+    `);
+  });
+
+  test("No label if outside of threshold", () => {
+    const { getByTestId } = render(
+      <Wrapper>
+        <div data-testid="badge-wrapper">
+          <StatusBadge
+            showBadgeWithDueDate
+            // This is one day over the threshold, so no warning should be shown.
+            badgeDate="2023-11-16 12:00:00+0100"
+            dangerText="Expired"
+            warningText="Expiring soon"
+          />
+        </div>
+      </Wrapper>
+    );
+
+    const html = getByTestId("badge-wrapper");
+
+    expect(html).toMatchInlineSnapshot(`
+      <div
+        data-testid="badge-wrapper"
+      />
+    `);
+  });
+
+  test("Same day should show 'Expiring soon'", () => {
+    const { getByTestId } = render(
+      <Wrapper>
+        <div data-testid="badge-wrapper">
+          <StatusBadge
+            showBadgeWithDueDate
+            // We are at the exact same day/time as the due date,
+            // so we should get a warning.
+            badgeDate="2023-11-09 12:00:00+0100"
+            dangerText="Expired"
+            warningText="Expiring soon"
+          />
+        </div>
+      </Wrapper>
+    );
+
+    const html = getByTestId("badge-wrapper");
+
+    expect(html).toMatchInlineSnapshot(`
+      <div
+        data-testid="badge-wrapper"
+      >
+        <div
+          class="status-label status-label--warning"
+        >
+          Expiring soon
+        </div>
+      </div>
+    `);
+  });
+
+  test("One day over should show 'Expired'", () => {
+    const { getByTestId } = render(
+      <Wrapper>
+        <div data-testid="badge-wrapper">
+          <StatusBadge
+            showBadgeWithDueDate
+            // We are one day over the due date, so we should get a warning.
+            badgeDate="2023-11-08 12:00:00+0100"
+            dangerText="Expired"
+            warningText="Expiring soon"
+          />
+        </div>
+      </Wrapper>
+    );
+
+    const html = getByTestId("badge-wrapper");
+
+    expect(html).toMatchInlineSnapshot(`
+      <div
+        data-testid="badge-wrapper"
+      >
+        <div
+          class="status-label status-label--danger"
+        >
+          Expired
+        </div>
+      </div>
+    `);
+  });
+});