diff --git a/packages/processors/test/strategy/donationVotingMerkleDistributionDirectTransfer/dvmdDirectTransfer.handler.spec.ts b/packages/processors/test/strategy/donationVotingMerkleDistributionDirectTransfer/dvmdDirectTransfer.handler.spec.ts
index daa6a88..6a6ee6a 100644
--- a/packages/processors/test/strategy/donationVotingMerkleDistributionDirectTransfer/dvmdDirectTransfer.handler.spec.ts
+++ b/packages/processors/test/strategy/donationVotingMerkleDistributionDirectTransfer/dvmdDirectTransfer.handler.spec.ts
@@ -1,5 +1,104 @@
-import { describe, it } from "vitest";
+import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
+
+import type { IMetadataProvider } from "@grants-stack-indexer/metadata";
+import type {
+    IProjectReadRepository,
+    IRoundReadRepository,
+} from "@grants-stack-indexer/repository";
+import { ChainId, ProtocolEvent, StrategyEvent } from "@grants-stack-indexer/shared";
+
+import { UnsupportedEventException } from "../../../src/internal.js";
+import { DVMDDirectTransferHandler } from "../../../src/strategy/donationVotingMerkleDistributionDirectTransfer/dvmdDirectTransfer.handler.js";
+import {
+    DVMDDistributedHandler,
+    DVMDRegisteredHandler,
+} from "../../../src/strategy/donationVotingMerkleDistributionDirectTransfer/handlers/index.js";
+
+vi.mock(
+    "../../../src/strategy/donationVotingMerkleDistributionDirectTransfer/handlers/index.js",
+    () => {
+        const DVMDRegisteredHandler = vi.fn();
+        // eslint-disable-next-line @typescript-eslint/no-unsafe-member-access
+        DVMDRegisteredHandler.prototype.handle = vi.fn();
+        const DVMDDistributedHandler = vi.fn();
+        // eslint-disable-next-line @typescript-eslint/no-unsafe-member-access
+        DVMDDistributedHandler.prototype.handle = vi.fn();
+        return {
+            DVMDRegisteredHandler,
+            DVMDDistributedHandler,
+        };
+    },
+);
 
 describe("DVMDDirectTransferHandler", () => {
-    it.skip("handle the direct transfer event", () => {});
+    const mockChainId = 10 as ChainId;
+    let handler: DVMDDirectTransferHandler;
+    let mockMetadataProvider: IMetadataProvider;
+    let mockRoundRepository: IRoundReadRepository;
+    let mockProjectRepository: IProjectReadRepository;
+
+    beforeEach(() => {
+        mockMetadataProvider = {} as IMetadataProvider;
+        mockRoundRepository = {} as IRoundReadRepository;
+        mockProjectRepository = {} as IProjectReadRepository;
+
+        handler = new DVMDDirectTransferHandler(mockChainId, {
+            metadataProvider: mockMetadataProvider,
+            roundRepository: mockRoundRepository,
+            projectRepository: mockProjectRepository,
+        });
+    });
+
+    afterEach(() => {
+        vi.clearAllMocks();
+    });
+
+    it("calls RegisteredHandler for Registered event", async () => {
+        const mockEvent = {
+            eventName: "Registered",
+        } as ProtocolEvent<"Strategy", "Registered">;
+
+        vi.spyOn(DVMDRegisteredHandler.prototype, "handle").mockResolvedValue([]);
+
+        await handler.handle(mockEvent);
+
+        expect(DVMDRegisteredHandler).toHaveBeenCalledWith(mockEvent, mockChainId, {
+            metadataProvider: mockMetadataProvider,
+            roundRepository: mockRoundRepository,
+            projectRepository: mockProjectRepository,
+        });
+        expect(DVMDRegisteredHandler.prototype.handle).toHaveBeenCalled();
+    });
+
+    it("calls DistributedHandler for Distributed event", async () => {
+        const mockEvent = {
+            eventName: "Distributed",
+        } as ProtocolEvent<"Strategy", "Distributed">;
+
+        vi.spyOn(DVMDDistributedHandler.prototype, "handle").mockResolvedValue([]);
+
+        await handler.handle(mockEvent);
+
+        expect(DVMDDistributedHandler).toHaveBeenCalledWith(mockEvent, mockChainId, {
+            metadataProvider: mockMetadataProvider,
+            roundRepository: mockRoundRepository,
+            projectRepository: mockProjectRepository,
+        });
+        expect(DVMDDistributedHandler.prototype.handle).toHaveBeenCalled();
+    });
+
+    it.skip("calls AllocatedHandler for Allocated event");
+    it.skip("calls TimestampsUpdatedHandler for TimestampsUpdated event");
+    it.skip("calls RecipientStatusUpdatedHandler for RecipientStatusUpdated event");
+    it.skip("calls DistributionUpdatedHandler for DistributionUpdated event");
+    it.skip("calls UpdatedRegistrationHandler for UpdatedRegistration event");
+    it.skip("calls FundsDistributedHandler for FundsDistributed event");
+
+    it("throws UnsupportedEventException for unknown event names", async () => {
+        const mockEvent = { eventName: "UnknownEvent" } as unknown as ProtocolEvent<
+            "Strategy",
+            StrategyEvent
+        >;
+        await expect(() => handler.handle(mockEvent)).rejects.toThrow(UnsupportedEventException);
+    });
 });