diff --git a/test/unit-tests/stores/InitialCryptoSetupStore-test.ts b/test/unit-tests/stores/InitialCryptoSetupStore-test.ts
new file mode 100644
index 00000000000..64b81bade22
--- /dev/null
+++ b/test/unit-tests/stores/InitialCryptoSetupStore-test.ts
@@ -0,0 +1,85 @@
+/*
+Copyright 2024 New Vector Ltd.
+
+SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only
+Please see LICENSE files in the repository root for full details.
+*/
+
+import { mocked } from "jest-mock";
+import { MatrixClient } from "matrix-js-sdk/src/matrix";
+import { waitFor } from "jest-matrix-react";
+
+import { createCrossSigning } from "../../../src/CreateCrossSigning";
+import { InitialCryptoSetupStore } from "../../../src/stores/InitialCryptoSetupStore";
+import { SdkContextClass } from "../../../src/contexts/SDKContext";
+import { createTestClient } from "../../test-utils";
+import { AccountPasswordStore } from "../../../src/stores/AccountPasswordStore";
+
+jest.mock("../../../src/CreateCrossSigning", () => ({
+    createCrossSigning: jest.fn(),
+}));
+
+describe("InitialCryptoSetupStore", () => {
+    let testStore: InitialCryptoSetupStore;
+    let client: MatrixClient;
+    let stores: SdkContextClass;
+
+    let createCrossSigningResolve: () => void;
+    let createCrossSigningReject: (e: Error) => void;
+
+    beforeEach(() => {
+        testStore = new InitialCryptoSetupStore();
+        client = createTestClient();
+        stores = {
+            accountPasswordStore: {
+                getPassword: jest.fn(),
+            } as unknown as AccountPasswordStore,
+        } as unknown as SdkContextClass;
+
+        mocked(createCrossSigning).mockImplementation(() => {
+            return new Promise<void>((resolve, reject) => {
+                createCrossSigningResolve = resolve;
+                createCrossSigningReject = reject;
+            });
+        });
+    });
+
+    it("should call createCrossSigning when startInitialCryptoSetup is called", async () => {
+        testStore.startInitialCryptoSetup(client, false, stores, jest.fn());
+
+        await waitFor(() => expect(createCrossSigning).toHaveBeenCalled());
+    });
+
+    it("emits an update event when createCrossSigning resolves", async () => {
+        const updateSpy = jest.fn();
+        testStore.on("update", updateSpy);
+
+        testStore.startInitialCryptoSetup(client, false, stores, jest.fn());
+        createCrossSigningResolve();
+
+        await waitFor(() => expect(updateSpy).toHaveBeenCalled());
+        expect(testStore.getStatus()).toBe("complete");
+    });
+
+    it("emits an update event when createCrossSigning rejects", async () => {
+        const updateSpy = jest.fn();
+        testStore.on("update", updateSpy);
+
+        testStore.startInitialCryptoSetup(client, false, stores, jest.fn());
+        createCrossSigningReject(new Error("Test error"));
+
+        await waitFor(() => expect(updateSpy).toHaveBeenCalled());
+        expect(testStore.getStatus()).toBe("error");
+    });
+
+    it("should ignore failures if tokenLogin is true", async () => {
+        const updateSpy = jest.fn();
+        testStore.on("update", updateSpy);
+
+        testStore.startInitialCryptoSetup(client, true, stores, jest.fn());
+        createCrossSigningReject(new Error("Test error"));
+
+        await waitFor(() => expect(updateSpy).toHaveBeenCalled());
+        expect(testStore.getStatus()).toBe("complete");
+    });
+});