diff --git a/__tests__/context/SettingsContext.test.tsx b/__tests__/context/SettingsContext.test.tsx
new file mode 100644
index 00000000..ae7e42e7
--- /dev/null
+++ b/__tests__/context/SettingsContext.test.tsx
@@ -0,0 +1,92 @@
+import React from "react";
+
+import { expect } from "@jest/globals";
+import { render, screen } from "@testing-library/react";
+import "@testing-library/jest-dom/jest-globals";
+
+import { useSettingsContext, SettingsProvider } from "../../src/context/SettingsContext";
+import { DefaultSettings } from "../../src/constants/internal/DefaultSettings";
+import { Settings } from "../../src/types/Settings";
+
+const TestComponent = () => {
+	const { settings, setSettings } = useSettingsContext();
+
+	return (
+		<div>
+			<p data-testid="settings">{JSON.stringify(settings)}</p>
+			<button data-testid="updateSettings" onClick={() => setSettings((prevSettings) => ({ ...prevSettings, 
+				general: { ...prevSettings.general, primaryColor: '#123456' } }))}>
+				Update Settings
+			</button>
+		</div>
+	);
+};
+
+describe("SettingsContext", () => {
+	it("provides the correct default values", () => {
+		render(
+			<SettingsProvider settings={DefaultSettings} setSettings={() => null}>
+				<TestComponent />
+			</SettingsProvider>
+		);
+
+		expect(screen.getByTestId("settings")).toHaveTextContent(JSON.stringify(DefaultSettings));
+	});
+
+	it("allows updating settings", () => {
+		let currentSettings = DefaultSettings;
+
+		const mockSetSettings: React.Dispatch<React.SetStateAction<Settings>> = (newSettings) => {
+			// Handle both the direct object case and updater function case
+			if (typeof newSettings === "function") {
+				currentSettings = (newSettings as (prevState: Settings) => Settings)(currentSettings);
+			} else {
+				currentSettings = { ...currentSettings, ...newSettings };
+			}
+		};
+
+		const { rerender } = render(
+			<SettingsProvider settings={currentSettings} setSettings={mockSetSettings}>
+				<TestComponent />
+			</SettingsProvider>
+		);
+
+		screen.getByTestId("updateSettings").click();
+
+		rerender(
+			<SettingsProvider settings={currentSettings} setSettings={mockSetSettings}>
+				<TestComponent />
+			</SettingsProvider>
+		);
+
+		expect(screen.getByTestId("settings")).toHaveTextContent(JSON.stringify({...DefaultSettings, 
+			general: { ...DefaultSettings.general, primaryColor: '#123456' } }));
+	});
+
+	it("can initialize with custom settings", () => {
+		const customSettings = {
+			general: {
+				primaryColor: "#000000",
+				secondaryColor: "#ffffff",
+				fontFamily: "-apple-system, BlinkMacSystemFont, 'Segoe UI', 'Roboto', 'Oxygen', " +
+                    "'Ubuntu', 'Cantarell', 'Fira Sans', 'Droid Sans', 'Helvetica Neue', " +
+                    "sans-serif",
+				showHeader: false,
+				showFooter: false,
+				showInputRow: false,
+				embedded: false,
+				desktopEnabled: false,
+				mobileEnabled: false,
+				flowStartTrigger: "ON_LOAD",
+			},
+		};
+
+		render(
+			<SettingsProvider settings={customSettings} setSettings={() => null}>
+				<TestComponent />
+			</SettingsProvider>
+		);
+
+		expect(screen.getByTestId("settings")).toHaveTextContent(JSON.stringify(customSettings));
+	});
+});