diff --git a/src/dropdown/list/DropdownList.tsx b/src/dropdown/list/DropdownList.tsx
index b99e5722..95158516 100644
--- a/src/dropdown/list/DropdownList.tsx
+++ b/src/dropdown/list/DropdownList.tsx
@@ -10,7 +10,7 @@ import DropdownListItem, {
 } from "./item/DropdownListItem";
 import {computeScrollAmountToMakeChildVisible} from "../../core/utils/dom/domUtils";
 
-interface DropdownListProps<OptionIdShape extends string> {
+export interface DropdownListProps<OptionIdShape extends string> {
   isVisible: boolean;
   options: DropdownOption<OptionIdShape>[];
   selectedOption: DropdownSelectedOption<OptionIdShape>;
diff --git a/src/dropdown/list/dropdown-list.test.tsx b/src/dropdown/list/dropdown-list.test.tsx
new file mode 100644
index 00000000..fd913ee3
--- /dev/null
+++ b/src/dropdown/list/dropdown-list.test.tsx
@@ -0,0 +1,51 @@
+import React from "react";
+import {render, screen} from "@testing-library/react";
+import "@testing-library/jest-dom";
+
+import {testA11y} from "../../core/utils/test/testUtils";
+import DropdownList, {DropdownListProps} from "./DropdownList";
+
+describe("<DropdownList />", () => {
+  const defaultDropdownListProps: DropdownListProps<string> = {
+    testid: "dropdown-list",
+    options: [
+      {id: "1", title: "dropdown-option-1"},
+      {id: "2", title: "dropdown-option-2"},
+      {id: "3", title: "dropdown-option-3"}
+    ],
+    focusedOption: {id: "1", title: "test"},
+    isVisible: true,
+    onFocus: jest.fn(),
+    onSelect: jest.fn(),
+    selectedOption: {id: "1", title: "test"},
+    role: "listbox"
+  };
+
+  it("should render correctly", () => {
+    render(<DropdownList {...defaultDropdownListProps} />);
+  });
+
+  it("should pass a11y test", async () => {
+    const {container} = render(<DropdownList {...defaultDropdownListProps} />);
+
+    await testA11y(container, {
+      rules: {
+        "aria-required-parent": {enabled: false},
+        list: {enabled: false},
+        "aria-input-field-name": {enabled: false}
+      }
+    });
+  });
+
+  it("should render noOptionsMessage if options are empty", () => {
+    render(
+      <DropdownList
+        {...defaultDropdownListProps}
+        options={[]}
+        noOptionsMessage={"No options"}
+      />
+    );
+
+    expect(screen.getByRole("listbox")).toContainElement(screen.getByText("No options"));
+  });
+});
diff --git a/src/dropdown/list/item/DropdownListItem.tsx b/src/dropdown/list/item/DropdownListItem.tsx
index 8412beea..c27621c4 100644
--- a/src/dropdown/list/item/DropdownListItem.tsx
+++ b/src/dropdown/list/item/DropdownListItem.tsx
@@ -24,7 +24,7 @@ export type DropdownSelectedOption<Id = string, Context = any> =
   | null
   | undefined;
 
-interface DropdownListItemProps<OptionIdShape = string> {
+export interface DropdownListItemProps<OptionIdShape = string> {
   testid?: string;
   option: DropdownOption<OptionIdShape>;
   selectedOption: DropdownSelectedOption<OptionIdShape>;
diff --git a/src/dropdown/list/item/dropdown-list-item.test.tsx b/src/dropdown/list/item/dropdown-list-item.test.tsx
new file mode 100644
index 00000000..96950748
--- /dev/null
+++ b/src/dropdown/list/item/dropdown-list-item.test.tsx
@@ -0,0 +1,147 @@
+import React from "react";
+import {render, screen, fireEvent} from "@testing-library/react";
+import "@testing-library/jest-dom";
+import userEvent from "@testing-library/user-event";
+
+import {testA11y} from "../../../core/utils/test/testUtils";
+import DropdownListItem, {DropdownListItemProps} from "./DropdownListItem";
+
+describe("<DropdownListItem />", () => {
+  const defaultDropdownListItemProps: DropdownListItemProps = {
+    testid: "dropdown-list-item",
+    selectedOption: {id: "1", title: "test"},
+    option: {id: "1", title: "test"},
+    onFocus: jest.fn(),
+    onSelect: jest.fn(),
+    onKeyDown: jest.fn()
+  };
+
+  it("should render correctly", () => {
+    render(<DropdownListItem {...defaultDropdownListItemProps} />);
+  });
+
+  it("should pass a11y test", async () => {
+    const {container} = render(<DropdownListItem {...defaultDropdownListItemProps} />);
+
+    await testA11y(container, {rules: {"aria-required-parent": {enabled: false}}});
+  });
+
+  it("should render custom content if it exists", () => {
+    const {container} = render(
+      <DropdownListItem
+        {...defaultDropdownListItemProps}
+        option={{
+          ...defaultDropdownListItemProps.option,
+          CustomContent: <p>{"custom content"}</p>
+        }}
+      />
+    );
+
+    expect(container).toContainElement(screen.getByText("custom content"));
+  });
+
+  describe("should handle event handlers correctly", () => {
+    it("should not run click event handler when option is disabled and option is selected or canSelectAlreadySelected is provided as false", () => {
+      // isDisabled: true, isSelected: true , canSelectAlreadySelected: default = false
+      const {rerender} = render(
+        <DropdownListItem
+          {...defaultDropdownListItemProps}
+          option={{...defaultDropdownListItemProps.option, isDisabled: true}}
+        />
+      );
+
+      userEvent.click(screen.getByRole("option"));
+      expect(defaultDropdownListItemProps.onSelect).not.toHaveBeenCalled();
+
+      // isDisabled: true, isSelected: false , canSelectAlreadySelected: default = false
+      rerender(
+        <DropdownListItem
+          {...defaultDropdownListItemProps}
+          selectedOption={{id: "2", title: "test 2"}}
+          option={{...defaultDropdownListItemProps.option, isDisabled: true}}
+        />
+      );
+
+      userEvent.click(screen.getByRole("option"));
+      expect(defaultDropdownListItemProps.onSelect).not.toHaveBeenCalled();
+
+      // isDisabled: true, isSelected: true , canSelectAlreadySelected: true
+      rerender(
+        <DropdownListItem
+          {...defaultDropdownListItemProps}
+          canSelectAlreadySelected={true}
+          option={{...defaultDropdownListItemProps.option, isDisabled: true}}
+        />
+      );
+
+      userEvent.click(screen.getByRole("option"));
+      expect(defaultDropdownListItemProps.onSelect).not.toHaveBeenCalled();
+    });
+
+    it("should run click event handler when option is not disabled and option is not selected or canSelectAlreadySelected is provided as true", () => {
+      // isDisabled: false, isSelected: true , canSelectAlreadySelected: true
+      const {rerender} = render(
+        <DropdownListItem
+          {...defaultDropdownListItemProps}
+          canSelectAlreadySelected={true}
+        />
+      );
+
+      userEvent.click(screen.getByRole("option"));
+      expect(defaultDropdownListItemProps.onSelect).toHaveBeenCalledTimes(1);
+
+      jest.clearAllMocks();
+
+      // isDisabled: false, isSelected: false , canSelectAlreadySelected: default = false
+      rerender(
+        <DropdownListItem
+          {...defaultDropdownListItemProps}
+          selectedOption={{id: "2", title: "test 2"}}
+        />
+      );
+
+      userEvent.click(screen.getByRole("option"));
+      expect(defaultDropdownListItemProps.onSelect).toHaveBeenCalledTimes(1);
+
+      jest.clearAllMocks();
+
+      // isDisabled: false, isSelected: false , canSelectAlreadySelected: true
+      rerender(
+        <DropdownListItem
+          {...defaultDropdownListItemProps}
+          selectedOption={{id: "2", title: "test 2"}}
+          canSelectAlreadySelected={true}
+        />
+      );
+
+      userEvent.click(screen.getByRole("option"));
+      expect(defaultDropdownListItemProps.onSelect).toHaveBeenCalledTimes(1);
+    });
+
+    it("should run focus event handler correctly", () => {
+      render(<DropdownListItem {...defaultDropdownListItemProps} />);
+
+      fireEvent.focus(screen.getByRole("option"));
+
+      expect(defaultDropdownListItemProps.onFocus).toHaveBeenCalledTimes(1);
+    });
+
+    it("should run key down event handler correctly", () => {
+      const {rerender} = render(<DropdownListItem {...defaultDropdownListItemProps} />);
+
+      fireEvent.keyDown(screen.getByRole("option"), {
+        keyCode: 16
+      });
+
+      expect(defaultDropdownListItemProps.onKeyDown).toHaveBeenCalledTimes(1);
+
+      jest.clearAllMocks();
+
+      rerender(
+        <DropdownListItem {...defaultDropdownListItemProps} onKeyDown={undefined} />
+      );
+
+      expect(defaultDropdownListItemProps.onKeyDown).not.toHaveBeenCalled();
+    });
+  });
+});
diff --git a/src/dropdown/util/dropdown-utils.test.ts b/src/dropdown/util/dropdown-utils.test.ts
new file mode 100644
index 00000000..e13dd22b
--- /dev/null
+++ b/src/dropdown/util/dropdown-utils.test.ts
@@ -0,0 +1,85 @@
+import {DropdownOption} from "../list/item/DropdownListItem";
+import {
+  findIndexForClosestMatch,
+  generateInitialFocusedDropdownOptionIndex
+} from "./dropdownUtils";
+import {DropdownPosition} from "./dropdownConstants";
+
+describe("generateInitialFocusedDropdownOptionIndex", () => {
+  const position: DropdownPosition = "left";
+  const options: DropdownOption[] = [
+    {id: "1", title: "Hipo"},
+    {id: "2", title: "hIpO lAbS"},
+    {id: "3", title: "lAbS"},
+    {id: "4", title: "Labss"},
+    {id: "5", title: ""},
+    {id: "6", title: "hİpOğÜ_*!>labs"}
+  ];
+
+  it("should return provided selectedOption's index if it exists", () => {
+    expect(
+      generateInitialFocusedDropdownOptionIndex(position, options, options[1])
+    ).toEqual(1);
+  });
+
+  it("should return 0 when provided selectedOption does not exists and position is not equal to top", () => {
+    expect(
+      generateInitialFocusedDropdownOptionIndex(position, options, {
+        id: "-1",
+        title: "test"
+      })
+    ).toEqual(0);
+
+    expect(generateInitialFocusedDropdownOptionIndex(position, options, null)).toEqual(0);
+    expect(
+      generateInitialFocusedDropdownOptionIndex(position, options, undefined)
+    ).toEqual(0);
+  });
+
+  it("should return last option's index when selectedOption does not exists and position is equal to top", () => {
+    expect(
+      generateInitialFocusedDropdownOptionIndex("top", options, {
+        id: "-1",
+        title: "test"
+      })
+    ).toEqual(options.length - 1);
+  });
+
+  expect(generateInitialFocusedDropdownOptionIndex("top", options, null)).toEqual(
+    options.length - 1
+  );
+  expect(generateInitialFocusedDropdownOptionIndex("top", options, undefined)).toEqual(
+    options.length - 1
+  );
+});
+
+describe("findIndexForClosestMatch", () => {
+  const options: DropdownOption[] = [
+    {id: "1", title: "Hipo"},
+    {id: "2", title: "hIpO lAbS"},
+    {id: "3", title: "lAbS"},
+    {id: "4", title: "Labss"},
+    {id: "5", title: ""},
+    {id: "6", title: "hİpOğÜ_*!>labs"}
+  ];
+
+  it("should return closest index by provided query", () => {
+    expect(findIndexForClosestMatch(options, "HipO")).toEqual(0);
+    // eslint-disable-next-line no-magic-numbers
+    expect(findIndexForClosestMatch(options, "labs")).toEqual(2);
+    expect(findIndexForClosestMatch(options, "hipo la")).toEqual(1);
+  });
+
+  it("should return 0 if the provided query is empty", () => {
+    expect(findIndexForClosestMatch(options, "")).toEqual(0);
+  });
+
+  it("should return -1 if the provided query does not exists", () => {
+    expect(findIndexForClosestMatch(options, "test")).toEqual(-1);
+  });
+
+  it("should handle special characters", () => {
+    // eslint-disable-next-line no-magic-numbers
+    expect(findIndexForClosestMatch(options, "hİpOğÜ_*!>")).toEqual(5);
+  });
+});