diff --git a/src/app/users/new-user/new-user.component.html b/src/app/users/new-user/new-user.component.html
index 2dfd8c1c..d16313cd 100644
--- a/src/app/users/new-user/new-user.component.html
+++ b/src/app/users/new-user/new-user.component.html
@@ -23,6 +23,7 @@
       <grid-buttons>
         <button-submit name="Cancel" [disabled]="false" type="cancel"></button-submit>
         <button-submit
+          data-testid="submit-button"
           appLoadingButton
           [loading]="loading"
           [name]="loading ? 'Processing...' : 'Create'"
diff --git a/src/app/users/new-user/new-user.component.spec.ts b/src/app/users/new-user/new-user.component.spec.ts
index 24097b4e..ac1ce274 100644
--- a/src/app/users/new-user/new-user.component.spec.ts
+++ b/src/app/users/new-user/new-user.component.spec.ts
@@ -1,24 +1,176 @@
-import { provideHttpClient } from '@angular/common/http';
-import { ComponentFixture, TestBed } from '@angular/core/testing';
+import { of, throwError } from 'rxjs';
 
+import { NO_ERRORS_SCHEMA } from '@angular/core';
+import { ComponentFixture, TestBed, fakeAsync, tick } from '@angular/core/testing';
+import { ReactiveFormsModule } from '@angular/forms';
+import { By } from '@angular/platform-browser';
+import { Router } from '@angular/router';
+
+import { ResponseWrapper } from '@models/response.model';
+
+import { SERV } from '@services/main.config';
+import { GlobalService } from '@services/main.service';
+import { AlertService } from '@services/shared/alert.service';
+
+import { InputModule } from '@src/app/shared/input/input.module';
 import { NewUserComponent } from '@src/app/users/new-user/new-user.component';
 
 describe('NewUserComponent', () => {
   let component: NewUserComponent;
   let fixture: ComponentFixture<NewUserComponent>;
 
+  let mockGlobalService: jasmine.SpyObj<GlobalService>;
+  let mockRouter: jasmine.SpyObj<Router>;
+  let mockAlertService: jasmine.SpyObj<AlertService>;
+
+  const mockPermissionResponse: ResponseWrapper = {
+    data: [
+      {
+        id: '1',
+        type: SERV.ACCESS_PERMISSIONS_GROUPS.RESOURCE,
+        attributes: {
+          name: 'Default Group',
+          permissions: {}
+        }
+      },
+      {
+        id: '2',
+        type: SERV.ACCESS_PERMISSIONS_GROUPS.RESOURCE,
+        attributes: {
+          name: 'Custom Group',
+          permissions: {}
+        }
+      }
+    ],
+    included: []
+  };
+
   beforeEach(async () => {
+    mockGlobalService = jasmine.createSpyObj('GlobalService', ['getAll', 'create']);
+    mockRouter = jasmine.createSpyObj('Router', ['navigate']);
+    mockAlertService = jasmine.createSpyObj('AlertService', ['showSuccessMessage', 'showErrorMessage']);
+
     await TestBed.configureTestingModule({
       declarations: [NewUserComponent],
-      providers: [provideHttpClient()]
+      imports: [ReactiveFormsModule, InputModule],
+      providers: [
+        { provide: GlobalService, useValue: mockGlobalService },
+        { provide: Router, useValue: mockRouter },
+        { provide: AlertService, useValue: mockAlertService }
+      ],
+      schemas: [NO_ERRORS_SCHEMA]
     }).compileComponents();
+  });
 
+  beforeEach(() => {
+    mockGlobalService.getAll.and.returnValue(of(mockPermissionResponse));
     fixture = TestBed.createComponent(NewUserComponent);
     component = fixture.componentInstance;
-    fixture.detectChanges();
+    fixture.detectChanges(); // triggers ngOnInit and loads permissions
   });
 
-  it('should create', () => {
+  it('should create component and form', () => {
     expect(component).toBeTruthy();
+    expect(component.newUserForm).toBeTruthy();
+  });
+
+  it('should load permission groups and map to select options', fakeAsync(() => {
+    mockGlobalService.getAll.and.returnValue(of(mockPermissionResponse));
+
+    component.loadPermissionGroups();
+    tick();
+
+    expect(mockGlobalService.getAll).toHaveBeenCalled();
+    expect(component.selectGlobalPermissionGroups.length).toBe(2);
+    expect(component.loadingPermissionGroups).toBeFalse();
+  }));
+
+  it('should show error message if loading permission groups fails', fakeAsync(() => {
+    // Simulate an error response
+    mockGlobalService.getAll.and.returnValue(throwError(() => new Error('Network error')));
+
+    component.loadPermissionGroups();
+    tick();
+
+    expect(mockAlertService.showErrorMessage).toHaveBeenCalledWith('Error fetching permission groups');
+    expect(component.loadingPermissionGroups).toBeFalse();
+  }));
+
+  // Tests related to form submission
+  it('should not submit if form is invalid', async () => {
+    component.newUserForm.patchValue({ email: '', username: '' }); // invalid
+    await component.onSubmit();
+    expect(mockGlobalService.create).not.toHaveBeenCalled();
+  });
+
+  it('should call create and navigate on valid form', async () => {
+    component.newUserForm.patchValue({
+      username: 'testuser',
+      email: 'test@example.com',
+      globalPermissionGroupId: 1,
+      isValid: true
+    });
+    component.newUserForm.updateValueAndValidity();
+
+    // Simulate successful create
+    mockGlobalService.create.and.returnValue(of({}));
+
+    await component.onSubmit();
+
+    expect(mockGlobalService.create).toHaveBeenCalledWith(SERV.USERS, {
+      name: 'testuser',
+      email: 'test@example.com',
+      globalPermissionGroupId: 1,
+      isValid: true
+    });
+    expect(mockAlertService.showSuccessMessage).toHaveBeenCalledWith('User created');
+    expect(mockRouter.navigate).toHaveBeenCalledWith(['users/all-users']);
+  });
+
+  it('should show error if create fails', async () => {
+    component.newUserForm.patchValue({
+      username: 'failuser',
+      email: 'fail@example.com',
+      globalPermissionGroupId: 2,
+      isValid: true
+    });
+
+    // Simulate create failure
+    mockGlobalService.create.and.returnValue(throwError(() => new Error('Create failed')));
+
+    await component.onSubmit();
+    expect(mockAlertService.showErrorMessage).toHaveBeenCalledWith('Error creating user');
+  });
+
+  it('should show required field error message if fields are empty', () => {
+    component.newUserForm.patchValue({
+      username: '',
+      email: '',
+      globalPermissionGroupId: null
+    });
+    component.newUserForm.markAllAsTouched();
+    fixture.detectChanges();
+
+    // The help-block span should be visible if the form is invalid and touched
+    const helpBlock = fixture.nativeElement.querySelector('.help-block');
+    expect(helpBlock).toBeTruthy();
+    expect(helpBlock.textContent).toContain('Please complete all required fields!');
+  });
+
+  it('should disable the submit button if form is invalid', () => {
+    // Make form invalid by clearing required fields
+    component.newUserForm.patchValue({
+      username: '',
+      email: '',
+      globalPermissionGroupId: null
+    });
+    component.newUserForm.markAllAsTouched();
+    fixture.detectChanges();
+
+    // Query the submit button and check if it is disabled
+    const buttonDebugEl = fixture.debugElement.query(By.css('[data-testid="submit-button"]'));
+    expect(buttonDebugEl).toBeTruthy();
+    const buttonEl: HTMLButtonElement = buttonDebugEl.nativeElement;
+    expect(buttonEl.disabled).toBeTrue();
   });
 });