diff --git a/src/components/Loader/__test__/Loader.spec.tsx b/src/components/Loader/__test__/Loader.spec.tsx
new file mode 100644
index 00000000..b7708490
--- /dev/null
+++ b/src/components/Loader/__test__/Loader.spec.tsx
@@ -0,0 +1,38 @@
+import React from 'react';
+import { render } from '@testing-library/react';
+import { Loader } from '..';
+
+describe('Loader component', () => {
+  it('renders with default props', () => {
+    const { getByTestId } = render(<Loader />);
+    const loader = getByTestId('dt_derivs-loader');
+    expect(loader).toBeInTheDocument();
+    expect(loader).toHaveClass('derivs-loader');
+    expect(loader).toHaveClass('derivs-loader--fullscreen');
+    const loaderElements = loader.querySelectorAll('.derivs-loader__element');
+    loaderElements.forEach(element => {
+      expect(element).toHaveStyle({ backgroundColor: '#85ACB0' });
+    });
+  });
+
+  it('renders with custom color', () => {
+    const { getByTestId } = render(<Loader color="#FF0000" />);
+    const loader = getByTestId('dt_derivs-loader');
+    const loaderElements = loader.querySelectorAll('.derivs-loader__element');
+    loaderElements.forEach(element => {
+      expect(element).toHaveStyle({ backgroundColor: '#FF0000' });
+    });
+  });
+
+  it('renders without full screen class when isFullScreen is false', () => {
+    const { getByTestId } = render(<Loader isFullScreen={false} />);
+    const loader = getByTestId('dt_derivs-loader');
+    expect(loader).not.toHaveClass('derivs-loader--fullscreen');
+  });
+
+  it('renders with custom className', () => {
+    const { getByTestId } = render(<Loader className="custom-loader" />);
+    const loader = getByTestId('dt_derivs-loader');
+    expect(loader).toHaveClass('custom-loader');
+  });
+});