diff --git a/packages/core/src/renderer/components/entity-settings/settings.test.ts b/packages/core/src/renderer/components/entity-settings/settings.test.ts
new file mode 100644
index 0000000000..e6c454e744
--- /dev/null
+++ b/packages/core/src/renderer/components/entity-settings/settings.test.ts
@@ -0,0 +1,112 @@
+/**
+ * Copyright (c) OpenLens Authors. All rights reserved.
+ * Licensed under MIT License. See LICENSE in root directory for more information.
+ */
+
+import type { ApplicationBuilder } from "../test-utils/get-application-builder";
+import { getApplicationBuilder } from "../test-utils/get-application-builder";
+import type { FakeExtensionOptions } from "../test-utils/get-extension-fake";
+import type { EntitySettingRegistration, RegisteredEntitySetting } from "./extension-registrator.injectable";
+import type { DiContainer } from "@ogre-tools/injectable";
+import catalogEntitySettingItemsInjectable from "./settings.injectable";
+import { KubernetesCluster } from "../../../common/catalog-entities";
+import type { IComputedValue, IObservableValue } from "mobx";
+import { observable } from "mobx";
+
+describe("entity-settings", () => {
+  let builder: ApplicationBuilder;
+  let windowDi: DiContainer;
+  let items: IComputedValue<RegisteredEntitySetting[]>;
+
+  beforeEach(async () => {
+    builder = getApplicationBuilder();
+
+    await builder.render();
+
+    windowDi = builder.applicationWindow.only.di;
+
+    const entity = new KubernetesCluster({
+      metadata: {
+        labels: {},
+        name: "some-kubernetes-cluster",
+        uid: "some-entity-id",
+      },
+      spec: {
+        kubeconfigContext: "some-context",
+        kubeconfigPath: "/some/path/to/kubeconfig",
+      },
+      status: {
+        phase: "connecting",
+      },
+    });
+
+    items = windowDi.inject(catalogEntitySettingItemsInjectable, entity);
+
+  });
+
+  it("given extension does not specify entity settings visibility, it will be shown by default", () => {
+    const entitySetting: EntitySettingRegistration = {
+      title: "some-title",
+      kind: "KubernetesCluster",
+      apiVersions: ["entity.k8slens.dev/v1alpha1"],
+      components: {
+        View: () => null,
+      },
+    };
+
+    const testExtensionOptions: FakeExtensionOptions = {
+      id: "some-extension",
+      name: "some-extension-name",
+
+      rendererOptions: {
+        entitySettings: [entitySetting],
+      },
+    };
+    const itemCountBefore = items.get().length;
+
+    builder.extensions.enable(testExtensionOptions);
+
+    expect(items.get().length).toBe(itemCountBefore + 1);
+  });
+
+  describe("given extension entity settings has visibility set to false", () => {
+    let settingVisible: IObservableValue<boolean>;
+
+    beforeEach(() => {
+      settingVisible = observable.box(false);
+      const entitySetting: EntitySettingRegistration = {
+        title: "some-title",
+        kind: "KubernetesCluster",
+        apiVersions: ["entity.k8slens.dev/v1alpha1"],
+        components: {
+          View: () => null,
+        },
+        visible: settingVisible,
+      };
+
+      const testExtensionOptions: FakeExtensionOptions = {
+        id: "some-extension",
+        name: "some-extension-name",
+
+        rendererOptions: {
+          entitySettings: [entitySetting],
+        },
+      };
+
+      builder.extensions.enable(testExtensionOptions);
+    });
+
+    it("it won't be shown initially", () => {
+      const settingsItem = items.get().find(item => item.title === "some-title");
+
+      expect(settingsItem).toBe(undefined);
+    });
+
+    it("visibility is changed, it is shown", () => {
+      settingVisible.set(true);
+      const settingsItem = items.get().find(item => item.title === "some-title");
+
+      expect(settingsItem).toBeDefined();
+    });
+  });
+});