diff --git a/src/components/Badge/__tests__/CreateNewBadgePopup.test.js b/src/components/Badge/__tests__/CreateNewBadgePopup.test.js
new file mode 100644
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+++ b/src/components/Badge/__tests__/CreateNewBadgePopup.test.js
@@ -0,0 +1,125 @@
+import React from 'react';
+import { render, screen, fireEvent } from '@testing-library/react';
+import { Provider } from 'react-redux';
+import CreateNewBadgePopup from '../CreateNewBadgePopup';
+import thunk from 'redux-thunk';
+import configureMockStore from 'redux-mock-store';
+import { createNewBadge } from '../../../actions/badgeManagement';
+
+const middlewares = [thunk];
+const mockStore = configureMockStore(middlewares);
+jest.mock('../../../actions/badgeManagement', () => ({
+  createNewBadge: jest.fn().mockResolvedValue(),
+}));
+
+describe('CreateNewBadgePopup component', () => {
+  let store;
+  let toggleMock;
+
+  beforeEach(() => {
+    store = mockStore({
+      allProjects: { projects: [] },
+      badge: { message: '', alertVisible: false, color: '' },
+      theme: { darkMode: false },
+    });
+
+    toggleMock = jest.fn();
+    store.dispatch = jest.fn().mockResolvedValue();
+  });
+
+  it('renders all key elements correctly', () => {
+    render(
+      <Provider store={store}>
+        <CreateNewBadgePopup />
+      </Provider>
+    );
+    expect(screen.getByLabelText('Name')).toBeInTheDocument();
+    expect(screen.getByLabelText('Image URL')).toBeInTheDocument();
+    expect(screen.getByLabelText('Description')).toBeInTheDocument();
+    expect(screen.getByLabelText('Type')).toBeInTheDocument();
+    expect(screen.getByLabelText('Ranking')).toBeInTheDocument();
+    expect(screen.getByText('Create')).toBeInTheDocument();
+  });
+
+  it('displays conditional fields based on selected badge type', () => {
+    render(
+      <Provider store={store}>
+        <CreateNewBadgePopup />
+      </Provider>
+    );
+    const badgeTypeSelect = screen.getByLabelText('Type');
+
+    fireEvent.change(badgeTypeSelect, { target: { value: 'No Infringement Streak' } });
+    expect(screen.getByLabelText('Months')).toBeInTheDocument();
+
+    fireEvent.change(badgeTypeSelect, { target: { value: 'Minimum Hours Multiple' } });
+    expect(screen.getByLabelText('Multiple')).toBeInTheDocument();
+
+    fireEvent.change(badgeTypeSelect, { target: { value: 'X Hours for X Week Streak' } });
+    expect(screen.getByLabelText('Hours')).toBeInTheDocument();
+    expect(screen.getByLabelText('Weeks')).toBeInTheDocument();
+
+    fireEvent.change(badgeTypeSelect, { target: { value: 'Lead a team of X+' } });
+    expect(screen.getByLabelText('People')).toBeInTheDocument();
+
+    fireEvent.change(badgeTypeSelect, { target: { value: 'Total Hrs in Category' } });
+    expect(screen.getByLabelText('Hours')).toBeInTheDocument();
+    expect(screen.getByLabelText('Category')).toBeInTheDocument();
+  });
+
+  it('enables/disables the "Create" button based on input validity', () => {
+    render(
+      <Provider store={store}>
+        <CreateNewBadgePopup />
+      </Provider>
+    );
+    const createButton = screen.getByText('Create');
+
+    expect(createButton).toBeDisabled();
+
+    const badgeNameInput = screen.getByLabelText('Name');
+    const imageUrlInput = screen.getByLabelText('Image URL');
+    const descriptionInput = screen.getByLabelText('Description');
+    const rankingInput = screen.getByLabelText('Ranking');
+
+    fireEvent.change(badgeNameInput, { target: { value: 'Test Badge' } });
+    fireEvent.change(imageUrlInput, { target: { value: 'https://example.com/image.jpg' } });
+    fireEvent.change(descriptionInput, { target: { value: 'Test badge description' } });
+    fireEvent.change(rankingInput, { target: { value: '5' } });
+
+    expect(createButton).toBeEnabled();
+  });
+
+  it('calls createNewBadge with the correct data on form submission', () => {
+    render(
+      <Provider store={store}>
+        <CreateNewBadgePopup toggle={toggleMock}/>
+      </Provider>
+    );
+    const badgeNameInput = screen.getByLabelText('Name');
+    const imageUrlInput = screen.getByLabelText('Image URL');
+    const descriptionInput = screen.getByLabelText('Description');
+    const rankingInput = screen.getByLabelText('Ranking');
+
+    fireEvent.change(badgeNameInput, { target: { value: 'Test Badge' } });
+    fireEvent.change(imageUrlInput, { target: { value: 'https://example.com/image.jpg' } });
+    fireEvent.change(descriptionInput, { target: { value: 'Test badge description' } });
+    fireEvent.change(rankingInput, { target: { value: '5' } });
+
+    fireEvent.click(screen.getByText('Create'));
+
+    expect(createNewBadge).toHaveBeenCalledWith({
+      badgeName: 'Test Badge',
+      imageUrl: 'https://example.com/image.jpg',
+      description: 'Test badge description',
+      ranking: 5,
+      type: 'Custom',
+      category: 'Unspecified',
+      totalHrs: 0,
+      weeks: 0,
+      months: 0,
+      multiple: 0,
+      people: 0,
+    });
+  });
+});
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