diff --git a/test/extension/deviceStatusIndicator.test.ts b/test/extension/deviceStatusIndicator.test.ts
new file mode 100644
index 000000000..d3d323581
--- /dev/null
+++ b/test/extension/deviceStatusIndicator.test.ts
@@ -0,0 +1,76 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for details.
+
+import assert = require("assert");
+import * as vscode from "vscode";
+import * as sinon from "sinon";
+import { DeviceStatusIndicator } from "../../src/extension/deviceStatusIndicator";
+
+function makeFakeStatusBarItem(): vscode.StatusBarItem {
+    return {
+        id: "",
+        name: "",
+        text: "",
+        tooltip: undefined,
+        color: undefined,
+        backgroundColor: undefined,
+        command: undefined,
+        accessibilityInformation: undefined,
+        alignment: vscode.StatusBarAlignment.Left,
+        priority: undefined,
+        show: sinon.stub(),
+        hide: sinon.stub(),
+        dispose: sinon.stub(),
+    } as unknown as vscode.StatusBarItem;
+}
+
+suite("DeviceStatusIndicator", function () {
+    suite("extensionContext", function () {
+        let createStatusBarItemStub: Sinon.SinonStub;
+        let fakeItem: vscode.StatusBarItem;
+        setup(() => {
+            fakeItem = makeFakeStatusBarItem();
+            createStatusBarItemStub = sinon.stub(vscode.window, "createStatusBarItem");
+            createStatusBarItemStub.returns(fakeItem);
+        });
+        teardown(() => {
+            const instance = (DeviceStatusIndicator as any).instance;
+            if (instance) {
+                instance.dispose();
+            }
+            createStatusBarItemStub.restore();
+        });
+        test("show should set correct icon and device name in text", function () {
+            DeviceStatusIndicator.show("iPhone 15");
+            assert.strictEqual(fakeItem.text, "$(device-mobile) iPhone 15");
+        });
+        test("show should set correct tooltip with device name", function () {
+            DeviceStatusIndicator.show("Pixel 7");
+            assert.strictEqual(fakeItem.tooltip, "Active debug target: Pixel 7");
+        });
+        test("show should call show on the status bar item", function () {
+            DeviceStatusIndicator.show("iPhone 15");
+            assert.ok((fakeItem.show as Sinon.SinonStub).calledOnce);
+        });
+        test("hide should call hide on the status bar item after show", function () {
+            DeviceStatusIndicator.show("iPhone 15");
+            DeviceStatusIndicator.hide();
+            assert.ok((fakeItem.hide as Sinon.SinonStub).calledOnce);
+        });
+        test("hide before show should not throw", function () {
+            assert.doesNotThrow(() => DeviceStatusIndicator.hide());
+        });
+        test("show should reuse singleton instance across multiple calls", function () {
+            DeviceStatusIndicator.show("iPhone 15");
+            DeviceStatusIndicator.show("Pixel 7");
+            assert.strictEqual(createStatusBarItemStub.callCount, 1);
+            assert.strictEqual(fakeItem.text, "$(device-mobile) Pixel 7");
+        });
+        test("dispose should clear the singleton instance", function () {
+            DeviceStatusIndicator.show("iPhone 15");
+            const instance = (DeviceStatusIndicator as any).instance as DeviceStatusIndicator;
+            instance.dispose();
+            assert.strictEqual((DeviceStatusIndicator as any).instance, undefined);
+        });
+    });
+});
diff --git a/test/extension/packagerStatusIndicator.test.ts b/test/extension/packagerStatusIndicator.test.ts
new file mode 100644
index 000000000..204f6ba9c
--- /dev/null
+++ b/test/extension/packagerStatusIndicator.test.ts
@@ -0,0 +1,109 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for details.
+
+import assert = require("assert");
+import * as vscode from "vscode";
+import * as sinon from "sinon";
+import {
+    PackagerStatus,
+    PackagerStatusIndicator,
+} from "../../src/extension/packagerStatusIndicator";
+import { SettingsHelper } from "../../src/extension/settingsHelper";
+
+function makeFakeStatusBarItem(): vscode.StatusBarItem {
+    return {
+        id: "",
+        name: "",
+        text: "",
+        tooltip: undefined,
+        color: undefined,
+        backgroundColor: undefined,
+        command: undefined,
+        accessibilityInformation: undefined,
+        alignment: vscode.StatusBarAlignment.Left,
+        priority: undefined,
+        show: sinon.stub(),
+        hide: sinon.stub(),
+        dispose: sinon.stub(),
+    } as unknown as vscode.StatusBarItem;
+}
+
+suite("PackagerStatusIndicator", function () {
+    suite("extensionContext", function () {
+        let createStatusBarItemStub: Sinon.SinonStub;
+        let getShowIndicatorStub: Sinon.SinonStub;
+        let getPatternStub: Sinon.SinonStub;
+        let fakeToggleItem: vscode.StatusBarItem;
+        let fakeRestartItem: vscode.StatusBarItem;
+        let indicator: PackagerStatusIndicator;
+        const PROJECT_ROOT = "/workspace";
+        setup(() => {
+            fakeRestartItem = makeFakeStatusBarItem();
+            fakeToggleItem = makeFakeStatusBarItem();
+            createStatusBarItemStub = sinon.stub(vscode.window, "createStatusBarItem");
+            createStatusBarItemStub.onFirstCall().returns(fakeRestartItem);
+            createStatusBarItemStub.onSecondCall().returns(fakeToggleItem);
+            getShowIndicatorStub = sinon.stub(SettingsHelper, "getShowIndicator").returns(true);
+            getPatternStub = sinon
+                .stub(SettingsHelper, "getPackagerStatusIndicatorPattern")
+                .returns(PackagerStatusIndicator.FULL_VERSION);
+            indicator = new PackagerStatusIndicator(PROJECT_ROOT);
+        });
+        teardown(() => {
+            indicator.dispose();
+            createStatusBarItemStub.restore();
+            getShowIndicatorStub.restore();
+            getPatternStub.restore();
+        });
+        test("should display port in full version when packager starts with port", function () {
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STARTED, 8081);
+            assert.ok(
+                (fakeToggleItem.text as string).includes(":8081"),
+                `Expected text to contain ':8081', got: ${fakeToggleItem.text}`,
+            );
+        });
+        test("should not display port in full version when packager starts without port", function () {
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STARTED);
+            assert.ok(
+                !(fakeToggleItem.text as string).includes(":"),
+                `Expected text to not contain port, got: ${fakeToggleItem.text}`,
+            );
+        });
+        test("should clear port from status bar text when packager stops", function () {
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STARTED, 8081);
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STOPPED);
+            assert.ok(
+                !(fakeToggleItem.text as string).includes(":8081"),
+                `Expected text to not contain ':8081' after stop, got: ${fakeToggleItem.text}`,
+            );
+        });
+        test("should display port in short version when packager starts with port", function () {
+            getPatternStub.returns(PackagerStatusIndicator.SHORT_VERSION);
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STARTED, 9090);
+            assert.ok(
+                (fakeToggleItem.text as string).includes(":9090"),
+                `Expected short version text to contain ':9090', got: ${fakeToggleItem.text}`,
+            );
+        });
+        test("should retain port across status transitions from starting to started", function () {
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STARTING, 8081);
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STARTED);
+            assert.ok(
+                (fakeToggleItem.text as string).includes(":8081"),
+                `Expected port to be retained after STARTED, got: ${fakeToggleItem.text}`,
+            );
+        });
+        test("should update port when called with a new port value", function () {
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STARTED, 8081);
+            indicator.updatePackagerStatus(PackagerStatus.PACKAGER_STARTED, 9090);
+            assert.ok(
+                (fakeToggleItem.text as string).includes(":9090"),
+                `Expected text to contain updated port ':9090', got: ${fakeToggleItem.text}`,
+            );
+            assert.ok(
+                !(fakeToggleItem.text as string).includes(":8081"),
+                `Expected old port ':8081' to be gone, got: ${fakeToggleItem.text}`,
+            );
+        });
+    });
+});