diff --git a/packages/components/test/components/Installation.test.js b/packages/components/test/components/Installation.test.js
new file mode 100644
index 000000000..5f3843ed2
--- /dev/null
+++ b/packages/components/test/components/Installation.test.js
@@ -0,0 +1,24 @@
+import { render } from '@asyncapi/generator-react-sdk';
+import { Installation } from '../../src/components/readme/Installation';
+
+describe('Installation component', () => {
+  test('renders javascript installation command', () => {
+    const result = render(<Installation language="javascript" />);
+    expect(result.trim()).toMatchSnapshot();
+  });
+
+  test('renders python installation command', () => {
+    const result = render(<Installation language="python" />);
+    expect(result.trim()).toMatchSnapshot();
+  });
+
+  test('renders installation section when language is undefined', () => {
+    const result = render(<Installation />);
+    const output = result.trim();
+
+    // Explicitly document current behavior
+    expect(output).toContain('## Installation');
+    expect(output).toContain('Install dependencies');
+    expect(output).toContain('undefined');
+  });
+});
\ No newline at end of file
diff --git a/packages/components/test/components/__snapshots__/Installation.test.js.snap b/packages/components/test/components/__snapshots__/Installation.test.js.snap
new file mode 100644
index 000000000..1d273eed9
--- /dev/null
+++ b/packages/components/test/components/__snapshots__/Installation.test.js.snap
@@ -0,0 +1,21 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`Installation component renders javascript installation command 1`] = `
+"## Installation
+
+Install dependencies:
+
+\`\`\`bash
+npm install
+\`\`\`"
+`;
+
+exports[`Installation component renders python installation command 1`] = `
+"## Installation
+
+Install dependencies:
+
+\`\`\`bash
+pip install -r requirements.txt
+\`\`\`"
+`;