diff --git a/tests/dynamic_tapping_term/config.h b/tests/dynamic_tapping_term/config.h
new file mode 100644
index 000000000000..c4ee7d4c4b6b
--- /dev/null
+++ b/tests/dynamic_tapping_term/config.h
@@ -0,0 +1,6 @@
+// Copyright 2026 Arca <arca.artem@gmail.com>
+// SPDX-License-Identifier: GPL-2.0-or-later
+
+#pragma once
+
+#include "test_common.h"
diff --git a/tests/dynamic_tapping_term/test.mk b/tests/dynamic_tapping_term/test.mk
new file mode 100644
index 000000000000..40de87810f3d
--- /dev/null
+++ b/tests/dynamic_tapping_term/test.mk
@@ -0,0 +1,8 @@
+# Copyright 2026 Arca <arca.artem@gmail.com>
+# SPDX-License-Identifier: GPL-2.0-or-later
+
+# --------------------------------------------------------------------------------
+# Keep this file, even if it is empty, as a marker that this folder contains tests
+# --------------------------------------------------------------------------------
+
+DYNAMIC_TAPPING_TERM_ENABLE = yes
diff --git a/tests/dynamic_tapping_term/test_dynamic_tapping_term.cpp b/tests/dynamic_tapping_term/test_dynamic_tapping_term.cpp
new file mode 100644
index 000000000000..7f8acca38733
--- /dev/null
+++ b/tests/dynamic_tapping_term/test_dynamic_tapping_term.cpp
@@ -0,0 +1,100 @@
+// Copyright 2026 Arca <arca.artem@gmail.com>
+// SPDX-License-Identifier: GPL-2.0-or-later
+
+#include "test_common.hpp"
+
+using testing::_;
+using testing::InSequence;
+
+class DynamicTappingTerm : public TestFixture {
+   public:
+    ~DynamicTappingTerm() override {
+        g_tapping_term = TAPPING_TERM;
+    }
+};
+
+TEST_F(DynamicTappingTerm, TappingUpRaisesTermByIncrementPerPress) {
+    TestDriver driver;
+    KeymapKey  up_key = KeymapKey{0, 0, 0, DT_UP};
+
+    set_keymap({up_key});
+    g_tapping_term = TAPPING_TERM;
+
+    EXPECT_NO_REPORT(driver);
+    tap_key(up_key);
+    EXPECT_EQ(g_tapping_term, TAPPING_TERM + DYNAMIC_TAPPING_TERM_INCREMENT);
+
+    tap_key(up_key);
+    EXPECT_EQ(g_tapping_term, TAPPING_TERM + 2 * DYNAMIC_TAPPING_TERM_INCREMENT);
+    VERIFY_AND_CLEAR(driver);
+}
+
+TEST_F(DynamicTappingTerm, TappingDownLowersTermByIncrementPerPress) {
+    TestDriver driver;
+    KeymapKey  down_key = KeymapKey{0, 0, 0, DT_DOWN};
+
+    set_keymap({down_key});
+    g_tapping_term = 200;
+
+    EXPECT_NO_REPORT(driver);
+    tap_key(down_key);
+    EXPECT_EQ(g_tapping_term, 200 - DYNAMIC_TAPPING_TERM_INCREMENT);
+
+    tap_key(down_key);
+    EXPECT_EQ(g_tapping_term, 200 - 2 * DYNAMIC_TAPPING_TERM_INCREMENT);
+    VERIFY_AND_CLEAR(driver);
+}
+
+TEST_F(DynamicTappingTerm, LoweredTappingTermChangesModTapResolution) {
+    TestDriver driver;
+    InSequence s;
+    KeymapKey  mod_tap_key = KeymapKey{0, 0, 0, SFT_T(KC_P)};
+    KeymapKey  down_key    = KeymapKey{0, 1, 0, DT_DOWN};
+
+    set_keymap({mod_tap_key, down_key});
+    g_tapping_term = TAPPING_TERM;
+
+    // Strictly between the lowered term (TAPPING_TERM - 10 * INCREMENT) and the
+    // default TAPPING_TERM, so the same hold duration taps under the default
+    // term but holds once DT_DOWN has lowered the term below it.
+    const uint16_t hold_ms = TAPPING_TERM - 5 * DYNAMIC_TAPPING_TERM_INCREMENT;
+
+    /* Part A: baseline, hold_ms held under the default tapping term resolves as a tap. */
+    EXPECT_NO_REPORT(driver);
+    mod_tap_key.press();
+    idle_for(hold_ms);
+    VERIFY_AND_CLEAR(driver);
+
+    EXPECT_REPORT(driver, (KC_P));
+    EXPECT_EMPTY_REPORT(driver);
+    mod_tap_key.release();
+    run_one_scan_loop();
+    VERIFY_AND_CLEAR(driver);
+
+    // Flush the quick-tap window (QUICK_TAP_TERM defaults to TAPPING_TERM) so the
+    // next press of the same mod-tap key hold-resolves instead of auto-repeating
+    // the tap above.
+    EXPECT_NO_REPORT(driver);
+    idle_for(TAPPING_TERM + 1);
+    VERIFY_AND_CLEAR(driver);
+
+    /* Part B: lower the tapping term below hold_ms. */
+    EXPECT_NO_REPORT(driver);
+    for (int i = 0; i < 10; i++) {
+        tap_key(down_key);
+    }
+    EXPECT_EQ(g_tapping_term, TAPPING_TERM - 10 * DYNAMIC_TAPPING_TERM_INCREMENT);
+    VERIFY_AND_CLEAR(driver);
+
+    /* Part C: the same hold duration now expires the lowered term mid-idle,
+     * so the mod-tap key resolves as a hold instead of a tap. */
+    EXPECT_REPORT(driver, (KC_LSFT));
+    mod_tap_key.press();
+    idle_for(hold_ms);
+    VERIFY_AND_CLEAR(driver);
+
+    EXPECT_EMPTY_REPORT(driver);
+    mod_tap_key.release();
+    run_one_scan_loop();
+    VERIFY_AND_CLEAR(driver);
+}