diff --git a/packages/ui-components/src/__tests__/License.test.ts b/packages/ui-components/src/__tests__/License.test.ts
new file mode 100644
index 0000000000..07b9a750d4
--- /dev/null
+++ b/packages/ui-components/src/__tests__/License.test.ts
@@ -0,0 +1,82 @@
+import { render, screen, waitFor } from '@testing-library/svelte';
+import { beforeEach, expect, describe, vi, afterEach } from 'vitest';
+import License from '../lib/components/License.svelte';
+import { LICENSE_URL } from '../lib/consts';
+
+// Mock the global fetch function
+const mockFetch = vi.fn();
+
+vi.stubGlobal('fetch', mockFetch);
+
+vi.mock('svelte-markdown', async () => {
+	const MockMarkdown = (await import('../lib/__mocks__/MockComponent.svelte')).default;
+	return { default: MockMarkdown };
+});
+
+describe('License', () => {
+	const mockMarkdownContent = 'This is license text.';
+
+	beforeEach(() => {
+		mockFetch.mockReset();
+	});
+
+	afterEach(() => {
+		vi.restoreAllMocks();
+	});
+
+	it('fetches and renders markdown content on mount', async () => {
+		mockFetch.mockResolvedValue({
+			ok: true,
+			text: async () => mockMarkdownContent
+		});
+
+		render(License);
+
+		await waitFor(() => {
+			expect(mockFetch).toHaveBeenCalledTimes(1);
+			expect(mockFetch).toHaveBeenCalledWith(LICENSE_URL);
+		});
+
+		await waitFor(() => {
+			expect(screen.getByTestId('mock-component').getAttribute('source')).toBe(mockMarkdownContent);
+		});
+	});
+
+	it('handles fetch network error gracefully', async () => {
+		mockFetch.mockRejectedValue(new Error('Network error'));
+
+		render(License);
+
+		await waitFor(() => {
+			expect(mockFetch).toHaveBeenCalledTimes(1);
+			expect(mockFetch).toHaveBeenCalledWith(LICENSE_URL);
+		});
+
+		await waitFor(() => {
+			expect(screen.getByTestId('mock-component').getAttribute('source')).toBe(
+				'Failed to fetch license.'
+			);
+		});
+	});
+
+	it('handles non-OK HTTP responses gracefully', async () => {
+		mockFetch.mockResolvedValue({
+			ok: false,
+			status: 404,
+			statusText: 'Not Found'
+		});
+
+		render(License);
+
+		await waitFor(() => {
+			expect(mockFetch).toHaveBeenCalledTimes(1);
+			expect(mockFetch).toHaveBeenCalledWith(LICENSE_URL);
+		});
+
+		await waitFor(() => {
+			expect(screen.getByTestId('mock-component').getAttribute('source')).toBe(
+				'Failed to fetch license: HTTP 404'
+			);
+		});
+	});
+});
diff --git a/packages/ui-components/src/lib/components/License.svelte b/packages/ui-components/src/lib/components/License.svelte
index 85ef2e65a4..417672ae94 100644
--- a/packages/ui-components/src/lib/components/License.svelte
+++ b/packages/ui-components/src/lib/components/License.svelte
@@ -2,19 +2,20 @@
 	import { Heading, Text, BlockQuote } from '@rainlanguage/ui-components';
 	import Markdown from 'svelte-markdown';
 	import { onMount } from 'svelte';
+	import { LICENSE_URL } from '../consts';
 
 	let source = '';
 
 	onMount(async () => {
 		try {
-			const response = await fetch(
-				'https://raw.githubusercontent.com/rainlanguage/decentralicense/refs/heads/master/README.md'
-			);
+			const response = await fetch(LICENSE_URL);
 			if (response.ok) {
 				source = await response.text();
+			} else {
+				source = `Failed to fetch license: HTTP ${response.status}`;
 			}
 		} catch {
-			source = '';
+			source = 'Failed to fetch license.';
 		}
 	});
 </script>
diff --git a/packages/ui-components/src/lib/consts.ts b/packages/ui-components/src/lib/consts.ts
new file mode 100644
index 0000000000..670260033f
--- /dev/null
+++ b/packages/ui-components/src/lib/consts.ts
@@ -0,0 +1,2 @@
+export const LICENSE_URL =
+	'https://raw.githubusercontent.com/rainlanguage/decentralicense/refs/heads/master/README.md';