diff --git a/src/test/java/software/amazon/smithy/lsp/SmithyLanguageServerTest.java b/src/test/java/software/amazon/smithy/lsp/SmithyLanguageServerTest.java
index 984bfce..f58692f 100644
--- a/src/test/java/software/amazon/smithy/lsp/SmithyLanguageServerTest.java
+++ b/src/test/java/software/amazon/smithy/lsp/SmithyLanguageServerTest.java
@@ -78,6 +78,7 @@
 import software.amazon.smithy.model.shapes.Shape;
 import software.amazon.smithy.model.shapes.ShapeId;
 import software.amazon.smithy.model.traits.LengthTrait;
+import software.amazon.smithy.model.validation.Severity;
 
 public class SmithyLanguageServerTest {
     @Test
@@ -2561,6 +2562,43 @@ public void reloadsProjectOnBuildFileSave() {
                 Map.of()));
     }
 
+    @Test
+    public void testCustomServerOptions() {
+        ServerOptions options = ServerOptions.builder()
+                .setMinimumSeverity(Severity.NOTE)
+                .setOnlyReloadOnSave(true)
+                .build();
+
+        assertThat(options.getMinimumSeverity(), equalTo(Severity.NOTE));
+        assertThat(options.getOnlyReloadOnSave(), equalTo(true));
+    }
+
+    @Test
+    public void testFromInitializeParamsWithValidOptions() {
+        StubClient client = new StubClient();
+        JsonObject opts = new JsonObject();
+        opts.add("diagnostics.minimumSeverity", new JsonPrimitive("ERROR"));
+        opts.add("onlyReloadOnSave", new JsonPrimitive(true));
+
+        ServerOptions options = ServerOptions.fromInitializeParams(opts, new SmithyLanguageClient(client));
+
+        assertThat(options.getMinimumSeverity(), equalTo(Severity.ERROR));
+        assertThat(options.getOnlyReloadOnSave(), equalTo(true));
+    }
+
+    @Test
+    public void testFromInitializeParamsWithPartialOptions() {
+        StubClient client = new StubClient();
+        JsonObject opts = new JsonObject();
+        opts.add("onlyReloadOnSave", new JsonPrimitive(true));
+        // Not setting minimumSeverity
+
+        ServerOptions options = ServerOptions.fromInitializeParams(opts, new SmithyLanguageClient(client));
+
+        assertThat(options.getMinimumSeverity(), equalTo(Severity.WARNING)); // Default value
+        assertThat(options.getOnlyReloadOnSave(), equalTo(true)); // Explicitly set value
+    }
+
     private void assertServerState(SmithyLanguageServer server, ServerState expected) {
         ServerState actual = ServerState.from(server);
         assertThat(actual, equalTo(expected));