diff --git a/packages/cli/src/lib/version.test.ts b/packages/cli/src/lib/version.test.ts
new file mode 100644
index 0000000000..c7fd5f9b75
--- /dev/null
+++ b/packages/cli/src/lib/version.test.ts
@@ -0,0 +1,71 @@
+/*
+ * Copyright 2020 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import mockFs from 'mock-fs';
+import { createPackageVersionProvider } from './version';
+import { Lockfile } from './versioning';
+// eslint-disable-next-line monorepo/no-internal-import
+import corePluginApiPkg from '@backstage/core-plugin-api/package.json';
+
+describe('createPackageVersionProvider', () => {
+  afterEach(() => {
+    mockFs.restore();
+  });
+
+  it('should provide package versions', async () => {
+    mockFs({
+      'yarn.lock': `
+"a@^0.1.0":
+  version "0.1.5"
+
+"b@^0.2.0","b@*","b@^0.2.1":
+  version "0.2.5"
+
+"c@^0.1.4":
+  version "0.1.8"
+
+"c@^0.2.4":
+  version "0.2.8"
+
+"c@^0.3.4":
+  version "0.3.8"
+
+"@types/t@^1.1.0","@types/t@*","@types/t@^1.2.3":
+  version "1.4.5"
+
+"@backstage/cli@*":
+  version "1.1.5"
+    `,
+    });
+
+    const lockfile = await Lockfile.load('yarn.lock');
+    const provider = createPackageVersionProvider(lockfile);
+
+    expect(provider('a', '0.1.5')).toBe('^0.1.0');
+    expect(provider('b', '1.0.0')).toBe('*');
+    expect(provider('c', '0.1.0')).toBe('^0.1.0');
+    expect(provider('c', '0.1.6')).toBe('^0.1.4');
+    expect(provider('c', '0.2.0')).toBe('^0.2.0');
+    expect(provider('c', '0.2.6')).toBe('^0.2.4');
+    expect(provider('c', '0.3.0')).toBe('^0.3.0');
+    expect(provider('c', '0.3.6')).toBe('^0.3.4');
+    expect(provider('@backstage/cli')).toBe('*');
+    expect(provider('@backstage/core-plugin-api')).toBe(
+      `^${corePluginApiPkg.version}`,
+    );
+    expect(provider('@types/t', '1.4.2')).toBe('*');
+  });
+});