diff --git a/plugins/firehydrant/src/components/hooks.test.ts b/plugins/firehydrant/src/components/hooks.test.ts
new file mode 100644
index 0000000000..4278911ebb
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+++ b/plugins/firehydrant/src/components/hooks.test.ts
@@ -0,0 +1,67 @@
+/*
+ * Copyright 2021 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 { Entity } from '@backstage/catalog-model';
+import { isFireHydrantAvailable, getFireHydrantServiceName } from './hooks';
+
+describe('firehydrant-hooks-isFireHydrantAvailable', () => {
+  it('should find an annotation', () => {
+    const e: Entity = {
+      metadata: {
+        annotations: {
+          'firehydrant.com/service-name': 'test-fh-name',
+        },
+      },
+    };
+    expect(isFireHydrantAvailable(e)).toEqual(true);
+  });
+
+  it('should not find an annotation', () => {
+    const e: Entity = {
+      metadata: {},
+    };
+    expect(isFireHydrantAvailable(e)).toEqual(false);
+  });
+});
+
+describe('firehydrant-hooks-getFireHydrantServiceName', () => {
+  it('should return annotation service name', () => {
+    const expected = 'test-fh-name';
+    const e: Entity = {
+      kind: 'Component',
+      metadata: {
+        namespace: 'default',
+        name: 'test-fh-name',
+        annotations: {
+          'firehydrant.com/service-name': expected,
+        },
+      },
+    };
+    expect(getFireHydrantServiceName(e)).toEqual(expected);
+  });
+
+  it('should return generated service name', () => {
+    const expected = 'Component:default/test-fh-name';
+    const e: Entity = {
+      kind: 'Component',
+      metadata: {
+        namespace: 'default',
+        name: 'test-fh-name',
+        annotations: {},
+      },
+    };
+    expect(getFireHydrantServiceName(e)).toEqual(expected);
+  });
+});