diff --git a/plugins/scaffolder-backend/src/scaffolder/tasks/TaskWorker.test.ts b/plugins/scaffolder-backend/src/scaffolder/tasks/TaskWorker.test.ts
new file mode 100644
index 0000000000..221b6dc625
--- /dev/null
+++ b/plugins/scaffolder-backend/src/scaffolder/tasks/TaskWorker.test.ts
@@ -0,0 +1,112 @@
+/*
+ * Copyright 2021 Spotify AB
+ *
+ * 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 {
+  getVoidLogger,
+  SingleConnectionDatabaseManager,
+} from '@backstage/backend-common';
+import { TaskWorker } from './TaskWorker';
+import os from 'os';
+import { ActionContext, TemplateActionRegistry } from './TemplateConverter';
+import { ConfigReader, JsonObject } from '@backstage/config';
+import { StorageTaskBroker } from './StorageTaskBroker';
+import { DatabaseTaskStore } from './DatabaseTaskStore';
+
+async function createStore(): Promise<DatabaseTaskStore> {
+  const manager = SingleConnectionDatabaseManager.fromConfig(
+    new ConfigReader({
+      backend: {
+        database: {
+          client: 'sqlite3',
+          connection: ':memory:',
+        },
+      },
+    }),
+  ).forPlugin('scaffolder');
+  return await DatabaseTaskStore.create(await manager.getClient());
+}
+
+describe('TaskWorker', () => {
+  let storage: DatabaseTaskStore;
+
+  beforeAll(async () => {
+    storage = await createStore();
+  });
+
+  const logger = getVoidLogger();
+  const actionRegistry = new TemplateActionRegistry();
+  actionRegistry.register({
+    id: 'test-action',
+    handler: async (ctx: ActionContext) => {
+      ctx.output('testOutput', 'winning');
+    },
+  });
+
+  it('should fail when action does not exist', async () => {
+    const broker = new StorageTaskBroker(storage, logger);
+    const taskWorker = new TaskWorker({
+      logger,
+      workingDirectory: os.tmpdir(),
+      actionRegistry,
+      taskBroker: broker,
+    });
+    const { taskId } = await broker.dispatch({
+      steps: [{ id: 'test', name: 'test', action: 'not-found-action' }],
+      output: {
+        result: '{{ steps.test.output.testOutput }}',
+      },
+    });
+    const task = await broker.claim();
+    await taskWorker.runOneTask(task);
+    const { events } = await storage.listEvents({ taskId });
+    const event = events.find(e => e.type === 'completion');
+
+    if (!event) {
+      throw new Error('Expected event');
+    }
+
+    expect((event.body?.error as JsonObject)?.message).toBe(
+      "Template action with ID 'not-found-action' is not registered.",
+    );
+  });
+
+  it('should template output', async () => {
+    const broker = new StorageTaskBroker(storage, logger);
+    const taskWorker = new TaskWorker({
+      logger,
+      workingDirectory: os.tmpdir(),
+      actionRegistry,
+      taskBroker: broker,
+    });
+
+    const { taskId } = await broker.dispatch({
+      steps: [{ id: 'test', name: 'test', action: 'test-action' }],
+      output: {
+        result: '{{ steps.test.output.testOutput }}',
+      },
+    });
+
+    const task = await broker.claim();
+    await taskWorker.runOneTask(task);
+
+    const { events } = await storage.listEvents({ taskId });
+    const event = events.find(e => e.type === 'completion');
+    if (!event) {
+      throw new Error('Expected event');
+    }
+    expect((event.body?.output as JsonObject).result).toBe('winning');
+  });
+});