diff --git a/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.test.tsx b/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.test.tsx
index eb2f165350..1c1027634a 100644
--- a/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.test.tsx
+++ b/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.test.tsx
@@ -13,3 +13,119 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
+
+import React from 'react';
+import { render } from '@testing-library/react';
+import { CatalogApi } from '@backstage/catalog-client';
+import { FieldProps } from '@rjsf/core';
+import { EntityPickerProps } from '../EntityPicker/schema';
+import { Entity } from '@backstage/catalog-model';
+import { OwnershipEntityRefPicker } from './OwnershipEntityRefPicker';
+
+const makeUserEntity = (
+  kind: string,
+  memberOf: string[],
+  name: string,
+): Entity => ({
+  apiVersion: 'scaffolder.backstage.io/v1beta3',
+  kind,
+  metadata: { name },
+  spec: {
+    memberOf: memberOf,
+  },
+});
+
+const makeGroupEntity = (
+  kind: string,
+  members: string[],
+  name: string,
+): Entity => ({
+  apiVersion: 'scaffolder.backstage.io/v1beta3',
+  kind,
+  metadata: { name },
+  spec: {
+    members: members,
+  },
+});
+
+describe('<OwnershipEntityRefPicker />', () => {
+  let entities: Entity[];
+  const onChange = jest.fn();
+  const schema = {};
+  const required = false;
+  let uiSchema: EntityPickerProps['uiSchema'];
+  const rawErrors: string[] = [];
+  const formData = undefined;
+
+  let props: FieldProps;
+
+  const catalogApi: jest.Mocked<CatalogApi> = {
+    getLocationById: jest.fn(),
+    getEntityByName: jest.fn(),
+    addLocation: jest.fn(),
+    getLocationByRef: jest.fn(),
+    removeEntityByUid: jest.fn(),
+  } as any;
+
+  beforeEach(() => {
+    entities = [
+      makeUserEntity('User', ['group1', 'group2'], 'Bob'),
+      makeGroupEntity('Group', ['Alice', 'Dave'], 'group3'),
+    ];
+  });
+
+  afterEach(() => jest.resetAllMocks());
+
+  it('should only return the groups a user is part of', async () => {
+    catalogApi.getEntityByRef.mockResolvedValueOnce(entities[0]);
+
+    uiSchema = { 'ui:options': { catalogApi } };
+    props = {
+      onChange,
+      schema,
+      required,
+      uiSchema,
+      rawErrors,
+      formData,
+    } as unknown as FieldProps<any>;
+
+    render(<OwnershipEntityRefPicker {...props} />);
+
+    // Assuming the component calls `onChange` with the groups a user is a part of
+    expect(onChange).toHaveBeenCalledWith(['group1', 'group2']);
+  });
+
+  it('should not return groups a user is not part of', async () => {
+    catalogApi.getEntityByRef.mockResolvedValueOnce(entities[1]);
+
+    uiSchema = { 'ui:options': { catalogApi } };
+    props = {
+      onChange,
+      schema,
+      required,
+      uiSchema,
+      rawErrors,
+      formData,
+    } as unknown as FieldProps<any>;
+
+    render(<OwnershipEntityRefPicker {...props} />);
+
+    // Assuming the component calls `onChange` with the groups a user is a part of
+    expect(onChange).not.toHaveBeenCalledWith(['group1', 'group2']);
+  });
+
+  it('should render without imploding', () => {
+    uiSchema = { 'ui:options': { catalogApi } };
+    props = {
+      onChange,
+      schema,
+      required,
+      uiSchema,
+      rawErrors,
+      formData,
+    } as unknown as FieldProps<any>;
+
+    const { container } = render(<OwnershipEntityRefPicker {...props} />);
+    expect(container).not.toBeNull();
+  });
+});