diff --git a/plugins/search-backend-module-explore/src/collators/ToolDocumentCollatorFactory.test.ts b/plugins/search-backend-module-explore/src/collators/ToolDocumentCollatorFactory.test.ts
new file mode 100644
index 0000000000..46bbd55600
--- /dev/null
+++ b/plugins/search-backend-module-explore/src/collators/ToolDocumentCollatorFactory.test.ts
@@ -0,0 +1,122 @@
+/*
+ * Copyright 2023 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 {
+  getVoidLogger,
+  PluginEndpointDiscovery,
+  TokenManager,
+} from '@backstage/backend-common';
+import { ConfigReader } from '@backstage/config';
+import { TestPipeline } from '@backstage/plugin-search-backend-node';
+import { setupRequestMockHandlers } from '@backstage/backend-test-utils';
+import { rest } from 'msw';
+import { setupServer } from 'msw';
+import { Readable } from 'stream';
+import { ToolDocumentCollatorFactory } from './ToolDocumentCollatorFactory';
+
+const logger = getVoidLogger();
+
+const mockTools = {
+  tools: [
+    {
+      title: 'tool1',
+      description: 'tool 1 description',
+      url: 'https://some-url.com',
+      image: 'https://some-url.com/image.png',
+      tags: ['one'],
+    },
+    {
+      title: 'tool2',
+      description: 'tool 2 description',
+      url: 'https://some-url.com',
+      image: 'https://some-url.com/image.png',
+      tags: ['two'],
+    },
+    {
+      title: 'tool3',
+      description: 'tool 3 description',
+      url: 'https://some-url.com',
+      image: 'https://some-url.com/image.png',
+      tags: ['three'],
+    },
+  ],
+};
+
+describe('ToolDocumentCollatorFactory', () => {
+  const config = new ConfigReader({});
+  const mockDiscoveryApi: jest.Mocked<PluginEndpointDiscovery> = {
+    getBaseUrl: jest.fn().mockResolvedValue('http://test-backend/api/explore'),
+    getExternalBaseUrl: jest.fn(),
+  };
+  const mockTokenManager: jest.Mocked<TokenManager> = {
+    getToken: jest.fn().mockResolvedValue({ token: '' }),
+    authenticate: jest.fn(),
+  };
+  const options = {
+    discovery: mockDiscoveryApi,
+    logger,
+    tokenManager: mockTokenManager,
+  };
+
+  it('has expected type', () => {
+    const factory = ToolDocumentCollatorFactory.fromConfig(config, options);
+    expect(factory.type).toBe('tools');
+  });
+
+  describe('getCollator', () => {
+    let factory: ToolDocumentCollatorFactory;
+    let collator: Readable;
+
+    const worker = setupServer();
+    setupRequestMockHandlers(worker);
+
+    beforeEach(async () => {
+      factory = ToolDocumentCollatorFactory.fromConfig(config, options);
+      collator = await factory.getCollator();
+
+      worker.use(
+        rest.get('http://test-backend/api/explore/tools', (_, res, ctx) =>
+          res(ctx.status(200), ctx.json(mockTools)),
+        ),
+      );
+    });
+
+    it('returns a readable stream', async () => {
+      expect(collator).toBeInstanceOf(Readable);
+    });
+
+    it('runs against mock tools', async () => {
+      const pipeline = TestPipeline.fromCollator(collator);
+      const { documents } = await pipeline.execute();
+      expect(mockDiscoveryApi.getBaseUrl).toHaveBeenCalledWith('explore');
+      expect(documents).toHaveLength(mockTools.tools.length);
+    });
+
+    it('non-authenticated backend', async () => {
+      // Provide an alternate location template.
+      factory = ToolDocumentCollatorFactory.fromConfig(config, {
+        discovery: mockDiscoveryApi,
+        logger,
+      });
+      collator = await factory.getCollator();
+
+      const pipeline = TestPipeline.fromCollator(collator);
+      const { documents } = await pipeline.execute();
+
+      expect(mockDiscoveryApi.getBaseUrl).toHaveBeenCalledWith('explore');
+      expect(documents).toHaveLength(mockTools.tools.length);
+    });
+  });
+});