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diff --git a/spec/frontend/vue_shared/components/filtered_search_dropdown_spec.js b/spec/frontend/vue_shared/components/filtered_search_dropdown_spec.js
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+++ b/spec/frontend/vue_shared/components/filtered_search_dropdown_spec.js
@@ -0,0 +1,190 @@
+import Vue from 'vue';
+import mountComponent from 'helpers/vue_mount_component_helper';
+import component from '~/vue_shared/components/filtered_search_dropdown.vue';
+
+describe('Filtered search dropdown', () => {
+  const Component = Vue.extend(component);
+  let vm;
+
+  afterEach(() => {
+    vm.$destroy();
+  });
+
+  describe('with an empty array of items', () => {
+    beforeEach(() => {
+      vm = mountComponent(Component, {
+        items: [],
+        filterKey: '',
+      });
+    });
+
+    it('renders empty list', () => {
+      expect(vm.$el.querySelectorAll('.js-filtered-dropdown-result').length).toEqual(0);
+    });
+
+    it('renders filter input', () => {
+      expect(vm.$el.querySelector('.js-filtered-dropdown-input')).not.toBeNull();
+    });
+  });
+
+  describe('when visible numbers is less than the items length', () => {
+    beforeEach(() => {
+      vm = mountComponent(Component, {
+        items: [{ title: 'One' }, { title: 'Two' }, { title: 'Three' }],
+        visibleItems: 2,
+        filterKey: 'title',
+      });
+    });
+
+    it('it renders only the maximum number provided', () => {
+      expect(vm.$el.querySelectorAll('.js-filtered-dropdown-result').length).toEqual(2);
+    });
+  });
+
+  describe('when visible number is bigger than the items length', () => {
+    beforeEach(() => {
+      vm = mountComponent(Component, {
+        items: [{ title: 'One' }, { title: 'Two' }, { title: 'Three' }],
+        filterKey: 'title',
+      });
+    });
+
+    it('it renders the full list of items the maximum number provided', () => {
+      expect(vm.$el.querySelectorAll('.js-filtered-dropdown-result').length).toEqual(3);
+    });
+  });
+
+  describe('while filtering', () => {
+    beforeEach(() => {
+      vm = mountComponent(Component, {
+        items: [
+          { title: 'One' },
+          { title: 'Two/three' },
+          { title: 'Three four' },
+          { title: 'Five' },
+        ],
+        filterKey: 'title',
+      });
+    });
+
+    it('updates the results to match the typed value', done => {
+      vm.$el.querySelector('.js-filtered-dropdown-input').value = 'three';
+      vm.$el.querySelector('.js-filtered-dropdown-input').dispatchEvent(new Event('input'));
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelectorAll('.js-filtered-dropdown-result').length).toEqual(2);
+        done();
+      });
+    });
+
+    describe('when no value matches the typed one', () => {
+      it('does not render any result', done => {
+        vm.$el.querySelector('.js-filtered-dropdown-input').value = 'six';
+        vm.$el.querySelector('.js-filtered-dropdown-input').dispatchEvent(new Event('input'));
+
+        vm.$nextTick(() => {
+          expect(vm.$el.querySelectorAll('.js-filtered-dropdown-result').length).toEqual(0);
+          done();
+        });
+      });
+    });
+  });
+
+  describe('with create mode enabled', () => {
+    describe('when there are no matches', () => {
+      beforeEach(() => {
+        vm = mountComponent(Component, {
+          items: [
+            { title: 'One' },
+            { title: 'Two/three' },
+            { title: 'Three four' },
+            { title: 'Five' },
+          ],
+          filterKey: 'title',
+          showCreateMode: true,
+        });
+
+        vm.$el.querySelector('.js-filtered-dropdown-input').value = 'eleven';
+        vm.$el.querySelector('.js-filtered-dropdown-input').dispatchEvent(new Event('input'));
+      });
+
+      it('renders a create button', done => {
+        vm.$nextTick(() => {
+          expect(vm.$el.querySelector('.js-dropdown-create-button')).not.toBeNull();
+          done();
+        });
+      });
+
+      it('renders computed button text', done => {
+        vm.$nextTick(() => {
+          expect(vm.$el.querySelector('.js-dropdown-create-button').textContent.trim()).toEqual(
+            'Create eleven',
+          );
+          done();
+        });
+      });
+
+      describe('on click create button', () => {
+        it('emits createItem event with the filter', done => {
+          jest.spyOn(vm, '$emit').mockImplementation(() => {});
+          vm.$nextTick(() => {
+            vm.$el.querySelector('.js-dropdown-create-button').click();
+
+            expect(vm.$emit).toHaveBeenCalledWith('createItem', 'eleven');
+            done();
+          });
+        });
+      });
+    });
+
+    describe('when there are matches', () => {
+      beforeEach(() => {
+        vm = mountComponent(Component, {
+          items: [
+            { title: 'One' },
+            { title: 'Two/three' },
+            { title: 'Three four' },
+            { title: 'Five' },
+          ],
+          filterKey: 'title',
+          showCreateMode: true,
+        });
+
+        vm.$el.querySelector('.js-filtered-dropdown-input').value = 'one';
+        vm.$el.querySelector('.js-filtered-dropdown-input').dispatchEvent(new Event('input'));
+      });
+
+      it('does not render a create button', done => {
+        vm.$nextTick(() => {
+          expect(vm.$el.querySelector('.js-dropdown-create-button')).toBeNull();
+          done();
+        });
+      });
+    });
+  });
+
+  describe('with create mode disabled', () => {
+    describe('when there are no matches', () => {
+      beforeEach(() => {
+        vm = mountComponent(Component, {
+          items: [
+            { title: 'One' },
+            { title: 'Two/three' },
+            { title: 'Three four' },
+            { title: 'Five' },
+          ],
+          filterKey: 'title',
+        });
+
+        vm.$el.querySelector('.js-filtered-dropdown-input').value = 'eleven';
+        vm.$el.querySelector('.js-filtered-dropdown-input').dispatchEvent(new Event('input'));
+      });
+
+      it('does not render a create button', done => {
+        vm.$nextTick(() => {
+          expect(vm.$el.querySelector('.js-dropdown-create-button')).toBeNull();
+          done();
+        });
+      });
+    });
+  });
+});