diff --git a/packages/suite-base/src/components/PanelSettings/settingsTree.test.ts b/packages/suite-base/src/components/PanelSettings/settingsTree.test.ts
new file mode 100644
index 0000000000..b16b3f5be1
--- /dev/null
+++ b/packages/suite-base/src/components/PanelSettings/settingsTree.test.ts
@@ -0,0 +1,176 @@
+/** @jest-environment jsdom */
+// SPDX-FileCopyrightText: Copyright (C) 2023-2024 Bayerische Motoren Werke Aktiengesellschaft (BMW AG)<lichtblick@bmwgroup.com>
+// SPDX-License-Identifier: MPL-2.0
+
+// This Source Code Form is subject to the terms of the Mozilla Public
+// License, v2.0. If a copy of the MPL was not distributed with this
+// file, You can obtain one at http://mozilla.org/MPL/2.0/
+
+import { SettingsTreeNode } from "@lichtblick/suite";
+import {
+  buildSettingsTree,
+  BuildSettingsTreeProps,
+} from "@lichtblick/suite-base/components/PanelSettings/settingsTree";
+import { PanelStateStore } from "@lichtblick/suite-base/context/PanelStateContext";
+import { maybeCast } from "@lichtblick/suite-base/util/maybeCast";
+
+jest.mock("@lichtblick/suite-base/util/maybeCast");
+
+describe("buildSettingsTree", () => {
+  function setup(): Pick<
+    BuildSettingsTreeProps,
+    "state" | "extensionSettings" | "topicToSchemaNameMap" | "config"
+  > {
+    const config: Record<string, unknown> | undefined = {
+      topics: {
+        topic1: { someConfig: "valueFromConfig" },
+      },
+    };
+    (maybeCast as jest.Mock).mockReturnValue(config);
+
+    return {
+      state: {
+        settingsTrees: {
+          panel1: {
+            nodes: {
+              topics: {
+                children: {
+                  topic1: {},
+                },
+              },
+            },
+          },
+        },
+      } as unknown as PanelStateStore,
+      extensionSettings: {
+        myPanelType: {
+          schema1: {
+            settings: jest.fn(
+              (_config): SettingsTreeNode => ({
+                label: "valueFromExtension",
+                children: {},
+              }),
+            ),
+            handler: jest.fn(),
+          },
+        },
+      },
+      topicToSchemaNameMap: {
+        topic1: "schema1",
+        topic2: "schema2",
+      },
+      config,
+    };
+  }
+
+  beforeEach(() => {
+    (console.error as jest.Mock).mockClear();
+  });
+
+  it.each<Pick<BuildSettingsTreeProps, "panelType" | "selectedPanelId">>([
+    { panelType: undefined, selectedPanelId: "value" },
+    { panelType: "value", selectedPanelId: undefined },
+  ])(
+    "should return undefined if selectedPanelId or panelType is undefined",
+    ({ panelType, selectedPanelId }) => {
+      const { config, extensionSettings, state, topicToSchemaNameMap } = setup();
+
+      const result = buildSettingsTree({
+        config,
+        extensionSettings,
+        panelType,
+        selectedPanelId,
+        state,
+        topicToSchemaNameMap,
+      });
+      expect(result).toBeUndefined();
+    },
+  );
+
+  it("should return undefined if selected panel is not found in state", () => {
+    const { config, extensionSettings, state, topicToSchemaNameMap } = setup();
+
+    const result = buildSettingsTree({
+      config,
+      extensionSettings,
+      panelType: "myPanelType",
+      selectedPanelId: "invalidPanel",
+      state,
+      topicToSchemaNameMap,
+    });
+    expect(result).toBeUndefined();
+  });
+
+  it("should return the correct settingsTree when valid panelId and panelType are provided", () => {
+    const { config, extensionSettings, state, topicToSchemaNameMap } = setup();
+
+    const result = buildSettingsTree({
+      config,
+      extensionSettings,
+      panelType: "myPanelType",
+      selectedPanelId: "panel1",
+      state,
+      topicToSchemaNameMap,
+    });
+
+    expect(result).toEqual({
+      nodes: {
+        topics: {
+          children: {
+            topic1: { label: "valueFromExtension", children: {} },
+          },
+        },
+      },
+    });
+  });
+
+  it("should return the settingsTree even if topics are empty", () => {
+    const { config, extensionSettings, topicToSchemaNameMap } = setup();
+
+    const emptyState = {
+      settingsTrees: {
+        panel1: {
+          nodes: {
+            topics: {
+              children: {},
+            },
+          },
+        },
+      },
+    } as unknown as PanelStateStore;
+
+    const result = buildSettingsTree({
+      config,
+      extensionSettings,
+      panelType: "myPanelType",
+      selectedPanelId: "panel1",
+      state: emptyState,
+      topicToSchemaNameMap,
+    });
+
+    expect(result).toEqual({
+      nodes: {
+        topics: {
+          children: {},
+        },
+      },
+    });
+  });
+
+  it("should merge topicsSettings with existing children in the settingsTree", () => {
+    const { config, extensionSettings, state, topicToSchemaNameMap } = setup();
+
+    const result = buildSettingsTree({
+      config,
+      extensionSettings,
+      panelType: "myPanelType",
+      selectedPanelId: "panel1",
+      state,
+      topicToSchemaNameMap,
+    });
+
+    expect(result?.nodes.topics?.children).toEqual({
+      topic1: { label: "valueFromExtension", children: {} },
+    });
+  });
+});