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diff --git a/spec/frontend/vue_shared/components/dropdown_keyboard_navigation_spec.js b/spec/frontend/vue_shared/components/dropdown_keyboard_navigation_spec.js
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+++ b/spec/frontend/vue_shared/components/dropdown_keyboard_navigation_spec.js
@@ -0,0 +1,141 @@
+import { shallowMount } from '@vue/test-utils';
+import DropdownKeyboardNavigation from '~/vue_shared/components/dropdown_keyboard_navigation.vue';
+import { UP_KEY_CODE, DOWN_KEY_CODE, TAB_KEY_CODE } from '~/lib/utils/keycodes';
+
+const MOCK_INDEX = 0;
+const MOCK_MAX = 10;
+const MOCK_MIN = 0;
+const MOCK_DEFAULT_INDEX = 0;
+
+describe('DropdownKeyboardNavigation', () => {
+  let wrapper;
+
+  const defaultProps = {
+    index: MOCK_INDEX,
+    max: MOCK_MAX,
+    min: MOCK_MIN,
+    defaultIndex: MOCK_DEFAULT_INDEX,
+  };
+
+  const createComponent = (props) => {
+    wrapper = shallowMount(DropdownKeyboardNavigation, {
+      propsData: {
+        ...defaultProps,
+        ...props,
+      },
+    });
+  };
+
+  const helpers = {
+    arrowDown: () => {
+      document.dispatchEvent(new KeyboardEvent('keydown', { keyCode: DOWN_KEY_CODE }));
+    },
+    arrowUp: () => {
+      document.dispatchEvent(new KeyboardEvent('keydown', { keyCode: UP_KEY_CODE }));
+    },
+    tab: () => {
+      document.dispatchEvent(new KeyboardEvent('keydown', { keyCode: TAB_KEY_CODE }));
+    },
+  };
+
+  afterEach(() => {
+    wrapper.destroy();
+  });
+
+  describe('onInit', () => {
+    beforeEach(() => {
+      createComponent();
+    });
+
+    it('should $emit @change with the default index', async () => {
+      expect(wrapper.emitted('change')[0]).toStrictEqual([MOCK_DEFAULT_INDEX]);
+    });
+
+    it('should $emit @change with the default index when max changes', async () => {
+      wrapper.setProps({ max: 20 });
+      await wrapper.vm.$nextTick();
+      // The first @change`call happens on created() so we test for the second [1]
+      expect(wrapper.emitted('change')[1]).toStrictEqual([MOCK_DEFAULT_INDEX]);
+    });
+  });
+
+  describe('keydown events', () => {
+    let incrementSpy;
+
+    beforeEach(() => {
+      createComponent();
+      incrementSpy = jest.spyOn(wrapper.vm, 'increment');
+    });
+
+    afterEach(() => {
+      incrementSpy.mockRestore();
+    });
+
+    it('onKeydown-Down calls increment(1)', () => {
+      helpers.arrowDown();
+
+      expect(incrementSpy).toHaveBeenCalledWith(1);
+    });
+
+    it('onKeydown-Up calls increment(-1)', () => {
+      helpers.arrowUp();
+
+      expect(incrementSpy).toHaveBeenCalledWith(-1);
+    });
+
+    it('onKeydown-Tab $emits @tab event', () => {
+      helpers.tab();
+
+      expect(wrapper.emitted('tab')).toHaveLength(1);
+    });
+  });
+
+  describe('increment', () => {
+    describe('when max is 0', () => {
+      beforeEach(() => {
+        createComponent({ max: 0 });
+      });
+
+      it('does not $emit any @change events', () => {
+        helpers.arrowDown();
+
+        // The first @change`call happens on created() so we test that we only have 1 call
+        expect(wrapper.emitted('change')).toHaveLength(1);
+      });
+    });
+
+    describe.each`
+      keyboardAction       | direction | index | max   | min
+      ${helpers.arrowDown} | ${1}      | ${10} | ${10} | ${0}
+      ${helpers.arrowUp}   | ${-1}     | ${0}  | ${10} | ${0}
+    `('moving out of bounds', ({ keyboardAction, direction, index, max, min }) => {
+      beforeEach(() => {
+        createComponent({ index, max, min });
+        keyboardAction();
+      });
+
+      it(`in ${direction} direction does not $emit any @change events`, () => {
+        // The first @change`call happens on created() so we test that we only have 1 call
+        expect(wrapper.emitted('change')).toHaveLength(1);
+      });
+    });
+
+    describe.each`
+      keyboardAction       | direction | index | max   | min
+      ${helpers.arrowDown} | ${1}      | ${0}  | ${10} | ${0}
+      ${helpers.arrowUp}   | ${-1}     | ${10} | ${10} | ${0}
+    `('moving in bounds', ({ keyboardAction, direction, index, max, min }) => {
+      beforeEach(() => {
+        createComponent({ index, max, min });
+        keyboardAction();
+      });
+
+      it(`in ${direction} direction $emits @change event with the correct index ${
+        index + direction
+      }`, () => {
+        // The first @change`call happens on created() so we test for the second [1]
+        expect(wrapper.emitted('change')[1]).toStrictEqual([index + direction]);
+      });
+    });
+  });
+});