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diff --git a/spec/javascripts/ide/components/file_templates/dropdown_spec.js b/spec/javascripts/ide/components/file_templates/dropdown_spec.js
new file mode 100644
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+++ b/spec/javascripts/ide/components/file_templates/dropdown_spec.js
@@ -0,0 +1,201 @@
+import $ from 'jquery';
+import Vue from 'vue';
+import { createStore } from '~/ide/stores';
+import Dropdown from '~/ide/components/file_templates/dropdown.vue';
+import { createComponentWithStore } from 'spec/helpers/vue_mount_component_helper';
+import { resetStore } from '../../helpers';
+
+describe('IDE file templates dropdown component', () => {
+  let Component;
+  let vm;
+
+  beforeAll(() => {
+    Component = Vue.extend(Dropdown);
+  });
+
+  beforeEach(() => {
+    const store = createStore();
+
+    vm = createComponentWithStore(Component, store, {
+      label: 'Test',
+    }).$mount();
+  });
+
+  afterEach(() => {
+    vm.$destroy();
+    resetStore(vm.$store);
+  });
+
+  describe('async', () => {
+    beforeEach(() => {
+      vm.isAsyncData = true;
+    });
+
+    it('calls async store method on Bootstrap dropdown event', () => {
+      spyOn(vm, 'fetchTemplateTypes').and.stub();
+
+      $(vm.$el).trigger('show.bs.dropdown');
+
+      expect(vm.fetchTemplateTypes).toHaveBeenCalled();
+    });
+
+    it('renders templates when async', done => {
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-content').textContent).toContain('test');
+
+        done();
+      });
+    });
+
+    it('renders loading icon when isLoading is true', done => {
+      vm.$store.state.fileTemplates.isLoading = true;
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.loading-container')).not.toBe(null);
+
+        done();
+      });
+    });
+
+    it('searches template data', () => {
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+      vm.searchable = true;
+      vm.search = 'hello';
+
+      expect(vm.outputData).toEqual([]);
+    });
+
+    it('does not filter data is searchable is false', () => {
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+      vm.search = 'hello';
+
+      expect(vm.outputData).toEqual([
+        {
+          name: 'test',
+        },
+      ]);
+    });
+
+    it('calls clickItem on click', done => {
+      spyOn(vm, 'clickItem').and.stub();
+
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+
+      vm.$nextTick(() => {
+        vm.$el.querySelector('.dropdown-content button').click();
+
+        expect(vm.clickItem).toHaveBeenCalledWith({
+          name: 'test',
+        });
+
+        done();
+      });
+    });
+
+    it('renders input when searchable is true', done => {
+      vm.searchable = true;
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-input')).not.toBe(null);
+
+        done();
+      });
+    });
+
+    it('does not render input when searchable is true & showLoading is true', done => {
+      vm.searchable = true;
+      vm.$store.state.fileTemplates.isLoading = true;
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-input')).toBe(null);
+
+        done();
+      });
+    });
+  });
+
+  describe('sync', () => {
+    beforeEach(done => {
+      vm.data = [
+        {
+          name: 'test sync',
+        },
+      ];
+
+      vm.$nextTick(done);
+    });
+
+    it('renders props data', () => {
+      expect(vm.$el.querySelector('.dropdown-content').textContent).toContain('test sync');
+    });
+
+    it('renders input when searchable is true', done => {
+      vm.searchable = true;
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-input')).not.toBe(null);
+
+        done();
+      });
+    });
+
+    it('calls clickItem on click', done => {
+      spyOn(vm, 'clickItem').and.stub();
+
+      vm.$nextTick(() => {
+        vm.$el.querySelector('.dropdown-content button').click();
+
+        expect(vm.clickItem).toHaveBeenCalledWith({
+          name: 'test sync',
+        });
+
+        done();
+      });
+    });
+
+    it('searches template data', () => {
+      vm.searchable = true;
+      vm.search = 'hello';
+
+      expect(vm.outputData).toEqual([]);
+    });
+
+    it('does not filter data is searchable is false', () => {
+      vm.search = 'hello';
+
+      expect(vm.outputData).toEqual([
+        {
+          name: 'test sync',
+        },
+      ]);
+    });
+
+    it('renders dropdown title', done => {
+      vm.title = 'Test title';
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-title').textContent).toContain('Test title');
+
+        done();
+      });
+    });
+  });
+});