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diff --git a/spec/unit/knife/node_policy_set_spec.rb b/spec/unit/knife/node_policy_set_spec.rb
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+++ b/spec/unit/knife/node_policy_set_spec.rb
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+#
+# Author:: Piyush Awasthi (<piyush.awasthi@chef.io>)
+# Copyright:: Copyright 2017-2018, Chef Software Inc.
+# License:: Apache License, Version 2.0
+#
+# 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.
+#
+
+require "spec_helper"
+
+describe Chef::Knife::NodePolicySet do
+  let(:node) do
+    node = Chef::Node.new()
+    node.name("adam")
+    node.run_list = ["role[base]"]
+    node
+  end
+
+  let(:knife) do
+    Chef::Log.logger = Logger.new(StringIO.new)
+    Chef::Config[:knife][:bootstrap_template] = bootstrap_template unless bootstrap_template.nil?
+    knife_obj = Chef::Knife::NodePolicySet.new(bootstrap_cli_options)
+    knife_obj.merge_configs
+    allow(knife_obj.ui).to receive(:stderr).and_return(stderr)
+    allow(knife_obj).to receive(:encryption_secret_provided_ignore_encrypt_flag?).and_return(false)
+    knife_obj
+  end
+
+  let(:stderr) { StringIO.new }
+  let(:bootstrap_template) { nil }
+  let(:bootstrap_cli_options) { [ ] }
+
+  describe "#run" do
+    context "when node_name is not given" do
+      let(:bootstrap_cli_options) { %w{ } }
+      it "returns an error that you must specify a node name" do
+        expect { knife.send(:validate_node!) }.to raise_error(SystemExit)
+        expect(stderr.string).to include("ERROR: You must specify a node name")
+      end
+    end
+
+    context "when node is given" do
+      let(:bootstrap_cli_options) { %w{ adam staging my-app } }
+      it "should load the node" do
+        expect(Chef::Node).to receive(:load).with(bootstrap_cli_options[0]).and_return(node)
+        allow(node).to receive(:save).and_return(true)
+        knife.run
+      end
+    end
+
+    context "when node not saved" do
+      let(:bootstrap_cli_options) { %w{ adam staging my-app } }
+      it "returns an error node not updated successfully" do
+        allow(Chef::Node).to receive(:load).with(bootstrap_cli_options[0]).and_return(node)
+        allow(node).to receive(:save).and_return(false)
+        knife.run
+        expect(stderr.string.strip).to eq("Error in updating node #{node.name}")
+      end
+    end
+
+    context "when the policy is set successfully on the node" do
+      let(:bootstrap_cli_options) { %w{ adam staging my-app } }
+      it "returns node updated successfully" do
+        allow(Chef::Node).to receive(:load).with(bootstrap_cli_options[0]).and_return(node)
+        allow(node).to receive(:save).and_return(true)
+        knife.run
+        expect(stderr.string.strip).to eq("Successfully set the policy on node #{node.name}")
+      end
+    end
+  end
+
+  describe "handling policy options" do
+    context "when policy_group and policy_name is not given" do
+      let(:bootstrap_cli_options) { %w{ } }
+      it "returns an error stating that policy_name and policy_group must be given together" do
+        expect { knife.send(:validate_options!) }.to raise_error(SystemExit)
+        expect(stderr.string).to include("ERROR: Policy group and name must be specified together")
+      end
+    end
+
+    context "when only policy_name is given" do
+      let(:bootstrap_cli_options) { %w{ adam staging } }
+      it "returns an error stating that policy_name and policy_group must be given together" do
+        expect { knife.send(:validate_options!) }.to raise_error(SystemExit)
+        expect(stderr.string).to include("ERROR: Policy group and name must be specified together")
+      end
+    end
+
+    context "when only policy_group is given" do
+      let(:bootstrap_cli_options) { %w{ adam my-app } }
+      it "returns an error stating that policy_name and policy_group must be given together" do
+        expect { knife.send(:validate_options!) }.to raise_error(SystemExit)
+        expect(stderr.string).to include("ERROR: Policy group and name must be specified together")
+      end
+    end
+
+    context "when policy_name and policy_group are given with no conflicting options" do
+      let(:bootstrap_cli_options) { %w{ adam staging my-app } }
+      it "passes options validation" do
+        expect { knife.send(:validate_options!) }.to_not raise_error
+      end
+
+      it "returns value set in config" do
+        allow(Chef::Node).to receive(:load).with(bootstrap_cli_options[0]).and_return(node)
+        allow(node).to receive(:save).and_return(false)
+        knife.run
+        expect(node.policy_name).to eq("my-app")
+        expect(node.policy_group).to eq("staging")
+      end
+    end
+  end
+end