diff --git a/packages/components/src/components/LoadingIndicator/LoadingIndicator.test.tsx b/packages/components/src/components/LoadingIndicator/LoadingIndicator.test.tsx
new file mode 100644
index 00000000..e3de5e50
--- /dev/null
+++ b/packages/components/src/components/LoadingIndicator/LoadingIndicator.test.tsx
@@ -0,0 +1,133 @@
+import 'react-native'
+import { render, screen } from '@testing-library/react-native'
+import React from 'react'
+// Note: test renderer must be required after react-native.
+import 'jest-styled-components'
+
+import { Icon } from '../Icon/Icon'
+import { LoadingIndicator, LoadingIndicatorProps } from './LoadingIndicator'
+import { Spacer } from '../Spacer/Spacer'
+import { Text, View } from 'react-native'
+
+// Set so Animated.timing() doesn't persist rendering after the jest test
+jest.useFakeTimers()
+
+const mockedColorScheme = jest.fn()
+
+jest.mock('react-native/Libraries/Utilities/useColorScheme', () => {
+  return {
+    default: mockedColorScheme,
+  }
+})
+
+describe('Loading indicator', () => {
+  const commonProps: LoadingIndicatorProps = {
+    text: 'Loading indicator text',
+    a11yLabel: 'a11y label',
+  }
+  const children = (
+    <View>
+      <Text>Children content</Text>
+    </View>
+  )
+
+  const getIcon = async () => {
+    return screen.root.findByType(Icon)
+  }
+
+  const getSpacers = async () => {
+    return screen.root.findAllByType(Spacer)
+  }
+
+  describe('Basic tests', () => {
+    it('initializes correctly', () => {
+      render(<LoadingIndicator {...commonProps} />)
+
+      expect(screen.getByText('Loading indicator text')).toBeTruthy()
+    })
+
+    it('should render text', () => {
+      render(<LoadingIndicator {...commonProps} />)
+
+      expect(screen.getByText('Loading indicator text')).toBeOnTheScreen()
+    })
+
+    it('should render LoadingIndicator icon with 50x50 width/height', async () => {
+      render(<LoadingIndicator {...commonProps} />)
+
+      const icon = await getIcon()
+
+      expect(icon.props.name).toBe('LoadingIndicator')
+      expect(icon.props.height).toBe(50)
+      expect(icon.props.width).toBe(50)
+    })
+  })
+
+  describe('Accessibility', () => {
+    it('should have text a11yLabel', () => {
+      render(<LoadingIndicator {...commonProps} />)
+
+      expect(screen.getByLabelText('a11y label')).toBeOnTheScreen()
+    })
+  })
+
+  describe('Light mode', () => {
+    it('should render correct colors', async () => {
+      render(<LoadingIndicator {...commonProps} />)
+
+      const icon = await getIcon()
+
+      expect(screen.getByText(commonProps.text)).toHaveStyle({
+        color: '#1b1b1b',
+      })
+      expect(icon.props.fill).toBe('#005ea2')
+    })
+  })
+
+  describe('Dark mode', () => {
+    it('should render correct colors', async () => {
+      mockedColorScheme.mockImplementation(() => 'dark')
+
+      render(<LoadingIndicator {...commonProps} />)
+
+      const icon = await getIcon()
+
+      expect(screen.getByText(commonProps.text)).toHaveStyle({
+        color: '#f0f0f0',
+      })
+      expect(icon.props.fill).toBe('#58b4ff')
+    })
+  })
+
+  describe('Children tests', () => {
+    it('should render with just children', async () => {
+      render(<LoadingIndicator children={children} />)
+
+      const spacers = await getSpacers()
+
+      expect(screen.getByText('Children content')).toBeOnTheScreen()
+      expect(screen.queryByText('Loading indicator text')).not.toBeOnTheScreen()
+      expect(spacers.length).toBe(1) // Just Spacer between icon and text
+    })
+
+    it('should render with both text and children', async () => {
+      render(<LoadingIndicator {...commonProps} children={children} />)
+
+      const spacers = await getSpacers()
+
+      expect(screen.getByText('Children content')).toBeOnTheScreen()
+      expect(screen.getByText('Loading indicator text')).toBeOnTheScreen()
+      expect(spacers.length).toBe(2) // Spacers between icon/text + text/children
+    })
+
+    it('should render without children', async () => {
+      render(<LoadingIndicator {...commonProps} />)
+
+      const spacers = await getSpacers()
+
+      expect(screen.queryByText('Children content')).not.toBeOnTheScreen()
+      expect(screen.getByText('Loading indicator text')).toBeOnTheScreen()
+      expect(spacers.length).toBe(1) // Just Spacer between icon and text
+    })
+  })
+})