diff --git a/__tests__/Section.test.tsx b/__tests__/Section.test.tsx
new file mode 100644
index 00000000..64599bdb
--- /dev/null
+++ b/__tests__/Section.test.tsx
@@ -0,0 +1,56 @@
+import Section from "@/app/needs/components/Section";
+import { render, screen, fireEvent } from "@testing-library/react";
+
+describe("Section Component", () => {
+  const mockHandleOpen = jest.fn();
+  const mockCategoryData = {
+    key: "Category 1",
+    items: [
+      {
+        id: "1",
+        name: "Need 1",
+        highlighted: true,
+        label: "Need 1",
+        mood: "joy",
+      },
+      {
+        id: "2",
+        name: "Need 2",
+        highlighted: false,
+        label: "Need 2",
+        mood: "",
+      },
+    ],
+  };
+
+  test("renders section with items", () => {
+    render(
+      <Section categoryData={mockCategoryData} handleOpen={mockHandleOpen} />
+    );
+
+    expect(screen.getByText("Category 1")).toBeInTheDocument();
+    expect(screen.getByText("Need 1")).toBeInTheDocument();
+    expect(screen.getByText("Need 2")).toBeInTheDocument();
+  });
+
+  test("applies correct styles for highlighted and non-highlighted items", () => {
+    render(
+      <Section categoryData={mockCategoryData} handleOpen={mockHandleOpen} />
+    );
+
+    const highlightedButton = screen.getByText("Need 1");
+    const nonHighlightedButton = screen.getByText("Need 2");
+
+    expect(highlightedButton).toHaveClass("bg-twd-mood-joy-yellow");
+    expect(nonHighlightedButton).toHaveClass("bg-gray-600");
+  });
+
+  test("calls handleOpen when item is clicked", () => {
+    render(
+      <Section categoryData={mockCategoryData} handleOpen={mockHandleOpen} />
+    );
+
+    fireEvent.click(screen.getByText("Need 1"));
+    expect(mockHandleOpen).toHaveBeenCalledWith(mockCategoryData.items[0]);
+  });
+});