diff --git a/packages/blade/src/components/Tooltip/Tooltip.web.tsx b/packages/blade/src/components/Tooltip/Tooltip.web.tsx
index 34e443f91c8..ac610b01c9c 100644
--- a/packages/blade/src/components/Tooltip/Tooltip.web.tsx
+++ b/packages/blade/src/components/Tooltip/Tooltip.web.tsx
@@ -53,13 +53,8 @@ const Tooltip = ({
     open: isOpen,
     strategy: 'fixed',
     onOpenChange: (open) => {
-      if (open) {
-        setIsOpen(true);
-        onOpenChange?.({ isOpen: open });
-      } else {
-        setIsOpen(false);
-        onOpenChange?.({ isOpen: open });
-      }
+      setIsOpen(open);
+      onOpenChange?.({ isOpen: open });
     },
     middleware: [
       shift({ crossAxis: false, padding: GAP }),
diff --git a/packages/blade/src/components/Tooltip/__tests__/Tooltip.test.stories.tsx b/packages/blade/src/components/Tooltip/__tests__/Tooltip.test.stories.tsx
new file mode 100644
index 00000000000..8d3c0dbebdc
--- /dev/null
+++ b/packages/blade/src/components/Tooltip/__tests__/Tooltip.test.stories.tsx
@@ -0,0 +1,186 @@
+import type { StoryFn } from '@storybook/react';
+import { within, userEvent } from '@storybook/testing-library';
+import { expect, jest } from '@storybook/jest';
+import React from 'react';
+import { TooltipInteractiveWrapper, Tooltip as TooltipComponent } from '..';
+import { Button } from '~components/Button';
+import { Text } from '~components/Typography';
+import { Badge } from '~components/Badge';
+import BaseBox from '~components/Box/BaseBox';
+import type { BladeCommonEvents } from '~components/types';
+
+const sleep = (ms: number): Promise<void> => new Promise((resolve) => setTimeout(resolve, ms));
+
+const onOpenChange = jest.fn();
+
+export const TestTooltipOpenClose: StoryFn<typeof TooltipComponent> = (
+  props,
+): React.ReactElement => {
+  return (
+    <TooltipComponent {...props} onOpenChange={onOpenChange}>
+      <Button>Hover me</Button>
+    </TooltipComponent>
+  );
+};
+
+TestTooltipOpenClose.args = {
+  title: 'Hello World',
+  content: 'Some text',
+};
+TestTooltipOpenClose.play = async () => {
+  const { getByRole, queryByText } = within(document.body);
+  await expect(queryByText('Hello World')).not.toBeInTheDocument();
+  const showButton = getByRole('button', { name: 'Hover me' });
+  // open
+  await userEvent.hover(showButton);
+  await sleep(400);
+  await expect(onOpenChange).toBeCalledWith({ isOpen: true });
+  await expect(queryByText('Hello World')).toBeVisible();
+  // close
+  await userEvent.unhover(showButton);
+  await sleep(500);
+  await expect(onOpenChange).toBeCalledWith({ isOpen: false });
+  await expect(queryByText('Hello World')).not.toBeInTheDocument();
+};
+
+// TooltipInteractiveWrapper
+export const TestTooltipInteractiveWrapper: StoryFn<typeof TooltipComponent> = (
+  props,
+): React.ReactElement => {
+  onOpenChange.mockReset();
+  return (
+    <TooltipComponent {...props} onOpenChange={onOpenChange}>
+      <TooltipInteractiveWrapper>
+        <Badge>NEW</Badge>
+      </TooltipInteractiveWrapper>
+    </TooltipComponent>
+  );
+};
+TestTooltipInteractiveWrapper.args = {
+  content: 'Hello World',
+};
+TestTooltipInteractiveWrapper.play = async () => {
+  const { getByText, queryByText } = within(document.body);
+  const tooltipContent = 'Hello World';
+  await expect(queryByText(tooltipContent)).not.toBeInTheDocument();
+  const badge = getByText('NEW');
+  // open
+  await userEvent.hover(badge);
+  await sleep(400);
+  await expect(onOpenChange).toBeCalledWith({ isOpen: true });
+  await expect(queryByText(tooltipContent)).toBeVisible();
+  // close
+  await userEvent.unhover(badge);
+  await sleep(500);
+  await expect(onOpenChange).toBeCalledWith({ isOpen: false });
+  await expect(queryByText(tooltipContent)).not.toBeInTheDocument();
+};
+
+const CustomTrigger = React.forwardRef<
+  HTMLDivElement,
+  { children: React.ReactNode } & BladeCommonEvents
+>(
+  (
+    {
+      children,
+      onBlur,
+      onFocus,
+      onMouseLeave,
+      onMouseMove,
+      onPointerDown,
+      onPointerEnter,
+      onTouchEnd,
+      onTouchStart,
+    },
+    ref,
+  ) => {
+    return (
+      <BaseBox
+        ref={ref}
+        tabIndex={0}
+        onBlur={onBlur}
+        onFocus={onFocus}
+        onMouseLeave={onMouseLeave}
+        onMouseMove={onMouseMove}
+        onPointerDown={onPointerDown}
+        onPointerEnter={onPointerEnter}
+        onTouchEnd={onTouchEnd}
+        onTouchStart={onTouchStart}
+      >
+        <Text contrast="low">{children}</Text>
+      </BaseBox>
+    );
+  },
+);
+
+// custom trigger
+export const TestCustomTrigger: StoryFn<typeof TooltipComponent> = (props): React.ReactElement => {
+  onOpenChange.mockReset();
+  return (
+    <TooltipComponent {...props} onOpenChange={onOpenChange}>
+      <CustomTrigger>Custom Trigger</CustomTrigger>
+    </TooltipComponent>
+  );
+};
+TestCustomTrigger.args = {
+  content: 'Hello World',
+};
+TestCustomTrigger.play = async () => {
+  const { getByText, queryByText } = within(document.body);
+  const tooltipContent = 'Hello World';
+  await expect(queryByText(tooltipContent)).not.toBeInTheDocument();
+  const trigger = getByText('Custom Trigger');
+  // open
+  await userEvent.hover(trigger);
+  await sleep(400);
+  await expect(onOpenChange).toBeCalledWith({ isOpen: true });
+  await expect(queryByText(tooltipContent)).toBeVisible();
+  // close
+  await userEvent.unhover(trigger);
+  await sleep(500);
+  await expect(onOpenChange).toBeCalledWith({ isOpen: false });
+  await expect(queryByText(tooltipContent)).not.toBeInTheDocument();
+};
+
+// should open/close immediately on focus/blur without the default delay of 300ms
+export const TestTooltipOpenCloseFocus: StoryFn<typeof TooltipComponent> = (
+  props,
+): React.ReactElement => {
+  return (
+    <TooltipComponent {...props} onOpenChange={onOpenChange}>
+      <Button>Hover me</Button>
+    </TooltipComponent>
+  );
+};
+
+TestTooltipOpenCloseFocus.args = {
+  title: 'Hello World',
+  content: 'Some text',
+};
+TestTooltipOpenCloseFocus.play = async () => {
+  const { queryByText } = within(document.body);
+  await expect(queryByText('Hello World')).not.toBeInTheDocument();
+  // open
+  await userEvent.keyboard('{Tab}', {});
+  await sleep(200);
+  await expect(onOpenChange).toBeCalledWith({ isOpen: true });
+  await expect(queryByText('Hello World')).toBeVisible();
+  // close
+  await userEvent.keyboard('{Tab}', {});
+  await sleep(300);
+  await expect(onOpenChange).toBeCalledWith({ isOpen: false });
+  await expect(queryByText('Hello World')).not.toBeInTheDocument();
+};
+
+export default {
+  title: 'Components/Interaction Tests/Tooltip',
+  component: TooltipComponent,
+  parameters: {
+    controls: {
+      disable: true,
+    },
+    a11y: { disable: true },
+    essentials: { disable: true },
+    actions: { disable: true },
+  },
+};