diff --git a/tests/utils/test_config_utils.py b/tests/utils/test_config_utils.py
new file mode 100644
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+++ b/tests/utils/test_config_utils.py
@@ -0,0 +1,235 @@
+# Copyright The FMS HF Tuning Authors
+#
+# 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.
+
+# SPDX-License-Identifier: Apache-2.0
+# https://spdx.dev/learn/handling-license-info/
+
+# Standard
+import base64
+import os
+import pickle
+
+# Third Party
+from peft import LoraConfig, PromptTuningConfig
+import pytest
+
+# First Party
+from tests.build.test_utils import HAPPY_PATH_DUMMY_CONFIG_PATH
+
+# Local
+from tuning.config import peft_config
+from tuning.utils import config_utils
+
+
+def test_get_hf_peft_config_returns_None_for_tuning_config_None():
+    """Test that when tuning_config is None, the function returns None"""
+    expected_config = None
+    assert expected_config == config_utils.get_hf_peft_config("", None, "")
+
+
+def test_get_hf_peft_config_returns_lora_config_correctly():
+    """Test that tuning_config fields are passed to LoraConfig correctly,
+    If not defined, the default values are used
+    """
+    tuning_config = peft_config.LoraConfig(r=3, lora_alpha=3)
+
+    config = config_utils.get_hf_peft_config("CAUSAL_LM", tuning_config, "")
+    assert isinstance(config, LoraConfig)
+    assert config.task_type == "CAUSAL_LM"
+    assert config.r == 3
+    assert config.lora_alpha == 3
+    assert (
+        config.lora_dropout == 0.05
+    )  # default value from local peft_config.LoraConfig
+    assert config.target_modules == {
+        "q_proj",
+        "v_proj",
+    }  # default value from local peft_config.LoraConfig
+    assert config.init_lora_weights is True  # default value from HF peft.LoraConfig
+    assert (
+        config.megatron_core == "megatron.core"
+    )  # default value from HF peft.LoraConfig
+
+
+def test_get_hf_peft_config_ignores_tokenizer_path_for_lora_config():
+    """Test that if tokenizer is given with a LoraConfig, it is ignored"""
+    tuning_config = peft_config.LoraConfig(r=3, lora_alpha=3)
+
+    config = config_utils.get_hf_peft_config(
+        task_type="CAUSAL_LM",
+        tuning_config=tuning_config,
+        tokenizer_name_or_path="foo/bar/path",
+    )
+    assert isinstance(config, LoraConfig)
+    assert config.task_type == "CAUSAL_LM"
+    assert config.r == 3
+    assert config.lora_alpha == 3
+    assert not hasattr(config, "tokenizer_name_or_path")
+
+
+def test_get_hf_peft_config_returns_lora_config_with_correct_value_for_all_linear():
+    """Test that when target_modules is ["all-linear"], we convert it to str type "all-linear" """
+    tuning_config = peft_config.LoraConfig(r=234, target_modules=["all-linear"])
+
+    config = config_utils.get_hf_peft_config("CAUSAL_LM", tuning_config, "")
+    assert isinstance(config, LoraConfig)
+    assert config.target_modules == "all-linear"
+
+
+def test_get_hf_peft_config_returns_pt_config_correctly():
+    """Test that the prompt tuning config is set properly for each field
+    When a value is not defined, the default values are used
+    """
+    tuning_config = peft_config.PromptTuningConfig(num_virtual_tokens=12)
+
+    config = config_utils.get_hf_peft_config("CAUSAL_LM", tuning_config, "foo/bar/path")
+    assert isinstance(config, PromptTuningConfig)
+    assert config.task_type == "CAUSAL_LM"
+    assert (
+        config.prompt_tuning_init == "TEXT"
+    )  # default value from local peft_config.PromptTuningConfig
+    assert config.num_virtual_tokens == 12
+    assert (
+        config.prompt_tuning_init_text == "Classify if the tweet is a complaint or not:"
+    )  # default value from local peft_config.PromptTuningConfig
+    assert config.tokenizer_name_or_path == "foo/bar/path"
+    assert config.num_layers is None  # default value from HF peft.PromptTuningConfig
+    assert (
+        config.inference_mode is False
+    )  # default value from HF peft.PromptTuningConfig
+
+
+def test_get_hf_peft_config_returns_pt_config_with_correct_tokenizer_path():
+    """Test that tokenizer path is allowed to be None only when prompt_tuning_init is not TEXT
+    Reference:
+    https://github.com/huggingface/peft/blob/main/src/peft/tuners/prompt_tuning/config.py#L73
+    """
+
+    # When prompt_tuning_init is not TEXT, we can pass in None for tokenizer path
+    tuning_config = peft_config.PromptTuningConfig(prompt_tuning_init="RANDOM")
+    config = config_utils.get_hf_peft_config(
+        task_type=None, tuning_config=tuning_config, tokenizer_name_or_path=None
+    )
+    assert isinstance(config, PromptTuningConfig)
+    assert config.tokenizer_name_or_path is None
+
+    # When prompt_tuning_init is TEXT, exception is raised if tokenizer path is None
+    tuning_config = peft_config.PromptTuningConfig(prompt_tuning_init="TEXT")
+    with pytest.raises(ValueError) as err:
+        config_utils.get_hf_peft_config(
+            task_type=None, tuning_config=tuning_config, tokenizer_name_or_path=None
+        )
+        assert "tokenizer_name_or_path can't be None" in err.value
+
+
+def test_create_tuning_config_for_peft_method_lora():
+    """Test that LoraConfig is created for peft_method Lora
+    and fields are set properly.
+    If unknown fields are passed, they are ignored
+    """
+    tune_config = config_utils.create_tuning_config("lora", foo="x", r=234)
+    assert isinstance(tune_config, peft_config.LoraConfig)
+    assert tune_config.r == 234
+    assert tune_config.lora_alpha == 32
+    assert tune_config.lora_dropout == 0.05
+    assert not hasattr(tune_config, "foo")
+
+
+def test_create_tuning_config_for_peft_method_pt():
+    """Test that PromptTuningConfig is created for peft_method pt
+    and fields are set properly
+    """
+    tune_config = config_utils.create_tuning_config(
+        "pt", foo="x", prompt_tuning_init="RANDOM"
+    )
+    assert isinstance(tune_config, peft_config.PromptTuningConfig)
+    assert tune_config.prompt_tuning_init == "RANDOM"
+
+
+def test_create_tuning_config_for_peft_method_none():
+    """Test that PromptTuningConfig is created for peft_method "None" or None"""
+    tune_config = config_utils.create_tuning_config("None")
+    assert tune_config is None
+
+    tune_config = config_utils.create_tuning_config(None)
+    assert tune_config is None
+
+
+def test_create_tuning_config_does_not_recognize_any_other_peft_method():
+    """Test that PromptTuningConfig is created for peft_method "None" or None,
+    "lora" or "pt", and no other
+    """
+    with pytest.raises(AssertionError) as err:
+        config_utils.create_tuning_config("hello", foo="x")
+        assert err.value == "peft config hello not defined in peft.py"
+
+
+def test_update_config_can_handle_dot_for_nested_field():
+    """Test that the function can read dotted field for kwargs fields"""
+    config = peft_config.LoraConfig(r=5)
+    assert config.lora_alpha == 32  # default value is 32
+
+    # update lora_alpha to 98
+    kwargs = {"LoraConfig.lora_alpha": 98}
+    config_utils.update_config(config, **kwargs)
+    assert config.lora_alpha == 98
+
+
+def test_update_config_does_nothing_for_unknown_field():
+    """Test that the function does not change other config
+    field values if a kwarg field is unknown
+    """
+    # foobar is an unknown field
+    config = peft_config.LoraConfig(r=5)
+    kwargs = {"LoraConfig.foobar": 98}
+    config_utils.update_config(config, **kwargs)  # nothing happens
+    assert config.r == 5  # did not change r value
+    assert not hasattr(config, "foobar")
+
+
+def test_update_config_can_handle_multiple_config_updates():
+    """Test that the function can handle a tuple of configs"""
+    config = (peft_config.LoraConfig(r=5), peft_config.LoraConfig(r=7))
+    kwargs = {"r": 98}
+    config_utils.update_config(config, **kwargs)
+    assert config[0].r == 98
+    assert config[1].r == 98
+
+
+def test_get_json_config_can_load_from_path():
+    """Test that the function get_json_config can read
+    the json path from env var SFT_TRAINER_CONFIG_JSON_PATH
+    """
+    if "SFT_TRAINER_CONFIG_JSON_ENV_VAR" in os.environ:
+        del os.environ["SFT_TRAINER_CONFIG_JSON_ENV_VAR"]
+    os.environ["SFT_TRAINER_CONFIG_JSON_PATH"] = HAPPY_PATH_DUMMY_CONFIG_PATH
+
+    job_config = config_utils.get_json_config()
+    assert job_config is not None
+    assert job_config["model_name_or_path"] == "bigscience/bloom-560m"
+
+
+def test_get_json_config_can_load_from_envvar():
+    """Test that the function get_json_config can read
+    the json path from env var SFT_TRAINER_CONFIG_JSON_ENV_VAR
+    """
+    config_json = {"model_name_or_path": "foobar"}
+    message_bytes = pickle.dumps(config_json)
+    base64_bytes = base64.b64encode(message_bytes)
+    encoded_json = base64_bytes.decode("ascii")
+    os.environ["SFT_TRAINER_CONFIG_JSON_ENV_VAR"] = encoded_json
+
+    job_config = config_utils.get_json_config()
+    assert job_config is not None
+    assert job_config["model_name_or_path"] == "foobar"