diff --git a/packages/ui/components/editor/Editor.test.tsx b/packages/ui/components/editor/Editor.test.tsx
new file mode 100644
index 0000000000..34d5da2a4e
--- /dev/null
+++ b/packages/ui/components/editor/Editor.test.tsx
@@ -0,0 +1,79 @@
+import { render, screen } from "@testing-library/react";
+import userEvent from "@testing-library/user-event";
+import { describe, it, expect, vi } from "vitest";
+
+import type { TextEditorProps } from "./Editor";
+import { Editor } from "./Editor";
+
+describe("Editor", () => {
+  const defaultProps: TextEditorProps = {
+    getText: vi.fn(),
+    setText: vi.fn(),
+    variables: ["name", "email"],
+    height: "200px",
+    placeholder: "Start typing...",
+  };
+
+  it("renders editor with default props", () => {
+    render(<Editor {...defaultProps} />);
+    expect(screen.getByRole("textbox")).toBeInTheDocument();
+    expect(screen.getByText("Start typing...")).toBeInTheDocument();
+  });
+
+  it("renders toolbar", () => {
+    render(<Editor {...defaultProps} />);
+    expect(screen.getByText("Normal")).toBeInTheDocument();
+    expect(screen.getByText("add_variable")).toBeInTheDocument();
+  });
+
+  it("respects editable prop", () => {
+    render(<Editor {...defaultProps} editable={false} />);
+    const editor = screen.getByTestId("editor-input");
+    // eslint-disable-next-line playwright/missing-playwright-await
+    expect(editor).toHaveAttribute("contenteditable", "false");
+  });
+
+  it("excludes toolbar items", () => {
+    render(<Editor {...defaultProps} excludedToolbarItems={["bold", "italic"]} />);
+    expect(screen.queryByTitle("Bold")).not.toBeInTheDocument();
+    expect(screen.queryByTitle("Italic")).not.toBeInTheDocument();
+  });
+
+  it("renders variables plugin when variables are provided", () => {
+    render(<Editor {...defaultProps} />);
+    expect(screen.getByText("add_variable")).toBeInTheDocument();
+  });
+
+  it("does not render variables plugin when variables are not provided", () => {
+    render(<Editor {...defaultProps} variables={undefined} />);
+    expect(screen.queryByText("add_variable")).not.toBeInTheDocument();
+  });
+
+  it("disables lists when disableLists is true", () => {
+    render(<Editor {...defaultProps} disableLists={true} />);
+    expect(screen.queryByTitle("Bullet List")).not.toBeInTheDocument();
+    expect(screen.queryByTitle("Numbered List")).not.toBeInTheDocument();
+  });
+
+  it("calls getText when text is entered", async () => {
+    const user = userEvent.setup();
+    render(<Editor {...defaultProps} />);
+    const editor = screen.getByRole("textbox");
+    await user.type(editor, "Hello, world!");
+    expect(defaultProps.getText).toHaveBeenCalled();
+  });
+
+  it("applies custom height", () => {
+    render(<Editor {...defaultProps} height="300px" />);
+    const editorInner = screen.getByRole("textbox").parentElement;
+    expect(editorInner).toHaveStyle({ height: "300px" });
+  });
+
+  it("handles first render and update template", () => {
+    const setFirstRender = vi.fn();
+    render(
+      <Editor {...defaultProps} updateTemplate={true} firstRender={true} setFirstRender={setFirstRender} />
+    );
+    expect(setFirstRender).toHaveBeenCalled();
+  });
+});
diff --git a/packages/ui/components/editor/Editor.tsx b/packages/ui/components/editor/Editor.tsx
index 3cd7799e3f..c4a62ca09a 100644
--- a/packages/ui/components/editor/Editor.tsx
+++ b/packages/ui/components/editor/Editor.tsx
@@ -88,6 +88,7 @@ export const Editor = (props: TextEditorProps) => {
             <RichTextPlugin
               contentEditable={
                 <ContentEditable
+                  data-testid="editor-input"
                   readOnly={!editable}
                   style={{ height: props.height }}
                   className="editor-input"
diff --git a/packages/ui/components/editor/nodes/VariableNode.test.ts b/packages/ui/components/editor/nodes/VariableNode.test.ts
new file mode 100644
index 0000000000..54b5102122
--- /dev/null
+++ b/packages/ui/components/editor/nodes/VariableNode.test.ts
@@ -0,0 +1,87 @@
+import { createEditor, TextNode, type LexicalEditor } from "lexical";
+import { describe, it, expect, beforeEach } from "vitest";
+
+import { $createVariableNode, $isVariableNode, VariableNode } from "./VariableNode";
+
+let editor: LexicalEditor;
+
+beforeEach(() => {
+  editor = createEditor({
+    nodes: [VariableNode],
+  });
+});
+
+describe("VariableNode", () => {
+  it("should create a VariableNode with given text", () => {
+    editor.update(() => {
+      const node = $createVariableNode("test");
+      expect(node.getTextContent()).toBe("test");
+    });
+  });
+
+  it("should create a VariableNode with default text", () => {
+    editor.update(() => {
+      const node = $createVariableNode();
+      expect(node.getTextContent()).toBe("");
+    });
+  });
+
+  it("should clone a VariableNode", () => {
+    editor.update(() => {
+      const original = $createVariableNode("test");
+      const clone = VariableNode.clone(original);
+      expect(clone.getTextContent()).toBe("test");
+      expect(clone.__key).not.toBe(original.__key);
+    });
+  });
+
+  it("should create a DOM element with correct attributes", () => {
+    editor.update(() => {
+      const node = $createVariableNode("test");
+      const dom = node.createDOM(editor._config);
+      expect(dom.className).toBe("bg-info");
+      expect(dom.getAttribute("data-lexical-variable")).toBe("true");
+    });
+  });
+
+  it("should export JSON correctly", () => {
+    editor.update(() => {
+      const node = $createVariableNode("test");
+      const json = node.exportJSON();
+      expect(json).toEqual({
+        ...node.exportJSON(),
+        type: "variable",
+        version: 1,
+      });
+    });
+  });
+
+  it("should return true for isTextEntity", () => {
+    editor.update(() => {
+      const node = $createVariableNode("test");
+      expect(node.isTextEntity()).toBe(true);
+    });
+  });
+
+  it("should return false for canInsertTextBefore and canInsertTextAfter", () => {
+    editor.update(() => {
+      const node = $createVariableNode("test");
+      expect(node.canInsertTextBefore()).toBe(false);
+      expect(node.canInsertTextAfter()).toBe(false);
+    });
+  });
+
+  it("should identify a VariableNode correctly", () => {
+    editor.update(() => {
+      const node = $createVariableNode("test");
+      expect($isVariableNode(node)).toBe(true);
+    });
+  });
+
+  it("should not identify a non-VariableNode", () => {
+    editor.update(() => {
+      const node = new TextNode("test");
+      expect($isVariableNode(node)).toBe(false);
+    });
+  });
+});
diff --git a/packages/ui/components/editor/plugins/AddVariablesDropdown.test.tsx b/packages/ui/components/editor/plugins/AddVariablesDropdown.test.tsx
new file mode 100644
index 0000000000..4905ef4bf9
--- /dev/null
+++ b/packages/ui/components/editor/plugins/AddVariablesDropdown.test.tsx
@@ -0,0 +1,73 @@
+import { render, screen, fireEvent, waitFor } from "@testing-library/react";
+import { vi, describe, it, expect } from "vitest";
+
+import { AddVariablesDropdown } from "./AddVariablesDropdown";
+
+vi.mock("@calcom/lib/hooks/useLocale", () => ({
+  useLocale: () => ({
+    t: (key: string) => key,
+  }),
+}));
+
+// Mock the Dropdown component
+vi.mock("../../form/dropdown", () => ({
+  Dropdown: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
+  DropdownMenuTrigger: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
+  DropdownMenuContent: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
+  DropdownMenuItem: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
+}));
+
+describe("AddVariablesDropdown", () => {
+  const mockAddVariable = vi.fn();
+  const variables = ["var1", "var2", "var3"];
+
+  it("renders correctly", () => {
+    render(<AddVariablesDropdown addVariable={mockAddVariable} variables={variables} />);
+    expect(screen.getByText("add_variable")).toBeInTheDocument();
+  });
+
+  it("renders text editor version correctly", () => {
+    render(<AddVariablesDropdown addVariable={mockAddVariable} variables={variables} isTextEditor />);
+    expect(screen.getByText("add_variable")).toBeInTheDocument();
+    expect(screen.getByText("+")).toBeInTheDocument();
+  });
+
+  it("opens dropdown on click", async () => {
+    render(<AddVariablesDropdown addVariable={mockAddVariable} variables={variables} />);
+    fireEvent.click(screen.getByText("add_variable"));
+    await waitFor(() => {
+      expect(screen.getByText("add_dynamic_variables".toLocaleUpperCase())).toBeInTheDocument();
+    });
+  });
+
+  it("renders all variables", async () => {
+    render(<AddVariablesDropdown addVariable={mockAddVariable} variables={variables} />);
+    fireEvent.click(screen.getByText("add_variable"));
+    await waitFor(() => {
+      for (const variable of variables) {
+        expect(
+          screen.getByText((content) => content.includes(`{${variable}_variable}`.toUpperCase()))
+        ).toBeInTheDocument();
+      }
+    });
+  });
+
+  it("calls addVariable when a variable is clicked", async () => {
+    render(<AddVariablesDropdown addVariable={mockAddVariable} variables={variables} />);
+    fireEvent.click(screen.getByText("add_variable"));
+    await waitFor(() => {
+      fireEvent.click(screen.getByText((content) => content.includes("{VAR1_VARIABLE}")));
+    });
+    expect(mockAddVariable).toHaveBeenCalledWith("var1_variable");
+  });
+
+  it("renders variable info for each variable", async () => {
+    render(<AddVariablesDropdown addVariable={mockAddVariable} variables={variables} />);
+    fireEvent.click(screen.getByText("add_variable"));
+    await waitFor(() => {
+      for (const variable of variables) {
+        expect(screen.getByText(`${variable}_info`)).toBeInTheDocument();
+      }
+    });
+  });
+});
diff --git a/packages/ui/components/editor/plugins/AutoLinkPlugin.test.tsx b/packages/ui/components/editor/plugins/AutoLinkPlugin.test.tsx
new file mode 100644
index 0000000000..a3566056b3
--- /dev/null
+++ b/packages/ui/components/editor/plugins/AutoLinkPlugin.test.tsx
@@ -0,0 +1,95 @@
+import { LexicalComposer } from "@lexical/react/LexicalComposer";
+import { ContentEditable } from "@lexical/react/LexicalContentEditable";
+import LexicalErrorBoundary from "@lexical/react/LexicalErrorBoundary";
+import { RichTextPlugin } from "@lexical/react/LexicalRichTextPlugin";
+import { render, screen } from "@testing-library/react";
+import { describe, it, expect, vi, beforeEach } from "vitest";
+
+import PlaygroundAutoLinkPlugin from "./AutoLinkPlugin";
+
+const mockAutoLinkPlugin = vi.fn(() => null);
+
+vi.mock("@lexical/react/LexicalAutoLinkPlugin", () => ({
+  // @ts-expect-error - it needs props, somehow it not detect it.
+  AutoLinkPlugin: (props: any) => mockAutoLinkPlugin(props),
+}));
+
+function setup() {
+  const initialConfig = {
+    namespace: "test-editor",
+    onError: (error: Error) => console.error(error),
+  };
+
+  return render(
+    <LexicalComposer initialConfig={initialConfig}>
+      <RichTextPlugin
+        contentEditable={<ContentEditable />}
+        placeholder={<div>Enter some text...</div>}
+        ErrorBoundary={LexicalErrorBoundary}
+      />
+      <PlaygroundAutoLinkPlugin />
+    </LexicalComposer>
+  );
+}
+
+describe("PlaygroundAutoLinkPlugin", () => {
+  beforeEach(() => {
+    mockAutoLinkPlugin.mockClear();
+  });
+
+  it("renders without crashing", () => {
+    setup();
+    expect(screen.getByText("Enter some text...")).toBeTruthy();
+  });
+
+  it("passes correct matchers to AutoLinkPlugin", () => {
+    setup();
+    expect(mockAutoLinkPlugin).toHaveBeenCalledWith(
+      expect.objectContaining({
+        matchers: expect.arrayContaining([expect.any(Function), expect.any(Function)]),
+      })
+    );
+  });
+
+  it("correctly matches URLs", () => {
+    setup();
+    // @ts-expect-error - it's definitely not undefined
+    const matchers = mockAutoLinkPlugin.mock.calls[0][0].matchers;
+    const urlMatcher = matchers[0];
+
+    const validUrls = ["https://www.example.com", "http://example.com", "www.example.com"];
+
+    validUrls.forEach((url) => {
+      const result = urlMatcher(url);
+      expect(result).toEqual({
+        index: 0,
+        length: url.length,
+        text: url,
+        url: url,
+      });
+    });
+
+    expect(urlMatcher("not a url")).toBeNull();
+  });
+
+  it("correctly matches email addresses", () => {
+    setup();
+    // @ts-expect-error - it's definitely not undefined
+    const matchers = mockAutoLinkPlugin.mock.calls[0][0].matchers;
+    const emailMatcher = matchers[1];
+
+    const validEmails = ["test@example.com", "test.name@example.co.uk", "test+alias@example.com"];
+
+    validEmails.forEach((email) => {
+      const result = emailMatcher(email);
+      expect(result).toEqual({
+        index: 0,
+        length: email.length,
+        text: email,
+        url: `mailto:${email}`,
+      });
+    });
+
+    expect(emailMatcher("not an email")).toBeNull();
+  });
+});
diff --git a/packages/ui/components/editor/plugins/ToolbarPlugin.test.tsx b/packages/ui/components/editor/plugins/ToolbarPlugin.test.tsx
new file mode 100644
index 0000000000..2cf97dc0e3
--- /dev/null
+++ b/packages/ui/components/editor/plugins/ToolbarPlugin.test.tsx
@@ -0,0 +1,267 @@
+import { LexicalComposer } from "@lexical/react/LexicalComposer";
+import { ContentEditable } from "@lexical/react/LexicalContentEditable";
+import LexicalErrorBoundary from "@lexical/react/LexicalErrorBoundary";
+import { HistoryPlugin } from "@lexical/react/LexicalHistoryPlugin";
+import { RichTextPlugin } from "@lexical/react/LexicalRichTextPlugin";
+import { render, screen, fireEvent, waitFor, act } from "@testing-library/react";
+import userEvent from "@testing-library/user-event";
+import { describe, it, expect, vi, beforeEach } from "vitest";
+
+import ToolbarPlugin from "./ToolbarPlugin";
+
+// Mocks
+vi.mock("../../..", () => ({
+  Icon: ({ name }: { name: string }) => <span data-testid={`icon-${name}`}>{name}</span>,
+}));
+
+vi.mock("../../button", () => ({
+  Button: ({ children, onClick, StartIcon }: any) => (
+    <button onClick={onClick} data-testid={`button-${StartIcon || "default"}`}>
+      {StartIcon && <span>{StartIcon}</span>}
+      {children}
+    </button>
+  ),
+}));
+
+vi.mock("../../form/dropdown", () => ({
+  Dropdown: ({ children }: any) => <div data-testid="dropdown">{children}</div>,
+  DropdownMenuTrigger: ({ children }: any) => <div data-testid="dropdown-trigger">{children}</div>,
+  DropdownMenuContent: ({ children }: any) => <div data-testid="dropdown-content">{children}</div>,
+  DropdownMenuItem: ({ children }: any) => <div data-testid="dropdown-item">{children}</div>,
+}));
+
+vi.mock("./AddVariablesDropdown", () => ({
+  AddVariablesDropdown: () => <div data-testid="add-variables-dropdown">AddVariablesDropdown</div>,
+}));
+
+const initialConfig = {
+  namespace: "MyEditor",
+  theme: {},
+  onError: (error: Error) => console.error(error),
+};
+
+const TestWrapper = ({ children }: { children: string | JSX.Element }) => (
+  <LexicalComposer initialConfig={initialConfig}>
+    <RichTextPlugin
+      contentEditable={<ContentEditable />}
+      placeholder={<div>Enter some text...</div>}
+      ErrorBoundary={LexicalErrorBoundary}
+    />
+    <HistoryPlugin />
+    {children}
+  </LexicalComposer>
+);
+
+describe("ToolbarPlugin", () => {
+  const defaultProps = {
+    editable: true,
+    getText: vi.fn(() => ""),
+    setText: vi.fn(),
+    firstRender: true,
+    setFirstRender: vi.fn(),
+    updateTemplate: false,
+  };
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  it("renders correctly with default props", () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} />
+      </TestWrapper>
+    );
+
+    expect(screen.getByTestId("dropdown")).toBeDefined();
+    expect(screen.getByTestId("button-bold")).toBeDefined();
+    expect(screen.getByTestId("button-italic")).toBeDefined();
+    expect(screen.getByTestId("button-link")).toBeDefined();
+  });
+
+  it("does not render when editable is false", () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} editable={false} />
+      </TestWrapper>
+    );
+
+    expect(screen.queryByTestId("dropdown")).toBeNull();
+  });
+
+  it("renders variables dropdown when variables prop is provided", () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} variables={["var1", "var2"]} />
+      </TestWrapper>
+    );
+
+    expect(screen.getByTestId("add-variables-dropdown")).toBeDefined();
+  });
+
+  it("excludes toolbar items when specified", () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} excludedToolbarItems={["bold", "italic"]} />
+      </TestWrapper>
+    );
+
+    expect(screen.queryByTestId("button-bold")).toBeNull();
+    expect(screen.queryByTestId("button-italic")).toBeNull();
+    expect(screen.getByTestId("button-link")).toBeDefined();
+  });
+
+  it("changes block type when dropdown item is clicked", async () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} />
+      </TestWrapper>
+    );
+
+    fireEvent.click(screen.getByTestId("dropdown-trigger"));
+    await waitFor(() => {
+      expect(screen.getByTestId("dropdown-content")).toBeDefined();
+    });
+
+    const h1Button = screen.getByText("Large Heading");
+    fireEvent.click(h1Button);
+  });
+
+  it("toggles bold formatting when bold button is clicked", () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} />
+      </TestWrapper>
+    );
+
+    const boldButton = screen.getByTestId("button-bold");
+    fireEvent.click(boldButton);
+  });
+
+  it("toggles italic formatting when italic button is clicked", () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} />
+      </TestWrapper>
+    );
+
+    const italicButton = screen.getByTestId("button-italic");
+    fireEvent.click(italicButton);
+  });
+
+  it("toggles link when link button is clicked", async () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} />
+      </TestWrapper>
+    );
+
+    const linkButton = screen.getByTestId("button-link");
+    fireEvent.click(linkButton);
+  });
+
+  // Additional tests
+  it("calls setText when editor content changes", async () => {
+    render(
+      <TestWrapper>
+        <ToolbarPlugin {...defaultProps} />
+      </TestWrapper>
+    );
+
+    const editableContent = screen.getByRole("textbox");
+    await userEvent.type(editableContent, "Hello, World!");
+
+    expect(defaultProps.setText).toHaveBeenCalled();
+  });
+
+  it("updates editor content when updateTemplate prop changes", async () => {
+    const getText = vi.fn(() => "<p>Initial content</p>");
+    const setText = vi.fn();
+    const setFirstRender = vi.fn();
+
+    const { rerender } = render(
+      <TestWrapper>
+        <ToolbarPlugin
+          {...defaultProps}
+          getText={getText}
+          setText={setText}
+          setFirstRender={setFirstRender}
+          firstRender={true}
+          updateTemplate={false}
+        />
+      </TestWrapper>
+    );
+
+    // Wait for initial render
+    await waitFor(() => {
+      expect(setFirstRender).toHaveBeenCalledWith(false);
+    });
+
+    // Update getText mock and trigger update
+    getText.mockReturnValue("<p>Updated content</p>");
+
+    await act(async () => {
+      rerender(
+        <TestWrapper>
+          <ToolbarPlugin
+            {...defaultProps}
+            getText={getText}
+            setText={setText}
+            setFirstRender={setFirstRender}
+            firstRender={false}
+            updateTemplate={true}
+          />
+        </TestWrapper>
+      );
+    });
+
+    // Wait for content update
+    await waitFor(
+      () => {
+        expect(setText).toHaveBeenCalledWith(expect.stringContaining("Updated content"));
+      },
+      { timeout: 5000 }
+    );
+  });
+
+  it("initializes editor with provided text", async () => {
+    const getText = vi.fn(() => "<p>Initial content</p>");
+    const setText = vi.fn();
+    const setFirstRender = vi.fn();
+
+    render(
+      <TestWrapper>
+        <ToolbarPlugin
+          {...defaultProps}
+          getText={getText}
+          setText={setText}
+          setFirstRender={setFirstRender}
+          firstRender={true}
+        />
+      </TestWrapper>
+    );
+
+    await waitFor(
+      () => {
+        expect(setFirstRender).toHaveBeenCalledWith(false);
+        expect(setText).toHaveBeenCalledWith(expect.stringContaining("Initial content"));
+      },
+      { timeout: 3000 }
+    );
+  });
+
+  it("calls setText after content update", async () => {
+    const setText = vi.fn();
+    await act(async () => {
+      render(
+        <TestWrapper>
+          <ToolbarPlugin {...defaultProps} setText={setText} getText={() => "<p>Test content</p>"} />
+        </TestWrapper>
+      );
+    });
+
+    await waitFor(() => {
+      expect(setText).toHaveBeenCalled();
+    });
+  });
+});