diff --git a/extensions/msteams/src/setup-surface.test.ts b/extensions/msteams/src/setup-surface.test.ts
new file mode 100644
index 00000000000..cf86ffb8ecd
--- /dev/null
+++ b/extensions/msteams/src/setup-surface.test.ts
@@ -0,0 +1,138 @@
+import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
+
+const resolveMSTeamsUserAllowlist = vi.hoisted(() => vi.fn());
+const resolveMSTeamsChannelAllowlist = vi.hoisted(() => vi.fn());
+const normalizeSecretInputString = vi.hoisted(() => vi.fn((value: unknown) => String(value ?? "").trim() || undefined));
+const hasConfiguredMSTeamsCredentials = vi.hoisted(() => vi.fn());
+const resolveMSTeamsCredentials = vi.hoisted(() => vi.fn());
+
+vi.mock("./resolve-allowlist.js", () => ({
+  parseMSTeamsTeamEntry: vi.fn(),
+  resolveMSTeamsChannelAllowlist,
+  resolveMSTeamsUserAllowlist,
+}));
+
+vi.mock("./secret-input.js", () => ({
+  normalizeSecretInputString,
+}));
+
+vi.mock("./token.js", () => ({
+  hasConfiguredMSTeamsCredentials,
+  resolveMSTeamsCredentials,
+}));
+
+describe("msteams setup surface", () => {
+  beforeEach(() => {
+    resolveMSTeamsUserAllowlist.mockReset();
+    resolveMSTeamsChannelAllowlist.mockReset();
+    normalizeSecretInputString.mockClear();
+    hasConfiguredMSTeamsCredentials.mockReset();
+    resolveMSTeamsCredentials.mockReset();
+  });
+
+  afterEach(() => {
+    vi.unstubAllEnvs();
+    vi.resetModules();
+  });
+
+  it("reports configured status from resolved credentials", async () => {
+    resolveMSTeamsCredentials.mockReturnValue({
+      appId: "app",
+    });
+    hasConfiguredMSTeamsCredentials.mockReturnValue(false);
+    const { msteamsSetupWizard } = await import("./setup-surface.js");
+
+    expect(
+      msteamsSetupWizard.status.resolveConfigured({
+        cfg: { channels: { msteams: {} } },
+      } as never),
+    ).toBe(true);
+  });
+
+  it("reports configured status from configured credentials and renders status lines", async () => {
+    resolveMSTeamsCredentials.mockReturnValue(null);
+    hasConfiguredMSTeamsCredentials.mockReturnValue(true);
+    const { msteamsSetupWizard } = await import("./setup-surface.js");
+
+    expect(
+      msteamsSetupWizard.status.resolveConfigured({
+        cfg: { channels: { msteams: {} } },
+      } as never),
+    ).toBe(true);
+
+    hasConfiguredMSTeamsCredentials.mockReturnValue(false);
+    expect(
+      msteamsSetupWizard.status.resolveStatusLines({
+        cfg: { channels: { msteams: {} } },
+      } as never),
+    ).toEqual(["MS Teams: needs app credentials"]);
+  });
+
+  it("finalize keeps env credentials when available and accepted", async () => {
+    vi.stubEnv("MSTEAMS_APP_ID", "env-app");
+    vi.stubEnv("MSTEAMS_APP_PASSWORD", "env-secret");
+    vi.stubEnv("MSTEAMS_TENANT_ID", "env-tenant");
+    resolveMSTeamsCredentials.mockReturnValue(null);
+    hasConfiguredMSTeamsCredentials.mockReturnValue(false);
+
+    const { msteamsSetupWizard } = await import("./setup-surface.js");
+    const result = await msteamsSetupWizard.finalize?.({
+      cfg: { channels: { msteams: { existing: true } } },
+      prompter: {
+        confirm: vi.fn(async () => true),
+        note: vi.fn(async () => {}),
+        text: vi.fn(),
+      },
+    } as never);
+
+    expect(result).toEqual({
+      accountId: "default",
+      cfg: {
+        channels: {
+          msteams: {
+            existing: true,
+            enabled: true,
+          },
+        },
+      },
+    });
+  });
+
+  it("finalize prompts for manual credentials when env/config creds are unavailable", async () => {
+    resolveMSTeamsCredentials.mockReturnValue(null);
+    hasConfiguredMSTeamsCredentials.mockReturnValue(false);
+    const note = vi.fn(async () => {});
+    const confirm = vi.fn(async () => false);
+    const text = vi.fn(async ({ message }: { message: string }) => {
+      if (message === "Enter MS Teams App ID") return "app-id";
+      if (message === "Enter MS Teams App Password") return "app-password";
+      if (message === "Enter MS Teams Tenant ID") return "tenant-id";
+      throw new Error(`Unexpected prompt: ${message}`);
+    });
+
+    const { msteamsSetupWizard } = await import("./setup-surface.js");
+    const result = await msteamsSetupWizard.finalize?.({
+      cfg: { channels: { msteams: {} } },
+      prompter: {
+        confirm,
+        note,
+        text,
+      },
+    } as never);
+
+    expect(note).toHaveBeenCalled();
+    expect(result).toEqual({
+      accountId: "default",
+      cfg: {
+        channels: {
+          msteams: {
+            enabled: true,
+            appId: "app-id",
+            appPassword: "app-password",
+            tenantId: "tenant-id",
+          },
+        },
+      },
+    });
+  });
+});