diff --git a/tests/ui/LHNItemsPresence.tsx b/tests/ui/LHNItemsPresence.tsx
new file mode 100644
index 000000000000..5244bc7d9ea4
--- /dev/null
+++ b/tests/ui/LHNItemsPresence.tsx
@@ -0,0 +1,188 @@
+import {screen} from '@testing-library/react-native';
+import type {ComponentType} from 'react';
+import Onyx from 'react-native-onyx';
+import type {WithCurrentUserPersonalDetailsProps} from '@components/withCurrentUserPersonalDetails';
+import * as Localize from '@libs/Localize';
+import CONST from '@src/CONST';
+import ONYXKEYS from '@src/ONYXKEYS';
+import type {PersonalDetailsList} from '@src/types/onyx';
+import type {ReportCollectionDataSet} from '@src/types/onyx/Report';
+import * as LHNTestUtils from '../utils/LHNTestUtils';
+import * as TestHelper from '../utils/TestHelper';
+import waitForBatchedUpdates from '../utils/waitForBatchedUpdates';
+import waitForBatchedUpdatesWithAct from '../utils/waitForBatchedUpdatesWithAct';
+import wrapOnyxWithWaitForBatchedUpdates from '../utils/wrapOnyxWithWaitForBatchedUpdates';
+
+// Be sure to include the mocked permissions library, as some components that are rendered
+// during the test depend on its methods.
+jest.mock('@libs/Permissions');
+jest.mock('@src/hooks/useActiveWorkspaceFromNavigationState');
+
+type LazyLoadLHNTestUtils = {
+    fakePersonalDetails: PersonalDetailsList;
+};
+jest.mock('@components/withCurrentUserPersonalDetails', () => {
+    // Lazy loading of LHNTestUtils
+    const lazyLoadLHNTestUtils = () => require<LazyLoadLHNTestUtils>('../utils/LHNTestUtils');
+
+    return <TProps extends WithCurrentUserPersonalDetailsProps>(Component: ComponentType<TProps>) => {
+        function WrappedComponent(props: Omit<TProps, keyof WithCurrentUserPersonalDetailsProps>) {
+            const currentUserAccountID = 1;
+            const LHNTestUtilsMock = lazyLoadLHNTestUtils(); // Load LHNTestUtils here
+
+            return (
+                <Component
+                    // eslint-disable-next-line react/jsx-props-no-spreading
+                    {...(props as TProps)}
+                    currentUserPersonalDetails={LHNTestUtilsMock.fakePersonalDetails[currentUserAccountID]}
+                />
+            );
+        }
+
+        WrappedComponent.displayName = 'WrappedComponent';
+
+        return WrappedComponent;
+    };
+});
+
+const TEST_USER_ACCOUNT_ID = 1;
+const TEST_USER_LOGIN = 'test@test.com';
+const betas = [CONST.BETAS.DEFAULT_ROOMS];
+
+const signUpWithTestUser = () => {
+    TestHelper.signInWithTestUser(TEST_USER_ACCOUNT_ID, TEST_USER_LOGIN);
+};
+
+const getOptionRows = () => {
+    const hintText = Localize.translateLocal('accessibilityHints.navigatesToChat');
+    return screen.queryAllByAccessibilityHint(hintText);
+};
+
+const getDisplayNames = () => {
+    const hintText = Localize.translateLocal('accessibilityHints.chatUserDisplayNames');
+    return screen.queryAllByLabelText(hintText);
+};
+
+// Reusable function to setup a mock report. Feel free to add more parameters as needed.
+const createReport = (isPinned = false, participants = [1, 2], messageCount = 1) => {
+    return {
+        ...LHNTestUtils.getFakeReport(participants, messageCount),
+        isPinned,
+    };
+};
+
+describe('SidebarLinksData', () => {
+    beforeAll(() => {
+        Onyx.init({
+            keys: ONYXKEYS,
+            safeEvictionKeys: [ONYXKEYS.COLLECTION.REPORT_ACTIONS],
+        });
+    });
+
+    // Helper to initialize common state
+    const initializeState = async (reportData: ReportCollectionDataSet) => {
+        await waitForBatchedUpdates();
+        await Onyx.multiSet({
+            [ONYXKEYS.NVP_PRIORITY_MODE]: CONST.PRIORITY_MODE.GSD,
+            [ONYXKEYS.BETAS]: betas,
+            [ONYXKEYS.PERSONAL_DETAILS_LIST]: LHNTestUtils.fakePersonalDetails,
+            [ONYXKEYS.IS_LOADING_APP]: false,
+            ...reportData,
+        });
+    };
+
+    beforeEach(() => {
+        wrapOnyxWithWaitForBatchedUpdates(Onyx);
+        // Initialize the network key for OfflineWithFeedback
+        Onyx.merge(ONYXKEYS.NETWORK, {isOffline: false});
+        signUpWithTestUser();
+    });
+
+    afterEach(async () => {
+        await Onyx.clear();
+        await waitForBatchedUpdatesWithAct();
+    });
+
+    describe('Report that should be included in the LHN', () => {
+        it('should display the current active report', async () => {
+            LHNTestUtils.getDefaultRenderedSidebarLinks();
+
+            const report = createReport();
+
+            await initializeState({
+                [`${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`]: report,
+            });
+            // check if no other reports are displayed
+            expect(getOptionRows()).toHaveLength(0);
+
+            LHNTestUtils.getDefaultRenderedSidebarLinks(report.reportID);
+
+            // check if active report is displayed
+            expect(getOptionRows()).toHaveLength(1);
+            // TODO The report is highlighted as the active report.
+        });
+
+        it('should display draft report', async () => {
+            LHNTestUtils.getDefaultRenderedSidebarLinks();
+            const draftReport = {
+                ...createReport(false, [1, 2], 0),
+                writeCapability: CONST.REPORT.WRITE_CAPABILITIES.ALL,
+            };
+
+            await initializeState({
+                [`${ONYXKEYS.COLLECTION.REPORT}${draftReport.reportID}`]: draftReport,
+            });
+
+            await waitForBatchedUpdatesWithAct();
+            await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT_DRAFT_COMMENT}${draftReport.reportID}`, 'draft report message');
+
+            // check if draft report is displayed
+            expect(getDisplayNames()).toHaveLength(1);
+            // check if draft icon is displayed
+            expect(screen.getByTestId('Pencil Icon')).toBeOnTheScreen();
+        });
+
+        it('should display pinned report', async () => {
+            LHNTestUtils.getDefaultRenderedSidebarLinks();
+            const report = createReport(false);
+            await initializeState({
+                [`${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`]: report,
+            });
+
+            // report is not pinned
+            expect(getOptionRows()).toHaveLength(0);
+            await waitForBatchedUpdatesWithAct();
+
+            // pin the report
+            await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`, {isPinned: true});
+
+            // report is pinned
+            expect(getOptionRows()).toHaveLength(1);
+
+            // TODO The report is indicated as pinned.
+        });
+    });
+
+    describe('Report that should NOT be included in the LHN', () => {
+        it('should not display report with no participants', async () => {
+            LHNTestUtils.getDefaultRenderedSidebarLinks();
+            const report = LHNTestUtils.getFakeReport([]);
+
+            await initializeState({
+                [`${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`]: report,
+            });
+
+            expect(getOptionRows()).toHaveLength(0);
+        });
+
+        it('should not display empty chat', async () => {
+            LHNTestUtils.getDefaultRenderedSidebarLinks();
+            const report = LHNTestUtils.getFakeReport([1, 2], 0);
+
+            await initializeState({
+                [`${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`]: report,
+            });
+            expect(getOptionRows()).toHaveLength(0);
+        });
+    });
+});
diff --git a/tests/utils/LHNTestUtils.tsx b/tests/utils/LHNTestUtils.tsx
index 6fb767cfb3e3..cdb9f51bb3b7 100644
--- a/tests/utils/LHNTestUtils.tsx
+++ b/tests/utils/LHNTestUtils.tsx
@@ -16,6 +16,7 @@ import SidebarLinksData from '@pages/home/sidebar/SidebarLinksData';
 import CONST from '@src/CONST';
 import type {PersonalDetailsList, Policy, Report, ReportAction} from '@src/types/onyx';
 import type ReportActionName from '@src/types/onyx/ReportActionName';
+import waitForBatchedUpdatesWithAct from './waitForBatchedUpdatesWithAct';
 
 type MockedReportActionItemSingleProps = {
     /** Determines if the avatar is displayed as a subscript (positioned lower than normal) */
@@ -239,7 +240,7 @@ function getFakeAdvancedReportAction(actionName: ReportActionName = 'IOU', actor
 
 function MockedSidebarLinks({currentReportID = ''}: MockedSidebarLinksProps) {
     return (
-        <ComposeProviders components={[OnyxProvider, LocaleContextProvider, EnvironmentProvider, CurrentReportIDContextProvider]}>
+        <ComposeProviders components={[OnyxProvider, LocaleContextProvider]}>
             {/*
              * Only required to make unit tests work, since we
              * explicitly pass the currentReportID in LHNTestUtils
@@ -276,6 +277,7 @@ function getDefaultRenderedSidebarLinks(currentReportID = '') {
         // and there are a lot of render warnings. It needs to be done like this because normally in
         // our app (App.js) is when the react application is wrapped in the context providers
         render(<MockedSidebarLinks currentReportID={currentReportID} />);
+        return waitForBatchedUpdatesWithAct();
     } catch (error) {
         console.error(error);
     }