diff --git a/packages/features/instant-meeting/handleInstantMeeting.test.ts b/packages/features/instant-meeting/handleInstantMeeting.test.ts
new file mode 100644
index 00000000000000..7cdce98cbce56d
--- /dev/null
+++ b/packages/features/instant-meeting/handleInstantMeeting.test.ts
@@ -0,0 +1,203 @@
+import prismock from "../../../tests/libs/__mocks__/prisma";
+
+import {
+  createBookingScenario,
+  getScenarioData,
+  getGoogleCalendarCredential,
+  TestData,
+  getOrganizer,
+  mockSuccessfulVideoMeetingCreation,
+  mockCalendarToHaveNoBusySlots,
+  mockNoTranslations,
+} from "@calcom/web/test/utils/bookingScenario/bookingScenario";
+
+import type { NextApiRequest } from "next";
+import { describe, it, expect, vi, beforeEach } from "vitest";
+
+import { BookingStatus } from "@calcom/prisma/enums";
+
+vi.mock("@calcom/features/notifications/sendNotification", () => ({
+  sendNotification: vi.fn(),
+}));
+
+vi.mock("@calcom/lib/videoClient", () => ({
+  createInstantMeetingWithCalVideo: vi.fn().mockResolvedValue({
+    type: "daily_video",
+    id: "MOCK_INSTANT_MEETING_ID",
+    password: "MOCK_INSTANT_PASS",
+    url: "http://mock-dailyvideo.example.com/instant-meeting-url",
+  }),
+}));
+
+describe("handleInstantMeeting", () => {
+  beforeEach(() => {
+    mockNoTranslations();
+  });
+  describe("team event instant meeting", () => {
+    it("should successfully create instant meeting for team event", async () => {
+      const handler = (await import("./handleInstantMeeting")).default;
+      const organizer = getOrganizer({
+        name: "Organizer",
+        email: "organizer@example.com",
+        id: 101,
+        schedules: [TestData.schedules.IstWorkHours],
+        credentials: [getGoogleCalendarCredential()],
+        selectedCalendars: [TestData.selectedCalendars.google],
+      });
+
+      const { dateString: plus1DateString } = getDate({ dateIncrement: 1 });
+
+      await createBookingScenario(
+        getScenarioData({
+          eventTypes: [
+            {
+              id: 1,
+              slotInterval: 45,
+              length: 45,
+              users: [
+                {
+                  id: 101,
+                },
+              ],
+              team: {
+                id: 1,
+              },
+              instantMeetingExpiryTimeOffsetInSeconds: 90,
+            },
+          ],
+          organizer,
+          apps: [TestData.apps["daily-video"], TestData.apps["google-calendar"]],
+        })
+      );
+
+      mockSuccessfulVideoMeetingCreation({
+        metadataLookupKey: "dailyvideo",
+        videoMeetingData: {
+          id: "MOCK_ID",
+          password: "MOCK_PASS",
+          url: `http://mock-dailyvideo.example.com/meeting-1`,
+        },
+      });
+      mockCalendarToHaveNoBusySlots("googlecalendar", {
+        create: {
+          uid: "MOCKED_GOOGLE_CALENDAR_EVENT_ID",
+        },
+      });
+
+      const mockReqBody = {
+        eventTypeId: 1,
+        name: "Test User",
+        email: "test@example.com",
+        timeZone: "UTC",
+        language: "en",
+        start: `${plus1DateString}T04:00:00.000Z`,
+        end: `${plus1DateString}T04:45:00.000Z`,
+        responses: {
+          name: "Test User",
+          email: "test@example.com",
+        },
+        metadata: {},
+      };
+
+      const mockRequest = {
+        body: mockReqBody,
+        method: "POST",
+        headers: {},
+        query: {},
+        cookies: {},
+        url: "/api/instant-meeting",
+      } as NextApiRequest;
+
+      const result = await handler(mockRequest);
+
+      expect(result.message).toBe("Success");
+      expect(result.bookingId).toBeDefined();
+      expect(result.bookingUid).toBeDefined();
+      expect(result.meetingTokenId).toBeDefined();
+      expect(result.expires).toBeInstanceOf(Date);
+
+      const booking = await prismock.booking.findUnique({
+        where: { id: result.bookingId },
+        include: { attendees: true, references: true },
+      });
+
+      expect(booking).toBeDefined();
+      expect(booking?.status).toBe(BookingStatus.AWAITING_HOST);
+      expect(booking?.attendees).toHaveLength(1);
+      expect(booking?.attendees[0].email).toBe("test@example.com");
+      expect(booking?.references).toHaveLength(1);
+      expect(booking?.references[0].type).toBe("daily_video");
+    });
+
+    it("should throw error for non-team event types", async () => {
+      const handler = (await import("./handleInstantMeeting")).default;
+      const organizer = getOrganizer({
+        name: "Organizer",
+        email: "organizer@example.com",
+        id: 101,
+        schedules: [TestData.schedules.IstWorkHours],
+        credentials: [getGoogleCalendarCredential()],
+        selectedCalendars: [TestData.selectedCalendars.google],
+      });
+
+      const { dateString: plus1DateString } = getDate({ dateIncrement: 1 });
+
+      await createBookingScenario(
+        getScenarioData({
+          eventTypes: [
+            {
+              id: 1,
+              slotInterval: 45,
+              length: 45,
+              users: [
+                {
+                  id: 101,
+                },
+              ],
+            },
+          ],
+          organizer,
+          apps: [TestData.apps["daily-video"], TestData.apps["google-calendar"]],
+        })
+      );
+
+      const mockReqBody = {
+        eventTypeId: 1,
+        name: "Test User",
+        email: "test@example.com",
+        timeZone: "UTC",
+        language: "en",
+        start: `${plus1DateString}T04:00:00.000Z`,
+        end: `${plus1DateString}T04:45:00.000Z`,
+        responses: {
+          name: "Test User",
+          email: "test@example.com",
+        },
+        metadata: {},
+      };
+
+      const mockRequest = {
+        body: mockReqBody,
+        method: "POST",
+        headers: {},
+        query: {},
+        cookies: {},
+        url: "/api/instant-meeting",
+      } as NextApiRequest;
+
+      await expect(handler(mockRequest)).rejects.toThrow(
+        "Only Team Event Types are supported for Instant Meeting"
+      );
+    });
+  });
+});
+
+function getDate(param: { dateIncrement?: number } = {}) {
+  const { dateIncrement = 0 } = param;
+  const date = new Date();
+  date.setDate(date.getDate() + dateIncrement);
+  return {
+    date,
+    dateString: date.toISOString().split("T")[0],
+  };
+}