diff --git a/test/models/unit/execution_environment_test.rb b/test/models/unit/execution_environment_test.rb
new file mode 100644
index 00000000..9e1885fe
--- /dev/null
+++ b/test/models/unit/execution_environment_test.rb
@@ -0,0 +1,68 @@
+require 'foreman_ansible_director_test_helper'
+
+module ForemanAnsibleDirectorTests
+  module Models
+    module Unit
+      class ExecutionEnvironmentTest < ForemanAnsibleDirectorTestCase
+        setup do
+          @execution_environment = FactoryBot.create(:execution_environment, organization: @organization)
+          @collection = FactoryBot.create(:ansible_collection, organization: @organization)
+          @version = FactoryBot.create(:content_unit_version, versionable: @collection, version: '1.0.0')
+        end
+
+        test 'registry_url returns local registry path for execution environment' do
+          assert_equal(
+            "localhost/ansible_director/#{@execution_environment.id}:latest",
+            @execution_environment.registry_url
+          )
+        end
+
+        test 'generate_content_hash changes when content changes' do
+          original_hash = @execution_environment.generate_content_hash
+
+          @execution_environment.add_content_unit(@collection, @version)
+
+          assert_not_equal original_hash, @execution_environment.generate_content_hash
+        end
+
+        test 'generate_content_hash changes when ansible version changes' do
+          original_hash = @execution_environment.generate_content_hash
+
+          @execution_environment.ansible_version = '2.19.0'
+
+          assert_not_equal original_hash, @execution_environment.generate_content_hash
+        end
+
+        test 'generate_content_hash changes when base image changes' do
+          original_hash = @execution_environment.generate_content_hash
+
+          @execution_environment.base_image_url = 'quay.io/ansible/other-ee:latest'
+
+          assert_not_equal original_hash, @execution_environment.generate_content_hash
+        end
+
+        test 'rebuild_necessary? tracks content hash changes' do
+          @execution_environment.update!(content_hash: 'abcd1234')
+
+          assert @execution_environment.rebuild_necessary?
+        end
+
+        test 'add_content_unit creates execution environment content unit' do
+          assignment = @execution_environment.add_content_unit(@collection, @version)
+
+          assert_equal @execution_environment, assignment.execution_environment
+          assert_equal @collection, assignment.content_unit
+          assert_equal @version, assignment.content_unit_version
+        end
+
+        test 'add_content_unit reuses existing execution environment content unit' do
+          first_assignment = @execution_environment.add_content_unit(@collection, @version)
+          second_assignment = @execution_environment.add_content_unit(@collection, @version)
+
+          assert_equal first_assignment, second_assignment
+          assert_equal 1, @execution_environment.execution_environment_content_units.count
+        end
+      end
+    end
+  end
+end