diff --git a/src/components/__tests__/PromptEditorModal.test.tsx b/src/components/__tests__/PromptEditorModal.test.tsx
new file mode 100644
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--- /dev/null
+++ b/src/components/__tests__/PromptEditorModal.test.tsx
@@ -0,0 +1,596 @@
+import { describe, it, expect, vi, beforeEach, afterEach } from "vitest";
+import { render, screen, fireEvent, waitFor } from "@testing-library/react";
+import { PromptEditorModal } from "@/components/modals/PromptEditorModal";
+
+// Mock localStorage
+const mockLocalStorage = {
+  getItem: vi.fn(),
+  setItem: vi.fn(),
+  removeItem: vi.fn(),
+  clear: vi.fn(),
+};
+
+Object.defineProperty(window, "localStorage", {
+  value: mockLocalStorage,
+  writable: true,
+});
+
+describe("PromptEditorModal", () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+    mockLocalStorage.getItem.mockReturnValue(null);
+  });
+
+  afterEach(() => {
+    vi.restoreAllMocks();
+  });
+
+  describe("Visibility", () => {
+    it("should not render when isOpen is false", () => {
+      render(
+        <PromptEditorModal
+          isOpen={false}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      expect(screen.queryByText("Edit Prompt")).not.toBeInTheDocument();
+    });
+
+    it("should render with title when isOpen is true", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      expect(screen.getByText("Edit Prompt")).toBeInTheDocument();
+    });
+  });
+
+  describe("Textarea", () => {
+    it("should display textarea with initial prompt value", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Initial test prompt"
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      expect(textarea).toHaveValue("Initial test prompt");
+    });
+
+    it("should update textarea value on typing", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "New prompt text" } });
+
+      expect(textarea).toHaveValue("New prompt text");
+    });
+
+    it("should update local state when initialPrompt prop changes", () => {
+      const { rerender } = render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="First prompt"
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      expect(textarea).toHaveValue("First prompt");
+
+      rerender(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Updated prompt"
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      expect(textarea).toHaveValue("Updated prompt");
+    });
+  });
+
+  describe("Submit Button", () => {
+    it("should render Submit button", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      expect(screen.getByText("Submit")).toBeInTheDocument();
+    });
+
+    it("should call onSubmit with updated prompt when Submit is clicked", () => {
+      const onSubmit = vi.fn();
+      const onClose = vi.fn();
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original prompt"
+          onSubmit={onSubmit}
+          onClose={onClose}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Modified prompt" } });
+
+      fireEvent.click(screen.getByText("Submit"));
+
+      expect(onSubmit).toHaveBeenCalledWith("Modified prompt");
+      expect(onClose).toHaveBeenCalled();
+    });
+
+    it("should call onSubmit with unchanged prompt if no edits made", () => {
+      const onSubmit = vi.fn();
+      const onClose = vi.fn();
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Same prompt"
+          onSubmit={onSubmit}
+          onClose={onClose}
+        />
+      );
+
+      fireEvent.click(screen.getByText("Submit"));
+
+      expect(onSubmit).toHaveBeenCalledWith("Same prompt");
+      expect(onClose).toHaveBeenCalled();
+    });
+  });
+
+  describe("Cancel Button", () => {
+    it("should render Cancel button", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      expect(screen.getByText("Cancel")).toBeInTheDocument();
+    });
+
+    it("should call onClose without saving when Cancel is clicked and no changes", () => {
+      const onSubmit = vi.fn();
+      const onClose = vi.fn();
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original prompt"
+          onSubmit={onSubmit}
+          onClose={onClose}
+        />
+      );
+
+      fireEvent.click(screen.getByText("Cancel"));
+
+      expect(onSubmit).not.toHaveBeenCalled();
+      expect(onClose).toHaveBeenCalled();
+    });
+
+    it("should show confirmation dialog when Cancel is clicked with unsaved changes", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original prompt"
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Modified prompt" } });
+
+      fireEvent.click(screen.getByText("Cancel"));
+
+      expect(screen.getByText("You have unsaved changes")).toBeInTheDocument();
+    });
+  });
+
+  describe("Unsaved Changes Confirmation Dialog", () => {
+    it("should show Discard and Submit buttons in confirmation dialog", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original"
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Changed" } });
+
+      fireEvent.click(screen.getByText("Cancel"));
+
+      expect(screen.getByText("You have unsaved changes")).toBeInTheDocument();
+      expect(screen.getByText("Discard")).toBeInTheDocument();
+      // Submit button is in both the main form and the confirmation dialog
+      const submitButtons = screen.getAllByText("Submit");
+      expect(submitButtons.length).toBe(2);
+    });
+
+    it("should close without saving when Discard is clicked", () => {
+      const onSubmit = vi.fn();
+      const onClose = vi.fn();
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original"
+          onSubmit={onSubmit}
+          onClose={onClose}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Changed" } });
+
+      fireEvent.click(screen.getByText("Cancel"));
+      fireEvent.click(screen.getByText("Discard"));
+
+      expect(onSubmit).not.toHaveBeenCalled();
+      expect(onClose).toHaveBeenCalled();
+    });
+
+    it("should save and close when Submit is clicked in confirmation dialog", () => {
+      const onSubmit = vi.fn();
+      const onClose = vi.fn();
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original"
+          onSubmit={onSubmit}
+          onClose={onClose}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Changed" } });
+
+      fireEvent.click(screen.getByText("Cancel"));
+
+      // Click the Submit button in the confirmation dialog
+      const submitButtons = screen.getAllByText("Submit");
+      fireEvent.click(submitButtons[1]); // Second Submit button is in the confirmation dialog
+
+      expect(onSubmit).toHaveBeenCalledWith("Changed");
+      expect(onClose).toHaveBeenCalled();
+    });
+
+    it("should dismiss confirmation dialog when close button is clicked", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original"
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Changed" } });
+
+      fireEvent.click(screen.getByText("Cancel"));
+
+      expect(screen.getByText("You have unsaved changes")).toBeInTheDocument();
+
+      // Click the X button to close the confirmation
+      const closeButton = screen.getByLabelText("Close");
+      fireEvent.click(closeButton);
+
+      expect(screen.queryByText("You have unsaved changes")).not.toBeInTheDocument();
+    });
+
+    it("should dismiss confirmation dialog when clicking outside of it", async () => {
+      const { container } = render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original"
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Changed" } });
+
+      fireEvent.click(screen.getByText("Cancel"));
+
+      expect(screen.getByText("You have unsaved changes")).toBeInTheDocument();
+
+      // Click on the confirmation backdrop
+      const confirmationBackdrop = container.querySelector(".absolute.inset-0.flex.items-center.justify-center.bg-black\\/60");
+      fireEvent.click(confirmationBackdrop!);
+
+      await waitFor(() => {
+        expect(screen.queryByText("You have unsaved changes")).not.toBeInTheDocument();
+      });
+    });
+  });
+
+  describe("Escape Key", () => {
+    it("should close modal without saving when Escape is pressed and no changes", () => {
+      const onSubmit = vi.fn();
+      const onClose = vi.fn();
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original prompt"
+          onSubmit={onSubmit}
+          onClose={onClose}
+        />
+      );
+
+      fireEvent.keyDown(window, { key: "Escape" });
+
+      expect(onSubmit).not.toHaveBeenCalled();
+      expect(onClose).toHaveBeenCalled();
+    });
+
+    it("should show confirmation dialog when Escape is pressed with unsaved changes", () => {
+      const onClose = vi.fn();
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original prompt"
+          onSubmit={vi.fn()}
+          onClose={onClose}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Changed prompt" } });
+
+      fireEvent.keyDown(window, { key: "Escape" });
+
+      expect(screen.getByText("You have unsaved changes")).toBeInTheDocument();
+      expect(onClose).not.toHaveBeenCalled();
+    });
+  });
+
+  describe("Backdrop Click", () => {
+    it("should close modal when backdrop is clicked and no changes", () => {
+      const onClose = vi.fn();
+
+      const { container } = render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original prompt"
+          onSubmit={vi.fn()}
+          onClose={onClose}
+        />
+      );
+
+      // Click on the backdrop (outer div with bg-black/50)
+      const backdrop = container.querySelector(".fixed.inset-0");
+      fireEvent.click(backdrop!);
+
+      expect(onClose).toHaveBeenCalled();
+    });
+
+    it("should show confirmation when backdrop is clicked with unsaved changes", () => {
+      const onClose = vi.fn();
+
+      const { container } = render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Original"
+          onSubmit={vi.fn()}
+          onClose={onClose}
+        />
+      );
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      fireEvent.change(textarea, { target: { value: "Changed" } });
+
+      const backdrop = container.querySelector(".fixed.inset-0");
+      fireEvent.click(backdrop!);
+
+      expect(screen.getByText("You have unsaved changes")).toBeInTheDocument();
+      expect(onClose).not.toHaveBeenCalled();
+    });
+
+    it("should not close when clicking inside the dialog", () => {
+      const onClose = vi.fn();
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt="Test"
+          onSubmit={vi.fn()}
+          onClose={onClose}
+        />
+      );
+
+      // Click on the title (inside the dialog)
+      fireEvent.click(screen.getByText("Edit Prompt"));
+
+      expect(onClose).not.toHaveBeenCalled();
+    });
+  });
+
+  describe("Font Size", () => {
+    it("should render font size dropdown", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      // Look for a select element with font size options
+      const fontSizeSelect = screen.getByRole("combobox");
+      expect(fontSizeSelect).toBeInTheDocument();
+    });
+
+    it("should use default font size of 14px", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const fontSizeSelect = screen.getByRole("combobox");
+      expect(fontSizeSelect).toHaveValue("14");
+    });
+
+    it("should load saved font size from localStorage", () => {
+      mockLocalStorage.getItem.mockReturnValue("18");
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const fontSizeSelect = screen.getByRole("combobox");
+      expect(fontSizeSelect).toHaveValue("18");
+    });
+
+    it("should update font size when selection changes", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const fontSizeSelect = screen.getByRole("combobox");
+      fireEvent.change(fontSizeSelect, { target: { value: "20" } });
+
+      expect(fontSizeSelect).toHaveValue("20");
+    });
+
+    it("should save font size to localStorage when changed", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const fontSizeSelect = screen.getByRole("combobox");
+      fireEvent.change(fontSizeSelect, { target: { value: "20" } });
+
+      expect(mockLocalStorage.setItem).toHaveBeenCalledWith(
+        "prompt-editor-font-size",
+        "20"
+      );
+    });
+
+    it("should render all font size options", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      expect(screen.getByText("10px")).toBeInTheDocument();
+      expect(screen.getByText("12px")).toBeInTheDocument();
+      expect(screen.getByText("14px")).toBeInTheDocument();
+      expect(screen.getByText("16px")).toBeInTheDocument();
+      expect(screen.getByText("18px")).toBeInTheDocument();
+      expect(screen.getByText("20px")).toBeInTheDocument();
+      expect(screen.getByText("24px")).toBeInTheDocument();
+    });
+
+    it("should apply font size to textarea", () => {
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const fontSizeSelect = screen.getByRole("combobox");
+      fireEvent.change(fontSizeSelect, { target: { value: "20" } });
+
+      const textarea = screen.getByPlaceholderText("Describe what to generate...");
+      expect(textarea).toHaveStyle({ fontSize: "20px" });
+    });
+
+    it("should fall back to default if localStorage has invalid value", () => {
+      mockLocalStorage.getItem.mockReturnValue("invalid");
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const fontSizeSelect = screen.getByRole("combobox");
+      expect(fontSizeSelect).toHaveValue("14");
+    });
+
+    it("should fall back to default if localStorage value is out of range", () => {
+      mockLocalStorage.getItem.mockReturnValue("5"); // Below MIN_FONT_SIZE
+
+      render(
+        <PromptEditorModal
+          isOpen={true}
+          initialPrompt=""
+          onSubmit={vi.fn()}
+          onClose={vi.fn()}
+        />
+      );
+
+      const fontSizeSelect = screen.getByRole("combobox");
+      expect(fontSizeSelect).toHaveValue("14");
+    });
+  });
+});