diff --git a/awx/ui_next/src/screens/Template/shared/LabelSelect.test.jsx b/awx/ui_next/src/screens/Template/shared/LabelSelect.test.jsx
index ebbaba2b4c..07bf0c0a62 100644
--- a/awx/ui_next/src/screens/Template/shared/LabelSelect.test.jsx
+++ b/awx/ui_next/src/screens/Template/shared/LabelSelect.test.jsx
@@ -1,9 +1,53 @@
 import React from 'react';
 import { mount } from 'enzyme';
+import { LabelsAPI } from '@api';
+import { sleep} from '@testUtils/testUtils';
 import LabelSelect from './LabelSelect';
 
+jest.mock('@api');
+
+const options = [
+  { id: 1, name: 'one' },
+  { id: 2, name: 'two' },
+];
+
 describe('<LabelSelect />', () => {
-  test('should', () => {
-    wrapper = mount(<LabelSelect />);
-  })
+  afterEach(() => {
+    jest.resetAllMocks();
+  });
+
+  test('should fetch labels', async () => {
+    LabelsAPI.read.mockReturnValue({
+      data: { results: options },
+    });
+    const wrapper = mount(<LabelSelect value={[]} />);
+    await sleep(1);
+    wrapper.update();
+
+    expect(LabelsAPI.read).toHaveBeenCalledTimes(1);
+    expect(wrapper.find('MultiSelect').prop('options')).toEqual(options);
+  });
+
+  test('should fetch two pages labels if present', async () => {
+    LabelsAPI.read.mockReturnValueOnce({
+      data: {
+        results: options,
+        next: '/foo?page=2',
+      },
+    });
+    LabelsAPI.read.mockReturnValueOnce({
+      data: {
+        results: options,
+      },
+    });
+    const wrapper = mount(<LabelSelect value={[]} />);
+    await sleep(1);
+    wrapper.update();
+
+    expect(LabelsAPI.read).toHaveBeenCalledTimes(2);
+    expect(wrapper.find('MultiSelect').prop('options')).toEqual([
+      ...options,
+      ...options
+    ]);
+  });
 });
diff --git a/awx/ui_next/src/screens/Template/shared/PlaybookSelect.test.jsx b/awx/ui_next/src/screens/Template/shared/PlaybookSelect.test.jsx
index a7cb28c491..0a2d979fff 100644
--- a/awx/ui_next/src/screens/Template/shared/PlaybookSelect.test.jsx
+++ b/awx/ui_next/src/screens/Template/shared/PlaybookSelect.test.jsx
@@ -12,6 +12,10 @@ describe('<PlaybookSelect />', () => {
     });
   });
 
+  afterEach(() => {
+    jest.resetAllMocks();
+  })
+
   test('should reload playbooks when project value changes', () => {
     const wrapper = mountWithContexts(
       <PlaybookSelect