diff --git a/components/__tests__/DeliveryStep1.test.tsx b/components/__tests__/DeliveryStep1.test.tsx
new file mode 100644
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+++ b/components/__tests__/DeliveryStep1.test.tsx
@@ -0,0 +1,70 @@
+// __tests__/components/DeliveryStep1.test.tsx
+
+import React from 'react';
+import { render, screen, waitFor } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+// Adjust import path to match your project structure
+import DeliveryStep1 from '@/components/delivery/DeliveryStep1';
+
+describe('Component: New Delivery (Step 1) Validation Requirements', () => {
+  const mockOnNext = jest.fn();
+
+  beforeEach(() => {
+    jest.clearAllMocks();
+  });
+
+  it('displays validation errors when attempting to proceed with empty fields', async () => {
+    const user = userEvent.setup();
+    render(<DeliveryStep1 onNext={mockOnNext} defaultValues={{}} />);
+
+    // Attempt to proceed without filling the form
+    const nextButton = screen.getByRole('button', { name: /next/i });
+    await user.click(nextButton);
+
+    // Assert that validation errors appear for all required fields
+    expect(await screen.findByText(/sender origin is required/i)).toBeInTheDocument();
+    expect(screen.getByText(/receiver destination is required/i)).toBeInTheDocument();
+
+    // Ensure the onNext callback is strictly blocked
+    expect(mockOnNext).not.toHaveBeenCalled();
+  });
+
+  it('clears validation errors dynamically as fields are populated', async () => {
+    const user = userEvent.setup();
+    render(<DeliveryStep1 onNext={mockOnNext} defaultValues={{}} />);
+
+    const nextButton = screen.getByRole('button', { name: /next/i });
+    await user.click(nextButton);
+
+    // Errors should be visible initially
+    expect(await screen.findByText(/sender origin is required/i)).toBeInTheDocument();
+
+    // Fill in the sender origin
+    const originInput = screen.getByLabelText(/sender origin/i);
+    await user.type(originInput, '123 Start St, Lagos');
+
+    // Error should disappear
+    await waitFor(() => {
+      expect(screen.queryByText(/sender origin is required/i)).not.toBeInTheDocument();
+    });
+  });
+
+  it('calls onNext with form data when all required fields are valid', async () => {
+    const user = userEvent.setup();
+    render(<DeliveryStep1 onNext={mockOnNext} defaultValues={{}} />);
+
+    await user.type(screen.getByLabelText(/sender origin/i), '123 Start St, Lagos');
+    await user.type(screen.getByLabelText(/receiver destination/i), '456 End Ave, Lagos');
+
+    const nextButton = screen.getByRole('button', { name: /next/i });
+    await user.click(nextButton);
+
+    await waitFor(() => {
+      expect(mockOnNext).toHaveBeenCalledTimes(1);
+      expect(mockOnNext).toHaveBeenCalledWith(expect.objectContaining({
+        origin: '123 Start St, Lagos',
+        destination: '456 End Ave, Lagos',
+      }));
+    });
+  });
+});
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