diff --git a/packages/hoppscotch-backend/package.json b/packages/hoppscotch-backend/package.json
index 6e3a31005..10be4a53e 100644
--- a/packages/hoppscotch-backend/package.json
+++ b/packages/hoppscotch-backend/package.json
@@ -18,7 +18,8 @@
     "test:watch": "jest --watch",
     "test:cov": "jest --coverage",
     "test:debug": "node --inspect-brk -r tsconfig-paths/register -r ts-node/register node_modules/.bin/jest --runInBand",
-    "test:e2e": "jest --config ./test/jest-e2e.json"
+    "test:e2e": "jest --config ./test/jest-e2e.json",
+    "postinstall": "prisma generate"
   },
   "dependencies": {
     "@nestjs/apollo": "^10.1.6",
@@ -29,11 +30,13 @@
     "@prisma/client": "^4.7.1",
     "apollo-server-express": "^3.11.1",
     "apollo-server-plugin-base": "^3.7.1",
+    "express": "^4.17.1",
     "fp-ts": "^2.13.1",
     "graphql": "^15.5.0",
     "graphql-query-complexity": "^0.12.0",
     "graphql-redis-subscriptions": "^2.5.0",
     "graphql-subscriptions": "^2.0.0",
+    "io-ts": "^2.2.16",
     "ioredis": "^5.2.4",
     "prisma": "^4.7.1",
     "reflect-metadata": "^0.1.13",
@@ -44,8 +47,9 @@
     "@nestjs/cli": "^9.1.5",
     "@nestjs/schematics": "^9.0.3",
     "@nestjs/testing": "^9.2.1",
+    "@relmify/jest-fp-ts": "^2.0.2",
     "@types/express": "^4.17.14",
-    "@types/jest": "29.2.3",
+    "@types/jest": "^27.5.2",
     "@types/node": "^18.11.10",
     "@types/supertest": "^2.0.12",
     "@typescript-eslint/eslint-plugin": "^5.45.0",
@@ -53,7 +57,8 @@
     "eslint": "^8.29.0",
     "eslint-config-prettier": "^8.5.0",
     "eslint-plugin-prettier": "^4.2.1",
-    "jest": "29.3.1",
+    "jest": "^29.3.1",
+    "jest-mock-extended": "^3.0.1",
     "prettier": "^2.8.0",
     "source-map-support": "^0.5.21",
     "supertest": "^6.3.2",
@@ -69,6 +74,9 @@
       "json",
       "ts"
     ],
+    "moduleNameMapper": {
+      "^src/(.*)$": "<rootDir>/$1"
+    },
     "rootDir": "src",
     "testRegex": ".*\\.spec\\.ts$",
     "transform": {
@@ -80,4 +88,4 @@
     "coverageDirectory": "../coverage",
     "testEnvironment": "node"
   }
-}
+}
\ No newline at end of file
diff --git a/packages/hoppscotch-backend/src/user-settings/user-settings.service.spec.ts b/packages/hoppscotch-backend/src/user-settings/user-settings.service.spec.ts
new file mode 100644
index 000000000..25b25a7b8
--- /dev/null
+++ b/packages/hoppscotch-backend/src/user-settings/user-settings.service.spec.ts
@@ -0,0 +1,131 @@
+import { mockDeep, mockReset } from 'jest-mock-extended';
+import { PrismaService } from 'src/prisma/prisma.service';
+import { PubSubService } from 'src/pubsub/pubsub.service';
+import { UserSettingsService } from './user-settings.service';
+import '@relmify/jest-fp-ts';
+import {
+  JSON_INVALID,
+  USER_NOT_FOUND,
+  USER_SETTINGS_INVALID_PROPERTIES,
+  USER_SETTINGS_UPDATE_FAILED,
+} from 'src/errors';
+
+const mockPrisma = mockDeep<PrismaService>();
+const mockPubSub = mockDeep<PubSubService>();
+
+// eslint-disable-next-line @typescript-eslint/ban-ts-comment
+// @ts-ignore
+const userSettingsService = new UserSettingsService(
+  mockPrisma,
+  mockPubSub as any,
+);
+
+const user = {
+  uid: 'user-uid',
+  displayName: 'user-display-name',
+  email: 'user-email',
+  photoURL: 'user-photo-url',
+};
+const userSettings = {
+  id: '1',
+  userUid: user.uid,
+  properties: { key: 'k', value: 'v' },
+  updatedOn: new Date('2022-12-19T12:43:18.635Z'),
+};
+
+beforeEach(() => {
+  mockReset(mockPrisma);
+  mockPubSub.publish.mockClear();
+});
+
+describe('UserSettingsService', () => {
+  describe('createUserSettings', () => {
+    test('should create a user settings with valid user and properties', async () => {
+      mockPrisma.userSettings.create.mockResolvedValue(userSettings);
+
+      const result = await userSettingsService.createUserSettings(
+        user,
+        JSON.stringify(userSettings.properties),
+      );
+
+      expect(result).toEqualRight({
+        ...userSettings,
+        properties: JSON.stringify(userSettings.properties),
+      });
+    });
+    test('should reject for invalid user', async () => {
+      const result = await userSettingsService.createUserSettings(
+        null as any,
+        JSON.stringify(userSettings.properties),
+      );
+
+      expect(result).toEqualLeft(USER_NOT_FOUND);
+    });
+    test('should reject for invalid properties', async () => {
+      const result = await userSettingsService.createUserSettings(
+        user,
+        'invalid-properties',
+      );
+      expect(result).toEqualLeft(JSON_INVALID);
+    });
+    test('should reject for null properties', async () => {
+      const result = await userSettingsService.createUserSettings(
+        user,
+        null as any,
+      );
+      expect(result).toEqualLeft(USER_SETTINGS_INVALID_PROPERTIES);
+    });
+  });
+  describe('updateUserSettings', () => {
+    test('should update a user settings for valid user and properties', async () => {
+      mockPrisma.userSettings.update.mockResolvedValue(userSettings);
+
+      const result = await userSettingsService.updateUserSettings(
+        user,
+        JSON.stringify(userSettings.properties),
+      );
+
+      expect(result).toEqualRight({
+        ...userSettings,
+        properties: JSON.stringify(userSettings.properties),
+      });
+    });
+    test('should reject for invalid user', async () => {
+      const result = await userSettingsService.updateUserSettings(
+        null as any,
+        JSON.stringify(userSettings.properties),
+      );
+      expect(result).toEqualLeft(USER_SETTINGS_UPDATE_FAILED);
+    });
+    test('should reject for invalid properties', async () => {
+      const result = await userSettingsService.updateUserSettings(
+        user,
+        'invalid-properties',
+      );
+      expect(result).toEqualLeft(JSON_INVALID);
+    });
+    test('should reject for null properties', async () => {
+      const result = await userSettingsService.updateUserSettings(
+        user,
+        null as any,
+      );
+      expect(result).toEqualLeft(USER_SETTINGS_INVALID_PROPERTIES);
+    });
+    test('should publish message on pubnub after update successfully', async () => {
+      mockPrisma.userSettings.update.mockResolvedValue(userSettings);
+
+      await userSettingsService.updateUserSettings(
+        user,
+        JSON.stringify(userSettings.properties),
+      );
+
+      expect(mockPubSub.publish).toBeCalledWith(
+        `user_settings/${user.uid}/updated`,
+        {
+          ...userSettings,
+          properties: JSON.stringify(userSettings.properties),
+        },
+      );
+    });
+  });
+});