diff --git a/pkg/obs/specs/template_test.go b/pkg/obs/specs/template_test.go
new file mode 100644
index 00000000000..212761e544f
--- /dev/null
+++ b/pkg/obs/specs/template_test.go
@@ -0,0 +1,103 @@
+/*
+Copyright 2025 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package specs
+
+import (
+	"errors"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+
+	"k8s.io/release/pkg/obs/specs/specsfakes"
+)
+
+var err = errors.New("error")
+
+func TestBuildSpecs(t *testing.T) {
+	testcases := []struct {
+		createPkgDef func(t *testing.T) *PackageDefinition
+		prepare      func(mock *specsfakes.FakeImpl)
+		verifyWrites func(*testing.T, *specsfakes.FakeImpl)
+		shouldErr    bool
+	}{
+		{ // happy path
+			createPkgDef: func(t *testing.T) *PackageDefinition {
+				return &PackageDefinition{
+					Name:             "kubeadm",
+					SpecTemplatePath: "testdata/templates",
+					SpecOutputPath:   t.TempDir(),
+				}
+			},
+			prepare:      func(mock *specsfakes.FakeImpl) {},
+			verifyWrites: func(t *testing.T, fi *specsfakes.FakeImpl) {},
+			shouldErr:    false,
+		},
+		{ // package definition is nil
+			createPkgDef: func(t *testing.T) *PackageDefinition {
+				return nil
+			},
+			prepare:      func(mock *specsfakes.FakeImpl) {},
+			verifyWrites: func(t *testing.T, fi *specsfakes.FakeImpl) {},
+			shouldErr:    true,
+		},
+		{ // spec template path doesn't exist
+			createPkgDef: func(t *testing.T) *PackageDefinition {
+				return &PackageDefinition{
+					Name:             "kubeadm",
+					SpecTemplatePath: "does_not_exist",
+				}
+			},
+			prepare: func(mock *specsfakes.FakeImpl) {
+				mock.StatReturns(nil, err)
+			},
+			verifyWrites: func(t *testing.T, fi *specsfakes.FakeImpl) {},
+			shouldErr:    true,
+		},
+		{ // error during walking the template directory
+			createPkgDef: func(t *testing.T) *PackageDefinition {
+				return &PackageDefinition{
+					Name:             "kubeadm",
+					SpecTemplatePath: "testdata/templates",
+					SpecOutputPath:   t.TempDir(),
+				}
+			},
+			prepare: func(mock *specsfakes.FakeImpl) {
+				mock.WalkReturns(err)
+			},
+			verifyWrites: func(t *testing.T, fi *specsfakes.FakeImpl) {},
+			shouldErr:    true,
+		},
+	}
+
+	for _, tc := range testcases {
+		sut := &Specs{}
+
+		pkgDef := tc.createPkgDef(t)
+		mock := &specsfakes.FakeImpl{}
+
+		tc.prepare(mock)
+		sut.SetImpl(mock)
+
+		err := sut.BuildSpecs(pkgDef, false)
+		if tc.shouldErr {
+			require.Error(t, err)
+		} else {
+			require.NoError(t, err)
+			tc.verifyWrites(t, mock)
+		}
+	}
+}