diff --git a/lib/javatests/com/google/android/material/color/AndroidManifest.xml b/lib/javatests/com/google/android/material/color/AndroidManifest.xml
new file mode 100644
index 00000000000..25a35a71804
--- /dev/null
+++ b/lib/javatests/com/google/android/material/color/AndroidManifest.xml
@@ -0,0 +1,25 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!--
+  Copyright 2022 The Android Open Source Project
+
+  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.
+  -->
+
+<manifest xmlns:tools="http://schemas.android.com/tools"
+  package="com.google.android.material.color">
+
+  <uses-sdk
+    tools:overrideLibrary="androidx.test.core"/>
+
+  <application/>
+</manifest>
diff --git a/lib/javatests/com/google/android/material/color/DynamicColorsTest.java b/lib/javatests/com/google/android/material/color/DynamicColorsTest.java
new file mode 100644
index 00000000000..17aea9c58e0
--- /dev/null
+++ b/lib/javatests/com/google/android/material/color/DynamicColorsTest.java
@@ -0,0 +1,279 @@
+/*
+ * Copyright (C) 2022 The Android Open Source Project
+ *
+ * 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 com.google.android.material.color;
+
+import com.google.android.material.R;
+
+import static androidx.test.core.app.ApplicationProvider.getApplicationContext;
+import static com.google.common.truth.Truth.assertThat;
+
+import android.app.Activity;
+import android.app.Application;
+import android.content.Context;
+import android.os.Build;
+import android.os.Build.VERSION_CODES;
+import android.os.Bundle;
+import androidx.appcompat.view.ContextThemeWrapper;
+import com.google.android.material.color.DynamicColors.Precondition;
+import com.google.android.material.resources.MaterialAttributes;
+import com.google.common.collect.ImmutableList;
+import org.junit.Before;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.robolectric.ParameterizedRobolectricTestRunner;
+import org.robolectric.ParameterizedRobolectricTestRunner.Parameter;
+import org.robolectric.ParameterizedRobolectricTestRunner.Parameters;
+import org.robolectric.Robolectric;
+import org.robolectric.shadow.api.Shadow;
+import org.robolectric.shadows.ShadowContextThemeWrapper;
+import org.robolectric.util.ReflectionHelpers;
+
+/** Tests the logic of {@link com.google.android.material.color.DynamicColors} utility class. */
+@RunWith(ParameterizedRobolectricTestRunner.class)
+public class DynamicColorsTest {
+  @Parameter(0)
+  public String testName;
+
+  @Parameter(1)
+  public int baseTheme;
+
+  private final MockApplication mockApplication = new MockApplication();
+
+  private Activity mockActivity;
+
+  @Parameters(name = "{0}")
+  public static ImmutableList<Object[]> getTestData() {
+    return ImmutableList.<Object[]>builder()
+        .add(new Object[] {"Test dynamic colors with Light Theme", R.style.Theme_Material3_Light})
+        .build();
+  }
+
+  @Before
+  public void prepareTestActivity() {
+    setDynamicColorAvailability(true);
+    setSdkVersion(VERSION_CODES.S);
+    mockActivity = Robolectric.buildActivity(Activity.class).get();
+    mockActivity.setTheme(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnApplicationWithDefaultTheme() {
+    DynamicColors.applyToActivitiesIfAvailable(mockApplication);
+    mockApplication.capturedCallbacks.onActivityPreCreated(mockActivity, new Bundle());
+
+    // TODO(b/230848477): Update tests to make sure dynamic colors theme overlay is indeed applied.
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnApplicationWithCustomTheme() {
+    final int mockThemeOverlay = 0xABCDABCD;
+    DynamicColors.applyToActivitiesIfAvailable(mockApplication, mockThemeOverlay);
+    mockApplication.capturedCallbacks.onActivityPreCreated(mockActivity, new Bundle());
+
+    // TODO(b/230848477): Update tests to make sure dynamic colors theme overlay is indeed applied.
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnApplicationWithPreconditionFalse() {
+    final MockPrecondition mockPrecondition = new MockPrecondition();
+    DynamicColors.applyToActivitiesIfAvailable(mockApplication, mockPrecondition);
+    mockApplication.capturedCallbacks.onActivityPreCreated(mockActivity, new Bundle());
+
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnApplicationWithPreconditionTrue() {
+    final MockPrecondition mockPrecondition = new MockPrecondition();
+    mockPrecondition.shouldApplyDynamicColors = true;
+    DynamicColors.applyToActivitiesIfAvailable(mockApplication, mockPrecondition);
+    mockApplication.capturedCallbacks.onActivityPreCreated(mockActivity, new Bundle());
+
+    // TODO(b/230848477): Update tests to make sure dynamic colors theme overlay is indeed applied.
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnApplicationWithCustomThemeAndPrecondition() {
+    final int mockThemeOverlay = 0xABCDABCD;
+    final MockPrecondition mockPrecondition = new MockPrecondition();
+    mockPrecondition.shouldApplyDynamicColors = true;
+    DynamicColors.applyToActivitiesIfAvailable(
+        mockApplication, mockThemeOverlay, mockPrecondition);
+    mockApplication.capturedCallbacks.onActivityPreCreated(mockActivity, new Bundle());
+
+    // TODO(b/230848477): Update tests to make sure dynamic colors theme overlay is indeed applied.
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnApplicationWithNoDynamicColorAvailable() {
+    setDynamicColorAvailability(false);
+    final int mockThemeOverlay = 0xABCDABCD;
+    final MockPrecondition mockPrecondition = new MockPrecondition();
+    mockPrecondition.shouldApplyDynamicColors = true;
+    DynamicColors.applyToActivitiesIfAvailable(
+        mockApplication, mockThemeOverlay, mockPrecondition);
+    mockApplication.capturedCallbacks.onActivityPreCreated(mockActivity, new Bundle());
+
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnApplicationWithLowSdkVersion() {
+    setSdkVersion(VERSION_CODES.Q);
+    final int mockThemeOverlay = 0xABCDABCD;
+    final MockPrecondition mockPrecondition = new MockPrecondition();
+    mockPrecondition.shouldApplyDynamicColors = true;
+    DynamicColors.applyToActivitiesIfAvailable(
+        mockApplication, mockThemeOverlay, mockPrecondition);
+    mockApplication.capturedCallbacks.onActivityPreCreated(mockActivity, new Bundle());
+
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnActivityWithDefaultTheme() {
+    DynamicColors.applyIfAvailable(mockActivity);
+
+    // TODO(b/230848477): Update tests to make sure dynamic colors theme overlay is indeed applied.
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnActivityWithCustomTheme() {
+    final int mockThemeOverlay = 0xABCDABCD;
+    DynamicColors.applyIfAvailable(mockActivity, mockThemeOverlay);
+
+    // TODO(b/230848477): Update tests to make sure dynamic colors theme overlay is indeed applied.
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnActivityWithPreconditionFalse() {
+    final MockPrecondition mockPrecondition = new MockPrecondition();
+    DynamicColors.applyIfAvailable(mockActivity, mockPrecondition);
+
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnActivityWithPreconditionTrue() {
+    final MockPrecondition mockPrecondition = new MockPrecondition();
+    mockPrecondition.shouldApplyDynamicColors = true;
+    DynamicColors.applyIfAvailable(mockActivity, mockPrecondition);
+
+    // TODO(b/230848477): Update tests to make sure dynamic colors theme overlay is indeed applied.
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testApplyOnActivityWithNoDynamicColorAvailable() {
+    setDynamicColorAvailability(false);
+    final int mockThemeOverlay = 0xABCDABCD;
+    DynamicColors.applyIfAvailable(mockActivity, mockThemeOverlay);
+
+    assertThat(getThemeResId(mockActivity)).isEqualTo(baseTheme);
+  }
+
+  @Test
+  public void testIsDynamicColorAvailable() {
+    setDynamicColorAvailability(true);
+    setSdkVersion(VERSION_CODES.S);
+    assertThat(DynamicColors.isDynamicColorAvailable()).isTrue();
+  }
+
+  @Test
+  public void testIsDynamicColorAvailableWithNoDynamicColorAvailable() {
+    setDynamicColorAvailability(false);
+    assertThat(DynamicColors.isDynamicColorAvailable()).isFalse();
+  }
+
+  @Test
+  public void testIsDynamicColorAvailableWithLowSdkVersion() {
+    setSdkVersion(VERSION_CODES.Q);
+    assertThat(DynamicColors.isDynamicColorAvailable()).isFalse();
+  }
+
+  @Test
+  public void testWrapContextWithDefaultTheme() {
+    Context context = DynamicColors.wrapContextIfAvailable(mockActivity);
+
+    assertThat(getThemeResId(context))
+        .isEqualTo(resolveAttribute(baseTheme, R.attr.dynamicColorThemeOverlay));
+  }
+
+  @Test
+  public void testWrapContextWithCustomTheme() {
+    final int mockThemeOverlay = 0xABCDABCD;
+    Context context = DynamicColors.wrapContextIfAvailable(mockActivity, mockThemeOverlay);
+
+    assertThat(getThemeResId(context)).isEqualTo(mockThemeOverlay);
+  }
+
+  @Test
+  public void testWrapContextWithNoDynamicColorAvailable() {
+    setDynamicColorAvailability(false);
+    final int mockThemeOverlay = 0xABCDABCD;
+    Context context = DynamicColors.wrapContextIfAvailable(mockActivity, mockThemeOverlay);
+
+    assertThat(getThemeResId(context)).isEqualTo(baseTheme);
+  }
+
+  private void setDynamicColorAvailability(boolean available) {
+    ReflectionHelpers.setStaticField(
+        Build.class, "MANUFACTURER", available ? "Google" : "Unsupported OEM");
+  }
+
+  private void setSdkVersion(int sdkVersion) {
+    ReflectionHelpers.setStaticField(
+        Build.VERSION.class, "SDK_INT", sdkVersion);
+  }
+
+  @SuppressWarnings("RestrictTo")
+  private static int resolveAttribute(int theme, int attribute) {
+    return MaterialAttributes.resolveOrThrow(
+        new ContextThemeWrapper(getApplicationContext(), theme),
+        attribute,
+        "missing in theme");
+  }
+
+  private static int getThemeResId(Context activity) {
+    ShadowContextThemeWrapper shadowContextThemeWrapper = Shadow.extract(activity);
+    return shadowContextThemeWrapper.callGetThemeResId();
+  }
+
+  private static class MockApplication extends Application {
+    private ActivityLifecycleCallbacks capturedCallbacks;
+
+    @Override
+    public void registerActivityLifecycleCallbacks(ActivityLifecycleCallbacks callback) {
+      capturedCallbacks = callback;
+    }
+  }
+
+  private static class MockPrecondition implements Precondition {
+    private boolean shouldApplyDynamicColors;
+
+    @Override
+    public boolean shouldApplyDynamicColors(Activity activity, int theme) {
+      return shouldApplyDynamicColors;
+    }
+  }
+}