diff --git a/packages/manager/.changeset/pr-12042-upcoming-features-1744796837347.md b/packages/manager/.changeset/pr-12042-upcoming-features-1744796837347.md
new file mode 100644
index 00000000000..8a2e5ac94a6
--- /dev/null
+++ b/packages/manager/.changeset/pr-12042-upcoming-features-1744796837347.md
@@ -0,0 +1,5 @@
+---
+"@linode/manager": Upcoming Features
+---
+
+Add unit tests in `GroupedAlertsTable.test.ts` and `UserPreference.test.ts` and fix preferences for alerts grouping at CloudPulse ([#12042](https://github.com/linode/manager/pull/12042))
diff --git a/packages/manager/src/features/CloudPulse/Alerts/AlertsListing/GroupedAlertsTable.test.tsx b/packages/manager/src/features/CloudPulse/Alerts/AlertsListing/GroupedAlertsTable.test.tsx
new file mode 100644
index 00000000000..c922a49751d
--- /dev/null
+++ b/packages/manager/src/features/CloudPulse/Alerts/AlertsListing/GroupedAlertsTable.test.tsx
@@ -0,0 +1,109 @@
+import { screen } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+import * as React from 'react';
+import { vi } from 'vitest';
+
+import { alertFactory } from 'src/factories';
+import { renderWithTheme } from 'src/utilities/testHelpers';
+
+import { GroupedAlertsTable } from './GroupedAlertsTable';
+
+import type { Item } from '../constants';
+import type { Alert, AlertServiceType } from '@linode/api-v4';
+import type { GroupedBy } from '@linode/utilities';
+
+const mockScrollToElement = vi.hoisted(() => vi.fn());
+
+vi.mock('../Utils/AlertResourceUtils', () => ({
+  scrollToElement: mockScrollToElement,
+}));
+
+const mockHandleDetails = vi.fn();
+const mockHandleEdit = vi.fn();
+const mockHandleStatusChange = vi.fn();
+
+const mockServices: Item<string, AlertServiceType>[] = [
+  { label: 'Linode', value: 'linode' },
+  { label: 'Databases', value: 'dbaas' },
+];
+
+const mockAlerts: GroupedBy<Alert> = [
+  [
+    'tag1',
+    [
+      alertFactory.build({ label: 'Alert 1', tags: ['tag1'] }),
+      alertFactory.build({ label: 'Alert 2', tags: ['tag1'] }),
+    ],
+  ],
+  ['tag2', [alertFactory.build({ label: 'Alert 3', tags: ['tag2'] })]],
+];
+
+describe('GroupedAlertsTable', () => {
+  it('should render grouped alerts by tag', () => {
+    renderWithTheme(
+      <GroupedAlertsTable
+        groupedAlerts={mockAlerts}
+        handleDetails={mockHandleDetails}
+        handleEdit={mockHandleEdit}
+        handleStatusChange={mockHandleStatusChange}
+        services={mockServices}
+      />
+    );
+
+    expect(screen.getByText('tag1')).toBeVisible();
+    expect(screen.getByText('tag2')).toBeVisible();
+    expect(screen.getByText('Alert 1')).toBeVisible();
+    expect(screen.getByText('Alert 2')).toBeVisible();
+    expect(screen.getByText('Alert 3')).toBeVisible();
+  });
+
+  it('should handle pagination properly', async () => {
+    const alerts: GroupedBy<Alert> = [
+      ['tag1', alertFactory.buildList(50, { tags: ['tag1'] })],
+    ];
+
+    renderWithTheme(
+      <GroupedAlertsTable
+        groupedAlerts={alerts}
+        handleDetails={mockHandleDetails}
+        handleEdit={mockHandleEdit}
+        handleStatusChange={mockHandleStatusChange}
+        services={mockServices}
+      />
+    );
+
+    expect(screen.getByRole('button', { name: 'page 1' })).toBeVisible();
+    await userEvent.click(
+      screen.getByRole('button', { name: 'Go to next page' })
+    );
+    expect(screen.getByRole('button', { name: 'page 2' })).toBeVisible();
+  });
+
+  it('should scroll to tag header when switching pages within tag pagination', async () => {
+    const alerts: GroupedBy<Alert> = [
+      ['tag1', alertFactory.buildList(50, { tags: ['tag1'] })],
+    ];
+
+    renderWithTheme(
+      <GroupedAlertsTable
+        groupedAlerts={alerts}
+        handleDetails={mockHandleDetails}
+        handleEdit={mockHandleEdit}
+        handleStatusChange={mockHandleStatusChange}
+        services={mockServices}
+      />
+    );
+
+    // Find and click next page within tag1's pagination
+    const nextPageButton = screen.getByRole('button', {
+      name: 'Go to next page',
+    });
+    await userEvent.click(nextPageButton);
+
+    const tagHeader = screen.getByRole('heading', { name: 'tag1' });
+    expect(tagHeader).toBeVisible();
+
+    // Ensure that the user is scrolled to the tag header
+    expect(mockScrollToElement).toHaveBeenCalledWith(tagHeader);
+  });
+});
diff --git a/packages/manager/src/features/CloudPulse/Utils/UserPreference.test.ts b/packages/manager/src/features/CloudPulse/Utils/UserPreference.test.ts
new file mode 100644
index 00000000000..20d401a56dc
--- /dev/null
+++ b/packages/manager/src/features/CloudPulse/Utils/UserPreference.test.ts
@@ -0,0 +1,64 @@
+import { vi } from 'vitest';
+
+import { usePreferencesToggle } from './UserPreference';
+
+const queryMocks = vi.hoisted(() => ({
+  useMutatePreferences: vi.fn(),
+  usePreferences: vi.fn(),
+}));
+
+vi.mock('@linode/queries', () => ({
+  useMutatePreferences: queryMocks.useMutatePreferences,
+  usePreferences: queryMocks.usePreferences,
+}));
+
+describe('usePreferencesToggle', () => {
+  it('should initialize with undefined preference', () => {
+    queryMocks.usePreferences.mockReturnValue({ data: undefined });
+    queryMocks.useMutatePreferences.mockReturnValue({
+      mutateAsync: vi.fn().mockResolvedValue(undefined),
+    });
+    const result = usePreferencesToggle({
+      preferenceKey: 'aclpAlertsGroupByTag',
+      options: [false, true],
+      defaultValue: false,
+    });
+    expect(result.preference).toBeUndefined();
+  });
+
+  it('should toggle from undefined to second option', async () => {
+    const mockMutate = vi.fn().mockResolvedValue(undefined);
+    queryMocks.usePreferences.mockReturnValue({ data: undefined });
+    queryMocks.useMutatePreferences.mockReturnValue({
+      mutateAsync: mockMutate,
+    });
+
+    const result = usePreferencesToggle({
+      preferenceKey: 'aclpAlertsGroupByTag',
+      options: [false, true],
+      defaultValue: false,
+    });
+
+    const newValue = result.toggle();
+    expect(newValue).toBe(true);
+    expect(mockMutate).toHaveBeenCalledWith({ aclpAlertsGroupByTag: true });
+  });
+
+  it('should toggle between options', async () => {
+    const mockMutate = vi.fn().mockResolvedValue(undefined);
+    queryMocks.usePreferences.mockReturnValue({ data: false });
+    queryMocks.useMutatePreferences.mockReturnValue({
+      mutateAsync: mockMutate,
+    });
+
+    const result = usePreferencesToggle({
+      preferenceKey: 'aclpAlertsGroupByTag',
+      options: [false, true],
+      defaultValue: false,
+    });
+
+    const newValue = result.toggle();
+    expect(newValue).toBe(true);
+    expect(mockMutate).toHaveBeenCalledWith({ aclpAlertsGroupByTag: true });
+  });
+});
diff --git a/packages/manager/src/features/CloudPulse/Utils/UserPreference.ts b/packages/manager/src/features/CloudPulse/Utils/UserPreference.ts
index 5541d155f83..c8985199e51 100644
--- a/packages/manager/src/features/CloudPulse/Utils/UserPreference.ts
+++ b/packages/manager/src/features/CloudPulse/Utils/UserPreference.ts
@@ -108,7 +108,7 @@ export const usePreferencesToggle = <K extends keyof ManagerPreferences>({
 
     // if the preference is undefined, set it to false
     if (preference === undefined) {
-      newPreferenceToSet = defaultValue;
+      newPreferenceToSet = options[defaultValue === options[0] ? 1 : 0];
     } else if (preference === options[0]) {
       newPreferenceToSet = options[1];
     } else {