diff --git a/api/src/test/java/org/openmrs/module/patientflags/filter/FilterTest.java b/api/src/test/java/org/openmrs/module/patientflags/filter/FilterTest.java
new file mode 100644
index 0000000..3a00d9c
--- /dev/null
+++ b/api/src/test/java/org/openmrs/module/patientflags/filter/FilterTest.java
@@ -0,0 +1,122 @@
+/**
+ * The contents of this file are subject to the OpenMRS Public License
+ * Version 1.0 (the "License"); you may not use this file except in
+ * compliance with the License. You may obtain a copy of the License at
+ * http://license.openmrs.org
+ *
+ * Software distributed under the License is distributed on an "AS IS"
+ * basis, WITHOUT WARRANTY OF ANY KIND, either express or implied. See the
+ * License for the specific language governing rights and limitations
+ * under the License.
+ *
+ * Copyright (C) OpenMRS, LLC.  All Rights Reserved.
+ */
+package org.openmrs.module.patientflags.filter;
+
+import static org.junit.Assert.assertFalse;
+import static org.junit.Assert.assertTrue;
+
+import org.junit.Before;
+import org.junit.Test;
+import org.openmrs.api.context.Context;
+import org.openmrs.module.patientflags.Flag;
+import org.openmrs.module.patientflags.Tag;
+import org.openmrs.module.patientflags.api.FlagService;
+import org.openmrs.test.BaseModuleContextSensitiveTest;
+
+import java.util.HashSet;
+import java.util.List;
+import java.util.Set;
+
+public class FilterTest extends BaseModuleContextSensitiveTest {
+
+    protected static final String XML_DATASET_PATH = "org/openmrs/module/patientflags/include/";
+
+    private static final String TEST_DATASET_FILE = XML_DATASET_PATH + "patientflagtest-dataset.xml";
+
+    @Before
+    public void initTestData() throws Exception {
+        initializeInMemoryDatabase();
+        executeDataSet(TEST_DATASET_FILE);
+    }
+
+    @Test
+    public void filter_shouldFilterListOfFlags() {
+        List<Flag> flags = Context.getService(FlagService.class).getAllFlags();
+        Tag tag = Context.getService(FlagService.class).getTag(1);
+        Set<Tag> tags = new HashSet<>();
+        tags.add(tag);
+        Filter filter = new Filter(tags);
+
+        List<Flag> filterFlags = filter.filter(flags);
+        assertTrue(flags.size() != filterFlags.size());
+    }
+
+    @Test
+    public void filter_shouldReturnSameFlagListAsParameter() {
+        List<Flag> flags = Context.getService(FlagService.class).getAllFlags();
+        Filter filter = new Filter();
+
+        List<Flag> filterFlags = filter.filter(flags);
+        assertTrue(flags.size() == filterFlags.size());
+    }
+
+    @Test
+    public void filter_shouldReturnTrueWhenNoTags() {
+        Flag flag = Context.getService(FlagService.class).getFlag(1);
+        Filter filter = new Filter();
+        Boolean result = filter.filter(flag);
+        assertTrue(result);
+    }
+
+    @Test
+    public void filter_shouldReturnTrueWhenFlagHasTag() {
+        Flag flag = Context.getService(FlagService.class).getFlag(1);
+        Tag tag = Context.getService(FlagService.class).getTag(1);
+        Set<Tag> tags = new HashSet<>();
+        tags.add(tag);
+        Filter filter = new Filter(tags);
+
+        Boolean result = filter.filter(flag);
+        assertTrue(result);
+    }
+
+    @Test
+    public void filter_shouldReturnTrueWhenFlagHasNoTagAndFilterTagTypeANYTAG_OR_NOTAG() {
+        Flag flag = Context.getService(FlagService.class).getFlag(2);
+        Tag tag = Context.getService(FlagService.class).getTag(1);
+        Set<Tag> tags = new HashSet<>();
+        tags.add(tag);
+        Filter filter = new Filter(tags);
+        filter.setType(FilterType.ANYTAG_OR_NOTAG);
+
+        Boolean result = filter.filter(flag);
+        assertTrue(result);
+    }
+
+    @Test
+    public void filter_shouldReturnTrueWhenFlagHasTagAndFilterTagTypeALLTAGS() {
+        Flag flag = Context.getService(FlagService.class).getFlag(1);
+        Tag tag = Context.getService(FlagService.class).getTag(1);
+        Set<Tag> tags = new HashSet<>();
+        tags.add(tag);
+        Filter filter = new Filter(tags);
+        filter.setType(FilterType.ALLTAGS);
+
+        Boolean result = filter.filter(flag);
+        assertTrue(result);
+    }
+
+    @Test
+    public void filter_shouldReturnFalseWhenFlagHasTagAndFilterTagTypeALLTAGS() {
+        Flag flag = Context.getService(FlagService.class).getFlag(2);
+        Tag tag = Context.getService(FlagService.class).getTag(1);
+        Set<Tag> tags = new HashSet<>();
+        tags.add(tag);
+        Filter filter = new Filter(tags);
+        filter.setType(FilterType.ALLTAGS);
+
+        Boolean result = filter.filter(flag);
+        assertFalse(result);
+    }
+}