diff --git a/app/react/sidebar/Header.test.tsx b/app/react/sidebar/Header.test.tsx
new file mode 100644
index 000000000..e8fc9104a
--- /dev/null
+++ b/app/react/sidebar/Header.test.tsx
@@ -0,0 +1,143 @@
+import { render, screen } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+
+import { withTestRouter } from '@/react/test-utils/withRouter';
+
+import { Context } from './useSidebarState';
+import { Header } from './Header';
+
+vi.mock('@/react/portainer/feature-flags/feature-flags.service', () => ({
+  isBE: false,
+}));
+
+function renderComponent(
+  props = {},
+  sidebarState = { isOpen: true, toggle: vi.fn() }
+) {
+  const Wrapped = withTestRouter(Header);
+
+  return render(
+    <Context.Provider value={sidebarState}>
+      <Wrapped {...props} />
+    </Context.Provider>
+  );
+}
+
+describe('Header', () => {
+  it('should render with default logo when no custom logo provided', () => {
+    renderComponent();
+
+    const logo = screen.getByAltText('Logo');
+    expect(logo).toBeInTheDocument();
+    expect(logo).toHaveAttribute(
+      'src',
+      expect.stringContaining('portainer_logo-CE.svg')
+    );
+  });
+
+  it('should render with custom logo when provided', () => {
+    const customLogo = 'https://example.com/custom-logo.png';
+    renderComponent({ logo: customLogo });
+
+    const logo = screen.getByAltText('Logo');
+    expect(logo).toBeInTheDocument();
+    expect(logo).toHaveAttribute('src', customLogo);
+  });
+
+  it('should show "Powered by" section when sidebar is open and custom logo is provided', () => {
+    const customLogo = 'https://example.com/custom-logo.png';
+    renderComponent({ logo: customLogo });
+
+    expect(screen.getByText('Powered by')).toBeInTheDocument();
+    expect(screen.getByText('portainer community')).toBeInTheDocument();
+  });
+
+  it('should not show "Powered by" section when no custom logo', () => {
+    renderComponent();
+
+    expect(screen.queryByText('Powered by')).not.toBeInTheDocument();
+  });
+
+  it('should not show "Powered by" section when sidebar is closed', () => {
+    const customLogo = 'https://example.com/custom-logo.png';
+    renderComponent({ logo: customLogo }, { isOpen: false, toggle: vi.fn() });
+
+    expect(screen.queryByText('Powered by')).not.toBeInTheDocument();
+  });
+
+  it('should apply flex-wrap class to logo container', () => {
+    renderComponent();
+
+    const logoContainer = screen.getByTestId(
+      'portainerSidebar-homeImage'
+    ).parentElement;
+    expect(logoContainer).toHaveClass('flex-wrap');
+  });
+
+  it('should apply justify-center class when sidebar is closed', () => {
+    renderComponent({}, { isOpen: false, toggle: vi.fn() });
+
+    const logoContainer = screen.getByTestId(
+      'portainerSidebar-homeImage'
+    ).parentElement;
+    expect(logoContainer).toHaveClass('justify-center');
+  });
+
+  it('should not apply justify-center class when sidebar is open', () => {
+    renderComponent();
+
+    const logoContainer = screen.getByTestId(
+      'portainerSidebar-homeImage'
+    ).parentElement;
+    expect(logoContainer).not.toHaveClass('justify-center');
+  });
+
+  it('should toggle sidebar when toggle button is clicked', async () => {
+    const user = userEvent.setup();
+    const mockToggle = vi.fn();
+    renderComponent({}, { isOpen: true, toggle: mockToggle });
+
+    const toggleButton = screen.getByRole('button', { name: 'Toggle Sidebar' });
+    await user.click(toggleButton);
+
+    expect(mockToggle).toHaveBeenCalledTimes(1);
+  });
+
+  it('should show chevron left icon when sidebar is open', () => {
+    renderComponent();
+
+    const toggleButton = screen.getByRole('button', { name: 'Toggle Sidebar' });
+    expect(toggleButton).toBeInTheDocument();
+  });
+
+  it('should show chevron right icon when sidebar is closed', () => {
+    renderComponent({}, { isOpen: false, toggle: vi.fn() });
+
+    const toggleButton = screen.getByRole('button', { name: 'Toggle Sidebar' });
+    expect(toggleButton).toBeInTheDocument();
+  });
+
+  it('should use small logo when sidebar is closed', () => {
+    renderComponent({}, { isOpen: false, toggle: vi.fn() });
+
+    const logo = screen.getByAltText('Logo');
+    expect(logo).toHaveAttribute(
+      'src',
+      expect.stringContaining('logomark-CE.svg')
+    );
+  });
+
+  it('should apply max-height class to logo when sidebar is closed', () => {
+    renderComponent({}, { isOpen: false, toggle: vi.fn() });
+
+    const logo = screen.getByAltText('Logo');
+    expect(logo).toHaveClass('!max-h-[27px]');
+  });
+
+  it('should not apply max-height class to logo when sidebar is open', () => {
+    renderComponent();
+
+    const logo = screen.getByAltText('Logo');
+    expect(logo).not.toHaveClass('!max-h-[27px]');
+  });
+});
diff --git a/app/react/sidebar/Header.tsx b/app/react/sidebar/Header.tsx
index b69aa7d3a..4a4a5036c 100644
--- a/app/react/sidebar/Header.tsx
+++ b/app/react/sidebar/Header.tsx
@@ -21,7 +21,11 @@ export function Header({ logo: customLogo }: Props) {
 
   return (
     <div className="flex">
-      <div className={clsx('pr-5 w-full flex', { 'justify-center': !isOpen })}>
+      <div
+        className={clsx('pr-5 w-full flex flex-wrap', {
+          'justify-center': !isOpen,
+        })}
+      >
         <Link
           to="portainer.home"
           data-cy="portainerSidebar-homeImage"