diff --git a/frontend/tests/inventory/search.test.ts b/frontend/tests/inventory/search.test.ts
new file mode 100644
index 00000000..e16fb02b
--- /dev/null
+++ b/frontend/tests/inventory/search.test.ts
@@ -0,0 +1,202 @@
+import { describe, it, expect, beforeEach, vi } from 'vitest';
+import { renderHook, act, waitFor } from '@testing-library/react';
+import { useItemSearch } from '@/hooks/useItemSearch';
+
+describe('useItemSearch Hook', () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+    global.fetch = vi.fn();
+  });
+
+  it('should return empty results for empty query', () => {
+    const { result } = renderHook(() => useItemSearch('', true));
+
+    expect(result.current.results).toEqual([]);
+    expect(result.current.isLoading).toBe(false);
+    expect(result.current.error).toBeNull();
+  });
+
+  it('should return empty results for query < 2 chars', () => {
+    const { result } = renderHook(() => useItemSearch('a', true));
+
+    expect(result.current.results).toEqual([]);
+    expect(result.current.isLoading).toBe(false);
+    expect(result.current.error).toBeNull();
+  });
+
+  it('should fetch items when query >= 2 chars', async () => {
+    const mockItems = [
+      { id: 1, name: 'Resistor', part_number: 'R-10K', barcode: 'BAR001', quantity: 100 },
+    ];
+
+    (global.fetch as any).mockResolvedValueOnce({
+      ok: true,
+      json: async () => mockItems,
+    });
+
+    const { result } = renderHook(() => useItemSearch('Resistor', true));
+
+    await waitFor(() => {
+      expect(result.current.results).toEqual(mockItems);
+    });
+
+    expect(global.fetch).toHaveBeenCalledWith(
+      expect.stringContaining('/items/search?q=Resistor'),
+      expect.any(Object)
+    );
+  });
+
+  it('should debounce search requests', async () => {
+    (global.fetch as any).mockResolvedValue({
+      ok: true,
+      json: async () => [],
+    });
+
+    const { rerender } = renderHook(
+      ({ query }) => useItemSearch(query, true),
+      { initialProps: { query: '' } }
+    );
+
+    act(() => {
+      rerender({ query: 'te' });
+    });
+
+    act(() => {
+      rerender({ query: 'test' });
+    });
+
+    await waitFor(() => {
+      expect(global.fetch).toHaveBeenCalledTimes(1);
+    });
+  });
+
+  it('should cache results per query', async () => {
+    const mockItems = [
+      { id: 1, name: 'Test Item', part_number: 'T-001', barcode: 'BAR-T001', quantity: 5 },
+    ];
+
+    (global.fetch as any).mockResolvedValueOnce({
+      ok: true,
+      json: async () => mockItems,
+    });
+
+    const { result, rerender } = renderHook(
+      ({ query }) => useItemSearch(query, true),
+      { initialProps: { query: 'test' } }
+    );
+
+    await waitFor(() => {
+      expect(result.current.results).toEqual(mockItems);
+    });
+
+    const firstCallCount = (global.fetch as any).mock.calls.length;
+
+    rerender({ query: 'test' });
+
+    await waitFor(() => {
+      expect((global.fetch as any).mock.calls.length).toBe(firstCallCount);
+    });
+  });
+
+  it('should handle search errors', async () => {
+    (global.fetch as any).mockRejectedValueOnce(new Error('Network error'));
+
+    const { result } = renderHook(() => useItemSearch('error-test', true));
+
+    await waitFor(() => {
+      expect(result.current.error).toBeTruthy();
+      expect(result.current.results).toEqual([]);
+    });
+  });
+
+  it('should handle failed API responses', async () => {
+    (global.fetch as any).mockResolvedValueOnce({
+      ok: false,
+      status: 500,
+    });
+
+    const { result } = renderHook(() => useItemSearch('api-error', true));
+
+    await waitFor(() => {
+      expect(result.current.error).toBeTruthy();
+    });
+  });
+
+  it('should return empty results when enabled is false', () => {
+    const { result } = renderHook(() => useItemSearch('test', false));
+
+    expect(result.current.results).toEqual([]);
+    expect(result.current.isLoading).toBe(false);
+  });
+});
+
+describe('SearchModal Component', () => {
+  it('should render search input when open', () => {
+    // This test would require rendering the component with React Testing Library
+    // Placeholder for component testing
+    expect(true).toBe(true);
+  });
+
+  it('should close on Escape key', () => {
+    // Test escape key handling
+    expect(true).toBe(true);
+  });
+
+  it('should display results from API', () => {
+    // Test result rendering
+    expect(true).toBe(true);
+  });
+
+  it('should call onSelectItem when item is clicked', () => {
+    // Test item selection callback
+    expect(true).toBe(true);
+  });
+});
+
+describe('Search Integration', () => {
+  it('should allow user to search and select item', async () => {
+    // End-to-end test scenario
+    const mockItems = [
+      { id: 1, name: 'Power Supply', part_number: 'PSU-500', barcode: 'PSU-001', quantity: 3 },
+    ];
+
+    (global.fetch as any).mockResolvedValueOnce({
+      ok: true,
+      json: async () => mockItems,
+    });
+
+    const { result } = renderHook(() => useItemSearch('Power', true));
+
+    await waitFor(() => {
+      expect(result.current.results).toHaveLength(1);
+      expect(result.current.results[0].name).toBe('Power Supply');
+    });
+  });
+
+  it('should handle special characters in search query', async () => {
+    (global.fetch as any).mockResolvedValueOnce({
+      ok: true,
+      json: async () => [],
+    });
+
+    const { result } = renderHook(() => useItemSearch('test@#$%', true));
+
+    await waitFor(() => {
+      expect(global.fetch).toHaveBeenCalled();
+    });
+  });
+
+  it('should handle empty search results gracefully', async () => {
+    (global.fetch as any).mockResolvedValueOnce({
+      ok: true,
+      json: async () => [],
+    });
+
+    const { result } = renderHook(() => useItemSearch('nonexistent', true));
+
+    await waitFor(() => {
+      expect(result.current.results).toEqual([]);
+      expect(result.current.error).toBeNull();
+    });
+  });
+});