diff --git a/src/app/index.ts b/src/app/index.ts
index 927afe2..b27ac67 100644
--- a/src/app/index.ts
+++ b/src/app/index.ts
@@ -20,6 +20,7 @@ import Base = require('yeoman-generator');
 enum ExtensionType {
     HelloWorld = 'hello-world',
     Widget = 'widget',
+    WidgetWithUnitTests = 'widget-with-unittest',
     LabelProvider = 'labelprovider',
     TreeEditor = 'tree-editor',
     Empty = 'empty',
@@ -47,6 +48,10 @@ module.exports = class TheiaExtension extends Base {
         standalone: boolean
         dependencies: string
         browserDevDependencies: string
+        devdependencies: string
+        scripts: string
+        rootscripts: string
+        containsTests: boolean
     };
 
     constructor(args: string | string[], options: any) {
@@ -149,6 +154,7 @@ module.exports = class TheiaExtension extends Base {
                 choices: [
                     { value: ExtensionType.HelloWorld, name: 'Hello World' },
                     { value: ExtensionType.Widget, name: 'Widget' },
+                    { value: ExtensionType.WidgetWithUnitTests, name: 'Widget with Unit Tests' },
                     { value: ExtensionType.LabelProvider, name: 'LabelProvider' },
                     { value: ExtensionType.TreeEditor, name: 'TreeEditor' },
                     { value: ExtensionType.Backend, name: 'Backend Communication' },
@@ -193,12 +199,17 @@ module.exports = class TheiaExtension extends Base {
             lernaVersion: options["lerna-version"],
             backend: options["extensionType"] === ExtensionType.Backend
         }
+        this.params.dependencies = '';
+        this.params.browserDevDependencies = '';
         if (this.params.extensionType === ExtensionType.TreeEditor) {
             this.params.dependencies = `,\n    "@theia/editor": "${this.params.theiaVersion}",\n    "@theia/filesystem": "${this.params.theiaVersion}",\n    "@theia/workspace": "${this.params.theiaVersion}",\n    "@eclipse-emfcloud/theia-tree-editor": "latest",\n    "uuid": "^3.3.2"`;
             this.params.browserDevDependencies = `,\n    "node-polyfill-webpack-plugin": "latest"`;
-        } else {
-            this.params.dependencies = '';
-            this.params.browserDevDependencies = '';
+        }
+        if (this.params.extensionType === ExtensionType.WidgetWithUnitTests) {
+            this.params.devdependencies = `,\n    "@testing-library/react": "^11.2.7",\n    "@types/jest": "^26.0.20",\n    "jest": "^26.6.3",\n    "ts-node": "^9.1.1",\n    "ts-jest": "^26.5.6"`;
+            this.params.scripts = `,\n    "test": "jest --config configs/jest.config.ts"`;
+            this.params.rootscripts =`,\n    "test": "cd ${this.params.extensionPath} && yarn test"`;
+            this.params.containsTests = true;
         }
         options.params = this.params
         if (!options.standalone) {
@@ -294,7 +305,7 @@ module.exports = class TheiaExtension extends Base {
         }
 
         /** widget */
-        if (this.params.extensionType === ExtensionType.Widget) {
+        if (this.params.extensionType === ExtensionType.Widget||this.params.extensionType === ExtensionType.WidgetWithUnitTests) {
             this.fs.copyTpl(
                 this.templatePath('widget/frontend-module.ts'),
                 this.extensionPath(`src/browser/${this.params.extensionPath}-frontend-module.ts`),
@@ -321,6 +332,24 @@ module.exports = class TheiaExtension extends Base {
                 { params: this.params }
             );
         }
+         /** widget with unit test */
+         if (this.params.extensionType === ExtensionType.WidgetWithUnitTests) {
+            this.fs.copyTpl(
+                this.templatePath('widget/__tests__/widget.test.ts'),
+                this.extensionPath(`src/browser/__tests__/${this.params.extensionPath}-widget.test.ts`),
+                { params: this.params }
+            );
+            this.fs.copyTpl(
+                this.templatePath('widget/__tests__/mock-objects/mock-message-service.ts'),
+                this.extensionPath(`src/browser/__tests__/mock-objects/mock-message-service.ts`),
+                { params: this.params }
+            );
+            this.fs.copyTpl(
+                this.templatePath('widget/configs/jest.config.ts'),
+                this.extensionPath(`configs/jest.config.ts`),
+                { params: this.params }
+            );
+         }
 
         /** backend */
         if (this.params.extensionType === ExtensionType.Backend) {
diff --git a/templates/README.md b/templates/README.md
index cad29df..64e0e4e 100644
--- a/templates/README.md
+++ b/templates/README.md
@@ -41,6 +41,18 @@ Open http://localhost:3000 in the browser.
     yarn start
 
 *or:* launch `Start Electron Backend` configuration from VS code.
+
+<%if(params.containsTests){%>
+## Running the tests
+
+    yarn test
+
+*or* run the tests of a specific package with
+
+    cd <%= params.extensionPath %>
+    yarn test
+    
+<%}%>
 ## Developing with the browser example
 
 Start watching all packages, including `browser-app`, of your application with
diff --git a/templates/extension-package.json b/templates/extension-package.json
index 8f68f13..ec007e8 100644
--- a/templates/extension-package.json
+++ b/templates/extension-package.json
@@ -31,13 +31,13 @@
   },
   "devDependencies": {
     "rimraf": "latest",
-    "typescript": "latest"
+    "typescript": "latest"<% if (params.devdependencies) { %><%- params.devdependencies %><% } %>
   },
   "scripts": {
     "prepare": "yarn run clean && yarn run build",
     "clean": "rimraf lib",
     "build": "tsc",
-    "watch": "tsc -w"
+    "watch": "tsc -w"<% if (params.scripts) { %><%- params.scripts %><% } %>
   },
   "theiaExtensions": [
     {
diff --git a/templates/root-package.json b/templates/root-package.json
index bfe1a62..55e3961 100644
--- a/templates/root-package.json
+++ b/templates/root-package.json
@@ -6,7 +6,7 @@
     "rebuild:electron": "theia rebuild:electron",
     "start:browser": "yarn rebuild:browser && yarn --cwd browser-app start",
     "start:electron": "yarn rebuild:electron && yarn --cwd electron-app start",
-    "watch": "lerna run --parallel watch"
+    "watch": "lerna run --parallel watch"<% if (params.rootscripts) { %><%- params.rootscripts %><% } %>
   },
   "devDependencies": {
     "lerna": "<%= params.lernaVersion %>"
diff --git a/templates/widget/__tests__/mock-objects/mock-message-service.ts b/templates/widget/__tests__/mock-objects/mock-message-service.ts
new file mode 100644
index 0000000..e9de7ec
--- /dev/null
+++ b/templates/widget/__tests__/mock-objects/mock-message-service.ts
@@ -0,0 +1,64 @@
+import { injectable, inject } from 'inversify';
+import { Message, MessageClient, MessageOptions, MessageType, ProgressMessage, ProgressUpdate } from '@theia/core/lib/common/message-service-protocol';
+import { CancellationToken, MessageService } from '@theia/core';
+
+@injectable()
+export class MockMessageService extends MessageService{
+ 
+    constructor(
+        @inject(MessageClient) protected readonly client: MessageClient
+    ) { super(client) }
+ 
+    logWasCalled: boolean = false;
+    infoWasCalled: boolean = false;
+    warnWasCalled: boolean = false;
+    errorWasCalled: boolean = false;
+
+    log<T extends string>(message: string, ...actions: T[]): Promise<T | undefined>;
+    log<T extends string>(message: string, options?: MessageOptions, ...actions: T[]): Promise<T | undefined>;
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    log(message: string, ...args: any[]): Promise<string | undefined> {
+        this.logWasCalled = true;
+        return this.processMessage(MessageType.Log, message, args);
+    }
+
+    info<T extends string>(message: string, ...actions: T[]): Promise<T | undefined>;
+
+    info<T extends string>(message: string, options?: MessageOptions, ...actions: T[]): Promise<T | undefined>;
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    info(message: string, ...args: any[]): Promise<string | undefined> {
+        this.infoWasCalled = true;
+        return this.processMessage(MessageType.Info, message, args);
+    }
+ 
+    warn<T extends string>(message: string, ...actions: T[]): Promise<T | undefined>;
+    warn<T extends string>(message: string, options?: MessageOptions, ...actions: T[]): Promise<T | undefined>;
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    warn(message: string, ...args: any[]): Promise<string | undefined> {
+        this.warnWasCalled = true;
+        return this.processMessage(MessageType.Warning, message, args);
+    }
+
+    error<T extends string>(message: string, ...actions: T[]): Promise<T | undefined>;
+    error<T extends string>(message: string, options?: MessageOptions, ...actions: T[]): Promise<T | undefined>;
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    error(message: string, ...args: any[]): Promise<string | undefined> {
+        this.errorWasCalled = true;
+        return this.processMessage(MessageType.Error, message, args);
+    }
+}
+
+@injectable()
+export class MockMessageClient {
+
+    showMessage(message: Message): Promise<string | undefined> {
+        return Promise.resolve(undefined);
+    }
+
+    showProgress(progressId: string, message: ProgressMessage, cancellationToken: CancellationToken): Promise<string | undefined> {
+        return Promise.resolve(undefined);
+    }
+    reportProgress(progressId: string, update: ProgressUpdate, message: ProgressMessage, cancellationToken: CancellationToken): Promise<void> {
+        return Promise.resolve(undefined);
+    }
+}
diff --git a/templates/widget/__tests__/widget.test.ts b/templates/widget/__tests__/widget.test.ts
new file mode 100644
index 0000000..177e3db
--- /dev/null
+++ b/templates/widget/__tests__/widget.test.ts
@@ -0,0 +1,33 @@
+import 'reflect-metadata';
+import { MessageClient, MessageService } from '@theia/core';
+import { ContainerModule, Container } from 'inversify';
+import { MockMessageClient, MockMessageService } from './mock-objects/mock-message-service';
+import { <%= params.extensionPrefix %>Widget } from '../<%= params.extensionPath %>-widget';
+import { render } from '@testing-library/react'
+
+describe('widget extension unit tests', () => {
+
+    let widget: any;
+
+    beforeEach(async () => {
+        const module = new ContainerModule( bind => {
+            bind(MessageClient).to(MockMessageClient).inSingletonScope();
+            bind(MessageService).to(MockMessageService).inSingletonScope();
+            bind(<%= params.extensionPrefix %>Widget).toSelf();
+        });
+        const container = new Container();
+        container.load(module);
+        widget = container.resolve<<%= params.extensionPrefix %>Widget>(<%= params.extensionPrefix %>Widget);
+    });
+
+    it('should render react node correctly', async () => {
+        const element = render(widget.render());
+        expect(element.queryByText('Display Message')).toBeTruthy();
+    });
+
+    it('should inject the message service', async () => {
+        widget.displayMessage();
+        expect(widget.messageService.infoWasCalled).toBe(true);
+    });
+
+});
\ No newline at end of file
diff --git a/templates/widget/configs/jest.config.ts b/templates/widget/configs/jest.config.ts
new file mode 100644
index 0000000..6641045
--- /dev/null
+++ b/templates/widget/configs/jest.config.ts
@@ -0,0 +1,10 @@
+import type { Config } from '@jest/types';
+
+export default async (): Promise<Config.InitialOptions> => ({
+    preset: 'ts-jest',
+    testMatch: ['**.test.ts'],
+    rootDir: '../',
+    transform: {
+        '^.+\\.(ts)$': 'ts-jest',
+    }
+});
\ No newline at end of file