diff --git a/packages/stack/compiler/package.json b/packages/stack/compiler/package.json
index fbeeeb15a..f88b5880f 100644
--- a/packages/stack/compiler/package.json
+++ b/packages/stack/compiler/package.json
@@ -34,9 +34,10 @@
     "clean": "npm run reset",
     "lint": "npm-run-all lint:*",
     "lint:ts": "tslint -c tslint.json \"src/**/*.ts\"",
-    "qa": "npm-run-all lint typecheck _build",
+    "qa": "npm-run-all lint typecheck _build test",
     "reset": "npx rimraf dist embark-*.tgz package",
     "solo": "embark-solo",
+    "test": "jest",
     "typecheck": "tsc",
     "watch": "run-p watch:*",
     "watch:typecheck": "npm run typecheck -- --preserveWatchOutput --watch"
@@ -47,7 +48,13 @@
     "embark-utils": "^4.1.1"
   },
   "devDependencies": {
+    "@babel/core": "7.6.4",
+    "babel-jest": "24.9.0",
+    "clone-deep": "4.0.0",
+    "cross-env": "5.2.0",
     "embark-solo": "^4.1.1",
+    "embark-testing": "^4.1.1",
+    "jest": "24.9.0",
     "npm-run-all": "4.1.5",
     "rimraf": "3.0.0",
     "tslint": "5.16.0",
@@ -57,5 +64,20 @@
     "node": ">=10.17.0 <12.0.0",
     "npm": ">=6.11.3",
     "yarn": ">=1.19.1"
+  },
+  "jest": {
+    "collectCoverage": true,
+    "testEnvironment": "node",
+    "testMatch": [
+      "**/test/**/*.js"
+    ],
+    "transform": {
+      "\\.(js|ts)$": [
+        "babel-jest",
+        {
+          "rootMode": "upward"
+        }
+      ]
+    }
   }
 }
diff --git a/packages/stack/compiler/test/compiler.spec.js b/packages/stack/compiler/test/compiler.spec.js
new file mode 100644
index 000000000..71fb57768
--- /dev/null
+++ b/packages/stack/compiler/test/compiler.spec.js
@@ -0,0 +1,74 @@
+import sinon from 'sinon';
+import assert from 'assert';
+import { File, Types } from 'embark-utils';
+import { fakeEmbark } from 'embark-testing';
+import Compiler from '../src/';
+
+const { embark, plugins } = fakeEmbark();
+
+// Due to our `DAPP_PATH` dependency in `embark-utils` `dappPath()`, we need to
+// ensure that this environment variable is defined.
+process.env.DAPP_PATH = 'something';
+
+describe('stack/compiler', () => {
+
+  let compiler, doneCb;
+
+  beforeEach(() => {
+    compiler = new Compiler(embark, { plugins });
+  });
+
+  afterEach(() => {
+    embark.teardown();
+    sinon.restore();
+  });
+
+  test('it should use registered compiler', done => {
+    const fooCompiler = sinon.spy((files, options, cb) => cb(null, {
+      contractA: 'someResultA',
+      contractB: 'someResultB',
+      contractC: 'someResultC',
+    }));
+
+    embark.plugins.createPlugin('fooCompiler').registerCompiler('.foo', fooCompiler);
+
+    embark.events.request('compiler:contracts:compile', [
+      new File({filename: 'foo.foo', type: Types.dappFile, path: 'foo.foo'}),
+      new File({filename: 'foo2.foo', type: Types.dappFile, path: 'foo2.foo'}),
+      new File({filename: 'foo3.foo', type: Types.dappFile, path: 'foo3.foo'}),
+    ], () => {
+      assert(fooCompiler.called);
+      done();
+    });
+  });
+
+  test('it should iterate over available compilers to find a match for a given source file', done => {
+    const fooCompiler = sinon.spy((files, options, cb) => cb(null, { fooContract: 'foo', }));
+    const barCompiler = sinon.spy((files, options, cb) => cb(null, { barContract: 'bar', }));
+
+    embark.plugins.createPlugin('fooCompiler').registerCompiler('.foo', fooCompiler);
+    embark.plugins.createPlugin('barCompiler').registerCompiler('.bar', barCompiler);
+
+    embark.events.request('compiler:contracts:compile', [
+      new File({filename: 'foo.bar', type: Types.dappFile, path: 'foo.bar'}),
+    ], () => {
+      assert(fooCompiler.notCalled);
+      assert(barCompiler.called);
+      done();
+    });
+  });
+
+  test('it should not compile source files if there is no matching compiler', done => {
+    const fooCompiler = sinon.spy((files, options, cb) => cb(null, { fooContract: 'foo', }));
+    embark.plugins.createPlugin('fooCompiler').registerCompiler('.foo', fooCompiler);
+
+    const files = [
+      new File({filename: 'foo.bar', type: Types.dappFile, path: 'foo.bar'})
+    ];
+
+    embark.events.request('compiler:contracts:compile', files, () => {
+      files.forEach(file => assert(!file.compiled));
+      done();
+    });
+  });
+});