diff --git a/src/platform/plugins/shared/dashboard/public/dashboard_actions/library_add_action.test.tsx b/src/platform/plugins/shared/dashboard/public/dashboard_actions/library_add_action.test.tsx
new file mode 100644
index 0000000000000..03d169c0a27ba
--- /dev/null
+++ b/src/platform/plugins/shared/dashboard/public/dashboard_actions/library_add_action.test.tsx
@@ -0,0 +1,75 @@
+/*
+ * Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
+ * or more contributor license agreements. Licensed under the "Elastic License
+ * 2.0", the "GNU Affero General Public License v3.0 only", and the "Server Side
+ * Public License v 1"; you may not use this file except in compliance with, at
+ * your election, the "Elastic License 2.0", the "GNU Affero General Public
+ * License v3.0 only", or the "Server Side Public License, v 1".
+ */
+
+import React from 'react';
+import type { OnSaveProps } from '@kbn/saved-objects-plugin/public';
+import { AddPanelToLibraryActionApi, AddToLibraryAction } from './library_add_action';
+import { BehaviorSubject } from 'rxjs';
+
+jest.mock('@kbn/saved-objects-plugin/public', () => {
+  // eslint-disable-next-line @typescript-eslint/no-var-requires
+  const { render } = require('@testing-library/react');
+  const MockSavedObjectSaveModal = ({ onSave }: { onSave: (props: OnSaveProps) => void }) => {
+    onSave({
+      newTitle: 'Library panel one',
+      newCopyOnSave: true,
+      isTitleDuplicateConfirmed: false,
+      onTitleDuplicate: () => {},
+      newDescription: '',
+    });
+    return null;
+  };
+  return {
+    SavedObjectSaveModal: MockSavedObjectSaveModal,
+    showSaveModal: (saveModal: React.ReactElement) => {
+      render(saveModal);
+    },
+  };
+});
+
+describe('AddToLibraryAction', () => {
+  const action = new AddToLibraryAction();
+  const saveToLibraryMock = jest.fn(async () => 'libraryId1');
+  const replacePanelMock = jest.fn();
+  const embeddableApi = {
+    checkForDuplicateTitle: async () => {},
+    canLinkToLibrary: async () => true,
+    canUnlinkFromLibrary: async () => false,
+    getSerializedStateByReference: () => ({ rawState: { savedObjectId: 'libraryId1' } }),
+    getSerializedStateByValue: () => ({ rawState: {} }),
+    parentApi: {
+      replacePanel: replacePanelMock,
+      viewMode$: new BehaviorSubject('edit'),
+    },
+    saveToLibrary: saveToLibraryMock,
+    type: 'testEmbeddable',
+    uuid: '1',
+  } as AddPanelToLibraryActionApi;
+
+  beforeEach(() => {
+    jest.clearAllMocks();
+  });
+
+  describe('execute', () => {
+    test('should save panel to library and replace panel with library panel', async () => {
+      await action.execute({ embeddable: embeddableApi });
+      expect(saveToLibraryMock).toHaveBeenCalled();
+      expect(replacePanelMock).toHaveBeenCalledWith('1', {
+        panelType: 'testEmbeddable',
+        serializedState: {
+          rawState: {
+            savedObjectId: 'libraryId1',
+            title: 'Library panel one',
+          },
+          references: undefined,
+        },
+      });
+    });
+  });
+});
diff --git a/src/platform/plugins/shared/dashboard/public/dashboard_actions/library_unlink_action.test.ts b/src/platform/plugins/shared/dashboard/public/dashboard_actions/library_unlink_action.test.ts
new file mode 100644
index 0000000000000..41ee0c1e0066c
--- /dev/null
+++ b/src/platform/plugins/shared/dashboard/public/dashboard_actions/library_unlink_action.test.ts
@@ -0,0 +1,52 @@
+/*
+ * Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
+ * or more contributor license agreements. Licensed under the "Elastic License
+ * 2.0", the "GNU Affero General Public License v3.0 only", and the "Server Side
+ * Public License v 1"; you may not use this file except in compliance with, at
+ * your election, the "Elastic License 2.0", the "GNU Affero General Public
+ * License v3.0 only", or the "Server Side Public License, v 1".
+ */
+
+import { BehaviorSubject } from 'rxjs';
+import { UnlinkFromLibraryAction, UnlinkPanelFromLibraryActionApi } from './library_unlink_action';
+
+describe('AddToLibraryAction', () => {
+  const action = new UnlinkFromLibraryAction();
+  const replacePanelMock = jest.fn();
+  const embeddableApi = {
+    defaultTitle$: new BehaviorSubject('Panel one'),
+    checkForDuplicateTitle: async () => {},
+    canLinkToLibrary: async () => false,
+    canUnlinkFromLibrary: async () => true,
+    getSerializedStateByReference: () => ({ rawState: {} }),
+    getSerializedStateByValue: () => ({ rawState: { key1: 'value1' } }),
+    parentApi: {
+      replacePanel: replacePanelMock,
+      viewMode$: new BehaviorSubject('edit'),
+    },
+    saveToLibrary: async () => 'libraryId1',
+    type: 'testEmbeddable',
+    uuid: '1',
+  } as UnlinkPanelFromLibraryActionApi;
+
+  beforeEach(() => {
+    jest.clearAllMocks();
+  });
+
+  describe('execute', () => {
+    test('should replace panel with by value panel', async () => {
+      await action.execute({ embeddable: embeddableApi });
+      expect(replacePanelMock).toHaveBeenCalledWith('1', {
+        panelType: 'testEmbeddable',
+        serializedState: {
+          rawState: {
+            key1: 'value1',
+            // should get default title from by reference embeddable
+            title: 'Panel one',
+          },
+          references: undefined,
+        },
+      });
+    });
+  });
+});
diff --git a/src/platform/test/functional/apps/dashboard/group6/embeddable_library.ts b/src/platform/test/functional/apps/dashboard/group6/embeddable_library.ts
deleted file mode 100644
index 9f885bde7e04e..0000000000000
--- a/src/platform/test/functional/apps/dashboard/group6/embeddable_library.ts
+++ /dev/null
@@ -1,57 +0,0 @@
-/*
- * Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
- * or more contributor license agreements. Licensed under the "Elastic License
- * 2.0", the "GNU Affero General Public License v3.0 only", and the "Server Side
- * Public License v 1"; you may not use this file except in compliance with, at
- * your election, the "Elastic License 2.0", the "GNU Affero General Public
- * License v3.0 only", or the "Server Side Public License, v 1".
- */
-
-import { FtrProviderContext } from '../../../ftr_provider_context';
-
-export default function ({ getService, getPageObjects }: FtrProviderContext) {
-  const { dashboard } = getPageObjects(['dashboard']);
-  const find = getService('find');
-  const kibanaServer = getService('kibanaServer');
-  const dashboardAddPanel = getService('dashboardAddPanel');
-  const panelActions = getService('dashboardPanelActions');
-  const savedObjectsFinder = getService('savedObjectsFinder');
-  const title = 'Rendering Test: heatmap';
-
-  describe('embeddable library', () => {
-    before(async () => {
-      await kibanaServer.savedObjects.cleanStandardList();
-      await kibanaServer.importExport.load(
-        'src/platform/test/functional/fixtures/kbn_archiver/dashboard/current/kibana'
-      );
-      await kibanaServer.uiSettings.replace({
-        defaultIndex: '0bf35f60-3dc9-11e8-8660-4d65aa086b3c',
-      });
-      await dashboard.navigateToApp();
-      await dashboard.preserveCrossAppState();
-      await dashboard.clickNewDashboard();
-    });
-
-    it('unlink visualize panel from embeddable library', async () => {
-      // add heatmap panel from library
-      await dashboardAddPanel.clickOpenAddPanel();
-      await savedObjectsFinder.filterEmbeddableNames(title);
-      await find.clickByButtonText(title);
-      await dashboardAddPanel.closeAddPanel();
-
-      await panelActions.unlinkFromLibrary(title);
-      await panelActions.expectNotLinkedToLibrary(title);
-
-      await dashboardAddPanel.clickOpenAddPanel();
-      await savedObjectsFinder.filterEmbeddableNames(title);
-      await find.existsByLinkText(title);
-      await dashboardAddPanel.closeAddPanel();
-    });
-
-    it('save visualize panel to embeddable library', async () => {
-      const newTitle = 'Rendering Test: heatmap - copy';
-      await panelActions.saveToLibrary(newTitle, title);
-      await panelActions.expectLinkedToLibrary(newTitle);
-    });
-  });
-}
diff --git a/src/platform/test/functional/apps/dashboard/group6/index.ts b/src/platform/test/functional/apps/dashboard/group6/index.ts
index 9b72b632b9dab..22f0b9323f6e5 100644
--- a/src/platform/test/functional/apps/dashboard/group6/index.ts
+++ b/src/platform/test/functional/apps/dashboard/group6/index.ts
@@ -41,7 +41,6 @@ export default function ({ getService, loadTestFile }: FtrProviderContext) {
     // The dashboard_snapshot test below requires the timestamped URL which breaks the view_edit test.
     // If we don't use the timestamp in the URL, the colors in the charts will be different.
     loadTestFile(require.resolve('./dashboard_snapshots'));
-    loadTestFile(require.resolve('./embeddable_library'));
     loadTestFile(require.resolve('./dashboard_esql_chart'));
     loadTestFile(require.resolve('./dashboard_esql_no_data'));
   });