diff --git a/cmd/nodepool/agent/create.go b/cmd/nodepool/agent/create.go
index 9868a865ecdf..2ac344b9270c 100644
--- a/cmd/nodepool/agent/create.go
+++ b/cmd/nodepool/agent/create.go
@@ -27,6 +27,12 @@ func NewAgentPlatformCreateOptions(_ *cobra.Command) *AgentPlatformCreateOptions
 }
 
 func NewCreateCommand(coreOpts *core.CreateNodePoolOptions) *cobra.Command {
+	cmd, platformOpts := newCreateCommandWithOpts()
+	cmd.RunE = coreOpts.CreateRunFunc(platformOpts)
+	return cmd
+}
+
+func newCreateCommandWithOpts() (*cobra.Command, *AgentPlatformCreateOptions) {
 	cmd := &cobra.Command{
 		Use:          "agent",
 		Short:        "Creates basic functional NodePool resources for Agent platform",
@@ -35,9 +41,8 @@ func NewCreateCommand(coreOpts *core.CreateNodePoolOptions) *cobra.Command {
 
 	platformOpts := NewAgentPlatformCreateOptions(cmd)
 	cmd.Flags().StringVar(&platformOpts.AgentLabelSelector, "agentLabelSelector", platformOpts.AgentLabelSelector, "A LabelSelector for selecting Agents according to their labels, e.g., 'size=large,zone notin (az1,az2)'")
-	cmd.RunE = coreOpts.CreateRunFunc(platformOpts)
 
-	return cmd
+	return cmd, platformOpts
 }
 
 func (o *AgentPlatformCreateOptions) UpdateNodePool(_ context.Context, nodePool *hyperv1.NodePool, _ *hyperv1.HostedCluster, _ crclient.Client) error {
diff --git a/cmd/nodepool/agent/create_test.go b/cmd/nodepool/agent/create_test.go
new file mode 100644
index 000000000000..551696ed5a26
--- /dev/null
+++ b/cmd/nodepool/agent/create_test.go
@@ -0,0 +1,122 @@
+package agent
+
+import (
+	"testing"
+
+	hyperv1 "github.com/openshift/hypershift/api/hypershift/v1beta1"
+	"github.com/openshift/hypershift/cmd/nodepool/core"
+
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+
+	"github.com/google/go-cmp/cmp"
+)
+
+// newAgentNodePool builds the NodePool fixture shared by the UpdateNodePool test cases.
+func newAgentNodePool() *hyperv1.NodePool {
+	return &hyperv1.NodePool{
+		Spec: hyperv1.NodePoolSpec{
+			Arch: string(hyperv1.ArchitectureAMD64),
+			Platform: hyperv1.NodePoolPlatform{
+				Type: hyperv1.AgentPlatform,
+			},
+		},
+	}
+}
+
+func TestNewCreateCommand(t *testing.T) {
+	coreOpts := &core.CreateNodePoolOptions{}
+	cmd := NewCreateCommand(coreOpts)
+
+	if cmd.Use != "agent" {
+		t.Errorf("expected Use to be %q, got %q", "agent", cmd.Use)
+	}
+	if cmd.RunE == nil {
+		t.Error("expected RunE to be set")
+	}
+	flag := cmd.Flag("agentLabelSelector")
+	if flag == nil {
+		t.Fatal("expected agentLabelSelector flag to be registered")
+	}
+	if flag.DefValue != "" {
+		t.Errorf("expected agentLabelSelector default to be empty, got %q", flag.DefValue)
+	}
+}
+
+func TestUpdateNodePool(t *testing.T) {
+	for _, testCase := range []struct {
+		name             string
+		labelSelector    string
+		expectedSelector *metav1.LabelSelector
+		expectPanic      bool
+	}{
+		{
+			name:          "When an empty selector is provided, it should produce an empty label selector",
+			labelSelector: "",
+			expectedSelector: &metav1.LabelSelector{
+				MatchLabels:      map[string]string{},
+				MatchExpressions: []metav1.LabelSelectorRequirement{},
+			},
+		},
+		{
+			name:          "When an equality-based selector is provided, it should set matchLabels",
+			labelSelector: "size=large",
+			expectedSelector: &metav1.LabelSelector{
+				MatchLabels:      map[string]string{"size": "large"},
+				MatchExpressions: []metav1.LabelSelectorRequirement{},
+			},
+		},
+		{
+			name:          "When a set-based selector is provided, it should set matchLabels and matchExpressions",
+			labelSelector: "size=large,zone notin (az1,az2)",
+			expectedSelector: &metav1.LabelSelector{
+				MatchLabels: map[string]string{"size": "large"},
+				MatchExpressions: []metav1.LabelSelectorRequirement{
+					{
+						Key:      "zone",
+						Operator: metav1.LabelSelectorOpNotIn,
+						Values:   []string{"az1", "az2"},
+					},
+				},
+			},
+		},
+		{
+			name:          "When an invalid label selector is provided, it should panic",
+			labelSelector: "!!!invalid!!!",
+			expectPanic:   true,
+		},
+	} {
+		t.Run(testCase.name, func(t *testing.T) {
+			ctx := t.Context()
+
+			platformOpts := &AgentPlatformCreateOptions{
+				AgentLabelSelector: testCase.labelSelector,
+			}
+			nodePool := newAgentNodePool()
+
+			if testCase.expectPanic {
+				defer func() {
+					if r := recover(); r == nil {
+						t.Fatal("expected panic for invalid label selector, got none")
+					}
+				}()
+				_ = platformOpts.UpdateNodePool(ctx, nodePool, nil, nil)
+				return
+			}
+
+			if err := platformOpts.UpdateNodePool(ctx, nodePool, nil, nil); err != nil {
+				t.Fatalf("failed to update nodepool: %v", err)
+			}
+
+			if diff := cmp.Diff(testCase.expectedSelector, nodePool.Spec.Platform.Agent.AgentLabelSelector); diff != "" {
+				t.Errorf("unexpected label selector (-want +got):\n%s", diff)
+			}
+		})
+	}
+}
+
+func TestType(t *testing.T) {
+	opts := &AgentPlatformCreateOptions{}
+	if opts.Type() != hyperv1.AgentPlatform {
+		t.Errorf("expected Type() to return %q, got %q", hyperv1.AgentPlatform, opts.Type())
+	}
+}