diff --git a/tests/unit/diam_test.go b/tests/unit/diam_test.go
new file mode 100644
index 000000000..8e2b41811
--- /dev/null
+++ b/tests/unit/diam_test.go
@@ -0,0 +1,59 @@
+package diam_test
+
+import (
+	"testing"
+
+	"github.com/KOSASIH/pi-nexus-autonomous-banking-network/diam"
+)
+
+func TestCreateIdentity(t *testing.T) {
+	// Create a test DIAM node
+	node := diam.NewDIAMNode()
+
+	// Create a test identity
+	identity := &diam.Identity{
+		ID:       "user-1",
+		Username: "john",
+		Password: "password",
+	}
+
+	// Create the identity
+	req := &diam.CreateIdentityRequest{
+		Identity: identity,
+	}
+	resp, err := node.CreateIdentity(context.Background(), req)
+
+	// Check the response
+	if err != nil {
+		t.Errorf("failed to create identity: %v", err)
+	}
+	if resp.Identity.ID != identity.ID {
+		t.Errorf("unexpected response: %v", resp)
+	}
+}
+
+func TestAuthenticate(t *testing.T) {
+	// Create a test DIAM node
+	node := diam.NewDIAMNode()
+
+	// Create a test identity
+	identity := &diam.Identity{
+		ID:       "user-1",
+		Username: "john",
+		Password: "password",
+	}
+
+	// Authenticate the identity
+	req := &diam.AuthenticateRequest{
+		Identity: identity,
+	}
+	resp, err := node.Authenticate(context.Background(), req)
+
+	// Check the response
+	if err != nil {
+		t.Errorf("failed to authenticate: %v", err)
+	}
+	if !resp.Authenticated {
+		t.Errorf("unexpected response: %v", resp)
+	}
+}