diff --git a/src/v0/destinations/algolia/util.js b/src/v0/destinations/algolia/util.js
index 11ce0a9ad5..b10097bbee 100644
--- a/src/v0/destinations/algolia/util.js
+++ b/src/v0/destinations/algolia/util.js
@@ -143,6 +143,7 @@ const clickPayloadValidator = (payload) => {
   return updatedPayload;
 };
 
+// ref : https://www.algolia.com/doc/rest-api/insights/#method-param-objectdata-2:~:text=currency-,%23,currency%20as%20ISO%2D4217%20currency%20code%2C%20such%20as%20USD%20or%20EUR.,-ObjectData
 function validatePayload(payload) {
   if (payload.objectData && Array.isArray(payload.objectData)) {
     const hasRelevantFields = payload.objectData.some(
diff --git a/src/v0/destinations/algolia/util.test.js b/src/v0/destinations/algolia/util.test.js
new file mode 100644
index 0000000000..850d93f1c6
--- /dev/null
+++ b/src/v0/destinations/algolia/util.test.js
@@ -0,0 +1,58 @@
+const { InstrumentationError } = require('@rudderstack/integrations-lib');
+const { validatePayload } = require('./util');
+
+describe('validatePayload', () => {
+  // When payload is valid and contains relevant fields and currency
+  it('should validate payload when it is valid and contains relevant fields and currency', () => {
+    const payload = {
+      objectData: [
+        { price: 10, quantity: 2, discount: 0.1 },
+        { price: 20, quantity: 1, discount: 0 },
+      ],
+      currency: 'USD',
+    };
+
+    expect(() => validatePayload(payload)).not.toThrow();
+  });
+
+  // When payload contains objects with missing relevant fields
+  it('should throw an error when payload contains objects with missing relevant fields', () => {
+    const payload = {
+      objectData: [
+        { price: 10, quantity: 2 },
+        { price: 20, discount: 0 },
+      ],
+    };
+
+    expect(() => validatePayload(payload)).toThrow(InstrumentationError);
+  });
+
+  // When payload is valid and contains relevant fields but no currency
+  it('should throw an InstrumentationError when currency is missing', () => {
+    const payload = {
+      objectData: [
+        { price: 10, quantity: 2, discount: 0.1 },
+        { price: 20, quantity: 1, discount: 0 },
+      ],
+    };
+
+    expect(() => validatePayload(payload)).toThrow(InstrumentationError);
+  });
+
+  // When payload is valid but does not contain relevant fields
+  it('should not throw an error when payload does not contain relevant fields', () => {
+    const payload = {
+      objectData: [{ position: 'Product A' }, { position: 'Product B' }],
+      currency: 'USD',
+    };
+
+    expect(() => validatePayload(payload)).not.toThrow();
+  });
+
+  // When payload is empty
+  it('should not throw an error when payload is empty', () => {
+    const payload = {};
+
+    expect(() => validatePayload(payload)).not.toThrow();
+  });
+});