diff --git a/lambdas/account-scoped/tests/unit/webchatAuthentication/initWebchat.test.ts b/lambdas/account-scoped/tests/unit/webchatAuthentication/initWebchat.test.ts
new file mode 100644
index 0000000000..88cc02d5c1
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+++ b/lambdas/account-scoped/tests/unit/webchatAuthentication/initWebchat.test.ts
@@ -0,0 +1,172 @@
+/**
+ * Copyright (C) 2021-2023 Technology Matters
+ * This program is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Affero General Public License as published
+ * by the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ *
+ * This program is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU Affero General Public License for more details.
+ *
+ * You should have received a copy of the GNU Affero General Public License
+ * along with this program.  If not, see https://www.gnu.org/licenses/.
+ */
+
+import twilio from 'twilio';
+import { initWebchatHandler } from '../../../src/webchatAuthentication/initWebchat';
+import { patchConversationAttributes } from '../../../src/conversation/patchConversationAttributes';
+import { RecursivePartial } from '../RecursivePartial';
+import { TEST_ACCOUNT_SID, TEST_CONVERSATION_SID } from '../../testTwilioValues';
+import { isErr, isOk } from '../../../src/Result';
+
+jest.mock('@tech-matters/twilio-configuration', () => ({
+  getTwilioClient: jest.fn(),
+}));
+
+jest.mock('../../../src/webchatAuthentication/createToken', () => ({
+  createToken: jest.fn(),
+  TOKEN_TTL_IN_SECONDS: 3600,
+}));
+
+jest.mock('../../../src/conversation/patchConversationAttributes', () => ({
+  patchConversationAttributes: jest.fn(),
+}));
+
+import { getTwilioClient } from '@tech-matters/twilio-configuration';
+import { createToken } from '../../../src/webchatAuthentication/createToken';
+
+const mockGetTwilioClient = getTwilioClient as jest.MockedFunction<typeof getTwilioClient>;
+const mockCreateToken = createToken as jest.MockedFunction<typeof createToken>;
+const mockPatchConversationAttributes = patchConversationAttributes as jest.MockedFunction<
+  typeof patchConversationAttributes
+>;
+
+const TEST_IDENTITY = 'customer_identity';
+const TEST_TOKEN = 'mock.jwt.token';
+const TEST_ADDRESS_SID = 'IG1ba46f2d6828b42ddd363f5045138044';
+
+const createMockRequest = (body: Record<string, any> = {}) => ({
+  method: 'POST',
+  headers: {},
+  path: '/init-webchat',
+  query: {},
+  body: {
+    PreEngagementData: JSON.stringify({ friendlyName: 'Test Customer' }),
+    ...body,
+  },
+});
+
+describe('initWebchatHandler', () => {
+  let mockWebChannelsCreate: jest.Mock;
+  let mockTwilioClient: RecursivePartial<twilio.Twilio>;
+
+  beforeEach(() => {
+    jest.clearAllMocks();
+
+    mockWebChannelsCreate = jest.fn().mockResolvedValue({
+      conversationSid: TEST_CONVERSATION_SID,
+      identity: TEST_IDENTITY,
+    });
+
+    mockTwilioClient = {
+      flexApi: {
+        v2: {
+          webChannels: {
+            create: mockWebChannelsCreate,
+          },
+        },
+      },
+    };
+
+    mockGetTwilioClient.mockResolvedValue(mockTwilioClient as twilio.Twilio);
+    mockCreateToken.mockResolvedValue(TEST_TOKEN);
+    mockPatchConversationAttributes.mockResolvedValue({} as any);
+  });
+
+  it('calls client.flexApi.v2.webChannels.create with the correct parameters', async () => {
+    const request = createMockRequest();
+    await initWebchatHandler(request, TEST_ACCOUNT_SID);
+
+    expect(mockWebChannelsCreate).toHaveBeenCalledWith({
+      customerFriendlyName: 'Test Customer',
+      addressSid: TEST_ADDRESS_SID,
+      preEngagementData: JSON.stringify({ friendlyName: 'Test Customer' }),
+      uiVersion: expect.any(String),
+      chatFriendlyName: 'Webchat widget',
+    });
+  });
+
+  it('calls patchConversationAttributes to set channel_type to web', async () => {
+    const request = createMockRequest();
+    await initWebchatHandler(request, TEST_ACCOUNT_SID);
+
+    expect(mockPatchConversationAttributes).toHaveBeenCalledWith(
+      mockTwilioClient,
+      TEST_CONVERSATION_SID,
+      { channel_type: 'web' },
+    );
+  });
+
+  it('returns a success result with token, conversationSid and expiration', async () => {
+    const request = createMockRequest();
+    const result = await initWebchatHandler(request, TEST_ACCOUNT_SID);
+
+    expect(isOk(result)).toBe(true);
+    if (isOk(result)) {
+      expect(result.data.token).toBe(TEST_TOKEN);
+      expect(result.data.conversationSid).toBe(TEST_CONVERSATION_SID);
+      expect(typeof result.data.expiration).toBe('number');
+    }
+  });
+
+  it('returns an error result when webChannels.create throws', async () => {
+    mockWebChannelsCreate.mockRejectedValue(new Error('Orchestrator error'));
+    const request = createMockRequest();
+    const result = await initWebchatHandler(request, TEST_ACCOUNT_SID);
+
+    expect(isErr(result)).toBe(true);
+    if (isErr(result)) {
+      expect(result.error.statusCode).toBe(500);
+      expect(result.message).toBe('Orchestrator error');
+    }
+
+    expect(mockPatchConversationAttributes).not.toHaveBeenCalled();
+  });
+
+  it('returns an error result when patchConversationAttributes throws', async () => {
+    mockPatchConversationAttributes.mockRejectedValue(new Error('Patch failed'));
+    const request = createMockRequest();
+    const result = await initWebchatHandler(request, TEST_ACCOUNT_SID);
+
+    expect(isErr(result)).toBe(true);
+    if (isErr(result)) {
+      expect(result.error.statusCode).toBe(500);
+      expect(result.message).toBe('Patch failed');
+    }
+  });
+
+  it('uses CustomerFriendlyName from body when friendlyName is absent in form data', async () => {
+    const request = createMockRequest({
+      PreEngagementData: JSON.stringify({}),
+      CustomerFriendlyName: 'Fallback Customer',
+    });
+    await initWebchatHandler(request, TEST_ACCOUNT_SID);
+
+    expect(mockWebChannelsCreate).toHaveBeenCalledWith(
+      expect.objectContaining({ customerFriendlyName: 'Fallback Customer' }),
+    );
+  });
+
+  it('falls back to "Customer" when no friendly name is available', async () => {
+    const request = createMockRequest({
+      PreEngagementData: JSON.stringify({}),
+    });
+    await initWebchatHandler(request, TEST_ACCOUNT_SID);
+
+    expect(mockWebChannelsCreate).toHaveBeenCalledWith(
+      expect.objectContaining({ customerFriendlyName: 'Customer' }),
+    );
+  });
+});