diff --git a/src/tests/test_manager_add_password.py b/src/tests/test_manager_add_password.py
new file mode 100644
index 0000000..641bc5d
--- /dev/null
+++ b/src/tests/test_manager_add_password.py
@@ -0,0 +1,81 @@
+import sys
+from pathlib import Path
+from tempfile import TemporaryDirectory
+from types import SimpleNamespace
+
+import pytest
+
+from helpers import create_vault, TEST_SEED, TEST_PASSWORD, dummy_nostr_client
+
+sys.path.append(str(Path(__file__).resolve().parents[1]))
+
+from seedpass.core.entry_management import EntryManager
+from seedpass.core.backup import BackupManager
+from seedpass.core.manager import PasswordManager, EncryptionMode
+from seedpass.core.config_manager import ConfigManager
+from constants import DEFAULT_PASSWORD_LENGTH
+
+
+class FakePasswordGenerator:
+    def generate_password(self, length: int, index: int) -> str:  # noqa: D401
+        return f"pw-{index}-{length}"
+
+
+def test_handle_add_password(monkeypatch, dummy_nostr_client, capsys):
+    client, _relay = dummy_nostr_client
+    with TemporaryDirectory() as tmpdir:
+        tmp_path = Path(tmpdir)
+        vault, enc_mgr = create_vault(tmp_path, TEST_SEED, TEST_PASSWORD)
+        cfg_mgr = ConfigManager(vault, tmp_path)
+        backup_mgr = BackupManager(tmp_path, cfg_mgr)
+        entry_mgr = EntryManager(vault, backup_mgr)
+
+        pm = PasswordManager.__new__(PasswordManager)
+        pm.encryption_mode = EncryptionMode.SEED_ONLY
+        pm.encryption_manager = enc_mgr
+        pm.vault = vault
+        pm.entry_manager = entry_mgr
+        pm.backup_manager = backup_mgr
+        pm.password_generator = FakePasswordGenerator()
+        pm.parent_seed = TEST_SEED
+        pm.nostr_client = client
+        pm.fingerprint_dir = tmp_path
+        pm.secret_mode_enabled = False
+        pm.is_dirty = False
+
+        inputs = iter(
+            [
+                "Example",  # label
+                "",  # username
+                "",  # url
+                "",  # notes
+                "",  # tags
+                "n",  # add custom field
+                "",  # length (default)
+            ]
+        )
+        monkeypatch.setattr("builtins.input", lambda *a, **k: next(inputs))
+        monkeypatch.setattr("seedpass.core.manager.pause", lambda *a, **k: None)
+        monkeypatch.setattr(pm, "start_background_vault_sync", lambda *a, **k: None)
+
+        pm.handle_add_password()
+        out = capsys.readouterr().out
+
+        entries = entry_mgr.list_entries(verbose=False)
+        assert entries == [(0, "Example", "", "", False)]
+
+        entry = entry_mgr.retrieve_entry(0)
+        assert entry == {
+            "label": "Example",
+            "length": DEFAULT_PASSWORD_LENGTH,
+            "username": "",
+            "url": "",
+            "archived": False,
+            "type": "password",
+            "kind": "password",
+            "notes": "",
+            "custom_fields": [],
+            "tags": [],
+        }
+
+        assert f"pw-0-{DEFAULT_PASSWORD_LENGTH}" in out