diff --git a/tests/Clear-PSBuildOutputFolder.tests.ps1 b/tests/Clear-PSBuildOutputFolder.tests.ps1
new file mode 100644
index 0000000..a54adb5
--- /dev/null
+++ b/tests/Clear-PSBuildOutputFolder.tests.ps1
@@ -0,0 +1,30 @@
+Describe 'Clear-PSBuildOutputFolder' {
+    BeforeAll {
+        Import-Module "$PSScriptRoot/../PowerShellBuild/PowerShellBuild.psd1" -Force
+    }
+
+    It 'throws when Path is 3 chars or fewer' {
+        { Clear-PSBuildOutputFolder -Path 'abc' } | Should -Throw
+    }
+
+    It 'removes an existing output folder recursively' {
+        $tempRoot = Join-Path -Path ([IO.Path]::GetTempPath()) -ChildPath ([guid]::NewGuid().ToString())
+        $outputPath = Join-Path -Path $tempRoot -ChildPath 'output-folder'
+        $nestedDir = Join-Path -Path $outputPath -ChildPath 'nested'
+
+        New-Item -ItemType Directory -Path $nestedDir -Force | Out-Null
+        New-Item -ItemType File -Path (Join-Path -Path $nestedDir -ChildPath 'artifact.txt') -Force | Out-Null
+
+        $outputPath | Should -Exist
+
+        Clear-PSBuildOutputFolder -Path $outputPath
+
+        $outputPath | Should -Not -Exist
+    }
+
+    It 'does nothing when the target path does not exist' {
+        $missingPath = Join-Path -Path ([IO.Path]::GetTempPath()) -ChildPath ("missing-" + [guid]::NewGuid().ToString())
+
+        { Clear-PSBuildOutputFolder -Path $missingPath } | Should -Not -Throw
+    }
+}