diff --git a/ui/src/tempVars/components/TemplateControlDropdown.tsx b/ui/src/tempVars/components/TemplateControlDropdown.tsx
index 707d05c31..8d7ef8fc4 100644
--- a/ui/src/tempVars/components/TemplateControlDropdown.tsx
+++ b/ui/src/tempVars/components/TemplateControlDropdown.tsx
@@ -72,6 +72,7 @@ class TemplateControlDropdown extends PureComponent<Props, State> {
             <span
               className="icon cog-thick"
               onClick={this.handleShowSettings}
+              data-test="edit"
             />
           </label>
         </Authorized>
diff --git a/ui/test/tempVars/components/TemplateControlDropdown.test.tsx b/ui/test/tempVars/components/TemplateControlDropdown.test.tsx
new file mode 100644
index 000000000..ed1d8712d
--- /dev/null
+++ b/ui/test/tempVars/components/TemplateControlDropdown.test.tsx
@@ -0,0 +1,49 @@
+import React from 'react'
+import {shallow} from 'enzyme'
+
+import SimpleOverlayTechnology from 'src/shared/components/SimpleOverlayTechnology'
+import TemplateVariableEditor from 'src/tempVars/components/TemplateVariableEditor'
+import TemplateControlDropdown from 'src/tempVars/components/TemplateControlDropdown'
+import {source} from 'test/resources'
+
+import {TemplateType, TemplateValueType} from 'src/types'
+
+const defaultProps = {
+  template: {
+    id: '0',
+    tempVar: ':my-var:',
+    label: '',
+    type: TemplateType.Databases,
+    values: [
+      {
+        value: 'db0',
+        type: TemplateValueType.Database,
+        selected: true,
+      },
+    ],
+  },
+  meRole: 'EDITOR',
+  isUsingAuth: true,
+  source,
+  onSelectTemplate: () => Promise.resolve(),
+  onCreateTemplate: () => Promise.resolve(),
+  onUpdateTemplate: () => Promise.resolve(),
+  onDeleteTemplate: () => Promise.resolve(),
+}
+
+describe('TemplateControlDropdown', () => {
+  it('should show a TemplateVariableEditor overlay when the settings icon is clicked', () => {
+    const wrapper = shallow(<TemplateControlDropdown {...defaultProps} />)
+
+    expect(wrapper.find(SimpleOverlayTechnology)).toHaveLength(0)
+
+    wrapper.find("[data-test='edit']").simulate('click')
+
+    const elements = wrapper
+      .find(SimpleOverlayTechnology)
+      .dive()
+      .find(TemplateVariableEditor)
+
+    expect(elements).toHaveLength(1)
+  })
+})