diff --git a/tests/unit/conditions/test_context.py b/tests/unit/conditions/test_context.py
index 8dab9ddf7..fef1866d4 100644
--- a/tests/unit/conditions/test_context.py
+++ b/tests/unit/conditions/test_context.py
@@ -1,28 +1,83 @@
 import itertools
+import re
 
 import pytest
 
-from nucypher.policy.conditions.context import resolve_any_context_variables
+from nucypher.policy.conditions.context import (
+    _resolve_context_variable,
+    is_context_variable,
+    resolve_any_context_variables,
+)
 from nucypher.policy.conditions.lingo import ReturnValueTest
 
 INVALID_CONTEXT_PARAM_NAMES = [
     ":",
     ":)",
     ":!",
+    ":3",
     ":superñoño",
     ":::::this//is       🍌 🍌 🍌 ",
     ":123 \"$%'+-?\n  jarl!! cobarde!!",
 ]
 
+VALID_CONTEXT_PARAM_NAMES = [
+    ":foo",
+    ":_bar",
+    ":bar_",
+    ":_bar_",
+    ":VAR",
+    ":a1234",
+    ":snake_case",
+    ":camelCase",
+    ":_",  # TODO: not sure if we should allow this one, tbh
+]
 
-@pytest.mark.parametrize(
-    "var1,var2", itertools.product(INVALID_CONTEXT_PARAM_NAMES, repeat=2)
-)
-def test_invalid_context_parameter(var1, var2):
-    context = {var1: 42, var2: 42}
-    # Check that parameters make sense, what about repeated variables?
-    parameters = [var1, 1, 2]
+DEFINITELY_NOT_CONTEXT_PARAM_NAMES = ["1234", "foo", "", 123]
 
-    with pytest.raises(ValueError):
-        return_value_test = ReturnValueTest(comparator="==", value=var2)
-        _ = resolve_any_context_variables(parameters, return_value_test, **context)
+CONTEXT = {":foo": 1234, ":bar": "'BAR'"}
+
+VALUES_WITH_RESOLUTION = [
+    (42, 42),
+    (True, True),
+    ("'bar'", "'bar'"),
+    ([42, True, "'bar'"], [42, True, "'bar'"]),
+    (":foo", 1234),
+    ([":foo", True, "'bar'"], [1234, True, "'bar'"]),
+    ([":foo", ":foo", 5, [99, [":bar"]]], [1234, 1234, 5, [99, ["'BAR'"]]]),
+]
+
+
+def test_is_context_variable():
+    for variable in VALID_CONTEXT_PARAM_NAMES:
+        assert is_context_variable(variable)
+
+    for variable in DEFINITELY_NOT_CONTEXT_PARAM_NAMES:
+        assert not is_context_variable(variable)
+
+    for variable in INVALID_CONTEXT_PARAM_NAMES:
+        expected_message = re.escape(
+            f"Context variable name '{variable}' is not valid."
+        )
+        with pytest.raises(ValueError, match=expected_message):
+            _ = is_context_variable(variable)
+
+
+def test_resolve_context_variable():
+    for value, resolution in VALUES_WITH_RESOLUTION:
+        assert resolution == _resolve_context_variable(value, **CONTEXT)
+
+
+def test_resolve_any_context_variables():
+    for params_with_resolution, value_with_resolution in itertools.product(
+        VALUES_WITH_RESOLUTION, repeat=2
+    ):
+        params, resolved_params = params_with_resolution
+        value, resolved_value = value_with_resolution
+        return_value_test = ReturnValueTest(comparator="==", value=value)
+        resolved_parameters, resolved_return_value = resolve_any_context_variables(
+            [params], return_value_test, **CONTEXT
+        )
+        assert resolved_parameters == [resolved_params]
+        assert resolved_return_value.comparator == return_value_test.comparator
+        assert resolved_return_value.index == return_value_test.index
+        assert resolved_return_value.value == resolved_value
diff --git a/tests/unit/conditions/test_return_value.py b/tests/unit/conditions/test_return_value.py
index b07ae3f7a..0498a9707 100644
--- a/tests/unit/conditions/test_return_value.py
+++ b/tests/unit/conditions/test_return_value.py
@@ -6,6 +6,7 @@ from typing import NamedTuple
 import pytest
 from hexbytes import HexBytes
 
+from nucypher.policy.conditions.context import _resolve_context_variable
 from nucypher.policy.conditions.exceptions import ReturnValueEvaluationError
 from nucypher.policy.conditions.lingo import ReturnValueTest
 
@@ -142,6 +143,23 @@ def test_return_value_test_with_context_variable_cant_run_eval():
         test.eval(0)
 
 
+def test_return_value_test_with_resolved_context():
+    test = ReturnValueTest(comparator="==", value=":foo")
+    context = {":foo": 1234}
+
+    resolved = test.with_resolved_context(**context)
+    assert resolved.comparator == test.comparator
+    assert resolved.index == test.index
+    assert resolved.value == _resolve_context_variable(test.value, **context)
+
+    test = ReturnValueTest(comparator="==", value=[42, ":foo"])
+
+    resolved = test.with_resolved_context(**context)
+    assert resolved.comparator == test.comparator
+    assert resolved.index == test.index
+    assert resolved.value == _resolve_context_variable(test.value, **context)
+
+
 def test_return_value_test_integer():
     # >
     test = ReturnValueTest(comparator='>', value='0')