diff --git a/libs/angular/src/auth/password-management/set-initial-password/default-set-initial-password.service.spec.ts b/libs/angular/src/auth/password-management/set-initial-password/default-set-initial-password.service.spec.ts
index a5b776b9c14..0f78683fa53 100644
--- a/libs/angular/src/auth/password-management/set-initial-password/default-set-initial-password.service.spec.ts
+++ b/libs/angular/src/auth/password-management/set-initial-password/default-set-initial-password.service.spec.ts
@@ -27,10 +27,18 @@ import {
   EncString,
 } from "@bitwarden/common/key-management/crypto/models/enc-string";
 import { InternalMasterPasswordServiceAbstraction } from "@bitwarden/common/key-management/master-password/abstractions/master-password.service.abstraction";
+import {
+  MasterKeyWrappedUserKey,
+  MasterPasswordAuthenticationData,
+  MasterPasswordAuthenticationHash,
+  MasterPasswordSalt,
+  MasterPasswordUnlockData,
+} from "@bitwarden/common/key-management/master-password/types/master-password.types";
 import { KeysRequest } from "@bitwarden/common/models/request/keys.request";
 import { I18nService } from "@bitwarden/common/platform/abstractions/i18n.service";
 import { Utils } from "@bitwarden/common/platform/misc/utils";
 import { SymmetricCryptoKey } from "@bitwarden/common/platform/models/domain/symmetric-crypto-key";
+import { makeSymmetricCryptoKey } from "@bitwarden/common/spec";
 import { CsprngArray } from "@bitwarden/common/types/csprng";
 import { UserId } from "@bitwarden/common/types/guid";
 import { MasterKey, UserKey, UserPrivateKey, UserPublicKey } from "@bitwarden/common/types/key";
@@ -730,6 +738,122 @@ describe("DefaultSetInitialPasswordService", () => {
     });
   });
 
+  describe("setInitialPasswordTdeOffboarding()", () => {
+    let userKey: UserKey;
+    let credentials: SetInitialPasswordTdeOffboardingCredentials;
+    let authenticationData: MasterPasswordAuthenticationData;
+    let unlockData: MasterPasswordUnlockData;
+
+    beforeEach(() => {
+      credentials = {
+        newPassword: "newPassword",
+        salt: "salt" as MasterPasswordSalt,
+        kdfConfig: DEFAULT_KDF_CONFIG,
+        newPasswordHint: "newPasswordHint",
+      };
+
+      authenticationData = {
+        salt: credentials.salt,
+        kdf: credentials.kdfConfig,
+        masterPasswordAuthenticationHash:
+          "masterPasswordAuthenticationHash" as MasterPasswordAuthenticationHash,
+      };
+
+      unlockData = {
+        salt: credentials.salt,
+        kdf: credentials.kdfConfig,
+        masterKeyWrappedUserKey: "masterKeyWrappedUserKey" as MasterKeyWrappedUserKey,
+      } as MasterPasswordUnlockData;
+
+      userKey = makeSymmetricCryptoKey(64) as UserKey;
+      keyService.userKey$.mockReturnValue(of(userKey));
+      masterPasswordService.makeMasterPasswordAuthenticationData.mockResolvedValue(
+        authenticationData,
+      );
+      masterPasswordService.makeMasterPasswordUnlockData.mockResolvedValue(unlockData);
+    });
+
+    describe("general error handling", () => {
+      ["newPassword", "salt", "kdfConfig", "newPasswordHint"].forEach((key) => {
+        it(`should throw if ${key} is not provided on the SetInitialPasswordTdeOffboardingCredentials object`, async () => {
+          // Arrange
+          const invalidCredentials: SetInitialPasswordTdeOffboardingCredentials = {
+            ...credentials,
+            [key]: null,
+          };
+
+          // Act
+          const promise = sut.setInitialPasswordTdeOffboarding(invalidCredentials, userId);
+
+          // Assert
+          await expect(promise).rejects.toThrow(`${key} not found. Could not set password.`);
+        });
+      });
+
+      it(`should throw if the userId was not passed in`, async () => {
+        // Arrange
+        userId = null;
+
+        // Act
+        const promise = sut.setInitialPasswordTdeOffboarding(credentials, userId);
+
+        // Assert
+        await expect(promise).rejects.toThrow("userId not found. Could not set password.");
+      });
+
+      it(`should throw if the userKey was not found`, async () => {
+        // Arrange
+        keyService.userKey$.mockReturnValue(of(null));
+
+        // Act
+        const promise = sut.setInitialPasswordTdeOffboarding(credentials, userId);
+
+        // Assert
+        await expect(promise).rejects.toThrow("userKey not found. Could not set password.");
+      });
+    });
+
+    it("should call putUpdateTdeOffboardingPassword() with the request object", async () => {
+      // Arrange
+      const request = UpdateTdeOffboardingPasswordRequest.newConstructorWithHint(
+        authenticationData,
+        unlockData,
+        credentials.newPasswordHint,
+      );
+
+      // Act
+      await sut.setInitialPasswordTdeOffboarding(credentials, userId);
+
+      // Assert
+      expect(masterPasswordApiService.putUpdateTdeOffboardingPassword).toHaveBeenCalledTimes(1);
+      expect(masterPasswordApiService.putUpdateTdeOffboardingPassword).toHaveBeenCalledWith(
+        request,
+      );
+    });
+
+    it("should set the ForceSetPasswordReason to None", async () => {
+      // Arrange
+      const request = UpdateTdeOffboardingPasswordRequest.newConstructorWithHint(
+        authenticationData,
+        unlockData,
+        credentials.newPasswordHint,
+      );
+
+      // Act
+      await sut.setInitialPasswordTdeOffboarding(credentials, userId);
+
+      // Assert
+      expect(masterPasswordApiService.putUpdateTdeOffboardingPassword).toHaveBeenCalledTimes(1);
+      expect(masterPasswordApiService.putUpdateTdeOffboardingPassword).toHaveBeenCalledWith(
+        request,
+      );
+      expect(masterPasswordService.setForceSetPasswordReason).toHaveBeenCalledWith(
+        ForceSetPasswordReason.None,
+        userId,
+      );
+    });
+  });
+
   /**
    * @deprecated To be removed in PM-28143. When you remove this, check also if there are any imports/properties
    * in the test setup above that are now un-used and can also be removed.