diff --git a/apps/browser/src/vault/popup/settings/vault-settings-v2.component.html b/apps/browser/src/vault/popup/settings/vault-settings-v2.component.html
index c042af8cbac..407015d3a06 100644
--- a/apps/browser/src/vault/popup/settings/vault-settings-v2.component.html
+++ b/apps/browser/src/vault/popup/settings/vault-settings-v2.component.html
@@ -37,14 +37,19 @@
     @if (showArchiveItem()) {
       @if (userCanArchive()) {
         <bit-item>
-          <a bit-item-content routerLink="/archive">
+          <a data-test-id="archive-link" bit-item-content routerLink="/archive">
             {{ "archiveNoun" | i18n }}
             <i slot="end" class="bwi bwi-angle-right" aria-hidden="true"></i>
           </a>
         </bit-item>
       } @else {
         <bit-item>
-          <a bit-item-content [routerLink]="userHasArchivedItems() ? '/archive' : '/premium'">
+          <a
+            data-test-id="premium-archive-link"
+            bit-item-content
+            href="#"
+            (click)="conditionallyRouteToArchive($event)"
+          >
             <span class="tw-flex tw-items-center tw-gap-2">
               {{ "archiveNoun" | i18n }}
               @if (!userHasArchivedItems()) {
diff --git a/apps/browser/src/vault/popup/settings/vault-settings-v2.component.spec.ts b/apps/browser/src/vault/popup/settings/vault-settings-v2.component.spec.ts
new file mode 100644
index 00000000000..fc30a3f8899
--- /dev/null
+++ b/apps/browser/src/vault/popup/settings/vault-settings-v2.component.spec.ts
@@ -0,0 +1,199 @@
+import { ChangeDetectionStrategy, Component, DebugElement, input } from "@angular/core";
+import { ComponentFixture, TestBed } from "@angular/core/testing";
+import { By } from "@angular/platform-browser";
+import { provideRouter, Router } from "@angular/router";
+import { mock } from "jest-mock-extended";
+import { BehaviorSubject } from "rxjs";
+
+import { NudgesService } from "@bitwarden/angular/vault";
+import { AccountService } from "@bitwarden/common/auth/abstractions/account.service";
+import { BillingAccountProfileStateService } from "@bitwarden/common/billing/abstractions/account/billing-account-profile-state.service";
+import { ConfigService } from "@bitwarden/common/platform/abstractions/config/config.service";
+import { I18nService } from "@bitwarden/common/platform/abstractions/i18n.service";
+import { CipherArchiveService } from "@bitwarden/common/vault/abstractions/cipher-archive.service";
+import { SyncService } from "@bitwarden/common/vault/abstractions/sync/sync.service.abstraction";
+import { CipherView } from "@bitwarden/common/vault/models/view/cipher.view";
+import { DialogService, ToastService } from "@bitwarden/components";
+
+import { PopOutComponent } from "../../../platform/popup/components/pop-out.component";
+import { PopupHeaderComponent } from "../../../platform/popup/layout/popup-header.component";
+import { PopupPageComponent } from "../../../platform/popup/layout/popup-page.component";
+
+import { VaultSettingsV2Component } from "./vault-settings-v2.component";
+
+@Component({
+  selector: "popup-header",
+  template: `<ng-content></ng-content>`,
+  changeDetection: ChangeDetectionStrategy.OnPush,
+})
+class MockPopupHeaderComponent {
+  readonly pageTitle = input<string>();
+  readonly showBackButton = input<boolean>();
+}
+
+@Component({
+  selector: "popup-page",
+  template: `<ng-content></ng-content>`,
+  changeDetection: ChangeDetectionStrategy.OnPush,
+})
+class MockPopupPageComponent {}
+
+@Component({
+  selector: "app-pop-out",
+  template: ``,
+  changeDetection: ChangeDetectionStrategy.OnPush,
+})
+class MockPopOutComponent {
+  readonly show = input(true);
+}
+
+describe("VaultSettingsV2Component", () => {
+  let component: VaultSettingsV2Component;
+  let fixture: ComponentFixture<VaultSettingsV2Component>;
+  let router: Router;
+  let mockCipherArchiveService: jest.Mocked<CipherArchiveService>;
+
+  const mockActiveAccount$ = new BehaviorSubject<{ id: string }>({
+    id: "user-id",
+  });
+  const mockUserCanArchive$ = new BehaviorSubject<boolean>(false);
+  const mockHasArchiveFlagEnabled$ = new BehaviorSubject<boolean>(true);
+  const mockArchivedCiphers$ = new BehaviorSubject<CipherView[]>([]);
+  const mockShowNudgeBadge$ = new BehaviorSubject<boolean>(false);
+
+  const queryByTestId = (testId: string): DebugElement | null => {
+    return fixture.debugElement.query(By.css(`[data-test-id="${testId}"]`));
+  };
+
+  const setArchiveState = (
+    canArchive: boolean,
+    archivedItems: CipherView[] = [],
+    flagEnabled = true,
+  ) => {
+    mockUserCanArchive$.next(canArchive);
+    mockArchivedCiphers$.next(archivedItems);
+    mockHasArchiveFlagEnabled$.next(flagEnabled);
+    fixture.detectChanges();
+  };
+
+  beforeEach(async () => {
+    mockCipherArchiveService = mock<CipherArchiveService>({
+      userCanArchive$: jest.fn().mockReturnValue(mockUserCanArchive$),
+      hasArchiveFlagEnabled$: jest.fn().mockReturnValue(mockHasArchiveFlagEnabled$),
+      archivedCiphers$: jest.fn().mockReturnValue(mockArchivedCiphers$),
+    });
+
+    await TestBed.configureTestingModule({
+      imports: [VaultSettingsV2Component],
+      providers: [
+        provideRouter([
+          { path: "archive", component: VaultSettingsV2Component },
+          { path: "premium", component: VaultSettingsV2Component },
+        ]),
+        { provide: SyncService, useValue: mock<SyncService>() },
+        { provide: ToastService, useValue: mock<ToastService>() },
+        { provide: ConfigService, useValue: mock<ConfigService>() },
+        { provide: DialogService, useValue: mock<DialogService>() },
+        { provide: I18nService, useValue: { t: (key: string) => key } },
+        { provide: CipherArchiveService, useValue: mockCipherArchiveService },
+        {
+          provide: NudgesService,
+          useValue: { showNudgeBadge$: jest.fn().mockReturnValue(mockShowNudgeBadge$) },
+        },
+
+        {
+          provide: BillingAccountProfileStateService,
+          useValue: mock<BillingAccountProfileStateService>(),
+        },
+        {
+          provide: AccountService,
+          useValue: { activeAccount$: mockActiveAccount$ },
+        },
+      ],
+    })
+      .overrideComponent(VaultSettingsV2Component, {
+        remove: {
+          imports: [PopupHeaderComponent, PopupPageComponent, PopOutComponent],
+        },
+        add: {
+          imports: [MockPopupHeaderComponent, MockPopupPageComponent, MockPopOutComponent],
+        },
+      })
+      .compileComponents();
+
+    fixture = TestBed.createComponent(VaultSettingsV2Component);
+    component = fixture.componentInstance;
+    router = TestBed.inject(Router);
+    jest.spyOn(router, "navigate");
+  });
+
+  describe("archive link", () => {
+    it("shows direct archive link when user can archive", () => {
+      setArchiveState(true);
+
+      const archiveLink = queryByTestId("archive-link");
+
+      expect(archiveLink.nativeElement.getAttribute("routerLink")).toBe("/archive");
+    });
+
+    it("routes to archive when user has archived items but cannot archive", async () => {
+      setArchiveState(false, [{ id: "cipher1" } as CipherView]);
+
+      const premiumArchiveLink = queryByTestId("premium-archive-link");
+
+      premiumArchiveLink.nativeElement.click();
+      await fixture.whenStable();
+
+      expect(router.navigate).toHaveBeenCalledWith(["/archive"]);
+    });
+
+    it("prompts for premium when user cannot archive and has no archived items", async () => {
+      setArchiveState(false, []);
+      const badge = component["premiumBadgeComponent"]();
+      jest.spyOn(badge, "promptForPremium");
+
+      const premiumArchiveLink = queryByTestId("premium-archive-link");
+
+      premiumArchiveLink.nativeElement.click();
+      await fixture.whenStable();
+
+      expect(badge.promptForPremium).toHaveBeenCalled();
+    });
+  });
+
+  describe("archive visibility", () => {
+    it("displays archive link when user can archive", () => {
+      setArchiveState(true);
+
+      const archiveLink = queryByTestId("archive-link");
+
+      expect(archiveLink).toBeTruthy();
+      expect(component["userCanArchive"]()).toBe(true);
+    });
+
+    it("hides archive link when feature flag is disabled", () => {
+      setArchiveState(false, [], false);
+
+      const archiveLink = queryByTestId("archive-link");
+      const premiumArchiveLink = queryByTestId("premium-archive-link");
+
+      expect(archiveLink).toBeNull();
+      expect(premiumArchiveLink).toBeNull();
+      expect(component["showArchiveItem"]()).toBe(false);
+    });
+
+    it("shows premium badge when user has no archived items and cannot archive", () => {
+      setArchiveState(false, []);
+
+      expect(component["premiumBadgeComponent"]()).toBeTruthy();
+      expect(component["userHasArchivedItems"]()).toBe(false);
+    });
+
+    it("hides premium badge when user has archived items", () => {
+      setArchiveState(false, [{ id: "cipher1" } as CipherView]);
+
+      expect(component["premiumBadgeComponent"]()).toBeUndefined();
+      expect(component["userHasArchivedItems"]()).toBe(true);
+    });
+  });
+});
diff --git a/apps/browser/src/vault/popup/settings/vault-settings-v2.component.ts b/apps/browser/src/vault/popup/settings/vault-settings-v2.component.ts
index e085cb21c2d..c1d90d678cb 100644
--- a/apps/browser/src/vault/popup/settings/vault-settings-v2.component.ts
+++ b/apps/browser/src/vault/popup/settings/vault-settings-v2.component.ts
@@ -1,5 +1,5 @@
 import { CommonModule } from "@angular/common";
-import { Component, OnDestroy, OnInit } from "@angular/core";
+import { Component, OnDestroy, OnInit, viewChild } from "@angular/core";
 import { toSignal } from "@angular/core/rxjs-interop";
 import { Router, RouterModule } from "@angular/router";
 import { firstValueFrom, map, switchMap } from "rxjs";
@@ -42,6 +42,8 @@ import { BrowserPremiumUpgradePromptService } from "../services/browser-premium-
   ],
 })
 export class VaultSettingsV2Component implements OnInit, OnDestroy {
+  private readonly premiumBadgeComponent = viewChild(PremiumBadgeComponent);
+
   lastSync = "--";
   private userId$ = this.accountService.activeAccount$.pipe(getUserId);
 
@@ -117,4 +119,18 @@ export class VaultSettingsV2Component implements OnInit, OnDestroy {
       this.lastSync = this.i18nService.t("never");
     }
   }
+
+  /**
+   * When a user can archive or has previously archived items, route them to
+   * the archive page. Otherwise, prompt them to upgrade to premium.
+   */
+  async conditionallyRouteToArchive(event: Event) {
+    event.preventDefault();
+    const premiumBadge = this.premiumBadgeComponent();
+    if (this.userCanArchive() || this.userHasArchivedItems()) {
+      await this.router.navigate(["/archive"]);
+    } else if (premiumBadge) {
+      await premiumBadge.promptForPremium(event);
+    }
+  }
 }