diff --git a/apps/studio/components/layouts/NavigationV2/AppSidebarV2.tsx b/apps/studio/components/layouts/NavigationV2/AppSidebarV2.tsx
index d0baab93ea9..559653e2fdf 100644
--- a/apps/studio/components/layouts/NavigationV2/AppSidebarV2.tsx
+++ b/apps/studio/components/layouts/NavigationV2/AppSidebarV2.tsx
@@ -1,283 +1,41 @@
-import { useFlag, useIsMFAEnabled, useParams } from 'common'
-import {
-  useIsColumnLevelPrivilegesEnabled,
-  useUnifiedLogsPreview,
-} from 'components/interfaces/App/FeaturePreview/FeaturePreviewContext'
 import { Connect } from 'components/interfaces/Connect/Connect'
 import { ConnectSheet } from 'components/interfaces/ConnectSheet/ConnectSheet'
-import { useIsETLPrivateAlpha } from 'components/interfaces/Database/Replication/useIsETLPrivateAlpha'
-import { useInstalledIntegrations } from 'components/interfaces/Integrations/Landing/useInstalledIntegrations'
-import { useDatabaseExtensionsQuery } from 'data/database-extensions/database-extensions-query'
-import { useProjectAddonsQuery } from 'data/subscriptions/project-addons-query'
-import { useIsFeatureEnabled } from 'hooks/misc/useIsFeatureEnabled'
-import { useSelectedOrganizationQuery } from 'hooks/misc/useSelectedOrganization'
-import { useSelectedProjectQuery } from 'hooks/misc/useSelectedProject'
 import { usePHFlag } from 'hooks/ui/useFlag'
-import { Home } from 'icons'
-import { IS_PLATFORM, PROJECT_STATUS } from 'lib/constants'
-import {
-  Blocks,
-  Boxes,
-  ChartArea,
-  Compass,
-  Plug,
-  Receipt,
-  Search,
-  Settings,
-  Users,
-} from 'lucide-react'
-import { useRouter } from 'next/router'
+import { IS_PLATFORM } from 'lib/constants'
+import { Plug, Search } from 'lucide-react'
 import { parseAsBoolean, useQueryState } from 'nuqs'
 import { Button, Sidebar, SidebarContent, SidebarFooter, SidebarHeader } from 'ui'
 import { useSetCommandMenuOpen } from 'ui-patterns'
 
 import { OrgSelector } from '../Navigation/NavigationBar/OrgSelector'
 import { ProjectBranchSelector } from '../Navigation/NavigationBar/ProjectBranchSelector'
-import { useGenerateSettingsMenu } from '../ProjectSettingsLayout/SettingsMenu.utils'
 import { NavGroup } from './NavGroup'
-import {
-  generateDatabaseNavItems,
-  generateObservabilityNavItems,
-  generatePlatformNavItems,
-} from './NavigationV2.utils'
 import { NavUser } from './NavUser'
+import { type AppSidebarScope, useAppSidebarNavItems } from './useAppSidebarNavItems'
 
-export type AppSidebarScope = 'project' | 'organization'
+export type { AppSidebarScope }
 
 interface AppSidebarV2Props {
   scope?: AppSidebarScope
 }
 
 export function AppSidebarV2({ scope }: AppSidebarV2Props = {}) {
-  const router = useRouter()
-  const { ref: projectRef, slug } = useParams()
-  const { data: project } = useSelectedProjectQuery()
-  const { data: selectedOrganization } = useSelectedOrganizationQuery()
   const setCommandMenuOpen = useSetCommandMenuOpen()
-  const isUserMFAEnabled = useIsMFAEnabled()
   const [, setShowConnect] = useQueryState('showConnect', parseAsBoolean.withDefault(false))
   const connectSheetFlag = usePHFlag<string | boolean>('connectSheet')
   const isFlagResolved = connectSheetFlag !== undefined
   const isConnectSheetEnabled = connectSheetFlag === true || connectSheetFlag === 'variation'
 
-  const currentScope =
-    scope ?? (router.pathname.startsWith('/project') ? 'project' : 'organization')
-  const isProjectScope = currentScope === 'project'
-
-  const ref = projectRef ?? project?.ref ?? ''
-  const organizationSlug = slug ?? (router.query.orgSlug as string | undefined) ?? ''
-
-  const isActiveHealthy = project?.status === PROJECT_STATUS.ACTIVE_HEALTHY
-  const isProjectBuilding = project?.status === PROJECT_STATUS.COMING_UP
-
-  const settingsMenu = useGenerateSettingsMenu()
-
-  // Database flags
-  const { data: extensions } = useDatabaseExtensionsQuery(
-    {
-      projectRef: project?.ref,
-      connectionString: project?.connectionString,
-    },
-    {
-      enabled: isProjectScope,
-    }
-  )
-  const { data: addons } = useProjectAddonsQuery(
-    { projectRef: project?.ref },
-    { enabled: isProjectScope }
-  )
-
-  const pgNetExtensionExists = (extensions ?? []).find((ext) => ext.name === 'pg_net') !== undefined
-  const pitrEnabled = addons?.selected_addons.find((addon) => addon.type === 'pitr') !== undefined
-  const columnLevelPrivileges = useIsColumnLevelPrivilegesEnabled()
-  const enablePgReplicate = useIsETLPrivateAlpha()
-
   const {
-    databaseReplication: showPgReplicate,
-    databaseRoles: showRoles,
-    integrationsWrappers: showWrappers,
-  } = useIsFeatureEnabled(['database:replication', 'database:roles', 'integrations:wrappers'])
-
-  // Platform flags
-  const {
-    projectAuthAll: authEnabled,
-    projectEdgeFunctionAll: edgeFunctionsEnabled,
-    projectStorageAll: storageEnabled,
-    realtimeAll: realtimeEnabled,
-  } = useIsFeatureEnabled([
-    'project_auth:all',
-    'project_edge_function:all',
-    'project_storage:all',
-    'realtime:all',
-  ])
-  const authOverviewPageEnabled = useFlag('authOverviewPage')
-
-  // Other flags
-  const showReports = useIsFeatureEnabled('reports:all')
-  const showBilling = useIsFeatureEnabled('billing:all')
-  const { isEnabled: isUnifiedLogsEnabled } = useUnifiedLogsPreview()
-
-  const disableAccessMfa =
-    selectedOrganization?.organization_requires_mfa === true && !isUserMFAEnabled
-  const buildOrgHref = (href: string) => (disableAccessMfa ? router.asPath : href)
-
-  const projectSettingsItems =
-    isProjectScope && ref
-      ? settingsMenu
-          .flatMap((group) => {
-            if (group.title === 'Billing' && !selectedOrganization?.slug) return []
-            return group.items
-          })
-          .filter((item) => !item.disabled)
-          .map((item) => ({
-            title: item.name,
-            url: item.url,
-          }))
-      : []
-
-  const isProjectHome =
-    router.pathname === `/project/[ref]` || router.pathname === `/project/${ref}`
-  const isProjectSettings = router.pathname.includes('/settings')
-
-  const projectItems = isProjectScope
-    ? [
-        {
-          title: 'Home',
-          url: ref ? `/project/${ref}` : '/project',
-          icon: Home,
-          isActive: isProjectHome,
-        },
-        {
-          title: 'Project Settings',
-          url:
-            ref && IS_PLATFORM
-              ? `/project/${ref}/settings/general`
-              : ref
-                ? `/project/${ref}/settings/log-drains`
-                : '/project',
-          icon: Settings,
-          items: projectSettingsItems.map((item) => ({
-            ...item,
-            isActive: router.pathname.includes(item.url),
-          })),
-          isActive: isProjectSettings,
-        },
-      ]
-    : []
-
-  const databaseItems =
-    isProjectScope && ref
-      ? generateDatabaseNavItems(ref, project, {
-          pgNetExtensionExists,
-          pitrEnabled,
-          columnLevelPrivileges,
-          showPgReplicate,
-          enablePgReplicate,
-          showRoles,
-          showWrappers,
-          pathname: router.pathname,
-        })
-      : []
-
-  const platformItems =
-    isProjectScope && ref
-      ? generatePlatformNavItems(ref, project, {
-          authEnabled,
-          edgeFunctionsEnabled,
-          storageEnabled,
-          realtimeEnabled,
-          authOverviewPageEnabled,
-          pathname: router.pathname,
-        })
-      : []
-
-  const observabilityItems =
-    isProjectScope && ref
-      ? generateObservabilityNavItems(ref, project, {
-          showReports,
-          unifiedLogs: isUnifiedLogsEnabled,
-          pathname: router.pathname,
-        })
-      : []
-
-  const { installedIntegrations } = useInstalledIntegrations()
-
-  const integrationsItems =
-    isProjectScope && ref
-      ? [
-          {
-            title: 'Explore',
-            url: isProjectBuilding ? `/project/${ref}` : `/project/${ref}/integrations`,
-            icon: Compass,
-            isActive:
-              router.pathname === `/project/[ref]/integrations` ||
-              (router.pathname.includes('/integrations') &&
-                !installedIntegrations.some((int) =>
-                  router.pathname.includes(`/integrations/${int.id}`)
-                )),
-          },
-          ...installedIntegrations.map((integration) => ({
-            title: integration.name,
-            label: integration.status,
-            url: `/project/${ref}/integrations/${integration.id}/overview`,
-            icon: Blocks,
-            isActive: router.pathname.includes(`/integrations/${integration.id}`),
-          })),
-        ]
-      : []
-
-  const activeOrganizationRoute = router.pathname.split('/')[3]
-  const organizationItems =
-    organizationSlug.length > 0
-      ? [
-          {
-            title: 'Projects',
-            url: buildOrgHref(`/org/${organizationSlug}`),
-            icon: Boxes,
-            isActive: activeOrganizationRoute === undefined,
-          },
-          {
-            title: 'Team',
-            url: buildOrgHref(`/org/${organizationSlug}/team`),
-            icon: Users,
-            isActive: activeOrganizationRoute === 'team',
-          },
-          {
-            title: 'Integrations',
-            url: buildOrgHref(`/org/${organizationSlug}/integrations`),
-            icon: Blocks,
-            isActive: activeOrganizationRoute === 'integrations',
-          },
-          {
-            title: 'Usage',
-            url: buildOrgHref(`/org/${organizationSlug}/usage`),
-            icon: ChartArea,
-            isActive: activeOrganizationRoute === 'usage',
-          },
-          ...(showBilling
-            ? [
-                {
-                  title: 'Billing',
-                  url: buildOrgHref(`/org/${organizationSlug}/billing`),
-                  icon: Receipt,
-                  isActive: activeOrganizationRoute === 'billing',
-                },
-              ]
-            : []),
-          {
-            title: 'Organization Settings',
-            url: buildOrgHref(`/org/${organizationSlug}/general`),
-            icon: Settings,
-            isActive:
-              router.pathname.includes('/general') ||
-              router.pathname.includes('/apps') ||
-              router.pathname.includes('/audit') ||
-              router.pathname.includes('/documents') ||
-              router.pathname.includes('/security') ||
-              router.pathname.includes('/sso'),
-          },
-        ]
-      : []
+    isProjectScope,
+    isActiveHealthy,
+    projectItems,
+    databaseItems,
+    platformItems,
+    observabilityItems,
+    integrationsItems,
+    organizationItems,
+  } = useAppSidebarNavItems({ scope })
 
   return (
     <>
@@ -293,9 +51,7 @@ export function AppSidebarV2({ scope }: AppSidebarV2Props = {}) {
                 <Button
                   type="outline"
                   size="small"
-                  onClick={() => {
-                    setCommandMenuOpen(true)
-                  }}
+                  onClick={() => setCommandMenuOpen(true)}
                   className="h-8 min-w-8 !w-8 px-0 justify-center text-foreground-lighter font-normal bg-transparent"
                   icon={<Search strokeWidth={1.5} />}
                 />
@@ -303,9 +59,7 @@ export function AppSidebarV2({ scope }: AppSidebarV2Props = {}) {
                   type="default"
                   size="small"
                   disabled={!isActiveHealthy}
-                  onClick={() => {
-                    setShowConnect(true)
-                  }}
+                  onClick={() => setShowConnect(true)}
                   className="h-8 flex-1 justify-center gap-0 pl-2"
                   icon={<Plug className="rotate-90" strokeWidth={1.5} />}
                 >
diff --git a/apps/studio/components/layouts/NavigationV2/NavGroup.tsx b/apps/studio/components/layouts/NavigationV2/NavGroup.tsx
index 46239b45c40..fa125366d61 100644
--- a/apps/studio/components/layouts/NavigationV2/NavGroup.tsx
+++ b/apps/studio/components/layouts/NavigationV2/NavGroup.tsx
@@ -41,16 +41,11 @@ export interface NavGroupProps {
 }
 
 export function NavGroup({ id, label, items, isCollapsible = true }: NavGroupProps) {
-  // Load the sidebar state from localStorage using react-query for cross-component sync
   const [sidebarState, setSidebarState] = useLocalStorageQuery<Record<string, boolean>>(
     LOCAL_STORAGE_KEYS.DASHBOARD_SIDEBAR_STATE,
     {}
   )
-
-  // Get the current group's open state, defaulting to true (open)
   const isOpen = id ? sidebarState[id] ?? true : true
-
-  // Handler to update the open state for this specific group
   const handleOpenChange = (open: boolean) => {
     if (id && isCollapsible) {
       setSidebarState((prev) => ({ ...prev, [id]: open }))
diff --git a/apps/studio/components/layouts/NavigationV2/NavigationV2.utils.tsx b/apps/studio/components/layouts/NavigationV2/NavigationV2.utils.tsx
index 205da3339ac..d542d4501ae 100644
--- a/apps/studio/components/layouts/NavigationV2/NavigationV2.utils.tsx
+++ b/apps/studio/components/layouts/NavigationV2/NavigationV2.utils.tsx
@@ -17,10 +17,8 @@ import {
   FileText,
   Lightbulb,
   Network,
-  ScrollText,
   Settings,
   Telescope,
-  Zap,
 } from 'lucide-react'
 
 import type { NavGroupItem } from './NavGroup'
@@ -62,13 +60,11 @@ export function generateDatabaseNavItems(
   const buildingUrl = `/project/${ref}`
 
   const {
-    pgNetExtensionExists,
     pitrEnabled,
     columnLevelPrivileges,
     showPgReplicate,
     enablePgReplicate,
     showRoles,
-    showWrappers,
     pathname = '',
   } = flags || {}
 
diff --git a/apps/studio/components/layouts/NavigationV2/useAppSidebarNavItems.ts b/apps/studio/components/layouts/NavigationV2/useAppSidebarNavItems.ts
new file mode 100644
index 00000000000..2e6a9278c26
--- /dev/null
+++ b/apps/studio/components/layouts/NavigationV2/useAppSidebarNavItems.ts
@@ -0,0 +1,287 @@
+import { useFlag, useIsMFAEnabled, useParams } from 'common'
+import {
+  useIsColumnLevelPrivilegesEnabled,
+  useUnifiedLogsPreview,
+} from 'components/interfaces/App/FeaturePreview/FeaturePreviewContext'
+import { useIsETLPrivateAlpha } from 'components/interfaces/Database/Replication/useIsETLPrivateAlpha'
+import { useInstalledIntegrations } from 'components/interfaces/Integrations/Landing/useInstalledIntegrations'
+import { useDatabaseExtensionsQuery } from 'data/database-extensions/database-extensions-query'
+import { useProjectAddonsQuery } from 'data/subscriptions/project-addons-query'
+import { useIsFeatureEnabled } from 'hooks/misc/useIsFeatureEnabled'
+import { useSelectedOrganizationQuery } from 'hooks/misc/useSelectedOrganization'
+import { useSelectedProjectQuery } from 'hooks/misc/useSelectedProject'
+import { Home } from 'icons'
+import { IS_PLATFORM, PROJECT_STATUS } from 'lib/constants'
+import {
+  Blocks,
+  Boxes,
+  ChartArea,
+  Compass,
+  Receipt,
+  Settings,
+  Users,
+} from 'lucide-react'
+import { useRouter } from 'next/router'
+
+import { useGenerateSettingsMenu } from '../ProjectSettingsLayout/SettingsMenu.utils'
+import type { NavGroupItem } from './NavGroup'
+import {
+  generateDatabaseNavItems,
+  generateObservabilityNavItems,
+  generatePlatformNavItems,
+} from './NavigationV2.utils'
+
+export type AppSidebarScope = 'project' | 'organization'
+
+export interface UseAppSidebarNavItemsParams {
+  scope?: AppSidebarScope
+}
+
+export interface UseAppSidebarNavItemsResult {
+  ref: string
+  organizationSlug: string
+  isProjectScope: boolean
+  isActiveHealthy: boolean
+  isProjectBuilding: boolean
+  projectItems: NavGroupItem[]
+  databaseItems: NavGroupItem[]
+  platformItems: NavGroupItem[]
+  observabilityItems: NavGroupItem[]
+  integrationsItems: NavGroupItem[]
+  organizationItems: NavGroupItem[]
+}
+
+export function useAppSidebarNavItems(
+  params: UseAppSidebarNavItemsParams = {}
+): UseAppSidebarNavItemsResult {
+  const router = useRouter()
+  const { ref: projectRef, slug } = useParams()
+  const { data: project } = useSelectedProjectQuery()
+  const { data: selectedOrganization } = useSelectedOrganizationQuery()
+  const isUserMFAEnabled = useIsMFAEnabled()
+
+  const currentScope: AppSidebarScope =
+    params.scope ?? (router.pathname.startsWith('/project') ? 'project' : 'organization')
+  const isProjectScope = currentScope === 'project'
+
+  const ref = projectRef ?? project?.ref ?? ''
+  const organizationSlug = slug ?? (router.query.orgSlug as string | undefined) ?? ''
+
+  const isActiveHealthy = project?.status === PROJECT_STATUS.ACTIVE_HEALTHY
+  const isProjectBuilding = project?.status === PROJECT_STATUS.COMING_UP
+
+  const settingsMenu = useGenerateSettingsMenu()
+
+  const { data: extensions } = useDatabaseExtensionsQuery(
+    { projectRef: project?.ref, connectionString: project?.connectionString },
+    { enabled: isProjectScope }
+  )
+  const { data: addons } = useProjectAddonsQuery(
+    { projectRef: project?.ref },
+    { enabled: isProjectScope }
+  )
+
+  const pgNetExtensionExists =
+    (extensions ?? []).find((ext) => ext.name === 'pg_net') !== undefined
+  const pitrEnabled = addons?.selected_addons.find((addon) => addon.type === 'pitr') !== undefined
+
+  const columnLevelPrivileges = useIsColumnLevelPrivilegesEnabled()
+  const enablePgReplicate = useIsETLPrivateAlpha()
+
+  const {
+    databaseReplication: showPgReplicate,
+    databaseRoles: showRoles,
+    integrationsWrappers: showWrappers,
+  } = useIsFeatureEnabled(['database:replication', 'database:roles', 'integrations:wrappers'])
+
+  const {
+    projectAuthAll: authEnabled,
+    projectEdgeFunctionAll: edgeFunctionsEnabled,
+    projectStorageAll: storageEnabled,
+    realtimeAll: realtimeEnabled,
+  } = useIsFeatureEnabled([
+    'project_auth:all',
+    'project_edge_function:all',
+    'project_storage:all',
+    'realtime:all',
+  ])
+
+  const authOverviewPageEnabled = useFlag('authOverviewPage')
+  const showReports = useIsFeatureEnabled('reports:all')
+  const showBilling = useIsFeatureEnabled('billing:all')
+  const { isEnabled: isUnifiedLogsEnabled } = useUnifiedLogsPreview()
+
+  const disableAccessMfa =
+    selectedOrganization?.organization_requires_mfa === true && !isUserMFAEnabled
+  const buildOrgHref = (href: string) => (disableAccessMfa ? router.asPath : href)
+
+  const projectSettingsItems =
+    isProjectScope && ref
+      ? settingsMenu
+          .flatMap((group) => {
+            if (group.title === 'Billing' && !selectedOrganization?.slug) return []
+            return group.items
+          })
+          .filter((item) => !item.disabled)
+          .map((item) => ({ title: item.name, url: item.url }))
+      : []
+
+  const isProjectHome =
+    router.pathname === `/project/[ref]` || router.pathname === `/project/${ref}`
+  const isProjectSettings = router.pathname.includes('/settings')
+
+  const projectItems: NavGroupItem[] = isProjectScope
+    ? [
+        {
+          title: 'Home',
+          url: ref ? `/project/${ref}` : '/project',
+          icon: Home,
+          isActive: isProjectHome,
+        },
+        {
+          title: 'Project Settings',
+          url:
+            ref && IS_PLATFORM
+              ? `/project/${ref}/settings/general`
+              : ref
+                ? `/project/${ref}/settings/log-drains`
+                : '/project',
+          icon: Settings,
+          items: projectSettingsItems.map((item) => ({
+            ...item,
+            isActive: router.pathname.includes(item.url),
+          })),
+          isActive: isProjectSettings,
+        },
+      ]
+    : []
+
+  const databaseItems: NavGroupItem[] =
+    isProjectScope && ref
+      ? generateDatabaseNavItems(ref, project, {
+          pgNetExtensionExists,
+          pitrEnabled,
+          columnLevelPrivileges,
+          showPgReplicate,
+          enablePgReplicate,
+          showRoles,
+          showWrappers,
+          pathname: router.pathname,
+        })
+      : []
+
+  const platformItems: NavGroupItem[] =
+    isProjectScope && ref
+      ? generatePlatformNavItems(ref, project, {
+          authEnabled,
+          edgeFunctionsEnabled,
+          storageEnabled,
+          realtimeEnabled,
+          authOverviewPageEnabled,
+          pathname: router.pathname,
+        })
+      : []
+
+  const observabilityItems: NavGroupItem[] =
+    isProjectScope && ref
+      ? generateObservabilityNavItems(ref, project, {
+          showReports,
+          unifiedLogs: isUnifiedLogsEnabled,
+          pathname: router.pathname,
+        })
+      : []
+
+  const { installedIntegrations } = useInstalledIntegrations()
+
+  const integrationsItems: NavGroupItem[] =
+    isProjectScope && ref
+      ? [
+          {
+            title: 'Explore',
+            url: isProjectBuilding ? `/project/${ref}` : `/project/${ref}/integrations`,
+            icon: Compass,
+            isActive:
+              router.pathname === `/project/[ref]/integrations` ||
+              (router.pathname.includes('/integrations') &&
+                !installedIntegrations.some((int) =>
+                  router.pathname.includes(`/integrations/${int.id}`)
+                )),
+          },
+          ...installedIntegrations.map((integration) => ({
+            title: integration.name,
+            label: integration.status,
+            url: `/project/${ref}/integrations/${integration.id}/overview`,
+            icon: Blocks,
+            isActive: router.pathname.includes(`/integrations/${integration.id}`),
+          })),
+        ]
+      : []
+
+  const activeOrganizationRoute = router.pathname.split('/')[3]
+
+  const organizationItems: NavGroupItem[] =
+    organizationSlug.length > 0
+      ? [
+          {
+            title: 'Projects',
+            url: buildOrgHref(`/org/${organizationSlug}`),
+            icon: Boxes,
+            isActive: activeOrganizationRoute === undefined,
+          },
+          {
+            title: 'Team',
+            url: buildOrgHref(`/org/${organizationSlug}/team`),
+            icon: Users,
+            isActive: activeOrganizationRoute === 'team',
+          },
+          {
+            title: 'Integrations',
+            url: buildOrgHref(`/org/${organizationSlug}/integrations`),
+            icon: Blocks,
+            isActive: activeOrganizationRoute === 'integrations',
+          },
+          {
+            title: 'Usage',
+            url: buildOrgHref(`/org/${organizationSlug}/usage`),
+            icon: ChartArea,
+            isActive: activeOrganizationRoute === 'usage',
+          },
+          ...(showBilling
+            ? [
+                {
+                  title: 'Billing',
+                  url: buildOrgHref(`/org/${organizationSlug}/billing`),
+                  icon: Receipt,
+                  isActive: activeOrganizationRoute === 'billing',
+                },
+              ]
+            : []),
+          {
+            title: 'Organization Settings',
+            url: buildOrgHref(`/org/${organizationSlug}/general`),
+            icon: Settings,
+            isActive:
+              router.pathname.includes('/general') ||
+              router.pathname.includes('/apps') ||
+              router.pathname.includes('/audit') ||
+              router.pathname.includes('/documents') ||
+              router.pathname.includes('/security') ||
+              router.pathname.includes('/sso'),
+          },
+        ]
+      : []
+
+  return {
+    ref,
+    organizationSlug,
+    isProjectScope,
+    isActiveHealthy,
+    isProjectBuilding,
+    projectItems,
+    databaseItems,
+    platformItems,
+    observabilityItems,
+    integrationsItems,
+    organizationItems,
+  }
+}
diff --git a/apps/studio/tests/features/navigation/useAppSidebarNavItems.test.ts b/apps/studio/tests/features/navigation/useAppSidebarNavItems.test.ts
new file mode 100644
index 00000000000..f84271f982a
--- /dev/null
+++ b/apps/studio/tests/features/navigation/useAppSidebarNavItems.test.ts
@@ -0,0 +1,149 @@
+import { renderHook } from '@testing-library/react'
+import { describe, expect, it, vi } from 'vitest'
+
+import { useAppSidebarNavItems } from 'components/layouts/NavigationV2/useAppSidebarNavItems'
+
+// ─── Module mocks ─────────────────────────────────────────────────────────────
+
+vi.mock('lib/constants', async () => {
+  const actual = await vi.importActual<Record<string, unknown>>('lib/constants')
+  return { ...actual, IS_PLATFORM: true }
+})
+
+vi.mock('next/router', () => ({
+  useRouter: vi.fn().mockReturnValue({
+    pathname: '/project/[ref]',
+    asPath: '/project/test-ref',
+    query: {},
+  }),
+}))
+
+vi.mock('common', () => ({
+  useFlag: vi.fn().mockReturnValue(false),
+  useParams: vi.fn().mockReturnValue({ ref: 'test-ref', slug: undefined }),
+  useIsMFAEnabled: vi.fn().mockReturnValue(false),
+}))
+
+vi.mock('hooks/misc/useSelectedOrganization', () => ({
+  useSelectedOrganizationQuery: vi
+    .fn()
+    .mockReturnValue({ data: { slug: 'my-org', organization_requires_mfa: false } }),
+}))
+
+vi.mock('hooks/misc/useSelectedProject', () => ({
+  useSelectedProjectQuery: vi
+    .fn()
+    .mockReturnValue({ data: { ref: 'test-ref', status: 'ACTIVE_HEALTHY' } }),
+}))
+
+vi.mock('hooks/misc/useIsFeatureEnabled', () => ({
+  useIsFeatureEnabled: vi.fn((flags: string | string[]) => {
+    if (typeof flags === 'string') return true
+    return Object.fromEntries((flags as string[]).map((f) => [f.replace(/[:/]/g, ''), true]))
+  }),
+}))
+
+vi.mock('components/interfaces/App/FeaturePreview/FeaturePreviewContext', () => ({
+  useIsColumnLevelPrivilegesEnabled: vi.fn().mockReturnValue(false),
+  useUnifiedLogsPreview: vi.fn().mockReturnValue({ isEnabled: false }),
+}))
+
+vi.mock('components/interfaces/Database/Replication/useIsETLPrivateAlpha', () => ({
+  useIsETLPrivateAlpha: vi.fn().mockReturnValue(false),
+}))
+
+vi.mock('components/interfaces/Integrations/Landing/useInstalledIntegrations', () => ({
+  useInstalledIntegrations: vi.fn().mockReturnValue({ installedIntegrations: [] }),
+}))
+
+vi.mock('data/database-extensions/database-extensions-query', () => ({
+  useDatabaseExtensionsQuery: vi.fn().mockReturnValue({ data: undefined }),
+}))
+
+vi.mock('data/subscriptions/project-addons-query', () => ({
+  useProjectAddonsQuery: vi.fn().mockReturnValue({ data: undefined }),
+}))
+
+vi.mock('components/layouts/ProjectSettingsLayout/SettingsMenu.utils', () => ({
+  useGenerateSettingsMenu: vi.fn().mockReturnValue([]),
+}))
+
+// ─── Tests ────────────────────────────────────────────────────────────────────
+
+describe('useAppSidebarNavItems', () => {
+  describe('scope detection', () => {
+    it('detects project scope from pathname', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems())
+      expect(result.current.isProjectScope).toBe(true)
+    })
+
+    it('respects explicit "organization" scope override', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems({ scope: 'organization' }))
+      expect(result.current.isProjectScope).toBe(false)
+    })
+
+    it('respects explicit "project" scope override', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems({ scope: 'project' }))
+      expect(result.current.isProjectScope).toBe(true)
+    })
+  })
+
+  describe('projectItems', () => {
+    it('includes Home and Project Settings when in project scope', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems({ scope: 'project' }))
+      const titles = result.current.projectItems.map((i) => i.title)
+      expect(titles).toContain('Home')
+      expect(titles).toContain('Project Settings')
+    })
+
+    it('returns empty projectItems in organization scope', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems({ scope: 'organization' }))
+      expect(result.current.projectItems).toHaveLength(0)
+    })
+
+    it('Home item is active when on the project home route', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems({ scope: 'project' }))
+      const home = result.current.projectItems.find((i) => i.title === 'Home')
+      expect(home?.isActive).toBe(true)
+    })
+
+    it('Home url points to the current project ref', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems({ scope: 'project' }))
+      const home = result.current.projectItems.find((i) => i.title === 'Home')
+      expect(home?.url).toBe('/project/test-ref')
+    })
+
+    it('Project Settings url uses general settings on IS_PLATFORM', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems({ scope: 'project' }))
+      const settings = result.current.projectItems.find((i) => i.title === 'Project Settings')
+      expect(settings?.url).toBe('/project/test-ref/settings/general')
+    })
+  })
+
+  describe('organizationItems', () => {
+    it('returns empty when no organizationSlug is available', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems({ scope: 'organization' }))
+      // useParams returns slug: undefined, so organizationSlug = ''
+      expect(result.current.organizationItems).toHaveLength(0)
+    })
+  })
+
+  describe('isActiveHealthy', () => {
+    it('returns true when project status is ACTIVE_HEALTHY', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems())
+      expect(result.current.isActiveHealthy).toBe(true)
+    })
+  })
+
+  describe('ref and organizationSlug', () => {
+    it('exposes the current project ref', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems())
+      expect(result.current.ref).toBe('test-ref')
+    })
+
+    it('exposes an empty organizationSlug when none is set', () => {
+      const { result } = renderHook(() => useAppSidebarNavItems())
+      expect(result.current.organizationSlug).toBe('')
+    })
+  })
+})