diff --git a/application/src/test/java/org/thingsboard/server/service/cf/ctx/state/GeofencingZoneStateTest.java b/application/src/test/java/org/thingsboard/server/service/cf/ctx/state/GeofencingZoneStateTest.java
new file mode 100644
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+++ b/application/src/test/java/org/thingsboard/server/service/cf/ctx/state/GeofencingZoneStateTest.java
@@ -0,0 +1,86 @@
+/**
+ * Copyright © 2016-2025 The Thingsboard Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.thingsboard.server.service.cf.ctx.state;
+
+import org.junit.jupiter.api.BeforeEach;
+import org.junit.jupiter.api.Test;
+import org.thingsboard.common.util.geo.Coordinates;
+import org.thingsboard.server.common.data.id.AssetId;
+import org.thingsboard.server.common.data.kv.BaseAttributeKvEntry;
+import org.thingsboard.server.common.data.kv.JsonDataEntry;
+import org.thingsboard.server.common.data.cf.configuration.GeofencingEvent;
+
+import java.util.UUID;
+
+import static org.assertj.core.api.Assertions.assertThat;
+
+public class GeofencingZoneStateTest {
+
+    private final AssetId ZONE_ID = new AssetId(UUID.fromString("628730fd-d625-417f-9c6d-ae9fe4addbdb"));
+    private final String POLYGON = """
+                {"type":"POLYGON","polygonsDefinition":"[[50.472000, 30.504000], [50.472000, 30.506000], [50.474000, 30.506000], [50.474000, 30.504000]]"}
+                """;
+
+    private GeofencingZoneState state;
+
+    @BeforeEach
+    void setUp() {
+        state = new GeofencingZoneState(ZONE_ID, new BaseAttributeKvEntry(new JsonDataEntry("zone", POLYGON), 100L, 1L));
+    }
+
+    @Test
+    void evaluate_initialInside_thenInsideAgain() {
+        var inside = new Coordinates(50.4730, 30.5050);
+        // first evaluation: no prior state -> ENTERED
+        assertThat(state.evaluate(inside)).isEqualTo(GeofencingEvent.ENTERED);
+        // same position again -> INSIDE (steady state)
+        assertThat(state.evaluate(inside)).isEqualTo(GeofencingEvent.INSIDE);
+    }
+
+    @Test
+    void evaluate_initialOutside_thenOutsideAgain() {
+        var outside = new Coordinates(50.4760, 30.5110);
+        // first evaluation: no prior state -> OUTSIDE
+        assertThat(state.evaluate(outside)).isEqualTo(GeofencingEvent.OUTSIDE);
+        // same position again -> OUTSIDE (steady state)
+        assertThat(state.evaluate(outside)).isEqualTo(GeofencingEvent.OUTSIDE);
+    }
+
+    @Test
+    void evaluate_inside_thenLeave() {
+        var inside = new Coordinates(50.4730, 30.5050);
+        var outside = new Coordinates(50.4760, 30.5110);
+        // enter
+        assertThat(state.evaluate(inside)).isEqualTo(GeofencingEvent.ENTERED);
+        // leave -> LEFT
+        assertThat(state.evaluate(outside)).isEqualTo(GeofencingEvent.LEFT);
+        // still outside -> OUTSIDE
+        assertThat(state.evaluate(outside)).isEqualTo(GeofencingEvent.OUTSIDE);
+    }
+
+    @Test
+    void evaluate_outside_thenEnter() {
+        var outside = new Coordinates(50.4760, 30.5110);
+        var inside = new Coordinates(50.4730, 30.5050);
+        // start outside
+        assertThat(state.evaluate(outside)).isEqualTo(GeofencingEvent.OUTSIDE);
+        // cross boundary -> ENTERED
+        assertThat(state.evaluate(inside)).isEqualTo(GeofencingEvent.ENTERED);
+        // remain inside -> INSIDE
+        assertThat(state.evaluate(inside)).isEqualTo(GeofencingEvent.INSIDE);
+    }
+
+}