diff --git a/public/app/plugins/datasource/loki/querybuilder/components/NestedQuery.test.tsx b/public/app/plugins/datasource/loki/querybuilder/components/NestedQuery.test.tsx
new file mode 100644
index 00000000000..ec39fff98e8
--- /dev/null
+++ b/public/app/plugins/datasource/loki/querybuilder/components/NestedQuery.test.tsx
@@ -0,0 +1,102 @@
+import { fireEvent, render, screen, waitFor } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+import React from 'react';
+
+import { createLokiDatasource } from '../../mocks';
+import { LokiVisualQueryBinary } from '../types';
+
+import { NestedQuery, Props as NestedQueryProps } from './NestedQuery';
+
+type Operator = '+' | '-' | '*' | '/' | '%' | '^' | '==' | '!=' | '>' | '<' | '>=' | '<=';
+type VectorMatchType = 'on' | 'ignoring';
+
+const createMockProps = (
+  operator: Operator = '/',
+  vectorMatchesType: VectorMatchType = 'on',
+  showExplain = false
+): NestedQueryProps => {
+  const nestedQuery: LokiVisualQueryBinary = {
+    operator: operator,
+    vectorMatchesType: vectorMatchesType,
+    query: {
+      labels: [],
+      operations: [],
+    },
+  };
+
+  const datasource = createLokiDatasource();
+
+  const props: NestedQueryProps = {
+    nestedQuery: nestedQuery,
+    index: 0,
+    datasource: datasource,
+    onChange: jest.fn(),
+    onRemove: jest.fn(),
+    onRunQuery: jest.fn(),
+    showExplain: showExplain,
+  };
+
+  return props;
+};
+
+// All test assertions need to be awaited for, because the component uses `useEffect` to update the state.
+
+describe('render all elements', () => {
+  it('renders the operator label', async () => {
+    const props = createMockProps();
+    render(<NestedQuery {...props} />);
+    expect(await screen.findByText('Operator')).toBeInTheDocument();
+  });
+
+  it('renders the expected operator value', async () => {
+    const props = createMockProps('!=');
+    render(<NestedQuery {...props} />);
+    expect(await screen.findByText('!=')).toBeInTheDocument();
+  });
+
+  it('renders the vector matches label', async () => {
+    const props = createMockProps();
+    render(<NestedQuery {...props} />);
+    expect(await screen.findByText('Vector matches')).toBeInTheDocument();
+  });
+
+  it('renders the expected vector matches value', async () => {
+    const props = createMockProps(undefined, 'ignoring');
+    render(<NestedQuery {...props} />);
+    expect(await screen.findByText('ignoring')).toBeInTheDocument();
+  });
+});
+
+describe('exit the nested query', () => {
+  it('onRemove is called when clicking (x)', async () => {
+    const props = createMockProps();
+    render(<NestedQuery {...props} />);
+    fireEvent.click(await screen.findByLabelText('Remove nested query'));
+    await waitFor(() => expect(props.onRemove).toHaveBeenCalledTimes(1));
+  });
+});
+
+describe('change operator', () => {
+  it('onChange is called with the correct args', async () => {
+    const props = createMockProps('/', 'on');
+    render(<NestedQuery {...props} />);
+    userEvent.click(await screen.findByLabelText('Select operator'));
+    fireEvent.click(await screen.findByText('+'));
+    await waitFor(() => expect(props.onChange).toHaveBeenCalledTimes(1));
+    await waitFor(() =>
+      expect(props.onChange).toHaveBeenCalledWith(0, {
+        operator: '+',
+        vectorMatchesType: 'on',
+        query: { labels: [], operations: [] },
+      })
+    );
+  });
+});
+
+describe('explain mode', () => {
+  it('shows the explanation when set to true', async () => {
+    const props = createMockProps(undefined, undefined, true);
+    render(<NestedQuery {...props} />);
+    expect(await screen.findByText('Fetch all log lines matching label filters.')).toBeInTheDocument();
+  });
+});
diff --git a/public/app/plugins/datasource/loki/querybuilder/components/NestedQuery.tsx b/public/app/plugins/datasource/loki/querybuilder/components/NestedQuery.tsx
index 3e0910efec8..569332f62a7 100644
--- a/public/app/plugins/datasource/loki/querybuilder/components/NestedQuery.tsx
+++ b/public/app/plugins/datasource/loki/querybuilder/components/NestedQuery.tsx
@@ -29,6 +29,7 @@ export const NestedQuery = React.memo<Props>(
         <div className={styles.header}>
           <div className={styles.name}>Operator</div>
           <Select
+            aria-label="Select operator"
             width="auto"
             options={operators}
             value={toOption(nestedQuery.operator)}
@@ -70,7 +71,7 @@ export const NestedQuery = React.memo<Props>(
             />
           </div>
           <FlexItem grow={1} />
-          <IconButton name="times" size="sm" onClick={() => onRemove(index)} />
+          <IconButton ariaLabel="Remove nested query" name="times" size="sm" onClick={() => onRemove(index)} />
         </div>
         <div className={styles.body}>
           <EditorRows>