diff --git a/packages/react/src/components/ProgressIndicator/__tests__/ProgressIndicatorSkeleton-test.js b/packages/react/src/components/ProgressIndicator/__tests__/ProgressIndicatorSkeleton-test.js
new file mode 100644
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+++ b/packages/react/src/components/ProgressIndicator/__tests__/ProgressIndicatorSkeleton-test.js
@@ -0,0 +1,50 @@
+/**
+ * Copyright IBM Corp. 2024
+ *
+ * This source code is licensed under the Apache-2.0 license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+import { ProgressIndicatorSkeleton } from '../ProgressIndicator.Skeleton';
+import React from 'react';
+import { render } from '@testing-library/react';
+
+jest.mock('@carbon/icons-react', () => ({
+  CircleDash: () => <div>CircleDash</div>,
+}));
+
+describe('ProgressIndicatorSkeleton', () => {
+  test('renders correctly with default properties', () => {
+    const { container } = render(<ProgressIndicatorSkeleton />);
+
+    expect(container.firstChild).toHaveClass('cds--progress cds--skeleton');
+    expect(container.firstChild).not.toHaveClass('cds--progress--vertical');
+
+    const steps = container.querySelectorAll('li');
+    expect(steps.length).toBe(4);
+
+    steps.forEach((step) => {
+      expect(step).toHaveClass(
+        'cds--progress-step cds--progress-step--incomplete'
+      );
+    });
+
+    const circleDashComponents = container.querySelectorAll(
+      'div.cds--progress-step-button'
+    );
+    expect(circleDashComponents.length).toBe(4);
+    expect(circleDashComponents[0]).toHaveTextContent('CircleDash');
+  });
+
+  test('renders vertically when vertical prop is true', () => {
+    const { container } = render(<ProgressIndicatorSkeleton vertical={true} />);
+    expect(container.firstChild).toHaveClass('cds--progress--vertical');
+  });
+
+  test('applies custom className when provided', () => {
+    const { container } = render(
+      <ProgressIndicatorSkeleton className="custom-class" />
+    );
+    expect(container.firstChild).toHaveClass('custom-class');
+  });
+});