diff --git a/ui/desktop/eslint.config.js b/ui/desktop/eslint.config.js
index 87968e311..5e6aa8cac 100644
--- a/ui/desktop/eslint.config.js
+++ b/ui/desktop/eslint.config.js
@@ -68,6 +68,7 @@ module.exports = [
         CustomEvent: 'readonly',
         HTMLElement: 'readonly',
         HTMLInputElement: 'readonly',
+        HTMLSelectElement: 'readonly',
         HTMLTextAreaElement: 'readonly',
         HTMLButtonElement: 'readonly',
         HTMLDivElement: 'readonly',
diff --git a/ui/desktop/src/components/ParameterInputModal.tsx b/ui/desktop/src/components/ParameterInputModal.tsx
index c3fad93a0..c20a05c82 100644
--- a/ui/desktop/src/components/ParameterInputModal.tsx
+++ b/ui/desktop/src/components/ParameterInputModal.tsx
@@ -1,4 +1,4 @@
-import React, { useState, useEffect } from 'react';
+import React, { useId, useState, useEffect } from 'react';
 import { Parameter } from '../recipe';
 import { Button } from './ui/button';
 import { defineMessages, useIntl } from '../i18n';
@@ -68,11 +68,12 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
   initialValues,
 }) => {
   const intl = useIntl();
+  const fieldIdPrefix = useId();
+  const fieldId = (key: string): string => `${fieldIdPrefix}-${key}`;
   const [inputValues, setInputValues] = useState<Record<string, string>>({});
   const [validationErrors, setValidationErrors] = useState<Record<string, string>>({});
   const [showCancelOptions, setShowCancelOptions] = useState(false);
 
-  // Pre-fill the form with default values from the recipe and initialValues from deeplink
   useEffect(() => {
     const defaultValues: Record<string, string> = {};
     parameters.forEach((param) => {
@@ -90,10 +91,8 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
   };
 
   const handleSubmit = (): void => {
-    // Clear previous validation errors
     setValidationErrors({});
 
-    // Check if all *required* parameters are filled
     const requiredParams: Parameter[] = parameters.filter((p) => p.requirement === 'required');
     const errors: Record<string, string> = {};
 
@@ -113,7 +112,6 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
   };
 
   const handleCancel = (): void => {
-    // Always show cancel options if recipe has any parameters (required or optional)
     const hasAnyParams = parameters.length > 0;
 
     if (hasAnyParams) {
@@ -123,18 +121,9 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
     }
   };
 
-  const handleCancelOption = (option: 'new-chat' | 'back-to-form'): void => {
-    if (option === 'new-chat') {
-      onClose();
-    } else {
-      setShowCancelOptions(false); // Go back to the parameter form
-    }
-  };
-
   return (
     <div className="fixed inset-0 backdrop-blur-sm z-50 flex justify-center items-center animate-[fadein_200ms_ease-in]">
       {showCancelOptions ? (
-        // Cancel options modal
         <div className="bg-background-primary border border-border-primary rounded-xl p-8 shadow-2xl w-full max-w-md">
           <h2 className="text-xl font-bold text-text-primary mb-4">
             {intl.formatMessage(i18n.cancelRecipeSetup)}
@@ -142,25 +131,19 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
           <p className="text-text-primary mb-6">{intl.formatMessage(i18n.whatToDo)}</p>
           <div className="flex flex-col gap-3">
             <Button
-              onClick={() => handleCancelOption('back-to-form')}
+              onClick={() => setShowCancelOptions(false)}
               variant="default"
               size="lg"
               className="w-full rounded-full"
             >
               {intl.formatMessage(i18n.backToForm)}
             </Button>
-            <Button
-              onClick={() => handleCancelOption('new-chat')}
-              variant="outline"
-              size="lg"
-              className="w-full rounded-full"
-            >
+            <Button onClick={onClose} variant="outline" size="lg" className="w-full rounded-full">
               {intl.formatMessage(i18n.startNewChat)}
             </Button>
           </div>
         </div>
       ) : (
-        // Main parameter form
         <div className="bg-background-primary border border-border-primary rounded-xl shadow-2xl w-full max-w-lg max-h-[90vh] flex flex-col overflow-hidden">
           <div className="p-8 pb-4 flex-shrink-0">
             <h2 className="text-xl font-bold text-text-primary mb-6">
@@ -171,16 +154,19 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
             <form onSubmit={handleSubmit} className="space-y-4 mb-4">
               {parameters.map((param) => (
                 <div key={param.key}>
-                  <label className="block text-md font-medium text-text-primary mb-2">
+                  <label
+                    htmlFor={fieldId(param.key)}
+                    className="block text-md font-medium text-text-primary mb-2"
+                  >
                     {param.description || param.key}
                     {param.requirement === 'required' && (
                       <span className="text-red-500 ml-1">*</span>
                     )}
                   </label>
 
-                  {/* Render different input types */}
                   {param.input_type === 'select' && param.options ? (
                     <select
+                      id={fieldId(param.key)}
                       value={inputValues[param.key] || ''}
                       onChange={(e) => handleChange(param.key, e.target.value)}
                       className={`w-full p-3 border rounded-lg bg-background-secondary text-text-primary focus:outline-none focus:ring-2 ${
@@ -198,6 +184,7 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
                     </select>
                   ) : param.input_type === 'boolean' ? (
                     <select
+                      id={fieldId(param.key)}
                       value={inputValues[param.key] || ''}
                       onChange={(e) => handleChange(param.key, e.target.value)}
                       className={`w-full p-3 border rounded-lg bg-background-secondary text-text-primary focus:outline-none focus:ring-2 ${
@@ -212,6 +199,7 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
                     </select>
                   ) : (
                     <input
+                      id={fieldId(param.key)}
                       type={param.input_type === 'number' ? 'number' : 'text'}
                       value={inputValues[param.key] || ''}
                       onChange={(e) => handleChange(param.key, e.target.value)}
@@ -220,7 +208,9 @@ const ParameterInputModal: React.FC<ParameterInputModalProps> = ({
                           ? 'border-red-500 focus:ring-red-500'
                           : 'border-border-primary focus:ring-border-secondary'
                       }`}
-                      placeholder={param.default || intl.formatMessage(i18n.enterValue, { key: param.key })}
+                      placeholder={
+                        param.default || intl.formatMessage(i18n.enterValue, { key: param.key })
+                      }
                     />
                   )}
 
diff --git a/ui/desktop/src/components/__tests__/ParameterInputModal.test.tsx b/ui/desktop/src/components/__tests__/ParameterInputModal.test.tsx
new file mode 100644
index 000000000..a3394826d
--- /dev/null
+++ b/ui/desktop/src/components/__tests__/ParameterInputModal.test.tsx
@@ -0,0 +1,161 @@
+import { describe, it, expect, vi, beforeEach } from 'vitest';
+import { render, type RenderOptions, screen, waitFor } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+import ParameterInputModal from '../ParameterInputModal';
+import { IntlTestWrapper } from '../../i18n/test-utils';
+import type { Parameter } from '../../recipe';
+
+const renderWithIntl = (ui: React.ReactElement, options?: RenderOptions) =>
+  render(ui, { wrapper: IntlTestWrapper, ...options });
+
+const mockParameters: Parameter[] = [
+  {
+    key: 'param1',
+    description: 'Test parameter 1',
+    input_type: 'string',
+    requirement: 'required',
+  },
+  {
+    key: 'param2',
+    description: 'Test parameter 2',
+    input_type: 'select',
+    requirement: 'optional',
+    options: ['option1', 'option2'],
+    default: 'option1',
+  },
+  {
+    key: 'param3',
+    description: 'Boolean parameter',
+    input_type: 'boolean',
+    requirement: 'optional',
+    default: 'true',
+  },
+];
+
+describe('ParameterInputModal', () => {
+  const defaultProps = {
+    parameters: mockParameters,
+    onSubmit: vi.fn(),
+    onClose: vi.fn(),
+    initialValues: {},
+  };
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  describe('Rendering', () => {
+    it('renders modal with parameters', () => {
+      renderWithIntl(<ParameterInputModal {...defaultProps} />);
+
+      expect(screen.getByText('Recipe Parameters')).toBeInTheDocument();
+      expect(screen.getByText('Test parameter 1')).toBeInTheDocument();
+      expect(screen.getByText('Test parameter 2')).toBeInTheDocument();
+      expect(screen.getByText('Boolean parameter')).toBeInTheDocument();
+    });
+
+    it('shows required indicator for required parameters', () => {
+      renderWithIntl(<ParameterInputModal {...defaultProps} />);
+
+      const requiredParam = screen.getByText('Test parameter 1');
+      expect(requiredParam.parentElement?.querySelector('.text-red-500')).toBeInTheDocument();
+    });
+  });
+
+  describe('Form Submission', () => {
+    it('calls onSubmit with parameter values when submitted', async () => {
+      const user = userEvent.setup();
+      renderWithIntl(<ParameterInputModal {...defaultProps} />);
+
+      await user.type(screen.getByLabelText(/test parameter 1/i), 'test value');
+      await user.selectOptions(screen.getByLabelText(/test parameter 2/i), 'option2');
+
+      const submitButton = screen.getByText('Start Recipe');
+      await user.click(submitButton);
+
+      expect(defaultProps.onSubmit).toHaveBeenCalledWith({
+        param1: 'test value',
+        param2: 'option2',
+        param3: 'true',
+      });
+    });
+
+    it('shows validation errors for required parameters', async () => {
+      const user = userEvent.setup();
+      renderWithIntl(<ParameterInputModal {...defaultProps} />);
+
+      const submitButton = screen.getByText('Start Recipe');
+      await user.click(submitButton);
+
+      await waitFor(() => {
+        expect(screen.getByText(/is required/)).toBeInTheDocument();
+      });
+      expect(defaultProps.onSubmit).not.toHaveBeenCalled();
+    });
+  });
+
+  describe('Cancel Behavior', () => {
+    it('shows cancel options when cancel is clicked and parameters exist', async () => {
+      const user = userEvent.setup();
+      renderWithIntl(<ParameterInputModal {...defaultProps} />);
+
+      const cancelButton = screen.getByText('Cancel');
+      await user.click(cancelButton);
+
+      expect(screen.getByText('Cancel Recipe Setup')).toBeInTheDocument();
+      expect(screen.getByText('What would you like to do?')).toBeInTheDocument();
+    });
+
+    it('calls onClose directly when cancel is clicked and no parameters exist', async () => {
+      const user = userEvent.setup();
+      renderWithIntl(<ParameterInputModal {...defaultProps} parameters={[]} />);
+
+      const cancelButton = screen.getByText('Cancel');
+      await user.click(cancelButton);
+
+      expect(defaultProps.onClose).toHaveBeenCalled();
+    });
+
+    it('calls onClose when "Start New Chat" option is selected', async () => {
+      const user = userEvent.setup();
+      renderWithIntl(<ParameterInputModal {...defaultProps} />);
+
+      await user.click(screen.getByText('Cancel'));
+      await user.click(screen.getByText('Start New Chat (No Recipe)'));
+
+      expect(defaultProps.onClose).toHaveBeenCalledTimes(1);
+    });
+
+    it('returns to parameter form when "Back to Parameter Form" is clicked', async () => {
+      const user = userEvent.setup();
+      renderWithIntl(<ParameterInputModal {...defaultProps} />);
+
+      const cancelButton = screen.getByText('Cancel');
+      await user.click(cancelButton);
+
+      const backButton = screen.getByText('Back to Parameter Form');
+      await user.click(backButton);
+
+      expect(screen.getByText('Recipe Parameters')).toBeInTheDocument();
+      expect(defaultProps.onClose).not.toHaveBeenCalled();
+    });
+  });
+
+  describe('Initial Values', () => {
+    it('pre-fills form with initial values', () => {
+      renderWithIntl(
+        <ParameterInputModal {...defaultProps} initialValues={{ param1: 'initial value' }} />
+      );
+
+      expect((screen.getByLabelText(/test parameter 1/i) as HTMLInputElement).value).toBe(
+        'initial value'
+      );
+    });
+
+    it('pre-fills form with default values from parameters', () => {
+      renderWithIntl(<ParameterInputModal {...defaultProps} />);
+
+      expect((screen.getByLabelText(/boolean parameter/i) as HTMLSelectElement).value).toBe('true');
+    });
+  });
+});