diff --git a/xCAT-test/unit/anaconda_driver_disk_arg.t b/xCAT-test/unit/anaconda_driver_disk_arg.t
new file mode 100644
index 000000000..4fea393ab
--- /dev/null
+++ b/xCAT-test/unit/anaconda_driver_disk_arg.t
@@ -0,0 +1,113 @@
+#!/usr/bin/env perl
+use strict;
+use warnings;
+
+use Cwd qw(getcwd);
+use File::Slurper qw(write_text);
+use File::Spec;
+use File::Temp qw(tempdir);
+use FindBin;
+use lib "$FindBin::Bin/../lib";
+use lib "$FindBin::Bin/../../perl-xCAT";
+use lib "$FindBin::Bin/../../xCAT-server/lib/perl";
+use Test::More;
+
+use XCAT::Test::File qw(repo_path);
+
+my $plugin = repo_path('xCAT-server/lib/xcat/plugins/anaconda.pm');
+plan skip_all => 'anaconda.pm not found' unless -r $plugin;
+$ENV{XCATROOT} ||= repo_path('xCAT-server');
+require $plugin;
+
+my $tempdir = tempdir(CLEANUP => 1);
+my $initrd = File::Spec->catfile($tempdir, 'initrd.img');
+my $driver_disk = File::Spec->catfile($tempdir, 'vendor-dd.img');
+write_text($initrd, "base initrd\n");
+write_text($driver_disk, "driver disk\n");
+my $base_size = -s $initrd;
+
+sub insert_driver_disk {
+    my ($source, $fail_archive) = @_;
+    my $cwd = getcwd();
+    my @inserted;
+    my @messages;
+    {
+        no warnings qw(redefine once);
+        my $real_runcmd = \&xCAT::Utils::runcmd;
+        local *xCAT::TableUtils::getInstallDir = sub { return $tempdir; };
+        local *xCAT::MsgUtils::message = sub {
+            my $rsp = $_[2];
+            push @messages, @{ $rsp->{data} || [] };
+            return;
+        };
+        local *xCAT::Utils::runcmd = sub {
+            my ($class, $command, @arguments) = @_;
+            if ($fail_archive && $command =~ /cpio -H newc -o/) {
+                $::RUNCMD_RC = 1;
+                return;
+            }
+            return $real_runcmd->($class, $command, @arguments);
+        };
+        @inserted = xCAT_plugin::anaconda::insert_dd(
+            sub { return; },
+            'rhels9.6', 'x86_64', $initrd, undef,
+            $source, '', '', 0,
+        );
+    }
+    chdir($cwd) or die "Unable to restore $cwd: $!";
+    return ( \@inserted, \@messages );
+}
+
+my ($inserted) = insert_driver_disk("dud:$driver_disk");
+is_deeply($inserted, [$driver_disk], 'insert_dd reports the driver disk it appended');
+cmp_ok(-s $initrd, '>', $base_size, 'the driver disk archive is appended to the initrd');
+
+my $marker = xCAT_plugin::anaconda::_driver_disk_marker_path($initrd);
+ok(-f $marker, 'successful injection records the driver disk beside the initrd');
+
+is(
+    xCAT_plugin::anaconda::_driver_disk_kernel_arg('6.10', $initrd),
+    '',
+    'anaconda before 7 continues to auto-load the embedded driver disk',
+);
+is(
+    xCAT_plugin::anaconda::_driver_disk_kernel_arg('9.6', $initrd),
+    ' inst.dd=/dd.img',
+    'anaconda 7 and newer is given the inst.dd argument it reads',
+);
+write_text($initrd, "reused initrd\n");
+is(
+    xCAT_plugin::anaconda::_driver_disk_kernel_arg('9.6', $initrd),
+    ' inst.dd=/dd.img',
+    'a later nodeset --noupdateinitrd run reuses the persistent marker',
+);
+
+write_text($initrd, "fresh initrd\n");
+my ($without_disk) = insert_driver_disk(undef);
+is_deeply($without_disk, [], 'an image without a driver disk reports no insertion');
+ok(!-e $marker, 'rebuilding without a driver disk clears a stale marker');
+is(
+    xCAT_plugin::anaconda::_driver_disk_kernel_arg('9.6', $initrd),
+    '',
+    'an image without an injected driver disk receives no kernel argument',
+);
+
+my $missing_disk = File::Spec->catfile($tempdir, 'missing-dd.img');
+my ($failed, $copy_messages) = insert_driver_disk("dud:$missing_disk");
+is_deeply($failed, [], 'a driver disk that cannot be copied is not reported as inserted');
+like(join("\n", @{$copy_messages}), qr/Could not copy the driver disk/, 'the failed copy takes the expected error path');
+ok(!-e $marker, 'failed injection leaves no driver disk marker');
+
+($inserted) = insert_driver_disk("dud:$driver_disk");
+ok(-f $marker, 'the marker exists before an archive failure is exercised');
+my ($archive_failed, $archive_messages) = insert_driver_disk("dud:$driver_disk", 1);
+is_deeply($archive_failed, [], 'a driver disk that cannot be archived is not reported as inserted');
+like(join("\n", @{$archive_messages}), qr/Could not archive the driver disk/, 'the failed archive takes the expected error path');
+ok(!-e $marker, 'a failed driver disk archive leaves no marker');
+
+ok(
+    xCAT_plugin::anaconda::_set_driver_disk_marker(undef, 0),
+    'clearing a marker for an unavailable initrd is a no-op',
+);
+
+done_testing();