diff --git a/packages/element/tests/distribute.test.tsx b/packages/element/tests/distribute.test.tsx
new file mode 100644
index 0000000000..b59567e42c
--- /dev/null
+++ b/packages/element/tests/distribute.test.tsx
@@ -0,0 +1,128 @@
+import {
+  distributeHorizontally,
+  distributeVertically,
+} from "@excalidraw/excalidraw/actions";
+import { defaultLang, setLanguage } from "@excalidraw/excalidraw/i18n";
+import { Excalidraw } from "@excalidraw/excalidraw";
+
+import { API } from "@excalidraw/excalidraw/tests/helpers/api";
+import { UI, Pointer, Keyboard } from "@excalidraw/excalidraw/tests/helpers/ui";
+import {
+  act,
+  unmountComponent,
+  render,
+} from "@excalidraw/excalidraw/tests/test-utils";
+
+const mouse = new Pointer("mouse");
+
+// Scenario: three rectangles that will be distributed with gaps
+const createAndSelectThreeRectanglesWithGap = () => {
+  UI.clickTool("rectangle");
+  mouse.down();
+  mouse.up(100, 100);
+  mouse.reset();
+
+  UI.clickTool("rectangle");
+  mouse.down(10, 10);
+  mouse.up(100, 100);
+  mouse.reset();
+
+  UI.clickTool("rectangle");
+  mouse.down(300, 300);
+  mouse.up(100, 100);
+  mouse.reset();
+
+  // Last rectangle is selected by default
+  Keyboard.withModifierKeys({ shift: true }, () => {
+    mouse.click(0, 10);
+    mouse.click(10, 0);
+  });
+};
+
+// Scenario: three rectangles that will be distributed by their centers
+const createAndSelectThreeRectanglesWithoutGap = () => {
+  UI.clickTool("rectangle");
+  mouse.down();
+  mouse.up(100, 100);
+  mouse.reset();
+
+  UI.clickTool("rectangle");
+  mouse.down(10, 10);
+  mouse.up(200, 200);
+  mouse.reset();
+
+  UI.clickTool("rectangle");
+  mouse.down(200, 200);
+  mouse.up(100, 100);
+  mouse.reset();
+
+  // Last rectangle is selected by default
+  Keyboard.withModifierKeys({ shift: true }, () => {
+    mouse.click(0, 10);
+    mouse.click(10, 0);
+  });
+};
+
+describe("distributing", () => {
+  beforeEach(async () => {
+    unmountComponent();
+    mouse.reset();
+
+    await act(() => {
+      return setLanguage(defaultLang);
+    });
+    await render(<Excalidraw handleKeyboardGlobally={true} />);
+  });
+
+  it("should distribute selected elements horizontally", async () => {
+    createAndSelectThreeRectanglesWithGap();
+    expect(API.getSelectedElements()[0].x).toEqual(0);
+    expect(API.getSelectedElements()[1].x).toEqual(10);
+    expect(API.getSelectedElements()[2].x).toEqual(300);
+
+    API.executeAction(distributeHorizontally);
+
+    expect(API.getSelectedElements()[0].x).toEqual(0);
+    expect(API.getSelectedElements()[1].x).toEqual(150);
+    expect(API.getSelectedElements()[2].x).toEqual(300);
+  });
+
+  it("should distribute selected elements vertically", async () => {
+    createAndSelectThreeRectanglesWithGap();
+    expect(API.getSelectedElements()[0].y).toEqual(0);
+    expect(API.getSelectedElements()[1].y).toEqual(10);
+    expect(API.getSelectedElements()[2].y).toEqual(300);
+
+    API.executeAction(distributeVertically);
+
+    expect(API.getSelectedElements()[0].y).toEqual(0);
+    expect(API.getSelectedElements()[1].y).toEqual(150);
+    expect(API.getSelectedElements()[2].y).toEqual(300);
+  });
+
+  it("should distribute selected elements horizontally based on their centers", async () => {
+    createAndSelectThreeRectanglesWithoutGap();
+    expect(API.getSelectedElements()[0].x).toEqual(0);
+    expect(API.getSelectedElements()[1].x).toEqual(10);
+    expect(API.getSelectedElements()[2].x).toEqual(200);
+
+    API.executeAction(distributeHorizontally);
+
+    expect(API.getSelectedElements()[0].x).toEqual(0);
+    expect(API.getSelectedElements()[1].x).toEqual(50);
+    expect(API.getSelectedElements()[2].x).toEqual(200);
+  });
+
+  it("should distribute selected elements vertically with based on their centers", async () => {
+    createAndSelectThreeRectanglesWithoutGap();
+    expect(API.getSelectedElements()[0].y).toEqual(0);
+    expect(API.getSelectedElements()[1].y).toEqual(10);
+    expect(API.getSelectedElements()[2].y).toEqual(200);
+
+    API.executeAction(distributeVertically);
+
+    expect(API.getSelectedElements()[0].y).toEqual(0);
+    expect(API.getSelectedElements()[1].y).toEqual(50);
+    expect(API.getSelectedElements()[2].y).toEqual(200);
+  });
+});