diff --git a/frontend-modern/src/components/Backups/__tests__/PBSEnhancementBanner.test.ts b/frontend-modern/src/components/Backups/__tests__/PBSEnhancementBanner.test.ts
new file mode 100644
index 0000000000..31f39ae06f
--- /dev/null
+++ b/frontend-modern/src/components/Backups/__tests__/PBSEnhancementBanner.test.ts
@@ -0,0 +1,214 @@
+import { describe, it, expect, vi, beforeEach, afterEach } from 'vitest';
+import { render, screen, waitFor, fireEvent, cleanup } from '@solidjs/testing-library';
+import { createStore } from 'solid-js/store';
+
+// We need to test the PBS enhancement banner logic
+// The actual component is UnifiedBackups, but we'll test the core logic
+
+// Mock the WebSocket context
+let mockWsStore: {
+    state: {
+        storage: Array<{ type: string; name: string }>;
+        pbs: Array<{ name: string }>;
+        pveBackups?: { storageBackups?: unknown[]; guestSnapshots?: unknown[] };
+        backups?: { pve?: unknown; pbs?: unknown[] };
+        nodes?: unknown[];
+    };
+    connected: () => boolean;
+    initialDataReceived: () => boolean;
+};
+
+vi.mock('@/App', () => ({
+    useWebSocket: () => mockWsStore,
+}));
+
+vi.mock('@solidjs/router', () => ({
+    useNavigate: () => vi.fn(),
+}));
+
+// Mock localStorage
+const localStorageMock = (() => {
+    let store: Record<string, string> = {};
+    return {
+        getItem: (key: string) => store[key] || null,
+        setItem: (key: string, value: string) => { store[key] = value; },
+        removeItem: (key: string) => { delete store[key]; },
+        clear: () => { store = {}; },
+    };
+})();
+
+vi.stubGlobal('localStorage', localStorageMock);
+
+const setupMockState = (options: {
+    hasPBSStorage?: boolean;
+    hasDirectPBS?: boolean;
+    bannerDismissed?: boolean;
+}) => {
+    const [state] = createStore({
+        storage: options.hasPBSStorage
+            ? [{ type: 'pbs', name: 'pbs-main' }]
+            : [{ type: 'local', name: 'local-lvm' }],
+        pbs: options.hasDirectPBS
+            ? [{ name: 'pbs-direct' }]
+            : [],
+        nodes: [],
+        pveBackups: { storageBackups: [], guestSnapshots: [] },
+        backups: { pve: null, pbs: [] },
+    });
+
+    mockWsStore = {
+        state,
+        connected: () => true,
+        initialDataReceived: () => true,
+    };
+
+    if (options.bannerDismissed) {
+        localStorageMock.setItem('pulse.pbsEnhancementBannerDismissed', 'true');
+    }
+
+    return state;
+};
+
+beforeEach(() => {
+    localStorageMock.clear();
+});
+
+afterEach(() => {
+    cleanup();
+});
+
+describe('PBS Enhancement Banner Logic', () => {
+    describe('hasPBSViaPassthrough detection', () => {
+        it('returns true when storage has PBS type', () => {
+            const state = setupMockState({ hasPBSStorage: true });
+            const hasPBS = state.storage.some((s) => s.type === 'pbs');
+            expect(hasPBS).toBe(true);
+        });
+
+        it('returns false when no PBS storage exists', () => {
+            const state = setupMockState({ hasPBSStorage: false });
+            const hasPBS = state.storage.some((s) => s.type === 'pbs');
+            expect(hasPBS).toBe(false);
+        });
+    });
+
+    describe('hasDirectPBS detection', () => {
+        it('returns true when pbs instances exist', () => {
+            const state = setupMockState({ hasDirectPBS: true });
+            const hasDirectPBS = state.pbs.length > 0;
+            expect(hasDirectPBS).toBe(true);
+        });
+
+        it('returns false when no pbs instances configured', () => {
+            const state = setupMockState({ hasDirectPBS: false });
+            const hasDirectPBS = state.pbs.length > 0;
+            expect(hasDirectPBS).toBe(false);
+        });
+    });
+
+    describe('showPBSEnhancementBanner logic', () => {
+        it('should show banner when PBS via passthrough exists but no direct PBS', () => {
+            setupMockState({ hasPBSStorage: true, hasDirectPBS: false, bannerDismissed: false });
+
+            const hasPBSViaPassthrough = mockWsStore.state.storage.some((s) => s.type === 'pbs');
+            const hasDirectPBS = mockWsStore.state.pbs.length > 0;
+            const dismissed = localStorageMock.getItem('pulse.pbsEnhancementBannerDismissed') === 'true';
+
+            const shouldShow = hasPBSViaPassthrough && !hasDirectPBS && !dismissed;
+            expect(shouldShow).toBe(true);
+        });
+
+        it('should NOT show banner when direct PBS is configured', () => {
+            setupMockState({ hasPBSStorage: true, hasDirectPBS: true, bannerDismissed: false });
+
+            const hasPBSViaPassthrough = mockWsStore.state.storage.some((s) => s.type === 'pbs');
+            const hasDirectPBS = mockWsStore.state.pbs.length > 0;
+            const dismissed = localStorageMock.getItem('pulse.pbsEnhancementBannerDismissed') === 'true';
+
+            const shouldShow = hasPBSViaPassthrough && !hasDirectPBS && !dismissed;
+            expect(shouldShow).toBe(false);
+        });
+
+        it('should NOT show banner when there is no PBS storage', () => {
+            setupMockState({ hasPBSStorage: false, hasDirectPBS: false, bannerDismissed: false });
+
+            const hasPBSViaPassthrough = mockWsStore.state.storage.some((s) => s.type === 'pbs');
+            const hasDirectPBS = mockWsStore.state.pbs.length > 0;
+            const dismissed = localStorageMock.getItem('pulse.pbsEnhancementBannerDismissed') === 'true';
+
+            const shouldShow = hasPBSViaPassthrough && !hasDirectPBS && !dismissed;
+            expect(shouldShow).toBe(false);
+        });
+
+        it('should NOT show banner when user has dismissed it', () => {
+            setupMockState({ hasPBSStorage: true, hasDirectPBS: false, bannerDismissed: true });
+
+            const hasPBSViaPassthrough = mockWsStore.state.storage.some((s) => s.type === 'pbs');
+            const hasDirectPBS = mockWsStore.state.pbs.length > 0;
+            const dismissed = localStorageMock.getItem('pulse.pbsEnhancementBannerDismissed') === 'true';
+
+            const shouldShow = hasPBSViaPassthrough && !hasDirectPBS && !dismissed;
+            expect(shouldShow).toBe(false);
+        });
+    });
+
+    describe('localStorage persistence', () => {
+        it('should persist banner dismissal in localStorage', () => {
+            localStorageMock.setItem('pulse.pbsEnhancementBannerDismissed', 'true');
+            expect(localStorageMock.getItem('pulse.pbsEnhancementBannerDismissed')).toBe('true');
+        });
+
+        it('should default to showing banner when localStorage is empty', () => {
+            expect(localStorageMock.getItem('pulse.pbsEnhancementBannerDismissed')).toBeNull();
+        });
+    });
+});
+
+describe('PBS Backup Data Source Indicator', () => {
+    describe('"via PVE" indicator logic', () => {
+        it('should show "via PVE" for PBS backup with storage but no datastore', () => {
+            const backup = {
+                backupType: 'remote' as const,
+                storage: 'pbs-main',       // Has storage (PVE passthrough)
+                datastore: null,           // No datastore (not from direct PBS)
+            };
+
+            const shouldShowViaPVE =
+                backup.backupType === 'remote' &&
+                backup.storage &&
+                !backup.datastore;
+
+            expect(shouldShowViaPVE).toBe(true);
+        });
+
+        it('should NOT show "via PVE" for direct PBS backup with datastore', () => {
+            const backup = {
+                backupType: 'remote' as const,
+                storage: null,             // No storage (direct PBS)
+                datastore: 'backups',      // Has datastore (from direct PBS)
+            };
+
+            const shouldShowViaPVE =
+                backup.backupType === 'remote' &&
+                backup.storage &&
+                !backup.datastore;
+
+            expect(shouldShowViaPVE).toBeFalsy();
+        });
+
+        it('should NOT show "via PVE" for non-PBS backups', () => {
+            const backup = {
+                backupType: 'local' as const,
+                storage: 'local-lvm',
+                datastore: null,
+            };
+
+            const shouldShowViaPVE =
+                backup.backupType === 'remote' &&
+                backup.storage &&
+                !backup.datastore;
+
+            expect(shouldShowViaPVE).toBe(false);
+        });
+    });
+});