diff --git a/utils/utils_test.go b/utils/utils_test.go
new file mode 100644
index 00000000..2141e2b4
--- /dev/null
+++ b/utils/utils_test.go
@@ -0,0 +1,30 @@
+package utils
+
+import (
+	"testing"
+
+	v3 "github.com/exoscale/egoscale/v3"
+	"github.com/stretchr/testify/assert"
+)
+
+func TestParseInstanceType(t *testing.T) {
+	testCases := []struct {
+		instanceType   string
+		expectedFamily v3.InstanceTypeFamily
+		expectedSize   v3.InstanceTypeSize
+	}{
+		{"standard.large", v3.InstanceTypeFamily("standard"), v3.InstanceTypeSize("large")},
+		{"gpu2.mega", v3.InstanceTypeFamily("gpu2"), v3.InstanceTypeSize("mega")},
+		{"colossus", v3.InstanceTypeFamily("standard"), v3.InstanceTypeSize("colossus")},
+		{"", v3.InstanceTypeFamily("standard"), v3.InstanceTypeSize("")},
+		{"invalid-format", v3.InstanceTypeFamily("standard"), v3.InstanceTypeSize("invalid-format")},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.instanceType, func(t *testing.T) {
+			result := ParseInstanceType(tc.instanceType)
+			assert.Equal(t, tc.expectedFamily, result.Family)
+			assert.Equal(t, tc.expectedSize, result.Size)
+		})
+	}
+}