diff --git a/src/element/textElement.test.ts b/src/element/textElement.test.ts
new file mode 100644
index 00000000..3c08b279
--- /dev/null
+++ b/src/element/textElement.test.ts
@@ -0,0 +1,140 @@
+import { wrapText } from "./textElement";
+import { FontString } from "./types";
+
+describe("Test wrapText", () => {
+  const font = "20px Cascadia, width: Segoe UI Emoji" as FontString;
+
+  describe("When text doesn't contain new lines", () => {
+    const text = "Hello whats up";
+    [
+      {
+        desc: "break all words when width of each word is less than container width",
+        width: 140,
+        res: `Hello 
+whats 
+up`,
+      },
+      {
+        desc: "break all characters when width of each character is less than container width",
+        width: 75,
+        res: `H
+e
+l
+l
+o
+w
+h
+a
+t
+s
+u
+p`,
+      },
+      {
+        desc: "break words as per the width",
+
+        width: 200,
+        res: `Hello whats 
+up`,
+      },
+      {
+        desc: "fit the container",
+
+        width: 250,
+        res: "Hello whats up",
+      },
+    ].forEach((data) => {
+      it(`should ${data.desc}`, () => {
+        const res = wrapText(text, font, data.width);
+        expect(res).toEqual(data.res);
+      });
+    });
+  });
+  describe("When text contain new lines", () => {
+    const text = `Hello
+whats up`;
+    [
+      {
+        desc: "break all words when width of each word is less than container width",
+        width: 140,
+        res: `Hello
+whats 
+up`,
+      },
+      {
+        desc: "break all characters when width of each character is less than container width",
+        width: 75,
+        res: `H
+e
+l
+l
+o
+w
+h
+a
+t
+s
+u
+p`,
+      },
+      {
+        desc: "break words as per the width",
+
+        width: 200,
+        res: `Hello
+whats up`,
+      },
+      {
+        desc: "fit the container",
+
+        width: 250,
+        res: `Hello
+whats up`,
+      },
+    ].forEach((data) => {
+      it(`should respect new lines and ${data.desc}`, () => {
+        const res = wrapText(text, font, data.width);
+        expect(res).toEqual(data.res);
+      });
+    });
+  });
+  describe("When text is long", () => {
+    const text = `hellolongtextthisiswhatsupwithyouIamtypingggggandtypinggg break it now`;
+    [
+      {
+        desc: "fit characters of long string as per container width",
+        width: 220,
+        res: `hellolongtextth
+isiswhatsupwith
+youIamtypingggg
+gandtypinggg 
+break it now`,
+      },
+
+      {
+        desc: "fit characters of long string as per container width and break words as per the width",
+
+        width: 180,
+        res: `hellolongte
+xtthisiswha
+tsupwithyou
+Iamtypinggg
+ggandtyping
+gg break it 
+now`,
+      },
+      {
+        desc: "fit the long text when container width is greater than text length and move the rest to next line",
+
+        width: 650,
+        res: `hellolongtextthisiswhatsupwithyouIamtypingggggandtypinggg 
+break it now`,
+      },
+    ].forEach((data) => {
+      it(`should ${data.desc}`, () => {
+        const res = wrapText(text, font, data.width);
+        expect(res).toEqual(data.res);
+      });
+    });
+  });
+});
diff --git a/src/element/textElement.ts b/src/element/textElement.ts
index 713f87ac..155ca201 100644
--- a/src/element/textElement.ts
+++ b/src/element/textElement.ts
@@ -1,4 +1,4 @@
-import { getFontString, arrayToMap } from "../utils";
+import { getFontString, arrayToMap, isTestEnv } from "../utils";
 import {
   ExcalidrawBindableElement,
   ExcalidrawElement,
@@ -200,6 +200,12 @@ const getTextWidth = (text: string, font: FontString) => {
   canvas2dContext.font = font;
 
   const metrics = canvas2dContext.measureText(text);
+  // since in test env the canvas measureText algo
+  // doesn't measure text and instead just returns number of
+  // characters hence we assume that each letteris 10px
+  if (isTestEnv()) {
+    return metrics.width * 10;
+  }
 
   return metrics.width;
 };
diff --git a/src/utils.ts b/src/utils.ts
index f085bf3c..82ab78d1 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -458,3 +458,5 @@ export const arrayToMap = <T extends { id: string } | string>(
     return acc;
   }, new Map());
 };
+
+export const isTestEnv = () => process?.env?.NODE_ENV === "test";