diff --git a/api/tests/routers/v1/test_projects.py b/api/tests/routers/v1/test_projects.py
new file mode 100644
index 000000000..82d59be46
--- /dev/null
+++ b/api/tests/routers/v1/test_projects.py
@@ -0,0 +1,88 @@
+from decouple import config
+from http import HTTPStatus
+from fastapi.testclient import TestClient
+from typing import Dict
+
+API_BASE_URL = config("API_BASE_URL")
+
+
+def test_create_project_allocation(client: TestClient, get_regular_user_token_headers: Dict[str, str]) -> None:
+    response = client.get(
+        f"{API_BASE_URL}/v1/projects/1/allocations?start=2024-01-01",
+        headers=get_regular_user_token_headers,
+        params={"user_id": 1},
+    )
+    assert response.status_code == HTTPStatus.OK
+    allocations = response.json()
+
+    allocation_payload = {
+        "userId": 1,
+        "projectId": 1,
+        "startDate": "2024-01-08",
+        "endDate": "2024-01-10",
+        "hoursPerDay": 8.0,
+        "fte": 1,
+        "isTentative": False,
+        "isBillable": True,
+        "notes": "test",
+    }
+    response = client.post(
+        f"{API_BASE_URL}/v1/projects/1/allocations",
+        headers=get_regular_user_token_headers,
+        params={"user_id": 1},
+        json=allocation_payload,
+    )
+    assert response.status_code == HTTPStatus.CREATED
+    expected_new_allocation = {
+        "id": 2,
+        "userId": 1,
+        "projectId": 1,
+        "username": "user",
+        "startDate": "2024-01-08",
+        "endDate": "2024-01-10",
+        "hoursPerDay": 8.0,
+        "totalHours": 24.0,
+        "fte": 1.0,
+        "isTentative": False,
+        "isBillable": True,
+        "notes": "test",
+    }
+    assert response.json() == expected_new_allocation
+
+    response = client.get(
+        f"{API_BASE_URL}/v1/projects/1/allocations?start=2024-01-01&end=2024-12-01",
+        headers=get_regular_user_token_headers,
+        params={"user_id": 1},
+    )
+    assert response.status_code == HTTPStatus.OK
+    allocations = response.json()
+    expected_response = [
+        {
+            "username": "user",
+            "hours": {
+                "2024-1": {
+                    "days": [
+                        "2024-01-01",
+                        "2024-01-02",
+                        "2024-01-03",
+                        "2024-01-04",
+                        "2024-01-05",
+                    ],
+                    "ISOWeek": 1,
+                    "month": "Jan",
+                    "totalHours": 40.0,
+                    "project": 1,
+                    "isLeave": False,
+                },
+                "2024-2": {
+                    "days": ["2024-01-08", "2024-01-09", "2024-01-10"],
+                    "ISOWeek": 2,
+                    "month": "Jan",
+                    "totalHours": 24.0,
+                    "project": 1,
+                    "isLeave": False,
+                },
+            },
+        }
+    ]
+    assert allocations == expected_response
diff --git a/api/tests/utils/mock_data.py b/api/tests/utils/mock_data.py
index 85522a863..ba4ecb103 100644
--- a/api/tests/utils/mock_data.py
+++ b/api/tests/utils/mock_data.py
@@ -1,6 +1,6 @@
 from models.area import Area
 from models.customer import Customer
-from models.project import Project
+from models.project import Project, ProjectAllocation
 from models.timelog import Task, TaskType, Template
 from models.user import User, UserGroup, UserRoles
 from models.sector import Sector
@@ -111,6 +111,22 @@
             },
         ],
     ),
+    (
+        ProjectAllocation,
+        [
+            {
+                "user_id": 1,
+                "project_id": 1,
+                "start_date": "2024-01-01",
+                "end_date": "2024-01-05",
+                "hours_per_day": 8.0,
+                "fte": 1.0,
+                "is_tentative": False,
+                "is_billable": True,
+                "notes": "test",
+            }
+        ],
+    ),
     (
         TaskType,
         [