diff --git a/pkg/handlers/generic/lifecycle/serviceloadbalancer/handler.go b/pkg/handlers/generic/lifecycle/serviceloadbalancer/handler.go
index 00591fa48..44773c454 100644
--- a/pkg/handlers/generic/lifecycle/serviceloadbalancer/handler.go
+++ b/pkg/handlers/generic/lifecycle/serviceloadbalancer/handler.go
@@ -149,6 +149,7 @@ func (s *ServiceLoadBalancerHandler) apply(
 				err,
 			),
 		)
+		return
 	}
 
 	resp.SetStatus(runtimehooksv1.ResponseStatusSuccess)
diff --git a/pkg/handlers/generic/lifecycle/serviceloadbalancer/handler_test.go b/pkg/handlers/generic/lifecycle/serviceloadbalancer/handler_test.go
new file mode 100644
index 000000000..d941fb071
--- /dev/null
+++ b/pkg/handlers/generic/lifecycle/serviceloadbalancer/handler_test.go
@@ -0,0 +1,185 @@
+// Copyright 2024 Nutanix. All rights reserved.
+// SPDX-License-Identifier: Apache-2.0
+
+package serviceloadbalancer
+
+import (
+	"context"
+	"fmt"
+	"testing"
+
+	"github.com/go-logr/logr"
+	"github.com/google/go-cmp/cmp"
+	apiextensionsv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
+	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
+	runtimehooksv1 "sigs.k8s.io/cluster-api/exp/runtime/hooks/api/v1alpha1"
+	"sigs.k8s.io/controller-runtime/pkg/client/fake"
+
+	"github.com/nutanix-cloud-native/cluster-api-runtime-extensions-nutanix/api/v1alpha1"
+	apivariables "github.com/nutanix-cloud-native/cluster-api-runtime-extensions-nutanix/api/variables"
+)
+
+type fakeServiceLoadBalancerProvider struct {
+	returnedErr error
+}
+
+func (p *fakeServiceLoadBalancerProvider) Apply(
+	ctx context.Context,
+	cluster *clusterv1.Cluster,
+	log logr.Logger,
+) error {
+	return p.returnedErr
+}
+
+var testProviderHandlers = map[string]ServiceLoadBalancerProvider{
+	"test1": &fakeServiceLoadBalancerProvider{},
+	"test2": &fakeServiceLoadBalancerProvider{},
+	"broken": &fakeServiceLoadBalancerProvider{
+		returnedErr: fmt.Errorf("fake error"),
+	},
+}
+
+func testClusterVariable(
+	t *testing.T,
+	slb *v1alpha1.ServiceLoadBalancer,
+) *clusterv1.ClusterVariable {
+	t.Helper()
+	cv, err := apivariables.MarshalToClusterVariable(
+		"clusterConfig",
+		&apivariables.ClusterConfigSpec{
+			Addons: &apivariables.Addons{
+				GenericAddons: v1alpha1.GenericAddons{
+					ServiceLoadBalancer: slb,
+				},
+			},
+		},
+	)
+	if err != nil {
+		t.Fatalf("failed to create clusterVariable: %s", err)
+	}
+	return cv
+}
+
+type testCase struct {
+	name            string
+	clusterVariable *clusterv1.ClusterVariable
+	wantStatus      runtimehooksv1.ResponseStatus
+}
+
+func testCases(t *testing.T) []testCase {
+	t.Helper()
+	return []testCase{
+		{
+			name: "request is missing serviceLoadBalancer field",
+			clusterVariable: testClusterVariable(
+				t,
+				nil,
+			),
+			wantStatus: runtimehooksv1.ResponseStatus(""), // Neither success, nor failure.
+		},
+		{
+			name: "request is malformed",
+			clusterVariable: &clusterv1.ClusterVariable{
+				Name: "clusterConfig",
+				Value: apiextensionsv1.JSON{
+					Raw: []byte("{\"addons\":{\"serviceLoadBalancer\":{\"provider\": %%% }}}"),
+				},
+			},
+			wantStatus: runtimehooksv1.ResponseStatusFailure,
+		},
+		{
+			name: "provider is not known",
+			clusterVariable: testClusterVariable(
+				t,
+				&v1alpha1.ServiceLoadBalancer{
+					Provider: "unknown",
+				},
+			),
+			wantStatus: runtimehooksv1.ResponseStatusFailure,
+		},
+		{
+			name: "provider is known, deploy succeeds",
+			clusterVariable: testClusterVariable(
+				t,
+				&v1alpha1.ServiceLoadBalancer{
+					Provider: "test1",
+				},
+			),
+			wantStatus: runtimehooksv1.ResponseStatusSuccess,
+		},
+		{
+			name: "provider is known, deploy fails",
+			clusterVariable: testClusterVariable(
+				t,
+				&v1alpha1.ServiceLoadBalancer{
+					Provider: "broken",
+				},
+			),
+			wantStatus: runtimehooksv1.ResponseStatusFailure,
+		},
+	}
+}
+
+func TestAfterControlPlaneInitialized(t *testing.T) {
+	for _, tt := range testCases(t) {
+		t.Run(tt.name, func(t *testing.T) {
+			ctx := context.Background()
+			client := fake.NewClientBuilder().Build()
+			handler := New(client, testProviderHandlers)
+			resp := &runtimehooksv1.AfterControlPlaneInitializedResponse{}
+
+			req := &runtimehooksv1.AfterControlPlaneInitializedRequest{
+				Cluster: clusterv1.Cluster{
+					Spec: clusterv1.ClusterSpec{
+						Topology: &clusterv1.Topology{
+							Variables: []clusterv1.ClusterVariable{
+								*tt.clusterVariable,
+							},
+						},
+					},
+				},
+			}
+
+			handler.AfterControlPlaneInitialized(ctx, req, resp)
+			if diff := cmp.Diff(tt.wantStatus, resp.Status); diff != "" {
+				t.Errorf(
+					"response Status mismatch (-want +got):\n%s. Message: %s",
+					diff,
+					resp.Message,
+				)
+			}
+		})
+	}
+}
+
+func TestBeforeClusterUpgrade(t *testing.T) {
+	for _, tt := range testCases(t) {
+		t.Run(tt.name, func(t *testing.T) {
+			ctx := context.Background()
+			client := fake.NewClientBuilder().Build()
+			handler := New(client, testProviderHandlers)
+			resp := &runtimehooksv1.BeforeClusterUpgradeResponse{}
+
+			req := &runtimehooksv1.BeforeClusterUpgradeRequest{
+				Cluster: clusterv1.Cluster{
+					Spec: clusterv1.ClusterSpec{
+						Topology: &clusterv1.Topology{
+							Variables: []clusterv1.ClusterVariable{
+								*tt.clusterVariable,
+							},
+						},
+					},
+				},
+			}
+
+			handler.BeforeClusterUpgrade(ctx, req, resp)
+			if diff := cmp.Diff(tt.wantStatus, resp.Status); diff != "" {
+				t.Errorf(
+					"response Status mismatch (-want +got):\n%s. Message: %s",
+					diff,
+					resp.Message,
+				)
+			}
+		})
+	}
+}