diff --git a/src/lib/button-area/button-area.test.ts b/src/lib/button-area/button-area.test.ts
index c1b500088..7744c7ffe 100644
--- a/src/lib/button-area/button-area.test.ts
+++ b/src/lib/button-area/button-area.test.ts
@@ -1,55 +1,35 @@
 import { expect } from '@esm-bundle/chai';
 import { spy } from 'sinon';
-import { fixture, html } from '@open-wc/testing';
+import { elementUpdated, fixture, html } from '@open-wc/testing';
+import { sendKeys } from '@web/test-runner-commands';
+import { timer } from '@tylertech/forge-testing';
+import { getShadowElement } from '@tylertech/forge-core';
 import { BUTTON_AREA_CONSTANTS } from './button-area-constants';
 import { IButtonAreaComponent } from './button-area';
-import type { IStateLayerComponent } from '../state-layer';
+import { TOUCH_DELAY_MS, type IStateLayerComponent, STATE_LAYER_CONSTANTS } from '../state-layer';
 import type { IFocusIndicatorComponent } from '../focus-indicator';
 
 import './button-area';
 
-const FULL_TEMPLATE = html`<forge-button-area>
-<button slot="button" type="button">Go to detail</button>
-<div class="content">
-  <div>
-    <span>Heading</span>
-    <span>Content</span>
-  </div>
-  <forge-icon-button>
-    <button type="button" aria-label="Favorite">
-      <forge-icon name="favorite"></forge-icon>
-    </button>
-    <forge-tooltip>Favorite</forge-tooltip>
-  </forge-icon-button>
-  <forge-icon name="chevron_right"></forge-icon>
-</div>
-</forge-button-area>`;
-
-const DATA_FORGE_IGNORE_TEMPLATE = html`<forge-button-area><button slot="button" data-forge-ignore type="button">Data forge ignore</button></forge-button-area>`;
-
 describe('Button Area', () => {
   it('should initialize', async () => {
-    const el = await fixture<IButtonAreaComponent>(html`<forge-button-area></forge-button-area>`);
-
-    const rootEl = getRootEl(el);
-    const stateLayer = getStateLayer(el);
-    const focusIndicator = getFocusIndicator(el);
-
+    const { el, root, stateLayer, focusIndicator } = await createFixture({});
+    
     expect(el.shadowRoot).not.to.be.null;
-    expect(rootEl.getAttribute('part')).to.equal('root');
-    expect(rootEl.classList.contains(BUTTON_AREA_CONSTANTS.classes.ROOT)).to.be.true;
+    expect(root.getAttribute('part')).to.equal('root');
+    expect(root.classList.contains(BUTTON_AREA_CONSTANTS.classes.ROOT)).to.be.true;
     expect(stateLayer.disabled).to.be.false;
     expect(focusIndicator).to.be.ok;
   });
 
   it('should be accessible', async () => {
-    const el = await fixture<IButtonAreaComponent>(FULL_TEMPLATE);
+    const { el } = await createFixture({});
 
     await expect(el).to.be.accessible();
   });
 
   it('should handle click', async () => {
-    const el = await fixture<IButtonAreaComponent>(FULL_TEMPLATE);
+    const { el } = await createFixture({});
     const clickSpy = spy();
     el.addEventListener('click', clickSpy);
 
@@ -59,8 +39,7 @@ describe('Button Area', () => {
   });
 
   it('should dispatch click event when button is clicked', async () => {
-    const el = await fixture<IButtonAreaComponent>(FULL_TEMPLATE);
-    const button = getButtonEl(el);
+    const { el, button } = await createFixture({});
     const clickSpy = spy();
     el.addEventListener('click', clickSpy);
 
@@ -69,42 +48,227 @@ describe('Button Area', () => {
     expect(clickSpy.calledOnce).to.be.true;
   });
 
-  it('should not dispatch click event when disabled', async () => {
-    const el = await fixture<IButtonAreaComponent>(FULL_TEMPLATE);
-    const button = getButtonEl(el);
+  it('should handle keydown', async () => {
+    const { el, button } = await createFixture({});
+    const keydownSpy = spy();
+    el.addEventListener('keydown', keydownSpy);
+    
+    button.focus();
+    await pressKey('Enter');
+    await pressKey(' ');
+    expect(keydownSpy.called).to.be.true;
+  });
+
+  it('should animate state layer when handling keydown', async () => {
+    const { button, stateLayer } = await createFixture({});
+    const stateLayerSurface = getStateLayerSurfaceEl(stateLayer);
+    const animateSpy = spy(stateLayerSurface, 'animate');
+    
+    button.focus();
+    pressKey('z');
+    await timer(TOUCH_DELAY_MS);
+    expect(animateSpy).to.not.have.been.called;
+    expect(stateLayerSurface.classList.contains(STATE_LAYER_CONSTANTS.classes.PRESSED)).to.be.false;
+
+    pressKey('Enter');
+    await timer(TOUCH_DELAY_MS);
+
+    expect(animateSpy).to.have.been.called;
+    expect(stateLayerSurface.classList.contains(STATE_LAYER_CONSTANTS.classes.PRESSED)).to.be.true;
+  });
+
+  it('should not dispatch click events when disabled', async () => {
+    const { el } = await createFixture({ disabled: true });
+    const heading = getHeadingEl(el);
     const clickSpy = spy();
     el.addEventListener('click', clickSpy);
 
     el.disabled = true;
-    button.click();
+
+    await elementUpdated(el);
+
+    heading.click();
 
     expect(clickSpy.called).to.be.false;
   });
 
+  it('should not animate state layer when disabled', async () => {
+    const { el, stateLayer } = await createFixture({});
+    const stateLayerSurface = getStateLayerSurfaceEl(stateLayer);
+    const heading = getHeadingEl(el);
+
+    el.disabled = true;
+
+    await elementUpdated(el);
+
+    heading.click();
+
+    expect(stateLayerSurface.classList.contains(STATE_LAYER_CONSTANTS.classes.PRESSED)).to.be.false;
+  });
+
   it('should not dispatch click event when ignored children are clicked', async () => {
-    const el = await fixture<IButtonAreaComponent>(DATA_FORGE_IGNORE_TEMPLATE);
-    const button = getButtonEl(el);
+    const { el, stateLayer } = await createFixture({}, true, true);
+    const stateLayerSurface = getStateLayerSurfaceEl(stateLayer);
+    const ignoredButton = getIngoredButtonEl(el);
     const clickSpy = spy();
     el.addEventListener('click', clickSpy);
 
-    button.click();
+    ignoredButton.click();
 
     expect(clickSpy.called).to.be.false;
+    expect(stateLayerSurface.classList.contains(STATE_LAYER_CONSTANTS.classes.PRESSED)).to.be.false;
+  });
+
+  it('should not dispatch pointer events when ignored children are clicked', async () => {
+    const { el, button } = await createFixture({}, true, true);
+    const ignoredButton = getIngoredButtonEl(el);
+    const pointerdownSpy = spy();
+    const pointerupSpy = spy();
+    el.addEventListener('pointerdown', pointerdownSpy);
+    el.addEventListener('pointerup', pointerupSpy);
+
+    ignoredButton.dispatchEvent(new PointerEvent('pointerdown', { bubbles: true }));
+    ignoredButton.dispatchEvent(new PointerEvent('pointerup', { bubbles: true }));
+
+    expect(pointerdownSpy.called).to.be.false;
+    expect(pointerupSpy.called).to.be.false;
+
+    el.disabled = true;
+    
+    await elementUpdated(el);
+
+    ignoredButton.dispatchEvent(new PointerEvent('pointerdown', { bubbles: true }));
+    ignoredButton.dispatchEvent(new PointerEvent('pointerup', { bubbles: true }));
+
+    expect(pointerdownSpy.called).to.be.true;
+    expect(pointerupSpy.called).to.be.true;
+
+    el.disabled = false;
+    
+    await elementUpdated(el);
+
+    button.dispatchEvent(new PointerEvent('pointerdown', { bubbles: true }));
+    button.dispatchEvent(new PointerEvent('pointerup', { bubbles: true }));
+
+    expect(pointerdownSpy.callCount).to.be.equal(2);
+    expect(pointerupSpy.callCount).to.be.equal(2);
+  });
+
+  it('should not animate state layer when clicking on ignored children', async () => {
+    const { el, stateLayer } = await createFixture({}, true, true);
+    const stateLayerSurface = getStateLayerSurfaceEl(stateLayer);
+    const ignoredButton = getIngoredButtonEl(el);
+    
+    ignoredButton.click();
+    await timer(TOUCH_DELAY_MS);
+
+    expect(stateLayerSurface.classList.contains(STATE_LAYER_CONSTANTS.classes.PRESSED)).to.be.false;
+  });
+
+  it('should not handle keydown when ignored children are focused', async () => {
+    const { el, stateLayer } = await createFixture({}, true, true);
+    const stateLayerSurface = getStateLayerSurfaceEl(stateLayer);
+    const ignoredButton = getIngoredButtonEl(el);
+    const keydownSpy = spy();
+    el.addEventListener('keydown', keydownSpy);
+
+    ignoredButton.focus();
+    await pressKey('Enter');
+
+    expect(keydownSpy.called).to.be.false;
+    expect(stateLayerSurface.classList.contains(STATE_LAYER_CONSTANTS.classes.PRESSED)).to.be.false;
+  });
+
+  it('should set disabled dynamically', async () => {
+    const { el } = await createFixture({});
+
+    el.disabled = true;
+
+    expect(el.disabled).to.be.true;
+    expect(el.hasAttribute('disabled')).to.be.true;
+    await expect(el).to.be.accessible();
+
+    el.disabled = false;
+
+    expect(el.disabled).to.be.false;
+    expect(el.hasAttribute('disabled')).to.be.false;
   });
 
-  function getRootEl(el: IButtonAreaComponent): HTMLElement {
-    return el.shadowRoot?.firstElementChild as HTMLElement;
+  it('should set disabled if the button is disabled and is added after initialize', async () => {
+    const { el } = await createFixture({}, false);
+    
+    expect(el.disabled).to.be.false;
+    expect(el.hasAttribute('disabled')).to.be.false;
+    await expect(el).to.be.accessible();
+
+    const button = document.createElement('button') as HTMLButtonElement;
+    button.setAttribute('slot', 'button');
+    button.setAttribute('disabled', 'true');
+    button.innerHTML = 'Slot Changed';
+    el.append(button);
+    await expect(el).to.be.accessible();
+
+    expect(el.disabled).to.be.true;
+    expect(el.hasAttribute('disabled')).to.be.true;
+  });
+
+  it('should set button to disabled if element is disabled and button is added after initialize', async () => {
+    const { el } = await createFixture({ disabled: true }, false);
+    await expect(el).to.be.accessible();
+    
+    expect(el.disabled).to.be.true;
+    expect(el.hasAttribute('disabled')).to.be.true;
+
+
+    const button = document.createElement('button') as HTMLButtonElement;
+    button.setAttribute('slot', 'button');
+    button.innerHTML = 'Slot Changed';
+    el.append(button);
+    await expect(el).to.be.accessible();
+
+    expect(button.disabled).to.be.true;
+  });
+
+  function getHeadingEl(el: IButtonAreaComponent): HTMLSpanElement {
+    return el.querySelector('.heading') as HTMLSpanElement;
+  }
+
+  function getIngoredButtonEl(el: IButtonAreaComponent): HTMLButtonElement {
+    return el.querySelector('[data-forge-ignore]') as HTMLButtonElement;
   }
 
-  function getStateLayer(el: IButtonAreaComponent): IStateLayerComponent {
-    return el.shadowRoot?.querySelector('forge-state-layer') as IStateLayerComponent
+  function getStateLayerSurfaceEl(el: IStateLayerComponent): HTMLDivElement {
+    return getShadowElement(el, STATE_LAYER_CONSTANTS.selectors.SURFACE) as HTMLDivElement;
   }
 
-  function getFocusIndicator(el: IButtonAreaComponent): IFocusIndicatorComponent {
-    return el.shadowRoot?.querySelector('forge-focus-indicator') as IFocusIndicatorComponent;
+  function pressKey(press: 'z' | ' ' | 'Enter'): Promise<void> {
+    return sendKeys({ press });
   }
 
-  function getButtonEl(el: IButtonAreaComponent): HTMLButtonElement {
-    return el.querySelector('[slot=button]') as HTMLButtonElement;
+  async function createFixture({ disabled }: Partial<IButtonAreaComponent> = {}, hasButton: boolean = true, hasIgnoredChildren: boolean = false): Promise<{ el: IButtonAreaComponent; root: HTMLElement; focusIndicator: IFocusIndicatorComponent; stateLayer: IStateLayerComponent; button: HTMLButtonElement; content: HTMLSlotElement; }> {
+    const buttonTemplate = html`<button slot="button" type="button">Go to detail</button>`;
+    const ignoredButton = html`<forge-icon-button data-forge-ignore>
+    <button type="button" aria-label="Favorite">
+      <forge-icon name="favorite"></forge-icon>
+    </button>
+    <forge-tooltip>Favorite</forge-tooltip>
+  </forge-icon-button>`;
+    const el = await fixture<IButtonAreaComponent>(html`<forge-button-area ?disabled=${disabled}>
+    ${ hasButton ? buttonTemplate : null }
+    <div class="content">
+      <div>
+        <span class="heading">Heading</span>
+        <span>Content</span>
+      </div>
+      ${ hasIgnoredChildren ? ignoredButton : null }
+      <forge-icon name="chevron_right"></forge-icon>
+    </div>
+    </forge-button-area>`);
+    const root = el.shadowRoot?.firstElementChild as HTMLElement;
+    const stateLayer = el.shadowRoot?.querySelector('forge-state-layer') as IStateLayerComponent;
+    const focusIndicator = el.shadowRoot?.querySelector('forge-focus-indicator') as IFocusIndicatorComponent;
+    const button = el.querySelector('[slot=button]') as HTMLButtonElement;
+    const content = el.shadowRoot?.querySelector('#content') as HTMLSlotElement;
+    return { el, root, focusIndicator, stateLayer, button, content }
   }
 });