diff --git a/app/src/main/java/org/mozilla/fenix/whatsnew/WhatsNew.kt b/app/src/main/java/org/mozilla/fenix/whatsnew/WhatsNew.kt
index b13b625e1..aad54640b 100644
--- a/app/src/main/java/org/mozilla/fenix/whatsnew/WhatsNew.kt
+++ b/app/src/main/java/org/mozilla/fenix/whatsnew/WhatsNew.kt
@@ -26,12 +26,11 @@ class WhatsNew private constructor(private val storage: WhatsNewStorage) {
         val lastKnownAppVersion = storage.getVersion()
 
         // Update the version and date if *just* updated
-        lastKnownAppVersion?.let {
-            if (currentVersion.majorVersionNumber > it.majorVersionNumber) {
-                storage.setVersion(currentVersion)
-                storage.setDateOfUpdate(System.currentTimeMillis())
-                return true
-            }
+        if (lastKnownAppVersion == null ||
+            currentVersion.majorVersionNumber > lastKnownAppVersion.majorVersionNumber) {
+            storage.setVersion(currentVersion)
+            storage.setDateOfUpdate(System.currentTimeMillis())
+            return true
         }
 
         return (!storage.getWhatsNewHasBeenCleared() && storage.getDaysSinceUpdate() < DAYS_PER_UPDATE)
diff --git a/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewStorageTest.kt b/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewStorageTest.kt
index 5a768eec4..1643d4ad1 100644
--- a/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewStorageTest.kt
+++ b/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewStorageTest.kt
@@ -1,5 +1,9 @@
 package org.mozilla.fenix.whatsnew
 
+/* This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
+
 import androidx.test.ext.junit.runners.AndroidJUnit4
 import kotlinx.coroutines.ObsoleteCoroutinesApi
 import mozilla.components.support.test.robolectric.testContext
@@ -59,6 +63,6 @@ class WhatsNewStorageTest {
     }
 }
 
-private fun Settings.clear() {
+fun Settings.clear() {
     preferences.clearAndCommit()
 }
diff --git a/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewTest.kt b/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewTest.kt
new file mode 100644
index 000000000..74da9d526
--- /dev/null
+++ b/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewTest.kt
@@ -0,0 +1,94 @@
+package org.mozilla.fenix.whatsnew
+
+/* This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
+
+import androidx.test.ext.junit.runners.AndroidJUnit4
+import kotlinx.coroutines.ObsoleteCoroutinesApi
+import mozilla.components.support.test.robolectric.testContext
+import org.junit.Assert.assertEquals
+import org.junit.Before
+import org.junit.Test
+import org.junit.runner.RunWith
+import org.mozilla.fenix.TestApplication
+import org.mozilla.fenix.ext.settings
+import org.mozilla.fenix.utils.Settings
+import org.robolectric.annotation.Config
+
+@ObsoleteCoroutinesApi
+@RunWith(AndroidJUnit4::class)
+@Config(application = TestApplication::class)
+class WhatsNewTest {
+    private lateinit var storage: SharedPreferenceWhatsNewStorage
+    private lateinit var settings: Settings
+
+    @Before
+    fun setup() {
+        storage = SharedPreferenceWhatsNewStorage(testContext)
+        settings = testContext.settings().apply(Settings::clear)
+        WhatsNew.wasUpdatedRecently = null
+    }
+
+    @Test
+    fun `should highlight after fresh install`() {
+        assertEquals(true, WhatsNew.shouldHighlightWhatsNew(testContext))
+    }
+
+    @Test
+    fun `should highlight if new version has been installed less than 3 days`() {
+        storage.setVersion(WhatsNewVersion("1.0"))
+        storage.setDateOfUpdate(System.currentTimeMillis() - WhatsNewStorageTest.DAY_IN_MILLIS)
+
+        assertEquals(true, WhatsNew.shouldHighlightWhatsNew(WhatsNewVersion("2.0"), storage))
+    }
+
+    @Test
+    fun `should not highlight if new version has been installed more than 3 days`() {
+        storage.setVersion(WhatsNewVersion("1.0"))
+        assertEquals(true, WhatsNew.shouldHighlightWhatsNew(WhatsNewVersion("2.0"), storage))
+
+        // Simulate an app "restart" by resetting `wasUpdatedRecently`
+        WhatsNew.wasUpdatedRecently = null
+        // Simulate time passing
+        storage.setDateOfUpdate(System.currentTimeMillis() - WhatsNewStorageTest.DAY_IN_MILLIS * 3)
+
+        assertEquals(false, WhatsNew.shouldHighlightWhatsNew(WhatsNewVersion("2.0"), storage))
+    }
+
+    @Test
+    fun `should not highlight if new version is only a minor update`() {
+        storage.setVersion(WhatsNewVersion("1.0"))
+        assertEquals(false, WhatsNew.shouldHighlightWhatsNew(WhatsNewVersion("1.0.1"), storage))
+
+        WhatsNew.wasUpdatedRecently = null
+
+        storage.setVersion(WhatsNewVersion("1.0"))
+        assertEquals(false, WhatsNew.shouldHighlightWhatsNew(WhatsNewVersion("1.1"), storage))
+    }
+
+    @Test
+    fun `should highlight if new version is a major update`() {
+        storage.setVersion(WhatsNewVersion("1.0"))
+        assertEquals(true, WhatsNew.shouldHighlightWhatsNew(WhatsNewVersion("2.0"), storage))
+
+        WhatsNew.wasUpdatedRecently = null
+
+        storage.setVersion(WhatsNewVersion("1.2"))
+        assertEquals(true, WhatsNew.shouldHighlightWhatsNew(WhatsNewVersion("2.0"), storage))
+
+        WhatsNew.wasUpdatedRecently = null
+
+        storage.setVersion(WhatsNewVersion("3.2"))
+        assertEquals(true, WhatsNew.shouldHighlightWhatsNew(WhatsNewVersion("4.2"), storage))
+    }
+
+    @Test
+    fun `should not highlight after user viewed what's new`() {
+        assertEquals(true, WhatsNew.shouldHighlightWhatsNew(testContext))
+
+        WhatsNew.userViewedWhatsNew(testContext)
+
+        assertEquals(false, WhatsNew.shouldHighlightWhatsNew(testContext))
+    }
+}
diff --git a/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewVersionTest.kt b/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewVersionTest.kt
index 0acedf273..9fc5151fe 100644
--- a/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewVersionTest.kt
+++ b/app/src/test/java/org/mozilla/fenix/whatsnew/WhatsNewVersionTest.kt
@@ -7,7 +7,6 @@ package org.mozilla.fenix.whatsnew
 import androidx.test.ext.junit.runners.AndroidJUnit4
 import kotlinx.coroutines.ObsoleteCoroutinesApi
 import org.junit.Assert.assertEquals
-import org.junit.Assert.assertNotEquals
 import org.junit.Test
 import org.junit.runner.RunWith
 import org.mozilla.fenix.TestApplication
@@ -22,7 +21,7 @@ class WhatsNewVersionTest {
         val versionOne = WhatsNewVersion("1.2.0")
         assertEquals(1, versionOne.majorVersionNumber)
 
-        val versionTwo = WhatsNewVersion("2.4.0")
-        assertNotEquals(1, versionTwo.majorVersionNumber)
+        val versionTwo = WhatsNewVersion("2.4.1")
+        assertEquals(2, versionTwo.majorVersionNumber)
     }
 }