diff --git a/components/org.wso2.carbon.identity.organization.discovery.service/src/test/java/org.wso2.carbon.identity.organization.discovery.service/listener/OrganizationDiscoveryUserOperationListenerTest.java b/components/org.wso2.carbon.identity.organization.discovery.service/src/test/java/org.wso2.carbon.identity.organization.discovery.service/listener/OrganizationDiscoveryUserOperationListenerTest.java
new file mode 100644
index 000000000..3ce8bfc6d
--- /dev/null
+++ b/components/org.wso2.carbon.identity.organization.discovery.service/src/test/java/org.wso2.carbon.identity.organization.discovery.service/listener/OrganizationDiscoveryUserOperationListenerTest.java
@@ -0,0 +1,107 @@
+/*
+ * Copyright (c) 2024, WSO2 LLC. (http://www.wso2.com).
+ *
+ * WSO2 LLC. licenses this file to you under the Apache License,
+ * Version 2.0 (the "License"); you may not use this file except
+ * in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+package org.wso2.carbon.identity.organization.discovery.service.listener;
+
+import org.mockito.InjectMocks;
+import org.mockito.Mock;
+import org.mockito.MockitoAnnotations;
+import org.testng.annotations.AfterMethod;
+import org.testng.annotations.BeforeMethod;
+import org.testng.annotations.Test;
+import org.wso2.carbon.context.PrivilegedCarbonContext;
+import org.wso2.carbon.identity.organization.discovery.service.util.TestUtils;
+import org.wso2.carbon.identity.organization.management.service.OrganizationManager;
+import org.wso2.carbon.identity.organization.management.service.internal.OrganizationManagementDataHolder;
+import org.wso2.carbon.user.core.UserStoreException;
+import org.wso2.carbon.user.core.UserStoreManager;
+import org.wso2.carbon.user.core.service.RealmService;
+import org.wso2.carbon.user.core.tenant.Tenant;
+import org.wso2.carbon.user.core.tenant.TenantManager;
+
+import java.util.HashMap;
+import java.util.Map;
+
+import static org.mockito.Mockito.when;
+import static org.testng.AssertJUnit.assertTrue;
+import static org.wso2.carbon.identity.organization.management.organization.user.sharing.constant.UserSharingConstants.CLAIM_MANAGED_ORGANIZATION;
+import static org.wso2.carbon.user.core.UserCoreConstants.DEFAULT_PROFILE;
+
+public class OrganizationDiscoveryUserOperationListenerTest {
+
+    private static final String TEST_ORG_ID = "10084a8d-113f-4211-a0d5-efe36b082211";
+    private static final String TEST_TENANT_DOMAIN = "example.com";
+    private static final String TEST_USER = "testUser";
+    private static final Object TEST_CREDENTIALS = "dummyPassword";
+    private static final int TEST_TENANT_ID = 1234;
+
+    @InjectMocks
+    private OrganizationDiscoveryUserOperationListener organizationDiscoveryUserOperationListener;
+
+    @Mock
+    private UserStoreManager userStoreManager;
+
+    @Mock
+    private RealmService realmService;
+
+    @Mock
+    private TenantManager tenantManager;
+
+    @Mock
+    private Tenant tenant;
+
+    @Mock
+    private OrganizationManager organizationManager;
+
+    @BeforeMethod
+    public void setUp() throws Exception {
+
+        MockitoAnnotations.openMocks(this);
+
+        TestUtils.initiateH2Base();
+        TestUtils.mockDataSource();
+
+        PrivilegedCarbonContext.getThreadLocalCarbonContext().setTenantDomain(TEST_TENANT_DOMAIN);
+        OrganizationManagementDataHolder.getInstance().setRealmService(realmService);
+        OrganizationManagementDataHolder.getInstance().setOrganizationManager(organizationManager);
+
+        when(realmService.getTenantManager()).thenReturn(tenantManager);
+        when(tenantManager.getTenantId(TEST_TENANT_DOMAIN)).thenReturn(TEST_TENANT_ID);
+        when(tenantManager.getTenant(TEST_TENANT_ID)).thenReturn(tenant);
+        when(tenant.getAssociatedOrganizationUUID()).thenReturn(TEST_ORG_ID);
+        when(organizationManager.getOrganizationDepthInHierarchy(TEST_ORG_ID)).thenReturn(1);
+    }
+
+    @Test
+    public void testSkipEmailDomainValidationForSharedUserCreation() throws UserStoreException {
+
+        Map<String, String> claims = new HashMap<>();
+        claims.put(CLAIM_MANAGED_ORGANIZATION, TEST_ORG_ID);
+
+        boolean result = organizationDiscoveryUserOperationListener.doPreAddUserWithID(TEST_USER, TEST_CREDENTIALS,
+                new String[]{}, claims, DEFAULT_PROFILE, userStoreManager);
+
+        assertTrue("Email domain validation should be skipped for shared user creation.", result);
+    }
+
+    @AfterMethod
+    public void tearDown() {
+
+        PrivilegedCarbonContext.endTenantFlow();
+    }
+}