diff --git a/erpnext/stock/doctype/packed_item/test_packed_item.py b/erpnext/stock/doctype/packed_item/test_packed_item.py
new file mode 100644
index 0000000..074391c
--- /dev/null
+++ b/erpnext/stock/doctype/packed_item/test_packed_item.py
@@ -0,0 +1,104 @@
+# Copyright (c) 2022, Frappe Technologies Pvt. Ltd. and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from erpnext.stock.doctype.item.test_item import make_item
+from erpnext.selling.doctype.product_bundle.test_product_bundle import make_product_bundle
+from erpnext.selling.doctype.sales_order.test_sales_order import make_sales_order
+from erpnext.tests.utils import ERPNextTestCase, change_settings
+
+
+class TestPackedItem(ERPNextTestCase):
+	"Test impact on Packed Items table in various scenarios."
+	@classmethod
+	def setUpClass(cls) -> None:
+		make_item("_Test Product Bundle X", {"is_stock_item": 0})
+		make_item("_Test Bundle Item 1", {"is_stock_item": 1})
+		make_item("_Test Bundle Item 2", {"is_stock_item": 1})
+		make_item("_Test Normal Stock Item", {"is_stock_item": 1})
+
+		make_product_bundle(
+			"_Test Product Bundle X",
+			["_Test Bundle Item 1", "_Test Bundle Item 2"],
+			qty=2
+		)
+
+	def test_sales_order_adding_bundle_item(self):
+		"Test impact on packed items if bundle item row is added."
+		so = make_sales_order(item_code = "_Test Product Bundle X", qty=1,
+			do_not_submit=True)
+
+		self.assertEqual(so.items[0].qty, 1)
+		self.assertEqual(len(so.packed_items), 2)
+		self.assertEqual(so.packed_items[0].item_code, "_Test Bundle Item 1")
+		self.assertEqual(so.packed_items[0].qty, 2)
+
+	def test_sales_order_updating_bundle_item(self):
+		"Test impact on packed items if bundle item row is updated."
+		so = make_sales_order(item_code = "_Test Product Bundle X", qty=1,
+			do_not_submit=True)
+
+		so.items[0].qty = 2 # change qty
+		so.save()
+
+		self.assertEqual(so.packed_items[0].qty, 4)
+		self.assertEqual(so.packed_items[1].qty, 4)
+
+		# change item code to non bundle item
+		so.items[0].item_code = "_Test Normal Stock Item"
+		so.save()
+
+		self.assertEqual(len(so.packed_items), 0)
+
+	def test_sales_order_recurring_bundle_item(self):
+		"Test impact on packed items if same bundle item is added and removed."
+		so_items = []
+		for qty in [2, 4, 6, 8]:
+			so_items.append({
+				"item_code": "_Test Product Bundle X",
+				"qty": qty,
+				"rate": 400,
+				"warehouse": "_Test Warehouse - _TC"
+			})
+
+		# create SO with recurring bundle item
+		so = make_sales_order(item_list=so_items, do_not_submit=True)
+
+		# check alternate rows for qty
+		self.assertEqual(len(so.packed_items), 8)
+		self.assertEqual(so.packed_items[1].item_code, "_Test Bundle Item 2")
+		self.assertEqual(so.packed_items[1].qty, 4)
+		self.assertEqual(so.packed_items[3].qty, 8)
+		self.assertEqual(so.packed_items[5].qty, 12)
+		self.assertEqual(so.packed_items[7].qty, 16)
+
+		# delete intermediate row (2nd)
+		del so.items[1]
+		so.save()
+
+		# check alternate rows for qty
+		self.assertEqual(len(so.packed_items), 6)
+		self.assertEqual(so.packed_items[1].qty, 4)
+		self.assertEqual(so.packed_items[3].qty, 12)
+		self.assertEqual(so.packed_items[5].qty, 16)
+
+		# delete last row
+		del so.items[2]
+		so.save()
+
+		# check alternate rows for qty
+		self.assertEqual(len(so.packed_items), 4)
+		self.assertEqual(so.packed_items[1].qty, 4)
+		self.assertEqual(so.packed_items[3].qty, 12)
+
+	@change_settings("Selling Settings", {"editable_bundle_item_rates": 1})
+	def test_sales_order_bundle_item_cumulative_price(self):
+		"Test if Bundle Item rate is cumulative from packed items."
+		so = make_sales_order(item_code = "_Test Product Bundle X", qty=2,
+			do_not_submit=True)
+
+		so.packed_items[0].rate = 150
+		so.packed_items[1].rate = 200
+		so.save()
+
+		self.assertEqual(so.items[0].rate, 350)
+		self.assertEqual(so.items[0].amount, 700)