diff --git a/packages/cli/src/commands/extensions/settings.test.ts b/packages/cli/src/commands/extensions/settings.test.ts
new file mode 100644
index 0000000000..db8c14a922
--- /dev/null
+++ b/packages/cli/src/commands/extensions/settings.test.ts
@@ -0,0 +1,231 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import {
+  describe,
+  it,
+  expect,
+  vi,
+  beforeEach,
+  afterEach,
+  type Mock,
+} from 'vitest';
+import { settingsCommand } from './settings.js';
+import yargs from 'yargs';
+import { debugLogger, type GeminiCLIExtension } from '@google/gemini-cli-core';
+import type { getExtensionAndManager } from './utils.js';
+import type {
+  updateSetting,
+  getScopedEnvContents,
+} from '../../config/extensions/extensionSettings.js';
+import {
+  promptForSetting,
+  ExtensionSettingScope,
+} from '../../config/extensions/extensionSettings.js';
+import type { exitCli } from '../utils.js';
+import type { ExtensionManager } from '../../config/extension-manager.js';
+
+const mockGetExtensionAndManager: Mock<typeof getExtensionAndManager> =
+  vi.hoisted(() => vi.fn());
+const mockUpdateSetting: Mock<typeof updateSetting> = vi.hoisted(() => vi.fn());
+const mockGetScopedEnvContents: Mock<typeof getScopedEnvContents> = vi.hoisted(
+  () => vi.fn(),
+);
+const mockExitCli: Mock<typeof exitCli> = vi.hoisted(() => vi.fn());
+
+vi.mock('./utils.js', () => ({
+  getExtensionAndManager: mockGetExtensionAndManager,
+}));
+
+vi.mock('../../config/extensions/extensionSettings.js', () => ({
+  updateSetting: mockUpdateSetting,
+  promptForSetting: vi.fn(),
+  ExtensionSettingScope: {
+    USER: 'user',
+    WORKSPACE: 'workspace',
+  },
+  getScopedEnvContents: mockGetScopedEnvContents,
+}));
+
+vi.mock('@google/gemini-cli-core', () => ({
+  debugLogger: {
+    log: vi.fn(),
+    error: vi.fn(),
+  },
+}));
+
+vi.mock('../utils.js', () => ({
+  exitCli: mockExitCli,
+}));
+
+describe('settings command', () => {
+  let debugLogSpy: Mock;
+  let debugErrorSpy: Mock;
+
+  beforeEach(() => {
+    debugLogSpy = debugLogger.log as Mock;
+    debugErrorSpy = debugLogger.error as Mock;
+  });
+
+  afterEach(() => {
+    vi.clearAllMocks();
+  });
+
+  describe('set command', () => {
+    it('should log error and exit if extension is not found', async () => {
+      mockGetExtensionAndManager.mockResolvedValue({
+        extension: null,
+        extensionManager: null,
+      });
+
+      await yargs([])
+        .command(settingsCommand)
+        .parseAsync('settings set foo bar');
+
+      expect(mockExitCli).toHaveBeenCalled();
+    });
+
+    it('should log error and exit if extension config is not found', async () => {
+      const mockExtensionManager = {
+        loadExtensionConfig: vi.fn().mockResolvedValue(null),
+      } as unknown as ExtensionManager;
+      mockGetExtensionAndManager.mockResolvedValue({
+        extension: { path: '/path/to/ext' } as unknown as GeminiCLIExtension,
+        extensionManager: mockExtensionManager,
+      });
+
+      await yargs([])
+        .command(settingsCommand)
+        .parseAsync('settings set foo bar');
+
+      expect(debugErrorSpy).toHaveBeenCalledWith(
+        'Could not find configuration for extension "foo".',
+      );
+      expect(mockExitCli).toHaveBeenCalled();
+    });
+
+    it('should call updateSetting with correct arguments', async () => {
+      const mockExtensionManager = {
+        loadExtensionConfig: vi.fn().mockResolvedValue({}),
+      } as unknown as ExtensionManager;
+      const extension = { path: '/path/to/ext', id: 'ext-id' };
+      mockGetExtensionAndManager.mockResolvedValue({
+        extension: extension as unknown as GeminiCLIExtension,
+        extensionManager: mockExtensionManager,
+      });
+
+      await yargs([])
+        .command(settingsCommand)
+        .parseAsync('settings set foo bar --scope workspace');
+
+      expect(mockUpdateSetting).toHaveBeenCalledWith(
+        {},
+        'ext-id',
+        'bar',
+        promptForSetting,
+        ExtensionSettingScope.WORKSPACE,
+      );
+      expect(mockExitCli).toHaveBeenCalled();
+    });
+  });
+
+  describe('list command', () => {
+    it('should log error and exit if extension is not found', async () => {
+      mockGetExtensionAndManager.mockResolvedValue({
+        extension: null,
+        extensionManager: null,
+      });
+
+      await yargs([]).command(settingsCommand).parseAsync('settings list foo');
+
+      expect(mockExitCli).toHaveBeenCalled();
+    });
+
+    it('should log message and exit if extension has no settings', async () => {
+      const mockExtensionManager = {
+        loadExtensionConfig: vi.fn().mockResolvedValue({ settings: [] }),
+      } as unknown as ExtensionManager;
+      mockGetExtensionAndManager.mockResolvedValue({
+        extension: { path: '/path/to/ext' } as unknown as GeminiCLIExtension,
+        extensionManager: mockExtensionManager,
+      });
+
+      await yargs([]).command(settingsCommand).parseAsync('settings list foo');
+
+      expect(debugLogSpy).toHaveBeenCalledWith(
+        'Extension "foo" has no settings to configure.',
+      );
+      expect(mockExitCli).toHaveBeenCalled();
+    });
+
+    it('should list settings correctly', async () => {
+      const mockExtensionManager = {
+        loadExtensionConfig: vi.fn().mockResolvedValue({
+          settings: [
+            {
+              name: 'Setting 1',
+              envVar: 'SETTING_1',
+              description: 'Desc 1',
+              sensitive: false,
+            },
+            {
+              name: 'Setting 2',
+              envVar: 'SETTING_2',
+              description: 'Desc 2',
+              sensitive: true,
+            },
+            {
+              name: 'Setting 3',
+              envVar: 'SETTING_3',
+              description: 'Desc 3',
+              sensitive: false,
+            },
+          ],
+        }),
+      } as unknown as ExtensionManager;
+      const extension = { path: '/path/to/ext', id: 'ext-id' };
+      mockGetExtensionAndManager.mockResolvedValue({
+        extension: extension as unknown as GeminiCLIExtension,
+        extensionManager: mockExtensionManager,
+      });
+
+      mockGetScopedEnvContents.mockImplementation((_config, _id, scope) => {
+        if (scope === ExtensionSettingScope.USER) {
+          return Promise.resolve({
+            SETTING_1: 'val1',
+            SETTING_2: 'val2',
+          });
+        }
+        if (scope === ExtensionSettingScope.WORKSPACE) {
+          return Promise.resolve({
+            SETTING_3: 'val3',
+          });
+        }
+        return Promise.resolve({});
+      });
+
+      await yargs([]).command(settingsCommand).parseAsync('settings list foo');
+
+      expect(debugLogSpy).toHaveBeenCalledWith('Settings for "foo":');
+      // Setting 1 (User)
+      expect(debugLogSpy).toHaveBeenCalledWith('\n- Setting 1 (SETTING_1)');
+      expect(debugLogSpy).toHaveBeenCalledWith('  Description: Desc 1');
+      expect(debugLogSpy).toHaveBeenCalledWith('  Value: val1 (user)');
+      // Setting 2 (Sensitive)
+      expect(debugLogSpy).toHaveBeenCalledWith('\n- Setting 2 (SETTING_2)');
+      expect(debugLogSpy).toHaveBeenCalledWith('  Description: Desc 2');
+      expect(debugLogSpy).toHaveBeenCalledWith(
+        '  Value: [value stored in keychain] (user)',
+      );
+      // Setting 3 (Workspace)
+      expect(debugLogSpy).toHaveBeenCalledWith('\n- Setting 3 (SETTING_3)');
+      expect(debugLogSpy).toHaveBeenCalledWith('  Description: Desc 3');
+      expect(debugLogSpy).toHaveBeenCalledWith('  Value: val3 (workspace)');
+
+      expect(mockExitCli).toHaveBeenCalled();
+    });
+  });
+});
diff --git a/packages/cli/src/commands/extensions/settings.ts b/packages/cli/src/commands/extensions/settings.ts
index 922f5aba71..f373534d7a 100644
--- a/packages/cli/src/commands/extensions/settings.ts
+++ b/packages/cli/src/commands/extensions/settings.ts
@@ -47,6 +47,7 @@ const setCommand: CommandModule<object, SetArgs> = {
     const { name, setting, scope } = args;
     const { extension, extensionManager } = await getExtensionAndManager(name);
     if (!extension || !extensionManager) {
+      await exitCli();
       return;
     }
     const extensionConfig = await extensionManager.loadExtensionConfig(
@@ -56,6 +57,7 @@ const setCommand: CommandModule<object, SetArgs> = {
       debugLogger.error(
         `Could not find configuration for extension "${name}".`,
       );
+      await exitCli();
       return;
     }
     await updateSetting(
@@ -87,6 +89,7 @@ const listCommand: CommandModule<object, ListArgs> = {
     const { name } = args;
     const { extension, extensionManager } = await getExtensionAndManager(name);
     if (!extension || !extensionManager) {
+      await exitCli();
       return;
     }
     const extensionConfig = await extensionManager.loadExtensionConfig(
@@ -98,6 +101,7 @@ const listCommand: CommandModule<object, ListArgs> = {
       extensionConfig.settings.length === 0
     ) {
       debugLogger.log(`Extension "${name}" has no settings to configure.`);
+      await exitCli();
       return;
     }