diff --git a/internal/sources/oracle/oracle_test.go b/internal/sources/oracle/oracle_test.go
new file mode 100644
index 0000000000..80af0085b4
--- /dev/null
+++ b/internal/sources/oracle/oracle_test.go
@@ -0,0 +1,193 @@
+// Copyright © 2025, Oracle and/or its affiliates.
+
+package oracle_test
+
+import (
+	"context"
+	"strings"
+	"testing"
+
+	"github.com/google/go-cmp/cmp"
+	"github.com/googleapis/genai-toolbox/internal/server"
+	"github.com/googleapis/genai-toolbox/internal/sources"
+	"github.com/googleapis/genai-toolbox/internal/sources/oracle"
+	"github.com/googleapis/genai-toolbox/internal/testutils"
+)
+
+func TestParseFromYamlOracle(t *testing.T) {
+	tcs := []struct {
+		desc string
+		in   string
+		want server.SourceConfigs
+	}{
+		{
+			desc: "connection string and useOCI=true",
+			in: `
+			kind: sources
+			name: my-oracle-cs
+			type: oracle
+			connectionString: "my-host:1521/XEPDB1"
+			user: my_user
+			password: my_pass
+			useOCI: true
+			`,
+			want: map[string]sources.SourceConfig{
+				"my-oracle-cs": oracle.Config{
+					Name:             "my-oracle-cs",
+					Type:             oracle.SourceType,
+					ConnectionString: "my-host:1521/XEPDB1",
+					User:             "my_user",
+					Password:         "my_pass",
+					UseOCI:           true,
+				},
+			},
+		},
+		{
+			desc: "host/port/serviceName and default useOCI=false",
+			in: `
+			kind: sources
+			name: my-oracle-host
+			type: oracle
+			host: my-host
+			port: 1521
+			serviceName: ORCLPDB
+			user: my_user
+			password: my_pass
+			`,
+			want: map[string]sources.SourceConfig{
+				"my-oracle-host": oracle.Config{
+					Name:        "my-oracle-host",
+					Type:        oracle.SourceType,
+					Host:        "my-host",
+					Port:        1521,
+					ServiceName: "ORCLPDB",
+					User:        "my_user",
+					Password:    "my_pass",
+					UseOCI:      false,
+				},
+			},
+		},
+		{
+			desc: "tnsAlias and TnsAdmin specified with explicit useOCI=true",
+			in: `
+			kind: sources
+			name: my-oracle-tns-oci
+			type: oracle
+			tnsAlias: FINANCE_DB
+			tnsAdmin: /opt/oracle/network/admin
+			user: my_user
+			password: my_pass
+			useOCI: true 
+			`,
+			want: map[string]sources.SourceConfig{
+				"my-oracle-tns-oci": oracle.Config{
+					Name:     "my-oracle-tns-oci",
+					Type:     oracle.SourceType,
+					TnsAlias: "FINANCE_DB",
+					TnsAdmin: "/opt/oracle/network/admin",
+					User:     "my_user",
+					Password: "my_pass",
+					UseOCI:   true,
+				},
+			},
+		},
+	}
+	for _, tc := range tcs {
+		t.Run(tc.desc, func(t *testing.T) {
+			got, _, _, _, _, _, err := server.UnmarshalResourceConfig(context.Background(), testutils.FormatYaml(tc.in))
+			if err != nil {
+				t.Fatalf("unable to unmarshal: %s", err)
+			}
+			if !cmp.Equal(tc.want, got) {
+				t.Fatalf("incorrect parse:\nwant: %v\ngot:  %v\ndiff: %s", tc.want, got, cmp.Diff(tc.want, got))
+			}
+		})
+	}
+}
+
+func TestFailParseFromYaml(t *testing.T) {
+	tcs := []struct {
+		desc string
+		in   string
+		err  string
+	}{
+		{
+			desc: "extra field",
+			in: `
+			kind: sources
+			name: my-oracle-instance
+			type: oracle
+			host: my-host
+			serviceName: ORCL
+			user: my_user
+			password: my_pass
+			extraField: value
+			`,
+			err: "error unmarshaling sources: unable to parse source \"my-oracle-instance\" as \"oracle\": [1:1] unknown field \"extraField\"\n>  1 | extraField: value\n       ^\n   2 | host: my-host\n   3 | name: my-oracle-instance\n   4 | password: my_pass\n   5 | ",
+		},
+		{
+			desc: "missing required password field",
+			in: `
+			kind: sources
+			name: my-oracle-instance
+			type: oracle
+			host: my-host
+			serviceName: ORCL
+			user: my_user
+			`,
+			err: "error unmarshaling sources: unable to parse source \"my-oracle-instance\" as \"oracle\": Key: 'Config.Password' Error:Field validation for 'Password' failed on the 'required' tag",
+		},
+		{
+			desc: "missing connection method fields (validate fails)",
+			in: `
+			kind: sources
+			name: my-oracle-instance
+			type: oracle
+			user: my_user
+			password: my_pass
+			`,
+			err: "error unmarshaling sources: unable to parse source \"my-oracle-instance\" as \"oracle\": invalid Oracle configuration: must provide one of: 'tns_alias', 'connection_string', or both 'host' and 'service_name'",
+		},
+		{
+			desc: "multiple connection methods provided (validate fails)",
+			in: `
+			kind: sources
+			name: my-oracle-instance
+			type: oracle
+			host: my-host
+			serviceName: ORCL
+			connectionString: "my-host:1521/XEPDB1"
+			user: my_user
+			password: my_pass
+			`,
+			err: "error unmarshaling sources: unable to parse source \"my-oracle-instance\" as \"oracle\": invalid Oracle configuration: provide only one connection method: 'tns_alias', 'connection_string', or 'host'+'service_name'",
+		},
+		{
+			desc: "fail on tnsAdmin with useOCI=false",
+			in: `
+			kind: sources
+			name: my-oracle-fail
+			type: oracle
+			tnsAlias: FINANCE_DB
+			tnsAdmin: /opt/oracle/network/admin
+			user: my_user
+			password: my_pass
+			useOCI: false
+			`,
+			err: "error unmarshaling sources: unable to parse source \"my-oracle-fail\" as \"oracle\": invalid Oracle configuration: `tnsAdmin` can only be used when `UseOCI` is true, or use `walletLocation` instead",
+		},
+	}
+	for _, tc := range tcs {
+		t.Run(tc.desc, func(t *testing.T) {
+			_, _, _, _, _, _, err := server.UnmarshalResourceConfig(context.Background(), testutils.FormatYaml(tc.in))
+			if err == nil {
+				t.Fatalf("expect parsing to fail")
+			}
+			errStr := strings.ReplaceAll(err.Error(), "\r", "")
+
+			if errStr != tc.err {
+				t.Fatalf("unexpected error:\ngot:\n%q\nwant:\n%q\n", errStr, tc.err)
+			}
+		})
+	}
+}
\ No newline at end of file