diff --git a/plugins/lookup/lookup.py b/plugins/lookup/lookup.py
index 43082bff..17486f46 100644
--- a/plugins/lookup/lookup.py
+++ b/plugins/lookup/lookup.py
@@ -344,6 +344,8 @@ def run(self, terms, variables=None, **kwargs):
 
         api_token = kwargs.get("token") or os.getenv("NAUTOBOT_TOKEN")
         api_endpoint = kwargs.get("api_endpoint") or os.getenv("NAUTOBOT_URL")
+        if not api_endpoint or not api_token:
+            raise AnsibleError("Both api_endpoint and token are required")
         if kwargs.get("validate_certs") is not None:
             ssl_verify = kwargs.get("validate_certs")
         elif os.getenv("NAUTOBOT_VALIDATE_CERTS") is not None:
@@ -352,6 +354,8 @@ def run(self, terms, variables=None, **kwargs):
             ssl_verify = True
         num_retries = kwargs.get("num_retries", "0")
         api_filter = kwargs.get("api_filter")
+        if api_filter:
+            api_filter = self._templar.do_template(api_filter)
         raw_return = kwargs.get("raw_data")
         plugin = kwargs.get("plugin")
         api_version = kwargs.get("api_version")
@@ -360,7 +364,6 @@ def run(self, terms, variables=None, **kwargs):
             terms = [terms]
 
         nautobot = pynautobot.api(api_endpoint, token=api_token if api_token else None, api_version=api_version, verify=ssl_verify, retries=num_retries)
-
         results = []
         for term in terms:
             if plugin:
diff --git a/tests/unit/lookup/test_lookup.py b/tests/unit/lookup/test_lookup.py
new file mode 100644
index 00000000..4140059c
--- /dev/null
+++ b/tests/unit/lookup/test_lookup.py
@@ -0,0 +1,115 @@
+"""Tests for Nautobot Query Lookup Plugin."""
+
+from ansible.errors import AnsibleError
+from ansible.template import Templar
+from ansible.parsing.dataloader import DataLoader
+from ansible.vars.manager import VariableManager
+from ansible.inventory.manager import InventoryManager
+import pytest
+from unittest.mock import patch, MagicMock
+
+
+try:
+    from plugins.lookup.lookup import LookupModule
+except ImportError:
+    import sys
+
+    sys.path.append("tests")
+    sys.path.append("plugins/lookup")
+
+    from lookup import LookupModule
+
+
+@pytest.fixture
+def lookup():
+    """Fixture to create an instance of your lookup plugin."""
+    return LookupModule()
+
+
+@patch("plugins.lookup.lookup.pynautobot.api")
+def test_basic_run(mock_pynautobot, lookup):
+    """Test basic functionality of the run method."""
+    mock_api = MagicMock()
+    mock_pynautobot.return_value = mock_api
+    mock_api.dcim.devices.all.return_value = [{"id": 1, "name": "device1"}]
+
+    terms = ["devices"]
+    kwargs = {
+        "token": "fake-token",
+        "api_endpoint": "https://nautobot.local",
+    }
+    result = lookup.run(terms, **kwargs)
+
+    mock_pynautobot.assert_called_once_with("https://nautobot.local", token="fake-token", api_version=None, verify=True, retries="0")
+    assert result == [{"key": 1, "value": {"id": 1, "name": "device1"}}], "Expected a successful result"
+
+
+def test_invalid_terms(lookup):
+    """Test when terms is not a list or valid input."""
+    with pytest.raises(AnsibleError, match="Unrecognised term"):
+        with patch("plugins.lookup.lookup.get_endpoint", side_effect=KeyError):
+            kwargs = {
+                "token": "fake-token",
+                "api_endpoint": "https://nautobot.local",
+            }
+            lookup.run("invalid.term", **kwargs)
+
+
+@patch("plugins.lookup.lookup.pynautobot.api")
+def test_no_token_or_endpoint(mock_pynautobot, lookup):
+    """Test when neither token nor endpoint is provided."""
+    with pytest.raises(AnsibleError):
+        lookup.run(["devices"], token=None, api_endpoint=None)
+
+
+@patch("plugins.lookup.lookup.pynautobot.api")
+def test_run_with_static_filter(mock_pynautobot, lookup):
+    """Test filters functionality of the run method."""
+    mock_api = MagicMock()
+    mock_pynautobot.return_value = mock_api
+    mock_api.dcim.devices.filter.return_value = [{"id": 1, "name": "device1"}]
+
+    # Initialize Ansible's Templar with necessary components
+    loader = DataLoader()
+    inventory = InventoryManager(loader=loader, sources=[])
+    variable_manager = VariableManager(loader=loader, inventory=inventory)
+    templar = Templar(loader=loader, variables=variable_manager.get_vars())
+    lookup._templar = templar
+
+    terms = ["devices"]
+    kwargs = {
+        "token": "fake-token",
+        "api_endpoint": "https://nautobot.local",
+        "api_filter": "{'name': 'device1'}",
+    }
+    result = lookup.run(terms, **kwargs)
+
+    mock_pynautobot.assert_called_once_with("https://nautobot.local", token="fake-token", api_version=None, verify=True, retries="0")
+    mock_api.dcim.devices.filter.assert_called_once_with(_raw_params=["{'name':", "'device1'}"])
+    assert result == [{"key": 1, "value": {"id": 1, "name": "device1"}}], "Expected a successful result"
+
+
+@patch("plugins.lookup.lookup.pynautobot.api")
+def test_run_with_dynamic_filter(mock_pynautobot, lookup):
+    """Test dynamic filters functionality of the run method."""
+    mock_api = MagicMock()
+    mock_pynautobot.return_value = mock_api
+    mock_api.dcim.devices.filter.return_value = [{"id": 1, "name": "device1"}]
+
+    # Initialize Ansible's Templar with necessary components
+    loader = DataLoader()
+    variables = {"device_name": "device1"}
+    templar = Templar(loader=loader, variables=variables)
+    lookup._templar = templar
+
+    terms = ["devices"]
+    kwargs = {
+        "token": "fake-token",
+        "api_endpoint": "https://nautobot.local",
+        "api_filter": "{'name': '{{ device_name }}'}",
+    }
+    result = lookup.run(terms, **kwargs)
+
+    mock_pynautobot.assert_called_once_with("https://nautobot.local", token="fake-token", api_version=None, verify=True, retries="0")
+    mock_api.dcim.devices.filter.assert_called_once_with(_raw_params=["{'name':", "'device1'}"])
+    assert result == [{"key": 1, "value": {"id": 1, "name": "device1"}}], "Expected a successful result"