diff --git a/src/lib/components/container.jsx b/src/lib/components/container.jsx
index 1ff56f5..369b75e 100644
--- a/src/lib/components/container.jsx
+++ b/src/lib/components/container.jsx
@@ -12,6 +12,7 @@ import {
   useItemsState,
   useAutoFocus,
   useQueryChange,
+  useHighlight
 } from './hooks/containerEffects'
 import {
   setQuery,
@@ -95,25 +96,12 @@ export default function Container(props) {
   useAutoFocus(queryInput, autoFocus)
 
   // As soon as the query state changes (ignoring debounce) update the
-  // typeahead value and the query value and fire onChnage
+  // typeahead value and the query value and fire onChange
   useQueryChange(state.query, queryInput, typeaheadInput, onChange)
 
   // When the highlighted item changes, make sure the typeahead matches and format
   // the query text to match the case of the typeahead text
-  useEffect(() => {
-    const typeAheadValue =
-      state.highlighted &&
-      hasFocus &&
-      queryInput.current.value.length > 0 &&
-      startsWithCaseInsensitive(state.highlighted.text, queryInput.current.value)
-        ? state.highlighted.text
-        : ''
-    const queryValue = formatQuery(queryInput.current.value, typeAheadValue)
-
-    typeaheadInput.current.value = typeAheadValue
-
-    setify(queryInput.current, queryValue)
-  }, [state.highlighted, hasFocus])
+  useHighlight(state.highlighted, hasFocus, queryInput, typeaheadInput)
 
   // When an item is selected alter the query to match and fire applicable events
   useEffect(() => {
@@ -125,15 +113,6 @@ export default function Container(props) {
     }
   }, [state.selected, onSelect])
 
-  const formatQuery = (query, typeahead) => {
-    const formattedQuery = typeahead.substring(0, query.length)
-    return formattedQuery.length > 0 &&
-      query.toLowerCase() === formattedQuery.toLowerCase() &&
-      query !== formattedQuery
-      ? formattedQuery
-      : query
-  }
-
   const onTabOrEnter = (keyPressed) => {
     // keyPressed must be 'enter' or 'tab'
     const highlightedIndex = state.highlighted && state.highlighted.index
diff --git a/src/lib/components/hooks/containerEffects.js b/src/lib/components/hooks/containerEffects.js
index d9060ea..be8ea20 100644
--- a/src/lib/components/hooks/containerEffects.js
+++ b/src/lib/components/hooks/containerEffects.js
@@ -2,6 +2,7 @@ import { useEffect, useContext } from 'react'
 import setify from 'setify' // Sets input value without changing cursor position
 import { StateContext } from '../../context/state'
 import { setItems } from '../../actions/actions'
+import startsWithCaseInsensitive from '../../utils/startsWithCaseInsensitive'
 
 export const useItemsState = (swrData) => {
   const { dispatch } = useContext(StateContext)
@@ -23,7 +24,6 @@ export const useQueryChange = (query, queryInput, typeaheadInput, onChange) => {
     const value = (() => {
       const currentValue = typeaheadInput.current.value
       if (!query) return ''
-      //if (!queryMatchesTypeahead(query, currentValue, true)) return ''
       if (!currentValue.startsWith(query)) return ''
       return currentValue
     })()
@@ -33,4 +33,34 @@ export const useQueryChange = (query, queryInput, typeaheadInput, onChange) => {
     setify(queryInput.current, query)
     if (typeof onChange === 'function') onChange(query)
   }, [query, onChange])
+}
+
+export const useHighlight = (highlighted, hasFocus, queryInput, typeaheadInput) => {
+  useEffect(() => {
+    const typeAheadValue =
+      highlighted &&
+      hasFocus &&
+      queryInput.current.value.length > 0 &&
+      startsWithCaseInsensitive(highlighted.text, queryInput.current.value)
+        ? highlighted.text
+        : ''
+    const queryValue = formatQuery(queryInput.current.value, typeAheadValue)
+
+    typeaheadInput.current.value = typeAheadValue
+
+    setify(queryInput.current, queryValue)
+  }, [highlighted, hasFocus])
+}
+
+//////////////////////////////
+// Helper functions         //
+//////////////////////////////
+
+export const formatQuery = (query, typeahead) => {
+  const formattedQuery = typeahead.substring(0, query.length)
+  return formattedQuery.length > 0 &&
+    query.toLowerCase() === formattedQuery.toLowerCase() &&
+    query !== formattedQuery
+    ? formattedQuery
+    : query
 }
\ No newline at end of file
diff --git a/src/lib/components/hooks/containerEffects.test.js b/src/lib/components/hooks/containerEffects.test.js
index 1905171..0e8c472 100644
--- a/src/lib/components/hooks/containerEffects.test.js
+++ b/src/lib/components/hooks/containerEffects.test.js
@@ -1,8 +1,11 @@
 import { vi, describe, test, expect } from 'vitest'
 import { renderHook } from '@testing-library/react-hooks'
+import undef from '../../utils/undef'
 import {
   useAutoFocus,
-  useQueryChange
+  useQueryChange,
+  useHighlight,
+  formatQuery
 } from './containerEffects'
 
 let inputRef = (value = '') => ( //TODO: Put in a beforeEach when blogging
@@ -73,4 +76,80 @@ describe('useQueryChange', () => {
     renderHook(() => useQueryChange(queryValue, queryRef, typeaheadRef, onChange))
     expect(onChange).toHaveBeenCalledWith(queryValue)
   })
+})
+
+describe('useHighlight', () => {
+  const queryValue = 'chi'
+  const highlighted = {index: 0, text: 'Chicago, Illinois, United States'}
+
+  test('Typeahead is set to highlighted text and query text changes to match case', () => {
+    const queryRef = inputRef(queryValue)
+    const typeaheadRef = inputRef()
+    renderHook(() => useHighlight(highlighted, true, queryRef, typeaheadRef))
+    expect(queryRef.current.value).toBe('Chi')
+    expect(typeaheadRef.current.value).toBe(highlighted.text)
+  })
+
+  test('If there is no highlighted item, no change occurs', () => {
+    const queryRef = inputRef(queryValue)
+    const typeaheadRef = inputRef()
+    renderHook(() => useHighlight(undef, true, queryRef, typeaheadRef))
+    expect(queryRef.current.value).toBe(queryValue)
+    expect(typeaheadRef.current.value).toBe('')
+  })
+
+  test('If focus is not set, no change occurs', () => {
+    const queryRef = inputRef(queryValue)
+    const typeaheadRef = inputRef()
+    renderHook(() => useHighlight(highlighted, false, queryRef, typeaheadRef))
+    expect(queryRef.current.value).toBe(queryValue)
+    expect(typeaheadRef.current.value).toBe('')
+  })
+
+  test('If there is no query, no change occurs', () => {
+    const queryRef = inputRef()
+    const typeaheadRef = inputRef()
+    renderHook(() => useHighlight(highlighted, true, queryRef, typeaheadRef))
+    expect(queryRef.current.value).toBe('')
+    expect(typeaheadRef.current.value).toBe('')
+  })
+
+  test('If selected text does not match typed text, no change occurs', () => {
+    const queryRef = inputRef('Foo')
+    const typeaheadRef = inputRef()
+    renderHook(() => useHighlight(highlighted, true, queryRef, typeaheadRef))
+    expect(queryRef.current.value).toBe('Foo')
+    expect(typeaheadRef.current.value).toBe('')
+  })
+})
+
+//////////////////////////////
+// Helper functions         //
+//////////////////////////////
+
+describe('formatQuery', () => {
+  test('If query does not match typeahead, change the case', () => {
+    const formattedQuery = formatQuery('chi', 'Chicago')
+    expect(formattedQuery).toBe('Chi')
+  })
+
+  test('If there is no typeahead, return original query', () => {
+    const formattedQuery = formatQuery('chi', '')
+    expect(formattedQuery).toBe('chi')
+  })
+
+  test('If query and typeahead do not match, return original query', () => {
+    const formattedQuery = formatQuery('chi', 'New York')
+    expect(formattedQuery).toBe('chi')
+  })
+
+  test('If query is blank, return original query', () => {
+    const formattedQuery = formatQuery('', 'Chicago')
+    expect(formattedQuery).toBe('')
+  })
+
+  test('If query matches typeahead, make no change', () => {
+    const formattedQuery = formatQuery('Chi', 'Chicago')
+    expect(formattedQuery).toBe('Chi')
+  })
 })
\ No newline at end of file