diff --git a/launch_yaml/test/launch_yaml/test_declare_launch_argument_choice.py b/launch_yaml/test/launch_yaml/test_declare_launch_argument_choice.py
new file mode 100644
index 000000000..fec5221f4
--- /dev/null
+++ b/launch_yaml/test/launch_yaml/test_declare_launch_argument_choice.py
@@ -0,0 +1,80 @@
+# Copyright 2025 Open Source Robotics Foundation, Inc.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+"""Test parsing a DeclareLaunchArgument action with choices."""
+
+import io
+import textwrap
+
+from launch import LaunchService
+from launch.actions import DeclareLaunchArgument
+from launch.frontend import Parser
+from launch.launch_context import LaunchContext
+
+import pytest
+
+
+def test_declare_launch_argument_choice():
+    """Test declaring a launch argument with choices via YAML."""
+    yaml_file = textwrap.dedent(
+        """
+        launch:
+            - arg:
+                name: mode
+                default: 'A'
+                choice:
+                    - value: 'A'
+                    - value: 'B'
+        """
+    )
+    root_entity, parser = Parser.load(io.StringIO(yaml_file))
+    ld = parser.parse_description(root_entity)
+
+    assert len(ld.entities) == 1
+    assert isinstance(ld.entities[0], DeclareLaunchArgument)
+    assert ld.entities[0].name == 'mode'
+    assert ld.entities[0].choices == ['A', 'B']
+
+    # Test with valid choice (default)
+    ls = LaunchService()
+    ls.include_launch_description(ld)
+    assert 0 == ls.run()
+    assert ls.context.launch_configurations['mode'] == 'A'
+
+
+def test_declare_launch_argument_invalid_choice():
+    """Test declaring a launch argument with an invalid choice via YAML."""
+    yaml_file = textwrap.dedent(
+        """
+        launch:
+            - arg:
+                name: mode
+                default: 'C'
+                choice:
+                    - value: 'A'
+                    - value: 'B'
+        """
+    )
+    root_entity, parser = Parser.load(io.StringIO(yaml_file))
+    ld = parser.parse_description(root_entity)
+
+    lc = LaunchContext()
+    with pytest.raises(RuntimeError) as excinfo:
+        ld.entities[0].visit(lc)
+    assert "is not valid. Valid options are: ['A', 'B']" in str(excinfo.value)
+
+
+if __name__ == '__main__':
+    test_declare_launch_argument_choice()
+    test_declare_launch_argument_invalid_choice()