diff --git a/spec/models/manageiq/providers/base_manager/refresher_spec.rb b/spec/models/manageiq/providers/base_manager/refresher_spec.rb
new file mode 100644
index 00000000000..fb16e376510
--- /dev/null
+++ b/spec/models/manageiq/providers/base_manager/refresher_spec.rb
@@ -0,0 +1,91 @@
+RSpec.describe ManageIQ::Providers::BaseManager::Refresher do
+  context "#initialize" do
+    let(:ems1) { FactoryBot.create(:ext_management_system) }
+    let(:ems2) { FactoryBot.create(:ext_management_system) }
+    let(:vm1)  { FactoryBot.create(:vm, :ext_management_system => ems1) }
+    let(:vm2)  { FactoryBot.create(:vm, :ext_management_system => ems2) }
+
+    it "groups targets by ems" do
+      refresher = described_class.new([vm1, vm2])
+      expect(refresher.targets_by_ems_id.keys).to include(ems1.id, ems2.id)
+    end
+  end
+
+  context "#preprocess_targets" do
+    let(:ems) { FactoryBot.create(:ext_management_system) }
+    let(:vm)  { FactoryBot.create(:vm, :ext_management_system => ems) }
+    let(:stack) { FactoryBot.create(:orchestration_stack, :ext_management_system => ems) }
+    let(:lots_of_vms) do
+      num_targets = Settings.ems_refresh.full_refresh_threshold + 1
+      Array.new(num_targets) { FactoryBot.create(:vm, :ext_management_system => ems) }
+    end
+
+    context "allow_targeted_refresh true" do
+      before { allow(ems).to receive(:allow_targeted_refresh?).and_return(true) }
+      it "does full refresh on any event" do
+        refresher = described_class.new([vm])
+        refresher.preprocess_targets
+
+        targets_by_ems = refresher.targets_by_ems_id[vm.ext_management_system.id].first
+        expect(targets_by_ems).to be_a(InventoryRefresh::TargetCollection)
+        expect(targets_by_ems.targets.first).to eq(vm)
+      end
+
+      it "does a refresh with a stack" do
+        refresher = described_class.new([stack])
+        refresher.preprocess_targets
+
+        targets_by_ems = refresher.targets_by_ems_id[stack.ext_management_system.id].first
+        expect(targets_by_ems).to be_a(InventoryRefresh::TargetCollection)
+        expect(targets_by_ems.targets.first).to eq(stack)
+      end
+
+      it "does a full refresh with an EMS and a VM" do
+        refresher = described_class.new([vm, ems])
+        refresher.preprocess_targets
+
+        expect(refresher.targets_by_ems_id[vm.ext_management_system.id]).to eq([ems])
+      end
+
+      it "does a full refresh with a lot of targets" do
+        refresher = described_class.new(lots_of_vms)
+        refresher.preprocess_targets
+
+        targets_by_ems = refresher.targets_by_ems_id[vm.ext_management_system.id].first
+        expect(targets_by_ems).to be_a(InventoryRefresh::TargetCollection)
+        expect(targets_by_ems.targets.count).to eq(101)
+      end
+    end
+
+    context "allow_targeted_refresh false" do
+      before { allow(ems).to receive(:allow_targeted_refresh?).and_return(false) }
+      it "keeps a single vm target" do
+        refresher = described_class.new([vm])
+        refresher.preprocess_targets
+
+        expect(refresher.targets_by_ems_id[vm.ext_management_system.id]).to eq([ems])
+      end
+
+      it "does a refresh with a stack" do
+        refresher = described_class.new([stack])
+        refresher.preprocess_targets
+
+        expect(refresher.targets_by_ems_id[stack.ext_management_system.id].first).to eq(ems)
+      end
+
+      it "does a full refresh with an EMS and a VM" do
+        refresher = described_class.new([vm, ems])
+        refresher.preprocess_targets
+
+        expect(refresher.targets_by_ems_id[vm.ext_management_system.id]).to eq([ems])
+      end
+
+      it "does a full refresh with a lot of targets" do
+        refresher = described_class.new(lots_of_vms)
+        refresher.preprocess_targets
+
+        expect(refresher.targets_by_ems_id[ems.id]).to eq([ems])
+      end
+    end
+  end
+end