diff --git a/erpnext/stock/report/bom_search/test_bom_search.py b/erpnext/stock/report/bom_search/test_bom_search.py
new file mode 100644
index 00000000000..344663f594f
--- /dev/null
+++ b/erpnext/stock/report/bom_search/test_bom_search.py
@@ -0,0 +1,51 @@
+# Copyright (c) 2026, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+
+import frappe
+
+from erpnext.stock.report.bom_search.bom_search import execute
+from erpnext.tests.utils import ERPNextTestSuite
+
+
+class TestBomSearch(ERPNextTestSuite):
+	def run_report(self, **extra):
+		filters = frappe._dict({"search_sub_assemblies": 0})
+		filters.update(extra)
+		return execute(filters)[1]
+
+	def test_bom_found_by_contained_item(self):
+		raw_material = "_Test Item"
+		finished_good = "_Test FG Item"
+
+		bom = frappe.get_doc(doctype="BOM", item=finished_good, company="_Test Company", currency="INR")
+		bom.append("items", {"item_code": raw_material, "qty": 1})
+		bom.insert()
+		bom.submit()
+
+		rows = self.run_report(item1=raw_material)
+		bom_names = [row[0] for row in rows]
+		self.assertIn(bom.name, bom_names)
+
+	def test_search_sub_assemblies_finds_top_level_bom(self):
+		raw_material = "_Test Item"
+		sub_assembly = "_Test FG Item"  # its default BOM contains _Test Item
+		finished_good = "_Test FG Item 2"
+
+		# top-level BOM uses the sub-assembly (it does NOT list the raw material directly).
+		# the bootstrap sub-assembly BOM is in USD, so match its currency.
+		top_bom = frappe.get_doc(
+			doctype="BOM", item=finished_good, company="_Test Company", currency="USD", conversion_rate=1
+		)
+		top_bom.append("items", {"item_code": sub_assembly, "qty": 1})
+		top_bom.insert()
+		top_bom.submit()
+
+		# search_sub_assemblies=1 scans the exploded tree, so the raw material buried in the
+		# sub-assembly surfaces the top-level BOM
+		deep = [row[0] for row in self.run_report(search_sub_assemblies=1, item1=raw_material)]
+		self.assertIn(top_bom.name, deep)
+
+		# search_sub_assemblies=0 scans only direct BOM Items, so the top-level BOM (which lists
+		# the sub-assembly, not the raw material) is not returned for the raw material
+		direct = [row[0] for row in self.run_report(search_sub_assemblies=0, item1=raw_material)]
+		self.assertNotIn(top_bom.name, direct)