diff --git a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/all-applications/all-applications.component.spec.ts b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/all-applications/all-applications.component.spec.ts
new file mode 100644
index 00000000000..b1c0d29ed9e
--- /dev/null
+++ b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/all-applications/all-applications.component.spec.ts
@@ -0,0 +1,142 @@
+import { WritableSignal } from "@angular/core";
+import { ComponentFixture, TestBed } from "@angular/core/testing";
+import { ReactiveFormsModule } from "@angular/forms";
+import { ActivatedRoute, convertToParamMap } from "@angular/router";
+import { mock, MockProxy } from "jest-mock-extended";
+import { BehaviorSubject, of } from "rxjs";
+
+import {
+  DrawerDetails,
+  DrawerType,
+  ReportStatus,
+  RiskInsightsDataService,
+} from "@bitwarden/bit-common/dirt/reports/risk-insights";
+import { createNewSummaryData } from "@bitwarden/bit-common/dirt/reports/risk-insights/helpers";
+import { RiskInsightsEnrichedData } from "@bitwarden/bit-common/dirt/reports/risk-insights/models/report-data-service.types";
+import { ReportState } from "@bitwarden/bit-common/dirt/reports/risk-insights/models/report-models";
+import { I18nService } from "@bitwarden/common/platform/abstractions/i18n.service";
+import { TableDataSource, ToastService } from "@bitwarden/components";
+
+import { ApplicationTableDataSource } from "../shared/app-table-row-scrollable.component";
+
+import { AllApplicationsComponent } from "./all-applications.component";
+
+// Mock ResizeObserver
+global.ResizeObserver = class ResizeObserver {
+  observe() {}
+  unobserve() {}
+  disconnect() {}
+};
+
+// Helper type to access protected members in tests
+type ComponentWithProtectedMembers = AllApplicationsComponent & {
+  dataSource: TableDataSource<ApplicationTableDataSource>;
+  selectedUrls: WritableSignal<Set<string>>;
+  markingAsCritical: WritableSignal<boolean>;
+};
+
+describe("AllApplicationsComponent", () => {
+  let component: AllApplicationsComponent;
+  let fixture: ComponentFixture<AllApplicationsComponent>;
+  let mockI18nService: MockProxy<I18nService>;
+  let mockToastService: MockProxy<ToastService>;
+  let mockDataService: MockProxy<RiskInsightsDataService>;
+
+  const reportStatus$ = new BehaviorSubject<ReportStatus>(ReportStatus.Complete);
+  const enrichedReportData$ = new BehaviorSubject<RiskInsightsEnrichedData | null>(null);
+  const drawerDetails$ = new BehaviorSubject<DrawerDetails>({
+    open: false,
+    invokerId: "",
+    activeDrawerType: DrawerType.None,
+    atRiskMemberDetails: [],
+    appAtRiskMembers: null,
+    atRiskAppDetails: null,
+  });
+
+  beforeEach(async () => {
+    mockI18nService = mock<I18nService>();
+    mockToastService = mock<ToastService>();
+    mockDataService = mock<RiskInsightsDataService>();
+
+    mockI18nService.t.mockImplementation((key: string) => key);
+
+    Object.defineProperty(mockDataService, "reportStatus$", { get: () => reportStatus$ });
+    Object.defineProperty(mockDataService, "enrichedReportData$", {
+      get: () => enrichedReportData$,
+    });
+    Object.defineProperty(mockDataService, "drawerDetails$", { get: () => drawerDetails$ });
+
+    await TestBed.configureTestingModule({
+      imports: [AllApplicationsComponent, ReactiveFormsModule],
+      providers: [
+        { provide: I18nService, useValue: mockI18nService },
+        { provide: ToastService, useValue: mockToastService },
+        { provide: RiskInsightsDataService, useValue: mockDataService },
+        {
+          provide: ActivatedRoute,
+          useValue: {
+            paramMap: of(convertToParamMap({})),
+            snapshot: { paramMap: convertToParamMap({}) },
+          },
+        },
+      ],
+    }).compileComponents();
+
+    fixture = TestBed.createComponent(AllApplicationsComponent);
+    component = fixture.componentInstance;
+    fixture.detectChanges();
+  });
+
+  afterEach(() => {
+    jest.clearAllMocks();
+  });
+
+  it("should create", () => {
+    expect(component).toBeTruthy();
+  });
+
+  describe("markAppsAsCritical", () => {
+    beforeEach(() => {
+      (component as ComponentWithProtectedMembers).selectedUrls.set(new Set(["GitHub", "Slack"]));
+    });
+
+    it("should show success toast when response has no error", async () => {
+      mockDataService.saveCriticalApplications.mockReturnValue(
+        of({
+          status: ReportStatus.Complete,
+          error: null,
+          data: {
+            summaryData: { ...createNewSummaryData(), totalCriticalApplicationCount: 2 },
+          },
+        } as ReportState),
+      );
+
+      await component.markAppsAsCritical();
+
+      expect(mockToastService.showToast).toHaveBeenCalledWith(
+        expect.objectContaining({ variant: "success" }),
+      );
+      expect((component as ComponentWithProtectedMembers).selectedUrls().size).toBe(0);
+      expect((component as ComponentWithProtectedMembers).markingAsCritical()).toBe(false);
+    });
+
+    it("should show error toast when response has error field set", async () => {
+      mockDataService.saveCriticalApplications.mockReturnValue(
+        of({
+          status: ReportStatus.Complete,
+          error: "Failed to save critical applications",
+          data: null,
+        }),
+      );
+
+      await component.markAppsAsCritical();
+
+      expect(mockToastService.showToast).toHaveBeenCalledWith(
+        expect.objectContaining({ variant: "error" }),
+      );
+      // Selection preserved on error
+      expect((component as ComponentWithProtectedMembers).selectedUrls().size).toBe(2);
+      expect((component as ComponentWithProtectedMembers).markingAsCritical()).toBe(false);
+    });
+  });
+});
diff --git a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/all-applications/all-applications.component.ts b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/all-applications/all-applications.component.ts
index dc5d44d2d2b..7ef15c93fc0 100644
--- a/bitwarden_license/bit-web/src/app/dirt/access-intelligence/all-applications/all-applications.component.ts
+++ b/bitwarden_license/bit-web/src/app/dirt/access-intelligence/all-applications/all-applications.component.ts
@@ -118,16 +118,27 @@ export class AllApplicationsComponent implements OnInit {
       .saveCriticalApplications(Array.from(this.selectedUrls()))
       .pipe(takeUntilDestroyed(this.destroyRef))
       .subscribe({
-        next: () => {
+        next: (response) => {
+          this.markingAsCritical.set(false);
+
+          if (response.error) {
+            this.toastService.showToast({
+              variant: "error",
+              title: "",
+              message: this.i18nService.t("applicationsMarkedAsCriticalFail"),
+            });
+            return;
+          }
+
           this.toastService.showToast({
             variant: "success",
             title: "",
             message: this.i18nService.t("criticalApplicationsMarkedSuccess", count.toString()),
           });
           this.selectedUrls.set(new Set<string>());
-          this.markingAsCritical.set(false);
         },
         error: () => {
+          this.markingAsCritical.set(false);
           this.toastService.showToast({
             variant: "error",
             title: "",