diff --git a/jest.config.js b/jest.config.js
index 79fd52a1..a95f7896 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -1,8 +1,14 @@
+const { grafanaESModules, nodeModulesToTransform } = require('./.config/jest/utils');
+
 // force timezone to UTC to allow tests to work regardless of local timezone
 // generally used by snapshots, but can affect specific tests
 process.env.TZ = 'UTC';
+const originalConfig = require('./.config/jest.config');
 
 module.exports = {
   // Jest configuration provided by Grafana scaffolding
-  ...require('./.config/jest.config'),
+  ...originalConfig,
+  transformIgnorePatterns: originalConfig.transformIgnorePatterns.map((pattern) =>
+    pattern.startsWith('node_modules') ? `../../${pattern}` : pattern
+  ),
 };
diff --git a/package.json b/package.json
index 31676cca..88d7dee6 100644
--- a/package.json
+++ b/package.json
@@ -41,6 +41,7 @@
     "@swc/jest": "^0.2.23",
     "@testing-library/jest-dom": "^5.16.2",
     "@testing-library/react": "^12.1.4",
+    "@testing-library/user-event": "^14.5.1",
     "@types/glob": "^8.0.0",
     "@types/jest": "^29.2.2",
     "@types/lodash": "^4.14.188",
diff --git a/src/views/ConfigEditor.spec.tsx b/src/views/ConfigEditor.spec.tsx
new file mode 100644
index 00000000..385d0666
--- /dev/null
+++ b/src/views/ConfigEditor.spec.tsx
@@ -0,0 +1,33 @@
+import React from 'react';
+import { screen, render, waitFor } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+import ConfigEditor from './ConfigEditor';
+
+describe('Config Editor', () => {
+  it('should select basic license type as checked by default', async () => {
+    const onOptionsChange = jest.fn();
+    const options = { jsonData: {}, secureJsonFields: {} } as any;
+    render(<ConfigEditor options={options} onOptionsChange={onOptionsChange} />);
+    await waitFor(() => expect(screen.getByText('Additional Settings')).toBeInTheDocument());
+    expect(screen.getByLabelText('Basic')).toBeChecked();
+    expect(screen.getByLabelText('Enterprise')).not.toBeChecked();
+    expect(screen.queryByText('GitHub Enterprise URL')).not.toBeInTheDocument();
+    expect(onOptionsChange).toHaveBeenCalledTimes(0);
+    await userEvent.click(screen.getByLabelText('Enterprise'));
+    expect(onOptionsChange).toHaveBeenCalledTimes(0);
+    expect(screen.queryByText('GitHub Enterprise URL')).toBeInTheDocument();
+  });
+  it('should select enterprise license type as checked when the url is not empty', async () => {
+    const onOptionsChange = jest.fn();
+    const options = { jsonData: { githubUrl: 'https://foo.bar' }, secureJsonFields: {} } as any;
+    render(<ConfigEditor options={options} onOptionsChange={onOptionsChange} />);
+    await waitFor(() => expect(screen.getByText('Additional Settings')).toBeInTheDocument());
+    expect(screen.getByLabelText('Basic')).not.toBeChecked();
+    expect(screen.getByLabelText('Enterprise')).toBeChecked();
+    expect(screen.queryByText('GitHub Enterprise URL')).toBeInTheDocument();
+    expect(onOptionsChange).toHaveBeenCalledTimes(0);
+    await userEvent.click(screen.getByLabelText('Basic'));
+    expect(onOptionsChange).toHaveBeenNthCalledWith(1, { jsonData: { githubUrl: '' }, secureJsonFields: {} });
+    expect(screen.queryByText('GitHub Enterprise URL')).not.toBeInTheDocument();
+  });
+});
diff --git a/src/views/ConfigEditor.tsx b/src/views/ConfigEditor.tsx
index d7568a57..058600c0 100644
--- a/src/views/ConfigEditor.tsx
+++ b/src/views/ConfigEditor.tsx
@@ -10,7 +10,8 @@ import { Divider } from 'components/Divider';
 export type ConfigEditorProps = DataSourcePluginOptionsEditorProps<GithubDataSourceOptions, GithubSecureJsonData>;
 
 const ConfigEditor = (props: ConfigEditorProps) => {
-  const { jsonData, secureJsonData, secureJsonFields } = props.options;
+  const { options, onOptionsChange } = props;
+  const { jsonData, secureJsonData, secureJsonFields } = options;
   const secureSettings = (secureJsonData || {}) as GithubSecureJsonData;
   const styles = useStyles2(getStyles);
 
@@ -40,7 +41,7 @@ const ConfigEditor = (props: ConfigEditorProps) => {
 
   const onLicenseChange = (value: string) => {
     if (value === 'github-basic') {
-      jsonData.githubUrl = '';
+      onOptionsChange({ ...options, jsonData: { ...jsonData, githubUrl: '' } });
     }
 
     setSelectedLicense(value);
diff --git a/yarn.lock b/yarn.lock
index c299fabb..2cafcbd7 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -3684,6 +3684,11 @@
     "@testing-library/dom" "^8.0.0"
     "@types/react-dom" "<18.0.0"
 
+"@testing-library/user-event@^14.5.1":
+  version "14.5.1"
+  resolved "https://registry.yarnpkg.com/@testing-library/user-event/-/user-event-14.5.1.tgz#27337d72046d5236b32fd977edee3f74c71d332f"
+  integrity sha512-UCcUKrUYGj7ClomOo2SpNVvx4/fkd/2BbIHDCle8A0ax+P3bU7yJwDBDrS6ZwdTMARWTGODX1hEsCcO+7beJjg==
+
 "@tootallnate/once@2":
   version "2.0.0"
   resolved "https://registry.yarnpkg.com/@tootallnate/once/-/once-2.0.0.tgz#f544a148d3ab35801c1f633a7441fd87c2e484bf"