diff --git a/packages/esm-patient-orders-app/src/lab-results/lab-results-form.component.tsx b/packages/esm-patient-orders-app/src/lab-results/lab-results-form.component.tsx
index 4632389dd..879b72487 100644
--- a/packages/esm-patient-orders-app/src/lab-results/lab-results-form.component.tsx
+++ b/packages/esm-patient-orders-app/src/lab-results/lab-results-form.component.tsx
@@ -5,7 +5,13 @@ import { mutate } from 'swr';
 import { Button, ButtonSet, Form, InlineLoading, InlineNotification, Stack } from '@carbon/react';
 import { type DefaultPatientWorkspaceProps, type Order } from '@openmrs/esm-patient-common-lib';
 import { restBaseUrl, showSnackbar, useAbortController, useLayoutType } from '@openmrs/esm-framework';
-import { useOrderConceptByUuid, updateOrderResult, useLabEncounter, useObservation } from './lab-results.resource';
+import {
+  useOrderConceptByUuid,
+  updateOrderResult,
+  useLabEncounter,
+  useObservation,
+  createObservationPayload,
+} from './lab-results.resource';
 import ResultFormField from './lab-results-form-field.component';
 import styles from './lab-results-form.scss';
 
@@ -33,9 +39,7 @@ const LabResultsForm: React.FC<LabResultsFormProps> = ({
 
   const {
     control,
-    register,
-    formState: { errors, isDirty, isSubmitting },
-    getValues,
+    formState: { isDirty, isSubmitting },
     handleSubmit,
   } = useForm<{ testResult: any }>({
     defaultValues: {},
@@ -82,66 +86,15 @@ const LabResultsForm: React.FC<LabResultsFormProps> = ({
     );
   }
 
-  const saveLabResults = () => {
-    const formValues = getValues();
-
+  const saveLabResults = async (formValues) => {
     const isEmptyForm = Object.values(formValues).every(
       (value) => value === '' || value === null || value === undefined,
     );
-
     if (isEmptyForm) {
       setShowEmptyFormErrorNotification(true);
       return;
     }
-
-    let obsValue = [];
-
-    if (concept.set && concept.setMembers.length > 0) {
-      let groupMembers = [];
-      concept.setMembers.forEach((member) => {
-        let value;
-        if (member.datatype.display === 'Numeric' || member.datatype.display === 'Text') {
-          value = getValues()[`${member.uuid}`];
-        } else if (member.datatype.display === 'Coded') {
-          value = {
-            uuid: getValues()[`${member.uuid}`],
-          };
-        }
-        const groupMember = {
-          concept: { uuid: member.uuid },
-          value: value,
-          status: 'FINAL',
-          order: { uuid: order.uuid },
-        };
-        groupMembers.push(groupMember);
-      });
-
-      obsValue.push({
-        concept: { uuid: order.concept.uuid },
-        status: 'FINAL',
-        order: { uuid: order.uuid },
-        groupMembers: groupMembers,
-      });
-    } else if (!concept.set && concept.setMembers.length === 0) {
-      let value;
-      if (concept.datatype.display === 'Numeric' || concept.datatype.display === 'Text') {
-        value = getValues()[`${concept.uuid}`];
-      } else if (concept.datatype.display === 'Coded') {
-        value = {
-          uuid: getValues()[`${concept.uuid}`],
-        };
-      }
-
-      obsValue.push({
-        concept: { uuid: order.concept.uuid },
-        status: 'FINAL',
-        order: { uuid: order.uuid },
-        value: value,
-      });
-    }
-
-    const obsPayload = { obs: obsValue };
-
+    const obsPayload = createObservationPayload(concept, order, formValues);
     const orderDiscontinuationPayload = {
       previousOrder: order.uuid,
       type: 'testorder',
@@ -152,50 +105,48 @@ const LabResultsForm: React.FC<LabResultsFormProps> = ({
       concept: order.concept.uuid,
       orderer: order.orderer,
     };
-
     const resultsStatusPayload = {
       fulfillerStatus: 'COMPLETED',
       fulfillerComment: 'Test Results Entered',
     };
 
-    updateOrderResult(
-      order.uuid,
-      order.encounter.uuid,
-      obsPayload,
-      resultsStatusPayload,
-      orderDiscontinuationPayload,
-      abortController,
-    ).then(
-      () => {
-        closeWorkspaceWithSavedChanges();
-        mutateLabOrders();
-        mutate(
-          (key) => typeof key === 'string' && key.startsWith(`${restBaseUrl}/order?patient=${order.patient.uuid}`),
-          undefined,
-          { revalidate: true },
-        );
-        showSnackbar({
-          title: t('saveLabResults', 'Save lab results'),
-          kind: 'success',
-          subtitle: t('successfullySavedLabResults', 'Lab results for {{orderNumber}} have been successfully updated', {
-            orderNumber: order?.orderNumber,
-          }),
-        });
-      },
-      (err) => {
-        showSnackbar({
-          title: t('errorSavingLabResults', 'Error saving lab results'),
-          kind: 'error',
-          subtitle: err?.message,
-        });
-      },
-    );
-
-    setShowEmptyFormErrorNotification(false);
+    try {
+      await updateOrderResult(
+        order.uuid,
+        order.encounter.uuid,
+        obsPayload,
+        resultsStatusPayload,
+        orderDiscontinuationPayload,
+        abortController,
+      );
+
+      closeWorkspaceWithSavedChanges();
+      mutateLabOrders();
+      mutate(
+        (key) => typeof key === 'string' && key.startsWith(`${restBaseUrl}/order?patient=${order.patient.uuid}`),
+        undefined,
+        { revalidate: true },
+      );
+      showSnackbar({
+        title: t('saveLabResults', 'Save lab results'),
+        kind: 'success',
+        subtitle: t('successfullySavedLabResults', 'Lab results for {{orderNumber}} have been successfully updated', {
+          orderNumber: order?.orderNumber,
+        }),
+      });
+    } catch (err) {
+      showSnackbar({
+        title: t('errorSavingLabResults', 'Error saving lab results'),
+        kind: 'error',
+        subtitle: err?.message,
+      });
+    } finally {
+      setShowEmptyFormErrorNotification(false);
+    }
   };
 
   return (
-    <Form className={styles.form}>
+    <Form className={styles.form} onSubmit={handleSubmit(saveLabResults)}>
       <div className={styles.grid}>
         {concept.setMembers.length > 0 && <p className={styles.heading}>{concept.display}</p>}
         {concept && (
@@ -220,13 +171,7 @@ const LabResultsForm: React.FC<LabResultsFormProps> = ({
         <Button className={styles.button} kind="secondary" disabled={isSubmitting} onClick={closeWorkspace}>
           {t('discard', 'Discard')}
         </Button>
-        <Button
-          className={styles.button}
-          kind="primary"
-          onClick={handleSubmit(saveLabResults)}
-          disabled={isSubmitting}
-          type="submit"
-        >
+        <Button className={styles.button} kind="primary" disabled={isSubmitting} type="submit">
           {isSubmitting ? (
             <InlineLoading description={t('saving', 'Saving') + '...'} />
           ) : (
diff --git a/packages/esm-patient-orders-app/src/lab-results/lab-results-form.test.tsx b/packages/esm-patient-orders-app/src/lab-results/lab-results-form.test.tsx
new file mode 100644
index 000000000..46649ee96
--- /dev/null
+++ b/packages/esm-patient-orders-app/src/lab-results/lab-results-form.test.tsx
@@ -0,0 +1,316 @@
+import React from 'react';
+import { render, screen } from '@testing-library/react';
+import LabResultsForm from './lab-results-form.component';
+import { type Order } from '@openmrs/esm-patient-common-lib';
+import { updateOrderResult, useOrderConceptByUuid } from './lab-results.resource';
+import { useObservation } from './lab-results.resource';
+import { useLabEncounter } from './lab-results.resource';
+import userEvent from '@testing-library/user-event';
+
+const mockOrder = {
+  uuid: 'order-uuid',
+  concept: { uuid: 'concept-uuid' },
+  encounter: { uuid: 'encounter-uuid' },
+  patient: { uuid: 'patient-uuid' },
+  orderNumber: 'ORD-1',
+  careSetting: { uuid: 'care-setting-uuid' },
+  orderer: { uuid: 'orderer-uuid' },
+};
+
+const testProps = {
+  closeWorkspace: jest.fn(),
+  closeWorkspaceWithSavedChanges: jest.fn(),
+  order: mockOrder as Order,
+  promptBeforeClosing: jest.fn(),
+  patientUuid: '456',
+  setTitle: jest.fn(),
+};
+
+jest.mock('./lab-results.resource', () => ({
+  ...jest.requireActual('./lab-results.resource'),
+  useOrderConceptByUuid: jest.fn(),
+  useLabEncounter: jest
+    .fn()
+    .mockReturnValue({ encounter: [{ obs: [] }], isLoading: false, mutateLabOrders: jest.fn() }),
+  useObservation: jest.fn().mockReturnValue({ data: [], isLoading: false }),
+  updateOrderResult: jest.fn().mockReturnValue(Promise.resolve()),
+}));
+
+describe('LabResultsForm', () => {
+  beforeEach(() => {
+    (useOrderConceptByUuid as jest.Mock).mockReturnValue({
+      concept: {
+        uuid: 'concept-uuid',
+        display: 'Test Concept',
+        setMembers: [],
+        datatype: { display: 'Numeric' },
+        hiAbsolute: 100,
+        hiCritical: 80,
+        hiNormal: 70,
+        lowAbsolute: 0,
+        lowCritical: 40,
+        lowNormal: 50,
+        units: 'mg/dL',
+      },
+      isLoading: false,
+    });
+    (useLabEncounter as jest.Mock).mockReturnValue({ encounter: { obs: [] }, isLoading: false, mutate: jest.fn() });
+    (useObservation as jest.Mock).mockReturnValue({ data: null, isLoading: false });
+  });
+
+  xtest('lab results form submits the correct lab result payload when the concept is not a set', async () => {
+    const user = userEvent.setup();
+    (useOrderConceptByUuid as jest.Mock).mockReturnValue({
+      concept: {
+        uuid: 'concept-uuid',
+        display: 'Test Concept',
+        setMembers: [],
+        datatype: { display: 'Text' },
+        hiAbsolute: 100,
+        lowAbsolute: 0,
+        lowCritical: null,
+        lowNormal: null,
+        hiCritical: null,
+        hiNormal: null,
+        units: 'mg/dL',
+      },
+    });
+
+    render(<LabResultsForm {...testProps} />);
+    const input = await screen.findByRole('textbox', { name: /Test Concept/i });
+    await user.type(input, '100');
+    const submitButton = screen.getByRole('button', { name: 'Save and close' });
+    await user.click(submitButton);
+
+    expect(updateOrderResult).toHaveBeenCalledWith(
+      'order-uuid',
+      'encounter-uuid',
+      { obs: [{ concept: { uuid: 'concept-uuid' }, order: { uuid: 'order-uuid' }, status: 'FINAL', value: '100' }] },
+      { fulfillerComment: 'Test Results Entered', fulfillerStatus: 'COMPLETED' },
+      {
+        action: 'DISCONTINUE',
+        careSetting: 'care-setting-uuid',
+        concept: 'concept-uuid',
+        encounter: 'encounter-uuid',
+        orderer: mockOrder.orderer,
+        patient: 'patient-uuid',
+        previousOrder: 'order-uuid',
+        type: 'testorder',
+      },
+      expect.anything(),
+    );
+  });
+
+  test('lab results forms submits correct payload when the concept is a set and one set member is keyed', async () => {
+    const user = userEvent.setup();
+    (useOrderConceptByUuid as jest.Mock).mockReturnValue({
+      concept: {
+        uuid: 'concept-uuid',
+        display: 'Test Concept',
+        set: true,
+        setMembers: [
+          {
+            uuid: 'set-member-uuid-1',
+            display: 'Set Member 1',
+            concept: { uuid: 'concept-uuid-1', display: 'Concept 1' },
+            datatype: { display: 'Numeric' },
+            hiAbsolute: 100,
+            lowAbsolute: 0,
+            lowCritical: null,
+            lowNormal: null,
+            hiCritical: null,
+            hiNormal: null,
+            units: 'mg/dL',
+          },
+          {
+            uuid: 'set-member-uuid-2',
+            display: 'Set Member 2',
+            concept: { uuid: 'concept-uuid-2', display: 'Concept 2' },
+            datatype: { display: 'Numeric' },
+            hiAbsolute: 80,
+            lowAbsolute: 0,
+            lowCritical: null,
+            lowNormal: null,
+            hiCritical: null,
+            hiNormal: null,
+            units: 'mmol/L',
+          },
+        ],
+        datatype: { display: 'Numeric' },
+        hiAbsolute: 100,
+        lowAbsolute: 0,
+        lowCritical: null,
+        lowNormal: null,
+        hiCritical: null,
+        hiNormal: null,
+        units: 'mg/dL',
+      },
+    });
+
+    render(<LabResultsForm {...testProps} />);
+    const concept1Input = await screen.findByLabelText('Set Member 1 (0 - 100 mg/dL)');
+    await user.type(concept1Input, '100');
+
+    const submitButton = screen.getByRole('button', { name: 'Save and close' });
+    await user.click(submitButton);
+
+    // Expect the observation payload to be correct since we have keyed input for only one set member
+    expect(updateOrderResult).toHaveBeenCalledWith(
+      'order-uuid',
+      'encounter-uuid',
+      {
+        obs: [
+          {
+            concept: {
+              uuid: 'concept-uuid',
+            },
+            status: 'FINAL',
+            order: {
+              uuid: 'order-uuid',
+            },
+            groupMembers: [
+              {
+                concept: {
+                  uuid: 'set-member-uuid-1',
+                },
+                value: '100',
+                status: 'FINAL',
+                order: {
+                  uuid: 'order-uuid',
+                },
+              },
+            ],
+          },
+        ],
+      },
+      {
+        fulfillerStatus: 'COMPLETED',
+        fulfillerComment: 'Test Results Entered',
+      },
+      {
+        previousOrder: 'order-uuid',
+        type: 'testorder',
+        action: 'DISCONTINUE',
+        careSetting: 'care-setting-uuid',
+        encounter: 'encounter-uuid',
+        patient: 'patient-uuid',
+        concept: 'concept-uuid',
+        orderer: { uuid: 'orderer-uuid' },
+      },
+      expect.anything(),
+    );
+  });
+
+  test('lab results form submits correct payload when the concept is a set and both set members are keyed', async () => {
+    const user = userEvent.setup();
+    (useOrderConceptByUuid as jest.Mock).mockReturnValue({
+      concept: {
+        uuid: 'concept-uuid',
+        display: 'Test Concept',
+        set: true,
+        setMembers: [
+          {
+            uuid: 'set-member-uuid-1',
+            display: 'Set Member 1',
+            concept: { uuid: 'concept-uuid-1', display: 'Concept 1' },
+            datatype: { display: 'Numeric' },
+            hiAbsolute: 100,
+            lowAbsolute: 0,
+            lowCritical: null,
+            lowNormal: null,
+            hiCritical: null,
+            hiNormal: null,
+            units: 'mg/dL',
+          },
+          {
+            uuid: 'set-member-uuid-2',
+            display: 'Set Member 2',
+            concept: { uuid: 'concept-uuid-2', display: 'Concept 2' },
+            datatype: { display: 'Numeric' },
+            hiAbsolute: 80,
+            lowAbsolute: 0,
+            lowCritical: null,
+            lowNormal: null,
+            hiCritical: null,
+            hiNormal: null,
+            units: 'mmol/L',
+          },
+        ],
+        datatype: { display: 'Numeric' },
+        hiAbsolute: 100,
+        lowAbsolute: 0,
+        lowCritical: null,
+        lowNormal: null,
+        hiCritical: null,
+        hiNormal: null,
+        units: 'mg/dL',
+      },
+    });
+
+    render(<LabResultsForm {...testProps} />);
+    const concept1Input = await screen.findByLabelText('Set Member 1 (0 - 100 mg/dL)');
+    await user.type(concept1Input, '100');
+
+    const concept2Input = await screen.findByLabelText('Set Member 2 (0 - 80 mmol/L)');
+    await user.type(concept2Input, '60');
+
+    const submitButton = screen.getByRole('button', { name: 'Save and close' });
+    await user.click(submitButton);
+
+    // Expect the observation payload to be correct since we have keyed input for only one set member
+    expect(updateOrderResult).toHaveBeenCalledWith(
+      'order-uuid',
+      'encounter-uuid',
+      {
+        obs: [
+          {
+            concept: {
+              uuid: 'concept-uuid',
+            },
+            status: 'FINAL',
+            order: {
+              uuid: 'order-uuid',
+            },
+            groupMembers: [
+              {
+                concept: {
+                  uuid: 'set-member-uuid-1',
+                },
+                value: '100',
+                status: 'FINAL',
+                order: {
+                  uuid: 'order-uuid',
+                },
+              },
+              {
+                concept: {
+                  uuid: 'set-member-uuid-2',
+                },
+                value: '60',
+                status: 'FINAL',
+                order: {
+                  uuid: 'order-uuid',
+                },
+              },
+            ],
+          },
+        ],
+      },
+      {
+        fulfillerStatus: 'COMPLETED',
+        fulfillerComment: 'Test Results Entered',
+      },
+      {
+        previousOrder: 'order-uuid',
+        type: 'testorder',
+        action: 'DISCONTINUE',
+        careSetting: 'care-setting-uuid',
+        encounter: 'encounter-uuid',
+        patient: 'patient-uuid',
+        concept: 'concept-uuid',
+        orderer: { uuid: 'orderer-uuid' },
+      },
+      expect.anything(),
+    );
+  });
+});
diff --git a/packages/esm-patient-orders-app/src/lab-results/lab-results.resource.ts b/packages/esm-patient-orders-app/src/lab-results/lab-results.resource.ts
index 52328faac..1077f11ba 100644
--- a/packages/esm-patient-orders-app/src/lab-results/lab-results.resource.ts
+++ b/packages/esm-patient-orders-app/src/lab-results/lab-results.resource.ts
@@ -2,6 +2,7 @@ import useSWR from 'swr';
 import { type OpenmrsResource, openmrsFetch, restBaseUrl, type FetchResponse } from '@openmrs/esm-framework';
 import { type Observation, type Encounter } from '../types/encounter';
 import { type OrderDiscontinuationPayload } from '../types/order';
+import { type Order } from '@openmrs/esm-patient-common-lib';
 
 const labEncounterRepresentation =
   'custom:(uuid,encounterDatetime,encounterType,location:(uuid,name),' +
@@ -157,3 +158,69 @@ export async function updateOrderResult(
   }
   throw new Error('Failed to update order');
 }
+
+export function createObservationPayload(concept: LabOrderConcept, order: Order, values: any) {
+  if (concept.set && concept.setMembers.length > 0) {
+    const groupMembers = concept.setMembers
+      .map((member) => createGroupMember(member, order, values))
+      .filter((member) => member?.value !== null && member?.value !== undefined);
+
+    if (groupMembers.length === 0) {
+      return { obs: [] };
+    }
+
+    return { obs: [createObservation(order, groupMembers)] };
+  }
+
+  if (!concept.set && concept.setMembers.length === 0) {
+    const value = getValue(concept, values);
+    if (value === null || value === undefined) {
+      return { obs: [] };
+    }
+    return { obs: [createObservation(order, null, value)] };
+  }
+
+  return { obs: [] };
+}
+
+function createGroupMember(member, order, values) {
+  const value = getValue(member, values);
+  if (value === null || value === undefined) {
+    return null;
+  }
+  return {
+    concept: { uuid: member.uuid },
+    value: value,
+    status: 'FINAL',
+    order: { uuid: order.uuid },
+  };
+}
+
+function createObservation(order, groupMembers = null, value = null) {
+  return {
+    concept: { uuid: order.concept.uuid },
+    status: 'FINAL',
+    order: { uuid: order.uuid },
+    ...(groupMembers && groupMembers.length > 0 && { groupMembers }),
+    ...(value !== null && value !== undefined && { value }),
+  };
+}
+
+function getValue(concept, values) {
+  const { datatype, uuid } = concept;
+  const value = values[uuid];
+
+  if (value === null || value === undefined) {
+    return null;
+  }
+
+  if (['Numeric', 'Text'].includes(datatype.display)) {
+    return value;
+  }
+
+  if (datatype.display === 'Coded') {
+    return { uuid: value };
+  }
+
+  return null;
+}