diff --git a/app/components/team_sidebar/team_list/index.test.tsx b/app/components/team_sidebar/team_list/index.test.tsx
new file mode 100644
index 00000000000..fb13a3ffa32
--- /dev/null
+++ b/app/components/team_sidebar/team_list/index.test.tsx
@@ -0,0 +1,243 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import {render, waitFor} from '@testing-library/react-native';
+import React from 'react';
+import {of as of$} from 'rxjs';
+
+import TeamList from './team_list';
+
+import TeamListWrapper from './';
+
+// Mock database queries
+jest.mock('@queries/servers/team', () => {
+    const {of} = require('rxjs');
+    return {
+        queryMyTeams: jest.fn(() => of([])),
+        queryJoinedTeams: jest.fn(() => ({
+            observe: jest.fn(() => of([])),
+        })),
+    };
+});
+
+jest.mock('@queries/servers/preference', () => {
+    const {of} = require('rxjs');
+    return {
+        queryPreferencesByCategoryAndName: jest.fn(() => ({
+            observe: jest.fn(() => of([])),
+            observeWithColumns: jest.fn(() => of([])),
+        })),
+    };
+});
+
+const {queryPreferencesByCategoryAndName} = require('@queries/servers/preference');
+const {queryMyTeams, queryJoinedTeams} = require('@queries/servers/team');
+
+// Mock WatermelonDB HOCs
+jest.mock('@nozbe/watermelondb/react', () => ({
+    withDatabase: jest.fn((Component) => Component),
+    withObservables: jest.fn((_, observableMapper) => {
+        // eslint-disable-next-line react/display-name
+        return (Component: any) => (props: any) => {
+            const observables = observableMapper(props);
+            const mockedProps: Record<string, any> = {};
+            // eslint-disable-next-line guard-for-in
+            for (const key in observables) {
+                observables[key].subscribe((value: any) => {
+                    mockedProps[key] = value;
+                });
+            }
+            return (
+                <Component
+                    {...props}
+                    {...mockedProps}
+                />);
+        };
+    }),
+}));
+
+jest.mock('./team_list', () => {
+    return jest.fn(() => null); // Mock implementation for TeamList
+});
+
+describe('withTeams HOC', () => {
+    beforeEach(() => {
+        jest.clearAllMocks();
+    });
+
+    it('should handle valid data correctly', async () => {
+        queryMyTeams.mockReturnValue({
+            observe: jest.fn(() => of$([{id: '1', roles: 'team_user'}])),
+        });
+
+        queryJoinedTeams.mockReturnValue({
+            observe: jest.fn(() => of$([
+                {id: '1', displayName: 'Team 1'},
+                {id: '2', displayName: 'Team 2'},
+            ])),
+        });
+
+        queryPreferencesByCategoryAndName.mockReturnValue({
+            observeWithColumns: jest.fn(() => of$([{value: '1,2'}])),
+        });
+
+        render(<TeamListWrapper/>);
+
+        await waitFor(() => {
+            expect(TeamList).toHaveBeenCalledWith(
+                expect.objectContaining({
+                    myOrderedTeams: [{id: '1', roles: 'team_user'}],
+                }),
+                expect.anything(),
+            );
+        });
+    });
+
+    it('should handle missing team IDs gracefully', async () => {
+        queryMyTeams.mockReturnValue({
+            observe: jest.fn(() => of$([{id: '1', roles: 'team_user'}])),
+        });
+
+        queryJoinedTeams.mockReturnValue({
+            observe: jest.fn(() => of$([
+                {id: '1', displayName: 'Team 1'},
+                {id: undefined, displayName: 'Team 2'},
+            ])),
+        });
+
+        queryPreferencesByCategoryAndName.mockReturnValue({
+            observeWithColumns: jest.fn(() => of$([{value: '1,2'}])),
+        });
+
+        render(<TeamListWrapper/>);
+
+        await waitFor(() => {
+            expect(TeamList).toHaveBeenCalledWith(
+                expect.objectContaining({
+                    myOrderedTeams: [{id: '1', roles: 'team_user'}],
+                }),
+                expect.anything(),
+            );
+        });
+    });
+
+    it('should handle empty team order preferences gracefully', async () => {
+        queryMyTeams.mockReturnValue({
+            observe: jest.fn(() => of$([{id: '1', roles: 'team_user'}])),
+        });
+
+        queryJoinedTeams.mockReturnValue({
+            observe: jest.fn(() => of$([
+                {id: '1', displayName: 'Team 1'},
+                {id: '2', displayName: 'Team 2'},
+            ])),
+        });
+
+        queryPreferencesByCategoryAndName.mockReturnValue({
+            observeWithColumns: jest.fn(() => of$([])),
+        });
+
+        render(<TeamListWrapper/>);
+
+        await waitFor(() => {
+            expect(TeamList).toHaveBeenCalledWith(
+                expect.objectContaining({
+                    myOrderedTeams: [{id: '1', roles: 'team_user'}],
+                }),
+                expect.anything(),
+            );
+        });
+    });
+
+    it('should handle undefined in team order preferences gracefully', async () => {
+        queryMyTeams.mockReturnValue({
+            observe: jest.fn(() => of$([
+                {id: '1', roles: 'team_user'},
+                {id: '2', roles: 'team_user'},
+            ])),
+        });
+
+        queryJoinedTeams.mockReturnValue({
+            observe: jest.fn(() => of$([
+                {id: '1', displayName: 'Team 1'},
+                {id: '2', displayName: 'Team 2'},
+            ])),
+        });
+
+        queryPreferencesByCategoryAndName.mockReturnValue({
+            observeWithColumns: jest.fn(() => of$([{value: '1,,2'}])),
+        });
+
+        render(<TeamListWrapper/>);
+
+        await waitFor(() => {
+            expect(TeamList).toHaveBeenCalledWith(
+                expect.objectContaining({
+                    myOrderedTeams: [
+                        {id: '1', roles: 'team_user'},
+                        {id: '2', roles: 'team_user'},
+                    ],
+                }),
+                expect.anything(),
+            );
+        });
+    });
+
+    it('should handle wrong data in team order preferences gracefully', async () => {
+        queryMyTeams.mockReturnValue({
+            observe: jest.fn(() => of$([
+                {id: '1', roles: 'team_user'},
+                {id: '2', roles: 'team_user'},
+            ])),
+        });
+
+        queryJoinedTeams.mockReturnValue({
+            observe: jest.fn(() => of$([
+                {id: '1', displayName: 'Team 1'},
+                {id: '2', displayName: 'Team 2'},
+            ])),
+        });
+
+        queryPreferencesByCategoryAndName.mockReturnValue({
+            observeWithColumns: jest.fn(() => of$([{value: '1,undefined,2'}])),
+        });
+
+        render(<TeamListWrapper/>);
+
+        await waitFor(() => {
+            expect(TeamList).toHaveBeenCalledWith(
+                expect.objectContaining({
+                    myOrderedTeams: [
+                        {id: '1', roles: 'team_user'},
+                        {id: '2', roles: 'team_user'},
+                    ],
+                }),
+                expect.anything(),
+            );
+        });
+    });
+
+    it('should handle empty teams list gracefully', async () => {
+        queryMyTeams.mockReturnValue({
+            observe: jest.fn(() => of$([])),
+        });
+
+        queryJoinedTeams.mockReturnValue({
+            observe: jest.fn(() => of$([])),
+        });
+
+        queryPreferencesByCategoryAndName.mockReturnValue({
+            observeWithColumns: jest.fn(() => of$([])),
+        });
+
+        render(<TeamListWrapper/>);
+        await waitFor(() => {
+            expect(TeamList).toHaveBeenCalledWith(
+                expect.objectContaining({
+                    myOrderedTeams: [],
+                }),
+                expect.anything(),
+            );
+        });
+    });
+});
diff --git a/app/components/team_sidebar/team_list/index.ts b/app/components/team_sidebar/team_list/index.ts
index 117c9c9c8db..17461f34f6a 100644
--- a/app/components/team_sidebar/team_list/index.ts
+++ b/app/components/team_sidebar/team_list/index.ts
@@ -14,12 +14,6 @@ import {queryJoinedTeams, queryMyTeams} from '@queries/servers/team';
 import TeamList from './team_list';
 
 import type {WithDatabaseArgs} from '@typings/database/database';
-import type MyTeamModel from '@typings/database/models/servers/my_team';
-
-interface TeamWithLowerName {
-    myTeam: MyTeamModel;
-    lowerName?: string;
-}
 
 const withTeams = withObservables([], ({database}: WithDatabaseArgs) => {
     const myTeams = queryMyTeams(database).observe();
@@ -37,35 +31,21 @@ const withTeams = withObservables([], ({database}: WithDatabaseArgs) => {
 
             if (sortedTeamIds.size) {
                 const mySortedTeams = [...sortedTeamIds].
-                    filter((id) => membershipMap.has(id)).
+                    filter((id) => id && membershipMap.has(id)).
                     map((id) => membershipMap.get(id)!);
 
                 const extraTeams = teams.
-                    filter((t) => !sortedTeamIds.has(t.id) && membershipMap.has(t.id)).
-                    map((t) => ({
-                        myTeam: membershipMap.get(t.id)!,
-                        lowerName: t.displayName.toLocaleLowerCase(),
-                    } as TeamWithLowerName)).
-                    sort((a, b) => a.lowerName!.localeCompare(b.lowerName!)).
-                    map((t) => {
-                        delete t.lowerName;
-                        return t;
-                    });
+                    filter((t) => t.id && !sortedTeamIds.has(t.id) && membershipMap.has(t.id)).
+                    sort((a, b) => a.displayName.toLocaleLowerCase().localeCompare(b.displayName.toLocaleLowerCase())).
+                    map((t) => membershipMap.get(t.id)!);
 
                 return [...mySortedTeams, ...extraTeams];
             }
 
             return teams.
-                filter((t) => membershipMap.has(t.id)).
-                map((t) => ({
-                    myTeam: membershipMap.get(t.id)!,
-                    lowerName: t.displayName.toLocaleLowerCase(),
-                } as TeamWithLowerName)).
-                sort((a, b) => a.lowerName!.localeCompare(b.lowerName!)).
-                map((t) => {
-                    delete t.lowerName;
-                    return t.myTeam;
-                });
+                filter((t) => t.id && membershipMap.has(t.id)).
+                sort((a, b) => a.displayName.toLocaleLowerCase().localeCompare(b.displayName.toLocaleLowerCase())).
+                map((t) => membershipMap.get(t.id)!);
         }),
     );
     return {