diff --git a/libs/admin-console/src/common/collections/services/default-collection-vNext.service.spec.ts b/libs/admin-console/src/common/collections/services/default-collection-vNext.service.spec.ts
index 11774e838e..5cb0eee6a2 100644
--- a/libs/admin-console/src/common/collections/services/default-collection-vNext.service.spec.ts
+++ b/libs/admin-console/src/common/collections/services/default-collection-vNext.service.spec.ts
@@ -1,4 +1,4 @@
-import { mock } from "jest-mock-extended";
+import { mock, MockProxy } from "jest-mock-extended";
 import { firstValueFrom, of } from "rxjs";
 
 import { CryptoService } from "@bitwarden/common/platform/abstractions/crypto.service";
@@ -6,6 +6,7 @@ import { EncryptService } from "@bitwarden/common/platform/abstractions/encrypt.
 import { I18nService } from "@bitwarden/common/platform/abstractions/i18n.service";
 import { Utils } from "@bitwarden/common/platform/misc/utils";
 import { EncString } from "@bitwarden/common/platform/models/domain/enc-string";
+import { SymmetricCryptoKey } from "@bitwarden/common/platform/models/domain/symmetric-crypto-key";
 import { ContainerService } from "@bitwarden/common/platform/services/container.service";
 import {
   FakeStateProvider,
@@ -16,7 +17,7 @@ import {
 import { CollectionId, OrganizationId, UserId } from "@bitwarden/common/types/guid";
 import { OrgKey } from "@bitwarden/common/types/key";
 
-import { CollectionData } from "../models";
+import { CollectionData, CollectionView } from "../models";
 
 import {
   DefaultCollectionvNextService,
@@ -46,31 +47,40 @@ describe("DefaultCollectionService", () => {
       });
 
       // Arrange cryptoService - orgKeys and mock decryption
-      const cryptoService = mockCryptoService();
+      const [cryptoService, encryptService] = mockCryptoService();
+      const orgKey1 = makeSymmetricCryptoKey<OrgKey>(64, 1);
+      const orgKey2 = makeSymmetricCryptoKey<OrgKey>(64, 2);
       cryptoService.orgKeys$.mockReturnValue(
         of({
-          [org1]: makeSymmetricCryptoKey<OrgKey>(),
-          [org2]: makeSymmetricCryptoKey<OrgKey>(),
+          [org1]: orgKey1,
+          [org2]: orgKey2,
         }),
       );
 
       const collectionService = new DefaultCollectionvNextService(
         cryptoService,
-        mock<EncryptService>(),
+        encryptService,
         mockI18nService(),
         fakeStateProvider,
       );
 
+      // Assert emitted values
       const result = await firstValueFrom(collectionService.decryptedCollections$(of(userId)));
-      expect(result.length).toBe(2);
-      expect(result[0]).toMatchObject({
-        id: collection1.id,
-        name: "DECRYPTED_STRING",
-      });
-      expect(result[1]).toMatchObject({
-        id: collection2.id,
-        name: "DECRYPTED_STRING",
-      });
+      // expect(result.length).toBe(2);
+      expect(result).toContainEqual(collectionViewFactory(collection1));
+      expect(result).toContainEqual(collectionViewFactory(collection2));
+
+      // Assert that the correct org keys were used for each encrypted string
+      const collection1NameData = new EncString(collection1.name).data;
+      const collection2NameData = new EncString(collection2.name).data;
+      expect(encryptService.decryptToUtf8).toHaveBeenCalledWith(
+        expect.objectContaining({ data: collection1NameData }),
+        orgKey1,
+      );
+      expect(encryptService.decryptToUtf8).toHaveBeenCalledWith(
+        expect.objectContaining({ data: collection2NameData }),
+        orgKey2,
+      );
     });
 
     it("handles null collection state", async () => {
@@ -81,10 +91,10 @@ describe("DefaultCollectionService", () => {
       // Arrange state provider
       const userId = Utils.newGuid() as UserId;
       const fakeStateProvider = new FakeStateProvider(mockAccountServiceWith(userId));
-      await fakeStateProvider.setUserState(ENCRYPTED_COLLECTION_DATA_KEY, null);
+      await fakeStateProvider.setUserState(ENCRYPTED_COLLECTION_DATA_KEY, null, userId);
 
       // Arrange cryptoService - orgKeys and mock decryption
-      const cryptoService = mockCryptoService();
+      const [cryptoService, encryptService] = mockCryptoService();
       cryptoService.orgKeys$.mockReturnValue(
         of({
           [org1]: makeSymmetricCryptoKey<OrgKey>(),
@@ -94,7 +104,75 @@ describe("DefaultCollectionService", () => {
 
       const collectionService = new DefaultCollectionvNextService(
         cryptoService,
-        mock<EncryptService>(),
+        encryptService,
+        mockI18nService(),
+        fakeStateProvider,
+      );
+
+      const encryptedCollections = await firstValueFrom(
+        collectionService.encryptedCollections$(of(userId)),
+      );
+      expect(encryptedCollections.length).toBe(0);
+    });
+  });
+
+  describe("encryptedCollections$", () => {
+    it("emits encrypted collections from state", async () => {
+      // Arrange test collections
+      const org1 = Utils.newGuid() as OrganizationId;
+      const org2 = Utils.newGuid() as OrganizationId;
+
+      const collection1 = collectionDataFactory(org1);
+      const collection2 = collectionDataFactory(org2);
+
+      // Arrange state provider
+      const userId = Utils.newGuid() as UserId;
+      const fakeStateProvider = new FakeStateProvider(mockAccountServiceWith(userId));
+      await fakeStateProvider.setUserState(
+        ENCRYPTED_COLLECTION_DATA_KEY,
+        {
+          [collection1.id]: collection1,
+          [collection2.id]: collection2,
+        },
+        userId,
+      );
+
+      // Arrange cryptoService - just so we don't get errors
+      const [cryptoService, encryptService] = mockCryptoService();
+      cryptoService.orgKeys$.mockReturnValue(of({}));
+
+      const collectionService = new DefaultCollectionvNextService(
+        cryptoService,
+        encryptService,
+        mockI18nService(),
+        fakeStateProvider,
+      );
+
+      const result = await firstValueFrom(collectionService.encryptedCollections$(of(userId)));
+      expect(result.length).toBe(2);
+      expect(result[0]).toMatchObject({
+        id: collection1.id,
+        name: makeEncString("ENC_NAME_" + collection1.id),
+      });
+      expect(result[1]).toMatchObject({
+        id: collection2.id,
+        name: makeEncString("ENC_NAME_" + collection2.id),
+      });
+    });
+
+    it("handles null collection state", async () => {
+      // Arrange state provider
+      const userId = Utils.newGuid() as UserId;
+      const fakeStateProvider = new FakeStateProvider(mockAccountServiceWith(userId));
+      await fakeStateProvider.setUserState(ENCRYPTED_COLLECTION_DATA_KEY, null);
+
+      // Arrange cryptoService - orgKeys and mock decryption
+      const [cryptoService, encryptService] = mockCryptoService();
+      cryptoService.orgKeys$.mockReturnValue(of({}));
+
+      const collectionService = new DefaultCollectionvNextService(
+        cryptoService,
+        encryptService,
         mockI18nService(),
         fakeStateProvider,
       );
@@ -103,11 +181,6 @@ describe("DefaultCollectionService", () => {
         collectionService.decryptedCollections$(of(userId)),
       );
       expect(decryptedCollections.length).toBe(0);
-
-      const encryptedCollections = await firstValueFrom(
-        collectionService.encryptedCollections$(of(userId)),
-      );
-      expect(encryptedCollections.length).toBe(0);
     });
   });
 });
@@ -118,23 +191,34 @@ const mockI18nService = () => {
   return i18nService;
 };
 
-const mockCryptoService = () => {
+const mockCryptoService: () => [MockProxy<CryptoService>, MockProxy<EncryptService>] = () => {
   const cryptoService = mock<CryptoService>();
   const encryptService = mock<EncryptService>();
   encryptService.decryptToUtf8
-    .calledWith(expect.any(EncString), expect.anything())
-    .mockResolvedValue("DECRYPTED_STRING");
+    .calledWith(expect.any(EncString), expect.any(SymmetricCryptoKey))
+    .mockImplementation((encString, key) =>
+      Promise.resolve(encString.data.replace("ENC_", "DEC_")),
+    );
 
   (window as any).bitwardenContainerService = new ContainerService(cryptoService, encryptService);
 
-  return cryptoService;
+  return [cryptoService, encryptService];
 };
 
 const collectionDataFactory = (orgId: OrganizationId) => {
   const collection = new CollectionData({} as any);
   collection.id = Utils.newGuid() as CollectionId;
   collection.organizationId = orgId;
-  collection.name = makeEncString("ENC_STRING").encryptedString;
+  collection.name = makeEncString("ENC_NAME_" + collection.id).encryptedString;
 
   return collection;
 };
+
+const collectionViewFactory = (data: CollectionData) =>
+  Object.assign(new CollectionView(), {
+    id: data.id,
+    name: "DEC_NAME_" + data.id,
+    assigned: true,
+    externalId: null,
+    organizationId: data.organizationId,
+  });
diff --git a/libs/common/spec/utils.ts b/libs/common/spec/utils.ts
index d372232937..1cead2aa62 100644
--- a/libs/common/spec/utils.ts
+++ b/libs/common/spec/utils.ts
@@ -46,8 +46,15 @@ export function makeStaticByteArray(length: number, start = 0) {
   return arr;
 }
 
-export function makeSymmetricCryptoKey<T extends SymmetricCryptoKey>(length: 32 | 64 = 64) {
-  return new SymmetricCryptoKey(makeStaticByteArray(length)) as T;
+/**
+ * Creates a symmetric crypto key for use in tests. This is deterministic, i.e. it will produce identical keys
+ * for identical argument values. Provide a unique value to the `seed` parameter to create different keys.
+ */
+export function makeSymmetricCryptoKey<T extends SymmetricCryptoKey>(
+  length: 32 | 64 = 64,
+  seed = 0,
+) {
+  return new SymmetricCryptoKey(makeStaticByteArray(length, seed)) as T;
 }
 
 /**