diff --git a/common/script/fns/updateStats.js b/common/script/fns/updateStats.js
index 51e78ccb79..6061f717ab 100644
--- a/common/script/fns/updateStats.js
+++ b/common/script/fns/updateStats.js
@@ -1,22 +1,19 @@
 import _ from 'lodash';
 import {
   MAX_HEALTH,
-  MAX_STAT_POINTS
+  MAX_STAT_POINTS,
 } from '../constants';
 import { toNextLevel } from '../statHelpers';
+import autoAllocate from './autoAllocate';
 
-module.exports = function updateStats (user, stats, req, analytics) {
+module.exports = function updateStats (user, stats, req = {}, analytics) {
   let allocatedStatPoints;
   let totalStatPoints;
   let experienceToNextLevel;
 
-  if (stats.hp <= 0) {
-    user.stats.hp = 0;
-    return user.stats.hp;
-  }
-
-  user.stats.hp = stats.hp;
-  user.stats.gp = stats.gp >= 0 ? stats.gp : 0;
+  user.stats.hp = stats.hp > 0 ? stats.hp : 0;
+  user.stats.gp = stats.gp > 0 ? stats.gp : 0;
+  if (!user._tmp) user._tmp = {};
 
   experienceToNextLevel = toNextLevel(user.stats.lvl);
 
@@ -36,7 +33,7 @@ module.exports = function updateStats (user, stats, req, analytics) {
         continue; // eslint-disable-line no-continue
       }
       if (user.preferences.automaticAllocation) {
-        user.fns.autoAllocate();
+        autoAllocate(user);
       } else {
         user.stats.points = user.stats.lvl - allocatedStatPoints;
         totalStatPoints = user.stats.points + allocatedStatPoints;
@@ -53,7 +50,6 @@ module.exports = function updateStats (user, stats, req, analytics) {
   }
 
   user.stats.exp = stats.exp;
-  user.flags = user.flags || {};
 
   if (!user.flags.customizationsNotification && (user.stats.exp > 5 || user.stats.lvl > 1)) {
     user.flags.customizationsNotification = true;
@@ -63,48 +59,39 @@ module.exports = function updateStats (user, stats, req, analytics) {
   }
   if (!user.flags.dropsEnabled && user.stats.lvl >= 3) {
     user.flags.dropsEnabled = true;
-    if (user.items.eggs["Wolf"] > 0) {
-      user.items.eggs["Wolf"]++;
+    if (user.items.eggs.Wolf > 0) {
+      user.items.eggs.Wolf++;
     } else {
-      user.items.eggs["Wolf"] = 1;
+      user.items.eggs.Wolf = 1;
     }
   }
-  if (!user.flags.classSelected && user.stats.lvl >= 10) {
-    user.flags.classSelected;
-  }
   _.each({
     vice1: 30,
     atom1: 15,
     moonstone1: 60,
-    goldenknight1: 40
-  }, function(lvl, k) {
-    var analyticsData, base, base1, ref;
-    if (!((ref = user.flags.levelDrops) != null ? ref[k] : void 0) && user.stats.lvl >= lvl) {
-      if ((base = user.items.quests)[k] == null) {
-        base[k] = 0;
-      }
+    goldenknight1: 40,
+  }, (lvl, k) => {
+    if (user.stats.lvl >= lvl && !user.flags.levelDrops[k]) {
+      user.flags.levelDrops[k] = true;
+      if (!user.items.quests[k])
+        user.items.quests[k] = 0;
       user.items.quests[k]++;
-      ((base1 = user.flags).levelDrops != null ? base1.levelDrops : base1.levelDrops = {})[k] = true;
-      if (typeof user.markModified === "function") {
-        user.markModified('flags.levelDrops');
+      user.markModified('flags.levelDrops');
+      if (analytics) {
+        analytics.track('acquire item', {
+          uuid: user._id,
+          itemKey: k,
+          acquireMethod: 'Level Drop',
+          category: 'behavior',
+        });
       }
-      analyticsData = {
-        uuid: user._id,
-        itemKey: k,
-        acquireMethod: 'Level Drop',
-        category: 'behavior'
-      };
-      if (analytics != null) {
-        analytics.track('acquire item', analyticsData);
-      }
-      if (!user._tmp) user._tmp = {}
-      return user._tmp.drop = {
+      user._tmp.drop = {
         type: 'Quest',
-        key: k
+        key: k,
       };
     }
   });
   if (!user.flags.rebirthEnabled && (user.stats.lvl >= 50 || user.achievements.beastMaster)) {
-    return user.flags.rebirthEnabled = true;
+    user.flags.rebirthEnabled = true;
   }
 };
diff --git a/tasks/gulp-eslint.js b/tasks/gulp-eslint.js
index 4571add501..829f47ba96 100644
--- a/tasks/gulp-eslint.js
+++ b/tasks/gulp-eslint.js
@@ -51,7 +51,6 @@ const COMMON_FILES = [
   '!./common/script/fns/nullify.js',
   '!./common/script/fns/preenUserHistory.js',
   '!./common/script/fns/randomDrop.js',
-  '!./common/script/fns/updateStats.js',
   '!./common/script/libs/appliedTags.js',
   '!./common/script/libs/countExists.js',
   '!./common/script/libs/dotGet.js',
diff --git a/test/common/fns/updateStats.test.js b/test/common/fns/updateStats.test.js
new file mode 100644
index 0000000000..cea5f6e6ca
--- /dev/null
+++ b/test/common/fns/updateStats.test.js
@@ -0,0 +1,170 @@
+import updateStats from '../../../common/script/fns/updateStats';
+import {
+  generateUser,
+} from '../../helpers/common.helper';
+
+describe('common.fns.updateStats', () => {
+  let user;
+
+  beforeEach(() => {
+    user = generateUser();
+  });
+
+  context('No Hp', () => {
+    it('updates user\s hp', () => {
+      let stats = { hp: 0 };
+      expect(user.stats.hp).to.not.eql(0);
+      updateStats(user, stats);
+      expect(user.stats.hp).to.eql(0);
+      updateStats(user, { hp: 2 });
+      expect(user.stats.hp).to.eql(2);
+    });
+
+    it('does not lower hp below 0', () => {
+      let stats = {
+        hp: -5,
+      };
+      updateStats(user, stats);
+      expect(user.stats.hp).to.eql(0);
+    });
+  });
+
+  context('Stat Allocation', () => {
+    it('adds only attribute points up to user\'s level', () => {
+      let stats = {
+        exp: 261,
+      };
+      expect(user.stats.points).to.eql(0);
+
+      user.stats.lvl = 10;
+
+      updateStats(user, stats);
+
+      expect(user.stats.points).to.eql(11);
+    });
+
+    it('adds an attibute point when user\'s stat points are less than max level', () => {
+      let stats = {
+        exp: 3581,
+      };
+
+      user.stats.lvl = 99;
+      user.stats.str = 25;
+      user.stats.int = 25;
+      user.stats.con = 25;
+      user.stats.per = 24;
+
+      updateStats(user, stats);
+
+      expect(user.stats.points).to.eql(1);
+    });
+
+    it('does not add an attibute point when user\'s stat points are equal to max level', () => {
+      let stats = {
+        exp: 3581,
+      };
+
+      user.stats.lvl = 99;
+      user.stats.str = 25;
+      user.stats.int = 25;
+      user.stats.con = 25;
+      user.stats.per = 25;
+
+      updateStats(user, stats);
+
+      expect(user.stats.points).to.eql(0);
+    });
+
+    it('does not add an attibute point when user\'s stat points + unallocated points are equal to max level', () => {
+      let stats = {
+        exp: 3581,
+      };
+
+      user.stats.lvl = 99;
+      user.stats.str = 25;
+      user.stats.int = 25;
+      user.stats.con = 25;
+      user.stats.per = 15;
+      user.stats.points = 10;
+
+      updateStats(user, stats);
+
+      expect(user.stats.points).to.eql(10);
+    });
+
+    it('only awards stat points up to level 100 if user is missing unallocated stat points and is over level 100', () => {
+      let stats = {
+        exp: 5581,
+      };
+
+      user.stats.lvl = 104;
+      user.stats.str = 25;
+      user.stats.int = 25;
+      user.stats.con = 25;
+      user.stats.per = 15;
+      user.stats.points = 0;
+
+      updateStats(user, stats);
+
+      expect(user.stats.points).to.eql(10);
+    });
+
+    context('assigns flags.levelDrops', () => {
+      it('for atom1', () => {
+        user.stats.lvl = 16;
+        user.flags.levelDrops.atom1 = false;
+        expect(user.items.quests.atom1).to.eql(undefined);
+        updateStats(user, { atom1: true });
+        expect(user.items.quests.atom1).to.eql(1);
+        expect(user.flags.levelDrops.atom1).to.eql(true);
+        updateStats(user, { atom1: true });
+        expect(user.items.quests.atom1).to.eql(1); // no change
+      });
+      it('for vice1', () => {
+        user.stats.lvl = 31;
+        user.flags.levelDrops.vice1 = false;
+        expect(user.items.quests.vice1).to.eql(undefined);
+        updateStats(user, { vice1: true });
+        expect(user.items.quests.vice1).to.eql(1);
+        expect(user.flags.levelDrops.vice1).to.eql(true);
+        updateStats(user, { vice1: true });
+        expect(user.items.quests.vice1).to.eql(1);
+      });
+      it('moonstone', () => {
+        user.stats.lvl = 60;
+        user.flags.levelDrops.moonstone1 = false;
+        expect(user.items.quests.moonstone1).to.eql(undefined);
+        updateStats(user, { moonstone1: true });
+        expect(user.flags.levelDrops.moonstone1).to.eql(true);
+        expect(user.items.quests.moonstone1).to.eql(1);
+        updateStats(user, { moonstone1: true });
+        expect(user.items.quests.moonstone1).to.eql(1);
+      });
+      it('for goldenknight1', () => {
+        user.stats.lvl = 40;
+        user.flags.levelDrops.goldenknight1 = false;
+        expect(user.items.quests.goldenknight1).to.eql(undefined);
+        updateStats(user, { goldenknight1: true });
+        expect(user.items.quests.goldenknight1).to.eql(1);
+        expect(user.flags.levelDrops.goldenknight1).to.eql(true);
+        updateStats(user, { goldenknight1: true });
+        expect(user.items.quests.goldenknight1).to.eql(1);
+      });
+    });
+
+    // @TODO: Set up sinon sandbox
+    xit('auto allocates stats if automaticAllocation is turned on', () => {
+      sandbox.stub(user.fns, 'autoAllocate');
+
+      let stats = {
+        exp: 261,
+      };
+
+      user.stats.lvl = 10;
+
+      user.fns.updateStats(stats);
+
+      expect(user.fns.autoAllocate).to.be.calledOnce;
+    });
+  });
+});