diff --git a/source/isaaclab_experimental/changelog.d/jichuanh-warp-obs-history-order-test.skip b/source/isaaclab_experimental/changelog.d/jichuanh-warp-obs-history-order-test.skip
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diff --git a/source/isaaclab_experimental/test/managers/test_observation_manager.py b/source/isaaclab_experimental/test/managers/test_observation_manager.py
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+++ b/source/isaaclab_experimental/test/managers/test_observation_manager.py
@@ -0,0 +1,37 @@
+# Copyright (c) 2022-2026, The Isaac Lab Project Developers (https://github.com/isaac-sim/IsaacLab/blob/main/CONTRIBUTORS.md).
+# All rights reserved.
+#
+# SPDX-License-Identifier: BSD-3-Clause
+
+"""Tests for the Warp observation manager configuration parsing."""
+
+from types import SimpleNamespace
+
+import warp as wp
+from isaaclab_experimental.managers import ObservationManager
+
+from isaaclab.managers import ObservationGroupCfg, ObservationTermCfg
+from isaaclab.utils import configclass
+
+
+def constant_obs(env, out: wp.array, out_dim: int):
+    """Warp-first observation term; the manager reads its width from ``out_dim``."""
+    out.fill_(1.0)
+
+
+@configclass
+class PolicyCfg(ObservationGroupCfg):
+    """Group with two terms and every group-level setting at its default."""
+
+    first = ObservationTermCfg(func=constant_obs, params={"out_dim": 2})
+    second = ObservationTermCfg(func=constant_obs, params={"out_dim": 3})
+
+
+def test_group_settings_are_not_parsed_as_terms():
+    """Every :class:`ObservationGroupCfg` field, including ``history_order``, is a group setting, not a term."""
+    env = SimpleNamespace(num_envs=4, device="cpu", sim=SimpleNamespace(is_playing=lambda: True))
+
+    manager = ObservationManager({"policy": PolicyCfg()}, env)
+
+    assert manager.active_terms["policy"] == ["first", "second"]
+    assert manager.group_obs_dim["policy"] == (5,)