diff --git a/jellyfin_kodi/helper/playutils.py b/jellyfin_kodi/helper/playutils.py
index 614f79f0..1c8a3c2d 100644
--- a/jellyfin_kodi/helper/playutils.py
+++ b/jellyfin_kodi/helper/playutils.py
@@ -363,11 +363,10 @@ class PlayUtils(object):
         )
 
     def get_directplay_video_codec(self):
-        codecs = ["h264", "hevc", "h265", "mpeg4", "mpeg2video", "vc1", "vp9", "av1"]
+        codecs = ["h264", "hevc", "mpeg4", "mpeg2video", "vc1", "vp9", "av1"]
 
         if settings("transcode_h265.bool"):
             codecs.remove("hevc")
-            codecs.remove("h265")
 
         if settings("transcode_mpeg2.bool"):
             codecs.remove("mpeg2video")
@@ -384,14 +383,12 @@ class PlayUtils(object):
         return ",".join(codecs)
 
     def get_transcoding_video_codec(self):
-        codecs = ["h264", "hevc", "h265", "mpeg4", "mpeg2video", "vc1"]
+        codecs = ["h264", "mpeg4", "mpeg2video", "vc1"]
 
-        if settings("transcode_h265.bool"):
-            codecs.remove("hevc")
-            codecs.remove("h265")
-        else:
-            if settings("videoPreferredCodec") == "H265/HEVC":
-                codecs.insert(2, codecs.pop(codecs.index("h264")))
+        if settings("videoPreferredCodec") == "H265/HEVC":
+            codecs.insert(0, "hevc")
+        elif not settings("transcode_h265.bool"):
+            codecs.insert(1, "hevc")
 
         if settings("transcode_mpeg2.bool"):
             codecs.remove("mpeg2video")
@@ -480,7 +477,7 @@ class PlayUtils(object):
             profile["CodecProfiles"].append(
                 {
                     "Type": "Video",
-                    "codec": "h265,hevc",
+                    "codec": "hevc",
                     "Conditions": [
                         {
                             "Condition": "EqualsAny",
diff --git a/tests/test_playutils_settings.py b/tests/test_playutils_settings.py
new file mode 100644
index 00000000..22ab678e
--- /dev/null
+++ b/tests/test_playutils_settings.py
@@ -0,0 +1,247 @@
+import pytest
+
+from jellyfin_kodi.helper import playutils
+from jellyfin_kodi.helper.playutils import PlayUtils
+
+
+@pytest.fixture
+def play_utils():
+    class ApiClient:
+        class config:
+            data = {"auth.token": ""}
+
+    yield PlayUtils({}, api_client=ApiClient)
+
+
+class PatchedSettings:
+    # TODO: move settings helper to separate file
+    settings = {}
+
+    def __init__(self):
+        self.clear()
+
+    @classmethod
+    def __call__(cls, setting: str, value=None):
+        if value is None:
+            result = cls.settings[setting.replace(".bool", "")]
+
+            if result and setting.endswith(".bool"):
+                result = result in ("true", "1", True)
+
+            return result
+
+        if setting.endswith(".bool"):
+            setting = setting.replace(".bool", "")
+            value = bool(value)
+        cls.settings[setting] = value
+        return None
+
+    @classmethod
+    def clear(cls):
+        cls.settings.clear()
+        # TODO: read defaults from settings.xml
+        cls.settings.setdefault("transcode_h265", False)
+        cls.settings.setdefault("videoPreferredCodec", "H264/AVC")
+        cls.settings.setdefault("transcode_mpeg2", False)
+        cls.settings.setdefault("transcode_vc1", False)
+        cls.settings.setdefault("audioPreferredCodec", "AAC")
+        cls.settings.setdefault("transcode_vp9", False)
+        cls.settings.setdefault("transcode_av1", False)
+
+
+@pytest.fixture(autouse=True)
+def mock_settings(monkeypatch):
+    patched = PatchedSettings()
+    monkeypatch.setattr(playutils, "settings", patched)
+
+
+@pytest.mark.parametrize(
+    "transcode_h265, preferred_codec, expected_result",
+    [
+        (False, "H265/HEVC", "hevc,h264,mpeg4,mpeg2video,vc1"),
+        (True, "H265/HEVC", "hevc,h264,mpeg4,mpeg2video,vc1"),
+        (False, "H264/AVC", "h264,hevc,mpeg4,mpeg2video,vc1"),
+        (True, "H264/AVC", "h264,mpeg4,mpeg2video,vc1"),
+    ],
+)
+def test_get_transcoding_video_codec_settings(
+    play_utils, transcode_h265, preferred_codec, expected_result
+):
+    playutils.settings("transcode_h265", transcode_h265)
+    playutils.settings("videoPreferredCodec", preferred_codec)
+
+    result = play_utils.get_transcoding_video_codec()
+    assert result == expected_result
+
+
+@pytest.mark.parametrize(
+    "transcode_mpeg2, transcode_vc1, expected_result",
+    [
+        (False, False, "h264,hevc,mpeg4,mpeg2video,vc1"),
+        (True, False, "h264,hevc,mpeg4,vc1"),
+        (False, True, "h264,hevc,mpeg4,mpeg2video"),
+        (True, True, "h264,hevc,mpeg4"),
+    ],
+)
+def test_get_transcoding_video_codec_transcode_options(
+    play_utils, transcode_mpeg2, transcode_vc1, expected_result
+):
+    playutils.settings("transcode_mpeg2", transcode_mpeg2)
+    playutils.settings("transcode_vc1", transcode_vc1)
+    result = play_utils.get_transcoding_video_codec()
+    assert result == expected_result
+
+
+@pytest.mark.parametrize(
+    "preferred_codec, expected_first, expected_second",
+    [
+        ("H265/HEVC", "hevc", "h264"),
+        ("H264/AVC", "h264", "hevc"),
+    ],
+)
+def test_get_transcoding_video_codec_order(
+    play_utils, preferred_codec, expected_first, expected_second
+):
+    playutils.settings("videoPreferredCodec", preferred_codec)
+    result = play_utils.get_transcoding_video_codec().split(",")
+    assert result[0] == expected_first, result
+    assert result[1] == expected_second, result
+
+
+@pytest.mark.parametrize(
+    "preferred_codec, transcode_h265",
+    [
+        ("H265/HEVC", True),
+        ("H265/HEVC", False),
+        ("H264/AVC", True),
+        ("H264/AVC", False),
+    ],
+)
+def test_get_transcoding_video_codec_no_duplicates(
+    play_utils, preferred_codec, transcode_h265
+):
+    playutils.settings("videoPreferredCodec", preferred_codec)
+    playutils.settings("transcode_h265", transcode_h265)
+    result = play_utils.get_transcoding_video_codec().split(",")
+    assert len(result) == len(set(result))
+
+
+@pytest.mark.parametrize(
+    "transcode_h265, preferred_codec, transcode_mpeg2, transcode_vc1, expected_result",
+    [
+        (True, "H264/AVC", True, True, "h264,mpeg4"),
+        (False, "H265/HEVC", False, False, "hevc,h264,mpeg4,mpeg2video,vc1"),
+    ],
+)
+def test_get_transcoding_video_codec_combined_settings(
+    play_utils,
+    transcode_h265,
+    preferred_codec,
+    transcode_mpeg2,
+    transcode_vc1,
+    expected_result,
+):
+    playutils.settings("transcode_h265", transcode_h265)
+    playutils.settings("videoPreferredCodec", preferred_codec)
+    playutils.settings("transcode_mpeg2", transcode_mpeg2)
+    playutils.settings("transcode_vc1", transcode_vc1)
+
+    result = play_utils.get_transcoding_video_codec()
+    assert result == expected_result
+
+
+@pytest.mark.parametrize(
+    "transcode_h265, expected_result",
+    [
+        (False, "h264,hevc,mpeg4,mpeg2video,vc1,vp9,av1"),
+        (True, "h264,mpeg4,mpeg2video,vc1,vp9,av1"),
+    ],
+)
+def test_get_directplay_video_codec(play_utils, transcode_h265, expected_result):
+    playutils.settings("transcode_h265", transcode_h265)
+    result = play_utils.get_directplay_video_codec()
+    assert result == expected_result
+
+
+@pytest.mark.parametrize(
+    "transcode_mpeg2, transcode_vc1, expected_result",
+    [
+        (False, False, "h264,hevc,mpeg4,mpeg2video,vc1,vp9,av1"),
+        (True, False, "h264,hevc,mpeg4,vc1,vp9,av1"),
+        (False, True, "h264,hevc,mpeg4,mpeg2video,vp9,av1"),
+        (True, True, "h264,hevc,mpeg4,vp9,av1"),
+    ],
+)
+def test_get_directplay_video_codec_transcode_options(
+    play_utils, transcode_mpeg2, transcode_vc1, expected_result
+):
+    playutils.settings("transcode_mpeg2", transcode_mpeg2)
+    playutils.settings("transcode_vc1", transcode_vc1)
+    result = play_utils.get_directplay_video_codec()
+    assert result == expected_result
+
+
+def test_get_directplay_video_codec_no_duplicates(play_utils):
+    result = play_utils.get_directplay_video_codec().split()
+    assert len(result) == len(set(result))
+
+
+@pytest.mark.parametrize(
+    "transcode_h265, transcode_mpeg2, transcode_vc1, transcode_vp9, transcode_av1, expected_result",
+    [
+        (True, True, True, True, True, "h264,mpeg4"),
+        (False, False, False, False, False, "h264,hevc,mpeg4,mpeg2video,vc1,vp9,av1"),
+    ],
+)
+def test_get_directplay_video_codec_combined_settings(
+    play_utils,
+    transcode_h265,
+    transcode_mpeg2,
+    transcode_vc1,
+    transcode_vp9,
+    transcode_av1,
+    expected_result,
+):
+    playutils.settings("transcode_h265", transcode_h265)
+    playutils.settings("transcode_mpeg2", transcode_mpeg2)
+    playutils.settings("transcode_vc1", transcode_vc1)
+    playutils.settings("transcode_vp9", transcode_vp9)
+    playutils.settings("transcode_av1", transcode_av1)
+    result = play_utils.get_directplay_video_codec()
+    assert result == expected_result
+
+
+@pytest.mark.parametrize(
+    "preferred_codec, expected_result",
+    [
+        ("", "aac,mp3,ac3,opus,flac,vorbis"),
+        ("AAC", "aac,mp3,ac3,opus,flac,vorbis"),
+        ("MP3", "mp3,aac,ac3,opus,flac,vorbis"),
+        ("AC3", "ac3,aac,mp3,opus,flac,vorbis"),
+        ("OPUS", "opus,aac,mp3,ac3,flac,vorbis"),
+        ("FLAC", "flac,aac,mp3,ac3,opus,vorbis"),
+        ("VORBIS", "vorbis,aac,mp3,ac3,opus,flac"),
+        ("UNKNOWN", "aac,mp3,ac3,opus,flac,vorbis"),
+    ],
+)
+def test_get_transcoding_audio_codec(play_utils, preferred_codec, expected_result):
+    playutils.settings("audioPreferredCodec", preferred_codec)
+    result = play_utils.get_transcoding_audio_codec()
+    assert result == expected_result
+
+
+def test_get_transcoding_audio_codec_case_insensitive(play_utils):
+    playutils.settings("audioPreferredCodec", "aAc")
+    result = play_utils.get_transcoding_audio_codec()
+    assert result == "aac,mp3,ac3,opus,flac,vorbis"
+
+
+def test_get_transcoding_audio_codec_no_duplicates(play_utils):
+    result = play_utils.get_transcoding_audio_codec().split(",")
+    assert len(result) == len(set(result))
+
+
+def test_get_transcoding_audio_codec_preserve_order(play_utils):
+    playutils.settings("audioPreferredCodec", "")
+    result = play_utils.get_transcoding_audio_codec()
+    assert result == "aac,mp3,ac3,opus,flac,vorbis"