diff --git a/app/components/channel_link/__snapshots__/channel_link.test.js.snap b/app/components/channel_link/__snapshots__/channel_link.test.js.snap
new file mode 100644
index 000000000..56727ab3f
--- /dev/null
+++ b/app/components/channel_link/__snapshots__/channel_link.test.js.snap
@@ -0,0 +1,25 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`ChannelLink should match snapshot 1`] = `
+<Component
+  style={
+    Object {
+      "color": "#3d3c40",
+      "fontSize": 15,
+      "lineHeight": 20,
+    }
+  }
+>
+  <Component
+    onPress={[Function]}
+    style={
+      Object {
+        "color": "#2389d7",
+      }
+    }
+  >
+    ~First Channel
+  </Component>
+  
+</Component>
+`;
diff --git a/app/components/channel_link/channel_link.js b/app/components/channel_link/channel_link.js
index f06dfc600..839c0330b 100644
--- a/app/components/channel_link/channel_link.js
+++ b/app/components/channel_link/channel_link.js
@@ -5,6 +5,8 @@ import React from 'react';
 import PropTypes from 'prop-types';
 import {Text} from 'react-native';
 
+import {getChannelFromChannelName} from './channel_link_utils';
+
 import CustomPropTypes from 'app/constants/custom_prop_types';
 
 export default class ChannelLink extends React.PureComponent {
@@ -24,32 +26,14 @@ export default class ChannelLink extends React.PureComponent {
         super(props);
 
         this.state = {
-            channel: this.getChannelFromChannelName(props),
+            channel: getChannelFromChannelName(props.channelName, props.channelsByName),
         };
     }
 
-    componentWillReceiveProps(nextProps) {
-        if (nextProps.channelName !== this.props.channelName || nextProps.channelsByName !== this.props.channelsByName) {
-            this.setState({
-                channel: this.getChannelFromChannelName(nextProps),
-            });
-        }
-    }
-
-    getChannelFromChannelName(props) {
-        let channelName = props.channelName;
-
-        while (channelName.length > 0) {
-            if (props.channelsByName[channelName]) {
-                return props.channelsByName[channelName];
-            }
-
-            // Repeatedly trim off trailing punctuation in case this is at the end of a sentence
-            if ((/[_-]$/).test(channelName)) {
-                channelName = channelName.substring(0, channelName.length - 1);
-            } else {
-                break;
-            }
+    static getDerivedStateFromProps(nextProps, prevState) {
+        const nextChannel = getChannelFromChannelName(nextProps.channelName, nextProps.channelsByName);
+        if (nextChannel !== prevState.channel) {
+            return {channel: nextChannel};
         }
 
         return null;
diff --git a/app/components/channel_link/channel_link.test.js b/app/components/channel_link/channel_link.test.js
new file mode 100644
index 000000000..7d1732646
--- /dev/null
+++ b/app/components/channel_link/channel_link.test.js
@@ -0,0 +1,75 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import React from 'react';
+import {shallow} from 'enzyme';
+import {Text} from 'react-native';
+
+import ChannelLink from './channel_link';
+
+describe('ChannelLink', () => {
+    const channelsByName = {
+        firstChannel: {id: 'channel_id_1', name: 'firstChannel', display_name: 'First Channel'},
+        secondChannel: {id: 'channel_id_2', name: 'secondChannel', display_name: 'Second Channel'},
+    };
+    const baseProps = {
+        channelName: 'firstChannel',
+        linkStyle: {color: '#2389d7'},
+        onChannelLinkPress: jest.fn(),
+        textStyle: {color: '#3d3c40', fontSize: 15, lineHeight: 20},
+        channelsByName,
+        actions: {
+            handleSelectChannel: jest.fn(),
+            setChannelDisplayName: jest.fn(),
+        },
+    };
+
+    test('should match snapshot', () => {
+        const wrapper = shallow(
+            <ChannelLink {...baseProps}/>
+        );
+
+        expect(wrapper.getElement()).toMatchSnapshot();
+        expect(wrapper.find(Text).length).toBe(2);
+
+        // inner text with highlight
+        let innerText = wrapper.find(Text).last();
+        expect(innerText.props().onPress).toBeDefined();
+        expect(innerText.props().style.color).toBe('#2389d7');
+        expect(innerText.props().children).toContain(channelsByName.firstChannel.display_name);
+
+        // text for channel name with punctuation
+        const punctuation = '-_';
+        wrapper.setProps({channelName: baseProps.channelName + punctuation});
+        expect(wrapper.find(Text).length).toBe(2);
+        innerText = wrapper.find(Text).last();
+        const outerText = wrapper.find(Text).first();
+        expect(innerText.props().onPress).toBeDefined();
+        expect(innerText.props().children).toContain(channelsByName.firstChannel.display_name);
+        expect(outerText.props().children).toContain(punctuation);
+
+        // text for not found channel
+        const notFoundChannel = 'notFoundChannel';
+        wrapper.setProps({channelName: notFoundChannel});
+        expect(wrapper.find(Text).length).toBe(1);
+        innerText = wrapper.find(Text).first();
+        expect(innerText.props().children).toContain(notFoundChannel);
+        expect(innerText.props().onPress).not.toBeDefined();
+    });
+
+    test('should call props.actions and onChannelLinkPress on handlePress', () => {
+        const wrapper = shallow(
+            <ChannelLink {...baseProps}/>
+        );
+
+        const channel = channelsByName.firstChannel;
+        wrapper.setState({channel});
+        wrapper.instance().handlePress();
+        expect(baseProps.actions.handleSelectChannel).toHaveBeenCalledTimes(1);
+        expect(baseProps.actions.handleSelectChannel).toBeCalledWith(channel.id);
+        expect(baseProps.actions.setChannelDisplayName).toHaveBeenCalledTimes(1);
+        expect(baseProps.actions.setChannelDisplayName).toBeCalledWith(channel.display_name);
+        expect(baseProps.onChannelLinkPress).toHaveBeenCalledTimes(1);
+        expect(baseProps.onChannelLinkPress).toBeCalledWith(channel);
+    });
+});
diff --git a/app/components/channel_link/channel_link_utils.js b/app/components/channel_link/channel_link_utils.js
new file mode 100644
index 000000000..1d71e57d4
--- /dev/null
+++ b/app/components/channel_link/channel_link_utils.js
@@ -0,0 +1,21 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+export function getChannelFromChannelName(name, channelsByName) {
+    let channelName = name;
+
+    while (channelName.length > 0) {
+        if (channelsByName[channelName]) {
+            return channelsByName[channelName];
+        }
+
+        // Repeatedly trim off trailing punctuation in case this is at the end of a sentence
+        if ((/[_-]$/).test(channelName)) {
+            channelName = channelName.substring(0, channelName.length - 1);
+        } else {
+            break;
+        }
+    }
+
+    return null;
+}
diff --git a/app/components/channel_link/channel_link_utils.test.js b/app/components/channel_link/channel_link_utils.test.js
new file mode 100644
index 000000000..b70a08359
--- /dev/null
+++ b/app/components/channel_link/channel_link_utils.test.js
@@ -0,0 +1,46 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import {getChannelFromChannelName} from './channel_link_utils';
+
+describe('should match return value on getChannelFromChannelName', () => {
+    const channelsByName = {
+        firstChannel: {id: 'channel_id_1', name: 'firstChannel', display_name: 'First Channel'},
+        secondChannel: {id: 'channel_id_2', name: 'secondChannel', display_name: 'Second Channel'},
+    };
+
+    const testCases = [
+        {
+            name: 'regular mention',
+            input: {channelName: 'firstChannel', channelsByName},
+            output: channelsByName.firstChannel,
+        },
+        {
+            name: 'another mention',
+            input: {channelName: 'secondChannel', channelsByName},
+            output: channelsByName.secondChannel,
+        },
+        {
+            name: 'channel mention with trailing punctuation',
+            input: {channelName: 'firstChannel-', channelsByName},
+            output: channelsByName.firstChannel,
+        },
+        {
+            name: 'channel mention with trailing punctuations',
+            input: {channelName: 'firstChannel-_', channelsByName},
+            output: channelsByName.firstChannel,
+        },
+        {
+            name: 'channel mention not found in channelsByName',
+            input: {channelName: 'otherChannel', channelsByName},
+            output: null,
+        },
+    ];
+
+    for (const testCase of testCases) {
+        const {name, input, output} = testCase;
+        test(name, () => {
+            expect(getChannelFromChannelName(input.channelName, input.channelsByName)).toEqual(output);
+        });
+    }
+});