This disclosure relates generally to a system and method for auto-generation of test specifications from internet of things (IoT) solution specifications of IoT-enabled components of an IoT network. Testing is the complementary and most important part of any IoT network. Herein, a domain specific language (DSL) is used to specify capability of IoT enabled components. IoT solution specifications are captured from capabilities of IoT enabled components using a predefined activity DSL. A flow of activity is captured to assert transitions among one or more activities based on guard conditions. The flow of activity is analyzed to generate test specifications automatically using a Test Specification DSL based on the asserted transitions. The test specifications are implemented automatically in a predefined target language corresponding to the IoT enabled components.