diff --git a/hscontrol/policy/route_approval_test.go b/hscontrol/policy/route_approval_test.go
new file mode 100644
index 00000000..90d5f98e
--- /dev/null
+++ b/hscontrol/policy/route_approval_test.go
@@ -0,0 +1,809 @@
+package policy
+
+import (
+	"fmt"
+	"net/netip"
+	"testing"
+
+	"github.com/google/go-cmp/cmp"
+	"github.com/juanfont/headscale/hscontrol/types"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	"gorm.io/gorm"
+)
+
+func TestNodeCanApproveRoute(t *testing.T) {
+	users := []types.User{
+		{Name: "user1", Model: gorm.Model{ID: 1}},
+		{Name: "user2", Model: gorm.Model{ID: 2}},
+		{Name: "user3", Model: gorm.Model{ID: 3}},
+	}
+
+	// Create standard node setups used across tests
+	normalNode := types.Node{
+		ID:       1,
+		Hostname: "user1-device",
+		IPv4:     ap("100.64.0.1"),
+		UserID:   1,
+		User:     users[0],
+	}
+
+	exitNode := types.Node{
+		ID:       2,
+		Hostname: "user2-device",
+		IPv4:     ap("100.64.0.2"),
+		UserID:   2,
+		User:     users[1],
+	}
+
+	taggedNode := types.Node{
+		ID:         3,
+		Hostname:   "tagged-server",
+		IPv4:       ap("100.64.0.3"),
+		UserID:     3,
+		User:       users[2],
+		ForcedTags: []string{"tag:router"},
+	}
+
+	multiTagNode := types.Node{
+		ID:         4,
+		Hostname:   "multi-tag-node",
+		IPv4:       ap("100.64.0.4"),
+		UserID:     2,
+		User:       users[1],
+		ForcedTags: []string{"tag:router", "tag:server"},
+	}
+
+	tests := []struct {
+		name       string
+		node       types.Node
+		route      netip.Prefix
+		policy     string
+		canApprove bool
+		skipV1     bool
+	}{
+		{
+			name:  "allow-all-routes-for-admin-user",
+			node:  normalNode,
+			route: p("192.168.1.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"192.168.0.0/16": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "deny-route-that-doesnt-match-autoApprovers",
+			node:  normalNode,
+			route: p("10.0.0.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"192.168.0.0/16": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "user-not-in-group",
+			node:  exitNode,
+			route: p("192.168.1.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"192.168.0.0/16": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "tagged-node-can-approve",
+			node:  taggedNode,
+			route: p("10.0.0.0/8"),
+			policy: `{
+				"tagOwners": {
+					"tag:router": ["user3@"]
+				},
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"10.0.0.0/8": ["tag:router"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "multiple-routes-in-policy",
+			node:  normalNode,
+			route: p("172.16.10.0/24"),
+			policy: `{
+				"tagOwners": {
+					"tag:router": ["user3@"]
+				},
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"192.168.0.0/16": ["group:admin"],
+						"172.16.0.0/12": ["group:admin"],
+						"10.0.0.0/8": ["tag:router"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "match-specific-route-within-range",
+			node:  normalNode,
+			route: p("192.168.5.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"192.168.0.0/16": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "ip-address-within-range",
+			node:  normalNode,
+			route: p("192.168.1.5/32"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"192.168.1.0/24": ["group:admin"],
+						"192.168.1.128/25": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "all-IPv4-routes-(0.0.0.0/0)-approval",
+			node:  normalNode,
+			route: p("0.0.0.0/0"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"0.0.0.0/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "all-IPv4-routes-exitnode-approval",
+			node:  normalNode,
+			route: p("0.0.0.0/0"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"exitNode": ["group:admin"]
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "all-IPv6-routes-exitnode-approval",
+			node:  normalNode,
+			route: p("::/0"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"exitNode": ["group:admin"]
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "specific-IPv4-route-with-exitnode-only-approval",
+			node:  normalNode,
+			route: p("192.168.1.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"exitNode": ["group:admin"]
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "specific-IPv6-route-with-exitnode-only-approval",
+			node:  normalNode,
+			route: p("fd00::/8"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"exitNode": ["group:admin"]
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "specific-IPv4-route-with-all-routes-policy",
+			node:  normalNode,
+			route: p("10.0.0.0/8"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"0.0.0.0/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "all-IPv6-routes-(::0/0)-approval",
+			node:  normalNode,
+			route: p("::/0"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"::/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "specific-IPv6-route-with-all-routes-policy",
+			node:  normalNode,
+			route: p("fd00::/8"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"::/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "IPv6-route-with-IPv4-all-routes-policy",
+			node:  normalNode,
+			route: p("fd00::/8"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"0.0.0.0/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "IPv4-route-with-IPv6-all-routes-policy",
+			node:  normalNode,
+			route: p("10.0.0.0/8"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"::/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "both-IPv4-and-IPv6-all-routes-policy",
+			node:  normalNode,
+			route: p("192.168.1.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"0.0.0.0/0": ["group:admin"],
+						"::/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "ip-address-with-all-routes-policy",
+			node:  normalNode,
+			route: p("192.168.101.5/32"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"0.0.0.0/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "specific-IPv6-host-route-with-all-routes-policy",
+			node:  normalNode,
+			route: p("2001:db8::1/128"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"::/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "multiple-groups-allowed-to-approve-same-route",
+			node:  normalNode,
+			route: p("192.168.1.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"],
+					"group:netadmin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"192.168.1.0/24": ["group:admin", "group:netadmin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "overlapping-routes-with-different-groups",
+			node:  normalNode,
+			route: p("192.168.1.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"],
+					"group:restricted": ["user2@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"192.168.0.0/16": ["group:restricted"],
+						"192.168.1.0/24": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "unique-local-IPv6-address-with-all-routes-policy",
+			node:  normalNode,
+			route: p("fc00::/7"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"::/0": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "exact-prefix-match-in-policy",
+			node:  normalNode,
+			route: p("203.0.113.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"203.0.113.0/24": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "narrower-range-than-policy",
+			node:  normalNode,
+			route: p("203.0.113.0/26"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"203.0.113.0/24": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "wider-range-than-policy-should-fail",
+			node:  normalNode,
+			route: p("203.0.113.0/23"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"203.0.113.0/24": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "adjacent-route-to-policy-route-should-fail",
+			node:  normalNode,
+			route: p("203.0.114.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"203.0.113.0/24": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "combined-routes-and-exitnode-approvers-specific-route",
+			node:  normalNode,
+			route: p("192.168.1.0/24"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"exitNode": ["group:admin"],
+					"routes": {
+						"192.168.1.0/24": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "partly-overlapping-route-with-policy-should-fail",
+			node:  normalNode,
+			route: p("203.0.113.128/23"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"203.0.113.0/24": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "multiple-routes-with-aggregatable-ranges",
+			node:  normalNode,
+			route: p("10.0.0.0/8"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"10.0.0.0/9": ["group:admin"],
+						"10.128.0.0/9": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "non-standard-IPv6-notation",
+			node:  normalNode,
+			route: p("2001:db8::1/128"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"2001:db8::/32": ["group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "node-with-multiple-tags-all-required",
+			node:  multiTagNode,
+			route: p("10.10.0.0/16"),
+			policy: `{
+				"tagOwners": {
+					"tag:router": ["user2@"],
+					"tag:server": ["user2@"]
+				},
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"10.10.0.0/16": ["tag:router", "tag:server"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "node-with-multiple-tags-one-matching-is-sufficient",
+			node:  multiTagNode,
+			route: p("10.10.0.0/16"),
+			policy: `{
+				"tagOwners": {
+					"tag:router": ["user2@"],
+					"tag:server": ["user2@"]
+				},
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"10.10.0.0/16": ["tag:router", "group:admin"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "node-with-multiple-tags-missing-required-tag",
+			node:  multiTagNode,
+			route: p("10.10.0.0/16"),
+			policy: `{
+				"tagOwners": {
+				    "tag:othertag": ["user1@"]
+				},
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"10.10.0.0/16": ["tag:othertag"]
+					}
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "node-with-tag-and-group-membership",
+			node:  normalNode,
+			route: p("10.20.0.0/16"),
+			policy: `{
+				"tagOwners": {
+					"tag:router": ["user3@"]
+				},
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"routes": {
+						"10.20.0.0/16": ["group:admin", "tag:router"]
+					}
+				}
+			}`,
+			canApprove: true,
+		},
+		{
+			name:  "small-subnet-with-exitnode-only-approval",
+			node:  normalNode,
+			route: p("192.168.1.1/32"),
+			policy: `{
+				"groups": {
+					"group:admin": ["user1@"]
+				},
+				"acls": [
+					{"action": "accept", "src": ["group:admin"], "dst": ["*:*"]}
+				],
+				"autoApprovers": {
+					"exitNode": ["group:admin"]
+				}
+			}`,
+			canApprove: false,
+		},
+		{
+			name:  "empty-policy",
+			node:  normalNode,
+			route: p("192.168.1.0/24"),
+			policy: `{"acls":[{"action":"accept","src":["*"],"dst":["*:*"]}]}`,
+			canApprove: false,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			// Initialize all policy manager implementations
+			policyManagers, err := PolicyManagersForTest([]byte(tt.policy), users, types.Nodes{&tt.node})
+			if tt.name == "empty policy" {
+				// We expect this one to have a valid but empty policy
+				require.NoError(t, err)
+				if err != nil {
+					return
+				}
+			} else {
+				require.NoError(t, err)
+			}
+
+			for i, pm := range policyManagers {
+				versionNum := i + 1
+				if versionNum == 1 && tt.skipV1 {
+					// Skip V1 policy manager for specific tests
+					continue
+				}
+
+				t.Run(fmt.Sprintf("PolicyV%d", versionNum), func(t *testing.T) {
+					result := pm.NodeCanApproveRoute(&tt.node, tt.route)
+
+					if diff := cmp.Diff(tt.canApprove, result); diff != "" {
+						t.Errorf("NodeCanApproveRoute() mismatch (-want +got):\n%s", diff)
+					}
+					assert.Equal(t, tt.canApprove, result, "Unexpected route approval result")
+				})
+			}
+		})
+	}
+}