diff --git a/lib/core/src/lib/pipes/time-ago.pipe.spec.ts b/lib/core/src/lib/pipes/time-ago.pipe.spec.ts
index f08c384bff..94afe2f9ed 100644
--- a/lib/core/src/lib/pipes/time-ago.pipe.spec.ts
+++ b/lib/core/src/lib/pipes/time-ago.pipe.spec.ts
@@ -15,47 +15,244 @@
  * limitations under the License.
  */
 
-import { TimeAgoPipe } from './time-ago.pipe';
+import { DatePipe, registerLocaleData } from '@angular/common';
+import localeDe from '@angular/common/locales/de';
+import localeDeExtra from '@angular/common/locales/extra/de';
 import { TestBed } from '@angular/core/testing';
-import { AppConfigService } from '../app-config/app-config.service';
+import { formatDistance } from 'date-fns';
 import { UserPreferencesService } from '../common/services/user-preferences.service';
-import { of } from 'rxjs';
+import { DateFnsUtils } from '../common/utils/date-fns-utils';
+import { TimeAgoPipe } from './time-ago.pipe';
+import { AppConfigService } from '../app-config';
+
+registerLocaleData(localeDe, 'de', localeDeExtra);
 
 describe('TimeAgoPipe', () => {
-    let pipe: TimeAgoPipe;
-    let userPreferences: UserPreferencesService;
+    const NOW = new Date('2026-03-27T12:00:00.000Z');
 
-    beforeEach(() => {
+    const createPipe = (dateFormat, locale): TimeAgoPipe => {
+        TestBed.resetTestingModule();
         TestBed.configureTestingModule({
-            providers: [TimeAgoPipe, UserPreferencesService, AppConfigService]
+            providers: [
+                TimeAgoPipe,
+                {
+                    provide: UserPreferencesService,
+                    useValue: {
+                        localeSignal: jasmine.createSpy('localeSignal').and.returnValue(locale)
+                    }
+                },
+                {
+                    provide: AppConfigService,
+                    useValue: {
+                        get: jasmine.createSpy('get').and.returnValue(dateFormat)
+                    }
+                }
+            ]
         });
 
-        userPreferences = TestBed.inject(UserPreferencesService);
-        spyOn(userPreferences, 'select').and.returnValue(of(''));
-        pipe = TestBed.inject(TimeAgoPipe);
+        const newPipe = TestBed.inject(TimeAgoPipe);
+        spyOn(newPipe, 'getCurrentDateTime').and.returnValue(NOW);
+
+        return newPipe;
+    };
+
+    describe('AppConfigService returns "MMM d, y, h:mm" and locale="en-US" ', () => {
+        let pipe: TimeAgoPipe;
+        beforeEach(() => {
+            pipe = createPipe('MMM d, y, h:mm', 'en-US');
+        });
+        it('should return time difference for a given date', () => {
+            const date = pipe.getCurrentDateTime();
+            expect(pipe.transform(date)).toBe('less than a minute ago');
+        });
+
+        it('should return exact date if given date is more than seven days for en locale ', () => {
+            const date = new Date('1990-11-02T15:25:42.749');
+            expect(pipe.transform(date)).toBe('Nov 2, 1990, 3:25');
+        });
+
+        it('should return empty string if given date is empty', () => {
+            expect(pipe.transform(null)).toBe('');
+            expect(pipe.transform(undefined)).toBe('');
+        });
+
+        it('should return relative distance when date is a few hours ago', () => {
+            const threeHoursAgo = new Date('2026-03-27T09:00:00.000Z');
+
+            const result = pipe.transform(threeHoursAgo);
+
+            const expected = formatDistance(threeHoursAgo, NOW, {
+                addSuffix: true,
+                locale: DateFnsUtils.getLocaleFromString('en-US')
+            });
+            expect(result).toBe(expected);
+        });
+        it('should return relative distance when date is 6 days ago', () => {
+            const sixDaysAgo = new Date('2026-03-21T12:00:00.000Z');
+
+            const result = pipe.transform(sixDaysAgo);
+
+            const expected = formatDistance(sixDaysAgo, NOW, {
+                addSuffix: true,
+                locale: DateFnsUtils.getLocaleFromString('en-US')
+            });
+            expect(result).toBe(expected);
+        });
+        it('should return relative distance when date is exactly 7 days ago', () => {
+            const sevenDaysAgo = new Date('2026-03-20T12:00:00.000Z');
+
+            const result = pipe.transform(sevenDaysAgo);
+
+            const expected = formatDistance(sevenDaysAgo, NOW, {
+                addSuffix: true,
+                locale: DateFnsUtils.getLocaleFromString('en-US')
+            });
+            expect(result).toBe(expected);
+        });
+
+        it('should use locale argument over user preference locale', () => {
+            const oldDate = new Date('2026-03-01T10:00:00.000Z');
+            const result = pipe.transform(oldDate, 'de');
+
+            expect(result).toBe('März 1, 2026, 10:00');
+        });
     });
 
-    it('should return time difference for a given date', () => {
-        const date = new Date();
-        expect(pipe.transform(date)).toBe('less than a minute ago');
+    describe('AppConfigService return "MMM d, y, h:mm" and locale="de" ', () => {
+        let pipe: TimeAgoPipe;
+        beforeEach(() => {
+            pipe = createPipe('MMM d, y, h:mm', 'de');
+        });
+        it('should return time difference for a given date', () => {
+            const date = pipe.getCurrentDateTime();
+            expect(pipe.transform(date)).toBe('vor weniger als 1 Minute');
+        });
+
+        it('should return exact date if given date is more than seven days for de locale ', () => {
+            const date = new Date('1990-11-03T15:25:42.749');
+            expect(pipe.transform(date)).toBe('Nov. 3, 1990, 3:25');
+        });
+
+        it('should return empty string if given date is empty', () => {
+            expect(pipe.transform(null)).toBe('');
+            expect(pipe.transform(undefined)).toBe('');
+        });
+
+        it('should return relative distance when date is a few hours ago', () => {
+            const threeHoursAgo = new Date('2026-03-27T09:00:00.000Z');
+            const result = pipe.transform(threeHoursAgo);
+            const expected = formatDistance(threeHoursAgo, NOW, {
+                addSuffix: true,
+                locale: DateFnsUtils.getLocaleFromString('de')
+            });
+            expect(result).toBe(expected);
+        });
+        it('should return relative distance when date is 6 days ago', () => {
+            const sixDaysAgo = new Date('2026-03-21T12:00:00.000Z');
+            const result = pipe.transform(sixDaysAgo);
+            const expected = formatDistance(sixDaysAgo, NOW, {
+                addSuffix: true,
+                locale: DateFnsUtils.getLocaleFromString('de')
+            });
+            expect(result).toBe(expected);
+        });
+        it('should return relative distance when date is exactly 7 days ago', () => {
+            const sevenDaysAgo = new Date('2026-03-20T12:00:00.000Z');
+            const result = pipe.transform(sevenDaysAgo);
+            const expected = formatDistance(sevenDaysAgo, NOW, {
+                addSuffix: true,
+                locale: DateFnsUtils.getLocaleFromString('de')
+            });
+
+            expect(result).toBe(expected);
+        });
+
+        it('should use locale argument over user preference locale', () => {
+            const oldDate = new Date('2026-03-01T10:00:00.000Z');
+            const result = pipe.transform(oldDate, 'en-US');
+
+            expect(result).toBe('Mar 1, 2026, 10:00');
+        });
     });
 
-    it('should return exact date if given date is more than seven days ', () => {
-        const date = new Date('1990-11-03T15:25:42.749');
-        expect(pipe.transform(date)).toBe('03/11/1990 15:25');
+    describe('AppConfigService has no value and returns default short and locale="en-US" ', () => {
+        let pipe: TimeAgoPipe;
+        beforeEach(() => {
+            pipe = createPipe('short', 'en-US');
+        });
+        it('should return time difference for a given date', () => {
+            const date = pipe.getCurrentDateTime();
+            expect(pipe.transform(date)).toBe('less than a minute ago');
+        });
+
+        it('should return exact date if given date is more than seven days for en locale ', () => {
+            const date = new Date('1990-11-04T15:25:42.749');
+
+            expect(pipe.transform(date)).toBe('11/4/90, 3:25 PM');
+        });
+
+        it('should return empty string if given date is empty', () => {
+            expect(pipe.transform(null)).toBe('');
+            expect(pipe.transform(undefined)).toBe('');
+        });
+
+        it('should use locale argument over user preference locale', () => {
+            const oldDate = new Date('2026-03-01T10:00:00.000Z');
+            const result = pipe.transform(oldDate, 'de');
+
+            expect(result).toBe('01.03.26, 10:00');
+        });
     });
 
-    it('should return empty string if given date is empty', () => {
-        expect(pipe.transform(null)).toBe('');
-        expect(pipe.transform(undefined)).toBe('');
+    describe('AppConfigService has no value and returns default short and locale="de" ', () => {
+        let pipe: TimeAgoPipe;
+        beforeEach(() => {
+            pipe = createPipe('short', 'de');
+        });
+        it('should return time difference for a given date', () => {
+            const date = pipe.getCurrentDateTime();
+            expect(pipe.transform(date)).toBe('vor weniger als 1 Minute');
+        });
+
+        it('should return exact date if given date is more than seven days for de locale ', () => {
+            const date = new Date('1990-11-04T15:25:42.749');
+            expect(pipe.transform(date)).toBe('04.11.90, 15:25');
+        });
+
+        it('should return empty string if given date is empty', () => {
+            expect(pipe.transform(null)).toBe('');
+            expect(pipe.transform(undefined)).toBe('');
+        });
+
+        it('should use locale argument over user preference locale', () => {
+            const oldDate = new Date('2026-03-01T10:00:00.000Z');
+            const result = pipe.transform(oldDate, 'en-US');
+
+            expect(result).toBe('3/1/26, 10:00 AM');
+        });
     });
 
-    describe('When a locale is given', () => {
-        it('should return a localised message', () => {
-            const date = new Date();
-            const transformedDate = pipe.transform(date, 'de');
-            /* cspell:disable-next-line */
-            expect(transformedDate).toBe('vor weniger als 1 Minute');
+    describe('locale handling', () => {
+        let pipe: TimeAgoPipe;
+        beforeEach(() => {
+            pipe = createPipe('short', undefined);
+        });
+        it('should return localized relative message when locale argument is provided', () => {
+            const date = new Date(NOW);
+            const result = pipe.transform(date, 'de');
+            const expected = formatDistance(date, NOW, {
+                addSuffix: true,
+                locale: DateFnsUtils.getLocaleFromString('de')
+            });
+            expect(result).toBe(expected);
+        });
+
+        it('should fall back to DEFAULT_LOCALE when user preference locale is empty', () => {
+            const oldDate = new Date('2026-03-01T10:00:00.000Z');
+            const result = pipe.transform(oldDate);
+            const expected = new DatePipe('en-US').transform(oldDate, 'short');
+
+            expect(result).toBe(expected);
         });
     });
 });
diff --git a/lib/core/src/lib/pipes/time-ago.pipe.ts b/lib/core/src/lib/pipes/time-ago.pipe.ts
index ee3850c639..f572af6d99 100644
--- a/lib/core/src/lib/pipes/time-ago.pipe.ts
+++ b/lib/core/src/lib/pipes/time-ago.pipe.ts
@@ -32,7 +32,7 @@ export class TimeAgoPipe implements PipeTransform {
     appConfig = inject(AppConfigService);
 
     static DEFAULT_LOCALE = 'en-US';
-    static DEFAULT_DATE_TIME_FORMAT = 'dd/MM/yyyy HH:mm';
+    static DEFAULT_DATE_TIME_FORMAT = 'short';
 
     defaultDateTimeFormat: string;
 
@@ -40,18 +40,22 @@ export class TimeAgoPipe implements PipeTransform {
         this.defaultDateTimeFormat = this.appConfig.get<string>('dateValues.defaultDateTimeFormat', TimeAgoPipe.DEFAULT_DATE_TIME_FORMAT);
     }
 
+    getCurrentDateTime(): Date {
+        return new Date();
+    }
+
     transform(value: Date, locale?: string) {
         if (value !== null && value !== undefined) {
             // Use signal directly - no subscription needed!
             const defaultLocale = this.userPreferenceService.localeSignal() || TimeAgoPipe.DEFAULT_LOCALE;
             const actualLocale = locale || defaultLocale;
-            const diff = differenceInDays(new Date(), new Date(value));
+            const diff = differenceInDays(this.getCurrentDateTime(), new Date(value));
             if (diff > 7) {
                 const datePipe: DatePipe = new DatePipe(actualLocale);
                 return datePipe.transform(value, this.defaultDateTimeFormat);
             } else {
                 const dateFnsLocale = DateFnsUtils.getLocaleFromString(actualLocale);
-                return formatDistance(new Date(value), new Date(), { addSuffix: true, locale: dateFnsLocale });
+                return formatDistance(new Date(value), this.getCurrentDateTime(), { addSuffix: true, locale: dateFnsLocale });
             }
         }
         return '';