diff --git a/src/primaite/game/agent/observations/host_observations.py b/src/primaite/game/agent/observations/host_observations.py
index c05b493a..da054eda 100644
--- a/src/primaite/game/agent/observations/host_observations.py
+++ b/src/primaite/game/agent/observations/host_observations.py
@@ -284,7 +284,7 @@ class HostObservation(AbstractObservation, identifier="HOST"):
         for service_config in config.services:
             service_config.services_requires_scan = config.services_requires_scan
         for application_config in config.applications:
-            application_config.application_config_requires_scan = config.application_config_requires_scan
+            application_config.applications_requires_scan = config.applications_requires_scan
 
         services = [ServiceObservation.from_config(config=c, parent_where=where) for c in config.services]
         applications = [ApplicationObservation.from_config(config=c, parent_where=where) for c in config.applications]
diff --git a/tests/unit_tests/_primaite/_game/_agent/test_observations.py b/tests/unit_tests/_primaite/_game/_agent/test_observations.py
index 912b672e..935bbdcf 100644
--- a/tests/unit_tests/_primaite/_game/_agent/test_observations.py
+++ b/tests/unit_tests/_primaite/_game/_agent/test_observations.py
@@ -5,7 +5,7 @@ from typing import List
 import pytest
 import yaml
 
-from primaite.game.agent.observations import ObservationManager, ServiceObservation
+from primaite.game.agent.observations import ApplicationObservation, ObservationManager, ServiceObservation
 from primaite.game.agent.observations.file_system_observations import FileObservation, FolderObservation
 from primaite.game.agent.observations.host_observations import HostObservation
 
@@ -133,7 +133,7 @@ class TestFileSystemRequiresScan:
         assert obs_not_requiring_scan.observe(folder_state)["health_status"] == 3
 
 
-class TestServiceRequiresScan:
+class TestServicesRequiresScan:
     @pytest.mark.parametrize(
         ("yaml_option_string", "expected_val"),
         (
@@ -243,3 +243,115 @@ class TestServiceRequiresScan:
 
         obs_not_requiring_scan = ServiceObservation([], services_requires_scan=False)
         assert obs_not_requiring_scan.observe(state)["health_status"] == 3  # should be actual value
+
+
+class TestApplicationsRequiresScan:
+    @pytest.mark.parametrize(
+        ("yaml_option_string", "expected_val"),
+        (
+            ("applications_requires_scan: true", True),
+            ("applications_requires_scan: false", False),
+            (" ", True),
+        ),
+    )
+    def test_obs_config(self, yaml_option_string, expected_val):
+        """Check that the default behaviour is to set applications_requires_scan to True."""
+        obs_cfg_yaml = f"""
+      type: CUSTOM
+      options:
+        components:
+          - type: NODES
+            label: NODES
+            options:
+              hosts:
+                - hostname: domain_controller
+                - hostname: web_server
+                - hostname: database_server
+                  folders:
+                    - folder_name: database
+                      files:
+                      - file_name: database.db
+                - hostname: backup_server
+                - hostname: security_suite
+                - hostname: client_1
+                  applications:
+                    - application_name: WebBrowser
+                - hostname: client_2
+                  applications:
+                    - application_name: WebBrowser
+                    - application_name: DatabaseClient
+              num_services: 0
+              num_applications: 3
+              num_folders: 1
+              num_files: 1
+              num_nics: 2
+              include_num_access: false
+              {yaml_option_string}
+              include_nmne: true
+              monitored_traffic:
+                icmp:
+                    - NONE
+                tcp:
+                    - DNS
+              routers:
+                - hostname: router_1
+              num_ports: 0
+              ip_list:
+                - 192.168.1.10
+                - 192.168.1.12
+                - 192.168.1.14
+                - 192.168.1.16
+                - 192.168.1.110
+                - 192.168.10.21
+                - 192.168.10.22
+                - 192.168.10.110
+              wildcard_list:
+                - 0.0.0.1
+              port_list:
+                - 80
+                - 5432
+              protocol_list:
+                - ICMP
+                - TCP
+                - UDP
+              num_rules: 10
+
+          - type: LINKS
+            label: LINKS
+            options:
+              link_references:
+                - router_1:eth-1<->switch_1:eth-8
+                - router_1:eth-2<->switch_2:eth-8
+                - switch_1:eth-1<->domain_controller:eth-1
+                - switch_1:eth-2<->web_server:eth-1
+                - switch_1:eth-3<->database_server:eth-1
+                - switch_1:eth-4<->backup_server:eth-1
+                - switch_1:eth-7<->security_suite:eth-1
+                - switch_2:eth-1<->client_1:eth-1
+                - switch_2:eth-2<->client_2:eth-1
+                - switch_2:eth-7<->security_suite:eth-2
+          - type: "NONE"
+            label: ICS
+            options: {{}}
+
+        """
+
+        cfg = yaml.safe_load(obs_cfg_yaml)
+        manager = ObservationManager.from_config(cfg)
+
+        hosts: List[HostObservation] = manager.obs.components["NODES"].hosts
+        for i, host in enumerate(hosts):
+            services: List[ServiceObservation] = host.services
+            for j, service in enumerate(services):
+                val = service.services_requires_scan
+                print(f"host {i} service {j} {val}")
+                assert val == expected_val  # Make sure applications require scan by default
+
+    def test_applications_requires_scan(self):
+        state = {"health_state_actual": 3, "health_state_visible": 1, "operating_state": 1, "num_executions": 1}
+
+        obs_requiring_scan = ApplicationObservation([], applications_requires_scan=True)
+        assert obs_requiring_scan.observe(state)["health_status"] == 1  # should be visible value
+
+        obs_not_requiring_scan = ApplicationObservation([], applications_requires_scan=False)
+        assert obs_not_requiring_scan.observe(state)["health_status"] == 3  # should be actual value