diff --git a/payu/envmod.py b/payu/envmod.py
index cfa13e13..2b7c98f3 100644
--- a/payu/envmod.py
+++ b/payu/envmod.py
@@ -159,24 +159,8 @@ def setup_user_modules(user_modules, user_modulepaths):
     previous_path = os.environ.get('PATH', '')
 
     for modulefile in user_modules:
-        # Check module exists and there is not multiple available
-        output = run_module_cmd("avail --terse", modulefile).stderr
-
-        # Extract out the modulefiles available - strip out lines like:
-        # /apps/Modules/modulefiles:
-        modules = [line for line in output.strip().splitlines()
-                   if not (line.startswith('/') and line.endswith(':'))]
-
-        # Modules are used for finding model executable paths - so check
-        # for unique module
-        if len(modules) > 1:
-            raise ValueError(
-                f"There are multiple modules available for {modulefile}:\n" +
-                f"{output}\n{MULTIPLE_MODULES_HELP}")
-        elif len(modules) == 0:
-            raise ValueError(
-                f"Module is not found: {modulefile}\n{MODULE_NOT_FOUND_HELP}"
-            )
+        # Check modulefile exists and is unique or has an exact match
+        check_modulefile(modulefile)
 
         # Load module
         module('load', modulefile)
@@ -191,6 +175,31 @@ def setup_user_modules(user_modules, user_modulepaths):
     return (loaded_modules, paths)
 
 
+def check_modulefile(modulefile: str) -> None:
+    """Given a modulefile, check if modulefile exists, and there is
+    a unique modulefile available - e.g. if it's version is specified"""
+    output = run_module_cmd("avail --terse", modulefile).stderr
+
+    # Extract out the modulefiles available - strip out lines like:
+    # /apps/Modules/modulefiles:
+    modules_avail = [line for line in output.strip().splitlines()
+                     if not (line.startswith('/') and line.endswith(':'))]
+
+    # Remove () from end of modulefiles if they exist, e.g. (default)
+    modules_avail = [mod.rsplit('(', 1)[0] for mod in modules_avail]
+
+    # Modules are used for finding model executable paths - so check
+    # for unique module, or an exact match for the modulefile name
+    if len(modules_avail) > 1 and modules_avail.count(modulefile) != 1:
+        raise ValueError(
+            f"There are multiple modules available for {modulefile}:\n" +
+            f"{output}\n{MULTIPLE_MODULES_HELP}")
+    elif len(modules_avail) == 0:
+        raise ValueError(
+            f"Module is not found: {modulefile}\n{MODULE_NOT_FOUND_HELP}"
+        )
+
+
 def run_module_cmd(subcommand, *args):
     """Wrapper around subprocess module command that captures output"""
     modulecmd = f"{os.environ['MODULESHOME']}/bin/modulecmd bash"
diff --git a/test/test_envmod.py b/test/test_envmod.py
new file mode 100644
index 00000000..b911d6e6
--- /dev/null
+++ b/test/test_envmod.py
@@ -0,0 +1,105 @@
+import pytest
+from unittest.mock import patch
+
+from payu.envmod import check_modulefile
+
+
+@patch('payu.envmod.run_module_cmd')
+def test_check_modulefile_unique(mock_module_cmd):
+    # Mock module avail command
+    mock_module_cmd.return_value.stderr = """/path/to/modulefiles:
+test-module/1.0.0
+"""
+    # Test runs without an error
+    check_modulefile('test-module/1.0.0')
+
+
+@patch('payu.envmod.run_module_cmd')
+def test_check_modulefile_without_version(mock_module_cmd):
+    # Mock module avail command
+    mock_module_cmd.return_value.stderr = """/path/to/modulefiles:
+test-module/1.0.0
+test-module/2.0.0
+test-module/3.0.1
+"""
+
+    # Expect an error raised
+    with pytest.raises(ValueError) as exc_info:
+        check_modulefile('test-module')
+        exc_info.value.startswith(
+            "There are multiple modules available for test-module"
+        )
+
+    # Mock module avail command use debug in name
+    mock_module_cmd.return_value.stderr = """/path/to/modulefiles:
+test-module/1.0.0
+test-module/1.0.0-debug
+"""
+
+    # Expect an error raised
+    with pytest.raises(ValueError) as exc_info:
+        check_modulefile('test-module')
+        exc_info.value.startswith(
+            "There are multiple modules available for test-module"
+        )
+
+
+@patch('payu.envmod.run_module_cmd')
+def test_check_modulefile_exact_match(mock_module_cmd):
+    # Mock module avail command
+    mock_module_cmd.return_value.stderr = """/path/to/modulefiles:
+test-module/1.0.0
+test-module/1.0.0-debug
+"""
+
+    # Test runs without an error
+    check_modulefile('test-module/1.0.0')
+
+
+@patch('payu.envmod.run_module_cmd')
+def test_check_modulefile_exact_match_with_symbolic_version(mock_module_cmd):
+    # Mock module avail command
+    mock_module_cmd.return_value.stderr = """/path/to/modulefiles:
+test-module/1.0.0(default)
+test-module/1.0.0-debug
+"""
+
+    # Test runs without an error
+    check_modulefile('test-module/1.0.0')
+
+    # Rerun test with another symbolic version/alias other than default
+    mock_module_cmd.return_value.stderr = """/path/to/modulefiles:
+test-module/1.0.0(some_symbolic_name_or_alias)
+test-module/1.0.0-debug
+"""
+
+    # Test runs without an error
+    check_modulefile('test-module/1.0.0')
+
+
+@patch('payu.envmod.run_module_cmd')
+def test_check_modulefile_multiple_modules(mock_module_cmd):
+    # Mock module avail command
+    mock_module_cmd.return_value.stderr = """/path/to/modulefiles:
+test-module/1.0.0
+/another/module/path:
+test-module/1.0.0
+"""
+
+    # Expect an error raised
+    with pytest.raises(ValueError) as exc_info:
+        check_modulefile('test-module/1.0.0')
+        exc_info.value.startswith(
+            "There are multiple modules available for test-module"
+        )
+
+
+@patch('payu.envmod.run_module_cmd')
+def test_check_modulefile_no_modules_found(mock_module_cmd):
+    # Mock module avail command
+    mock_module_cmd.return_value.stderr = ""
+
+    # Expect an error raised
+    with pytest.raises(ValueError) as exc_info:
+        check_modulefile('test-module/1.0.0')
+        exc_info.value.startswith("Module is not found: test-module")